Difference between Central Bank & Commercial Bank

"CENTRAL BANKS VS. COMMERCIAL BANK"

For SBI PO-RRBs-IBPS PO/Clerk

Sl. No.	Central Bank	Commercial Bank
1.	The bank which superintends the monetary system of the country is known as Central Bank.	The foundation, which provides banking services to the public, is known as Commercial Bank.
2.	Work for the public well-being and economic development of a country. A central bank is governed by the government of a country.	It operates for Profit Motive. The majority of dowry is held by the government as well as the private sector.
3.	The central bank is the apex monetary institution, which has been specially empowered to exercise control over the banking system of the country	The commercial bank, on the contrary, is a component unit of the banking system.
4.	Parliamentary Act- Reserve Bank of India Act, 1934.	Parliamentary Act- Banking Regulation Act, 1949.
5.	Central Bank acts as a state owned institution	Commercial Bank acts as a state or private owned institution.
6.	Controls credit creations in the economy, thus acts as a clearing house of other banks	This bank acts as a clearing house only as an agent of the central bank.
7.	This bank issues currency and control the supply of money in the Market.	This bank does not Issue currency, but only adds to the approval of the central bank.
8.	Monetary Authority - It is the supreme monetary authority with wide powers.	No such authority.
9.	Right to print and issue currency notes – “Yes”	Right to print and issue currency notes –“No”
10.	The chief of this bank is designated as “GOVERNOR”	The chief of this bank is called as “CHAIRMAN”
11.	The control of credits in symmetry with the needs of business & economy is done by this bank.	Credit is created to meet the business requirements.
12.	The central bank is the scorpion of the foreign exchange reserves of the country.	The commercial banks are only the dealers in foreign exchange.
13.	Central Bank deals with General Public	Commercial Bank deals with Governments and Banks.