Distinction Between (RBI) Central Bank and Commercial Bank
HSC Board of Maharashtra State Board – class 12th – Organization of Commerce and management – Studies notes, study material, study material, study notes, study perpetration, distinguish between, difference between Central Bank (RBI) and Commercial Bank.
| Sr.No | Basis Difference | Central Bank (RBI) | Commercial Bank |
| 1. | Function | The main function of the central bank (RBI) is to regulate money supply in the country. | The main function is to accept deposits from public for lending to industry and others. |
| 2. | Acceptance of deposits | The central bank does not accept deposits from public. | The commercial bank accepts deposits from the public. |
| 3. | Ownership | It is owned and controlled by the government if India. | It can be owned by private and/or by government agencies. |
| 4. | Loans | The Central bank provides loan to banks and financial institutions. | The commercial banks provides loan to industry and commerce |
| 5. | Number | There is only one Central bank (RBI) in India | There are many commercial bank in India. |
| 6. | Monitoring | The Central bank keeps a check on the working of the commercial banks`. | The commercial bank does not keep check on the Central bank. |
| 7. | Monetary Policy | The Central bank frames the monetary policy and credit policy. | The commercial banks do not frame any monetary policy. |
| 8. | Printing of currency | The central bank can print currency notes. | The commercial bank cannot print currency notes. |