Explain the lender of last resort' function of the Central Bank

Explain the lender of last resort’ function of the Central Bank.
What role of RBI is known as 'lender of last resort?

It means that if a commercial bank fails to get financial accommodation from anywhere, it approaches the Central Bank as a last resort. Central Bank advances loan to such banks against approved securities. By offering loan to the commercial bank in situations of emergency, the Central Bank ensures that:
(i) The banking system of the country does not suffer from any set back.
(ii) Money market remains stable.