Although Central Bank does not deal with public, it deals with government. It conducts the same banking operations for government as Commercial Bank do for public, it gives them loans, does interbank transfers etc. for government.

Detailed Answer:

"Government Banker’s Function of the Central Bank"-Central Bank acts as a banker advisor and agent to the Central and State Governments. As the Common Public keep their cash balance, demand deposits and time deposits with Commercial Banks; a Central Bank manages the cash reserves and demand deposits of governments in current accounts. It carries out the exchange, remittance and other banking operations on behalf of government.

It issues loans and advances to the government and does buying and selling of securities on behalf of government. It also advises the government to frame monetary policy of the country to control the credit creation and money market. That is why the Central Bank is a 'Governments Banker.'