State bank of india

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ashwani

ashwani (Querist)
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29 June 2013 can sbi given funds to the others bank except rbi?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 July 2013 what is the query? elaborate it.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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25 July 2025 Yes, the **State Bank of India (SBI)** can provide funds to other banks, except the **Reserve Bank of India (RBI)**, through various channels. Here's a quick overview:

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### SBI lending to other banks:

* **Interbank Lending:**
SBI can lend money to other banks in the interbank market for short-term liquidity needs. This is common among banks to manage their daily cash flow.

* **Syndicated Loans / Consortium Lending:**
SBI can participate with other banks to lend to corporates or projects by pooling funds.

* **Refinance / Credit Lines:**
SBI can also provide refinance or credit facilities to smaller banks or financial institutions, often with RBI’s approval or guidelines.

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### But SBI **cannot lend to RBI** because:

* RBI is the central bank and regulator, and it **does not borrow from commercial banks**.
* RBI lends to banks through **refinance schemes** and acts as a lender of last resort.

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### In short:

* SBI **can lend to other banks** in various ways.
* SBI **cannot lend to RBI** because RBI is the regulator and central bank.

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If you want, I can explain how the interbank market or RBI’s role in liquidity management works!

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