The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following? 1. Other banks retain their deposits with the RBI. 2. The RBI lends funds to the commercial banks in times of need. 3. The RBI advises the commercial banks on monetary matters. Select the correct answer using the codes given below :

The role of the Reserve Bank of India (RBI) as a 'bankers' bank' encompasses several functions relating to its relationship with other commercial banks. 1. Statement 1 is correct. Other banks are required to maintain a portion of their net demand and time liabilities as deposits with the RBI, known as the Cash Reserve Ratio (CRR). Banks also maintain current accounts with the RBI for inter-bank settlement purposes. 2. Statement 2 is correct. The RBI functions as the lender of last resort. It lends funds to the commercial banks in times of need (e.g., liquidity shortages) through various facilities like the repo window (Marginal Standing Facility, LAF Repo). 3. Statement 3 is correct. As the central bank and regulator, the RBI advises the commercial banks on monetary matters, including policy rates, credit policies, regulations, and overall economic conditions, influencing their operations.