Correct Answer: RBI

Solution : The correct option is RBI.

The institution known as the lender of the last resort is the Reserve Bank of India (RBI). The RBI is responsible for regulating and supervising the country's financial system, including banks and financial institutions. It plays a crucial role in providing liquidity support to banks and the financial system in times of financial stress or crisis. This function helps maintain stability in the Indian financial system and prevents widespread financial panic.