RBI AS LENDER OF THE LAST RESORT :
Under the RBI Act, the scheduled banks are eligible to certain financial facilities from the RBI. The facilities which are provided by RBI for the financial needs of banks are laid down in Section 17 of RBI Act. The facility is generally provided in the form of rediscount of eligible bills and loans and advances against eligible securities.
Section 18(1)(3) provides for short term loans against any other securities which the RBI may consider sufficient.