|
Sr.
No.
|
Basis
of Difference
|
Commercial Bank
|
Central Bank
|
|
1.
|
Function
|
The
main function is to accept deposits from public for lending to industry and
others.
|
The
main function of the central bank (RBI) is to regulate money supply in the
country.
|
|
2.
|
Printing
of currency
|
The
commercial bank cannot print currency notes.
|
The
central bank can print currency notes.
|
|
3.
|
Acceptance
of deposits
|
The
commercial bank accepts deposits from the public.
|
The
central bank does not accept deposits from public.
|
|
4.
|
Loans
|
The
commercial banks provides loan to industry and commerce.
|
The
Central bank provides loan to banks and financial institutions.
|
|
5.
|
Ownership
|
It
can be owned by private and/or by government agencies.
|
It
is owned and controlled by the government if India.
|
|
6.
|
Number
|
There
are many commercial bank in India.
|
There
is only one Central bank (RBI) in India.
|
|
7.
|
Monetary
Policy
|
The
commercial banks do not frame any monetary policy.
|
The
Central bank frames the monetary policy and credit policy.
|
|
8.
|
Monitoring
|
The
commercial bank does not keep check on the Central bank.
|
The
Central bank keeps a check on the working of the commercial banks`.
|
Commercial Bank Central Bank
