| Central Bank | Commercial Banks |
| 1. This is Banker’s Bank, thus controls all the banking functions of the country. | 1. Commercial Bank is a part of the banking function and is controlled by Central Bank. |
| 2. Its motive is not to earn profit but to provide banking facilities. | 2. Its motive is to earn profits. |
| 3. It works as Government’s Banker, so the government provides many special facilities to the bank. lt has the monopoly of Note Issue | 3. They work as the bankers of the general public and the Government does not provide any special facilities to them. |
| 4. It grants loans to other banks of the country if they are in need of it. | 4. They do not have the power of issuing the notes. |
| 5. It manages the government’s reserve and provides security. | They get a loan from Central Bank when they are in need of it. They do not have any relation with government reserves. |
