| Indigenous Banks | Commercial Banks |
| 1. The deposits with these bankers are very nominal. They generally do business with their own capital. | 1. Major portion of their capital is formed by means of deposits. The success of these banks depends upon their deposits. |
| 2. They do not provide the facility to withdraw money by cheque. | 2. They provide the facility for making payment by cheque. |
| 3. They do some other business along with banking business. | 3. They only perform banking business. |
| 4. They even give a loan without any security | 4. These banks do not give loan without proper security. |
| 5. The rate of interest charged by them is high and keeps on changing. | 5. The rate of interest is fixed and is comparatively lower than indigenous bankers. |
