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!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Query on effect of registration of property
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Number of years as per AS amortisation of Goodwill
- Equity Share Sale and Purchase
- Additional trade name
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Wrong CMPo8 file
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
