Distinction Between Central Bank (RBI) and Commercial Bank

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.NoBasis

Difference

Central Bank

(RBI)

Commercial Bank
1.FunctionThe 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 depositsThe central bank does not accept deposits from public.The commercial bank accepts deposits from the public.
3.OwnershipIt is owned and controlled by the government if India.It can be owned by private and/or by government agencies.
4.LoansThe Central bank provides loan to banks and financial institutions.The commercial banks provides loan to industry and commerce
5.NumberThere is only one Central bank (RBI) in IndiaThere are many commercial bank in India.
6.MonitoringThe 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 PolicyThe Central bank frames the monetary policy and credit policy.The commercial banks do not frame any monetary policy.
8.Printing of currencyThe central bank can print currency notes.The commercial bank cannot print currency notes.

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