Central Bank and Commercial Bank
Solution:
Central Bank | Commercial Bank |
1. Function: The main function is to accept deposits from the public for lending to industry and others | The main function of the central bank (RBI) is to regulate the money supply in the country. |
2. Printing of Currency: The commercial banks cannot print currency | 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 the public. |
4. Loans Commercial banks provide loans to industry and commerce. | The Central bank provides loans to bankers and financial institutions |
5. Ownership: It can be owned by private and/or by government agencies. | It is owned and controlled by the government of India |
6. Number of Banks: There are many commercial banks in India. | There is only one Central Bank (RBI) in India. |
7. Monetary policy The commercial banks do not frame any monetary policy The commercial bank does not keep a check on the central bank | The Central Bank frames the monetary and credit policy. |
