Commercial Bank Central Bank

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`.