State bank of india
This query is : Resolved
CMA Ramesh Krishnan
(Expert)
29 July 2013
what is the query? elaborate it.
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:
---
### 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.
---
### 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.
---
### In short:
* SBI **can lend to other banks** in various ways.
* SBI **cannot lend to RBI** because RBI is the regulator and central bank.
---
If you want, I can explain how the interbank market or RBI’s role in liquidity management works!
---
### 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.
---
### 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.
---
### In short:
* SBI **can lend to other banks** in various ways.
* SBI **cannot lend to RBI** because RBI is the regulator and central bank.
---
If you want, I can explain how the interbank market or RBI’s role in liquidity management works!
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