<P> Section 49 of the Reserve Bank of India Act 1934, defines Bank Rate as "the standard rate at which it (RBI) is prepared to buy or re-discount bills of exchange or other commercial paper eligible for purchase under this Act". </P> <P> When the commercial bank for instance, has lent or invested all its available funds and has little or no cash over and above the prescribed minimum, it may ask the central bank for funds . It may either re-discount some of its bills with the central bank or it may borrow from the central bank against the collateral of its own promissory notes . </P> <P> In either case, the central bank accommodates the commercial bank and increases the latter's cash reserves . This Rate is increased during the times of inflation when the money supply in the economy has to be controlled . </P> <P> At any time there are various rates of interest ruling at the market, like the deposit rate, lending rate of commercial banks, market discount rate and so on . But, since the central bank is the leader of the money market and the lender of the last resort, al other rates are closely related to the bank rate . The changes in the bank rate are, therefore, followed by changes in all other rates as the money market . </P>

Which of the following functions as a controller of credit in india