"The Reserve Bank of India acts as the banker to the Governments". Elaborate.

Reserve Bank acts as banker to the Central Government and all the State Governments in India. As a banker to the Government, the Reserve Bank receives and pays money on behalf of the various Government departments. The Reserve Bank also undertakes to float loans and manage them on behalf of the Governments. It also provides Ways and Means Advances a short-term interest bearing advance to the Governments, to meet the temporary mismatches in their receipts and payments. Besides, it arranges for investments of surplus cash balances of the Governments as a portfolio manager. The Reserve Bank also acts as advisor to Government, whenever called upon to do so, on monetary and banking related matters. The banking functions for the governments are carried out by the Public Accounts Departments at the offices/branches of the Reserve Bank, while management of public debt including floatation of new loans is done at Public Debt Office at offices/branches of the Reserve Bank and by the Internal Debt Management Department at the Central Office. So it can be asked that the Reserve Bank of India acts, as the banker to the Government