(a) Central Bank : 

1. Central bank functions as the apex bank of the country. It is a bank of all the banks. 

2. The Central bank designs and controls all instruments of monetary policy of the country. 

3. Central bank is the sole authority of note issuing. 

4. Central bank does not deal directly with the general public. 

5. Central bank does not accept any deposits or advance loans. 

Commercial Bank : 

1. Commercial banks functions according to the rules and regulations stipulated by the central bank. 

2. Commercial banks only executes the monetary policy as directed by the central bank. 

3. Commercial banks Contribute to the flow of money only by a way of credit creation. 

4. Commercial banks deal directly with the public. 

5. Commercial banks accept deposits and advance loans. 

(b) (1) Broad Coverage : All the consumers, whether they are rich or poor, have to pay indirect taxes. For this reason, it is said that indirect taxes can cover more area than direct taxes. 

(2) Popular : Indirect taxes are more popular than direct taxes. When a common man purchases a commodity, then he or she can hardly understand whether he or she is actually paying the tax or not. Hence it is not unpopular. 

(3) Productivity not Violated : The common people are not always conscious while paying an indirect tax. Hence it doesn’t affect the willingness to work or propensity to work among the common people. 

(4) Social Reforms : Indirect taxes sometimes help to reform the society also. The Government imposes indirect taxes on those commodities which are socially harmful.