Question
State the difference between a Commercial Bank and a Central Bank.
| No. | Commercial | Central Bank |
| $1$ | The main objective of any commercial bank is to earn maximum profit. | The main objective of the central bank is to maximize economic welfare of a country. |
| $2$ | Commercial banks deals with general public. | Central bank does not have direct public dealing. |
| $3$ | Commercial banks accept deposits from the public. | Central bank does not accept public deposit. |
| $4$ | Commercial bank is a bank dealing with the general public, accepting deposits from them and provide loans to large numbers of households and farms. | Central bank is an apex institution of the monetary and banking structure of the country |
| $5$ | Commercial banks do not have right to issue currency. | Central bank enjoys the monopoly power to issue note. |
| $6$ | A country has a large number of commercial banks. | A country has only one central bank. |
| $7$ | Commercial banks operate under the guidelines of the central bank. | Central bank regulates the entire banking system of the country. |
| $8$ | Commercial bank is a banker only of the general public. | Central bank acts as a banker to the government of a country and also the banker of the commercial banks. |
| $9$ | Commercial bank owned by both government and private bodies. | Central bank is owned by the government only. |
| $10$ | E.g. $SBI,$ Bank of India, $HDFC, ICICI,$ etc. are commercial banks. | Reserve bank of India is the central bank. |
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