Differences Between A Central Bank And Commercial Banks – Central bank and commercial banks are one of the Main part of Any Economy Financial System . Central Bank perform a Role Of Bankers to All Banks . This is very important topic for Any Exams Which are conducted In india.

If you Doing MBA, BBA, BBM, Or Preparing for Any Competitive Exams .

This topic is Asked in Every Exam. IBPS PO, IBPS RRB And IBPS Clerk Exams also Cover this Topic In Syllabus.


Central bank Commercial Bank
The central bank is the apex institution of the monetary and banking structure of the countryThe commercial bank is one of the organs of the money market.
The central bank is a no-profit institution which implements the economic policies of the governmentBut the commercial bank is a profit-making institution.
The central bank is owned by the governmentwhereas the commercial bank is owned by shareholders.
The central bank is a banker to the government and does not engage itself in ordinary banking activitiesThe commercial bank is a banker to the general public.
The central bank has the monopoly of note issuewhile the commercial bank can issue only cheques
The central bank is the banker’s bank. As such, it grants accommodation to commercial banks in the form of rediscount facilities, keeps their cash reserves, and clears their balances.the commercial bank advances loans to and accepts deposits from the public.
The central bank controls credit in accordance with the needs of business and economy.The commercial bank creates credit to meet the requirements of business.
The central bank helps in establishing financial institutions so as to strengthen money and capital markets in a country.On the other hand, the commercial bank helps industry by underwriting shares and debentures, and agriculture by meeting its financial requirements through cooperative or individually.
The chief executive of the central bank is designated as “Governor”whereas the chief executive of a commercial bank is called ‘Chairman’.
The central bank is the custodian of the foreign currency reserves of the countrythe commercial bank is the dealer of foreign currencies
Every country has only one central bank with its offices at important centres of the countryOn the other hand, there are many commercial banks with hundreds of branches within and outside the country.


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UPSC Prelims 2020 Test Series 500+ Tests Pdf Solution