Distinguish Between Commercial Bank and Central Bank

1. Function ↓

The main function of a Commercial Bank is to accept deposits from public for the purpose of lending to industry and others.

The Central Bank regulates money supply in the country. It also acts as a banker to the government and to the other banks operating in a country.

2. Printing of Currency ↓

The Commercial Banks cannot print currency notes and make coins.

The Central Bank of India (i.e. RBI) has the power to print currency notes from Rs.2 and above.

3. Acceptance of Deposit ↓

The Commercial Bank accepts deposits from the public.

The Central Bank don't accept any deposit from the public.

4. Provision of Loans ↓

The Commercial Bank provides loans to the industry and to the public.

The Central Bank provides loans to scheduled banks and financial institutions.

5. Ownership ↓

Commercial Banks can be owned by private and / or Government agencies.

Central Bank of India (RBI) is owned and controlled by Government of India.

6. Total Number ↓

There are several Commercial Banks currently operating in India.

However, there is only one apex Central Bank (i.e RBI) in India.

7. Framing Monetary Policy ↓

Commercial Banks do not frame monetary policy of the country.

Central Banks frames monetary policy of a country.

8. Monitory Control ↓

Commercial Bank does not have any control over Central Bank.

Central Bank monitors the working of all commercial banks.

9. Registration and Establishment ↓

In India, Commercial banks are registered under the Banking Regulation Act of 1949.

The Central Bank of India (RBI) is established under RBI Act of 1934.

10. Account Holders ↓

Individuals and organisations are the account holders of Commercial Banks.

Banks and Government are the account holders of a Central Bank.