State the difference between a commercial bank and a central bank. – InterviewSolution

1.

State the difference between a commercial bank and a central bank.

Answer»

difference between a commercial bank and a central bank.

Point of difference	Commercial bank	Central bank
(1) Working objective	To earn profit	Public welfare and economic development
(2) Dealing with people	Directly deals with people	Does not directly deal with people
(3) Issue of currencies	Does not issue currency	Issue currency except Re 1 currency note and currency coins
(4) No. of banks in a country	There are many commercial banks in a country	There is only one central bank in a country (in India – Reserve Bank of India)
(5) Superior – subordinate	Commercial banks are subordinate to central bank	Central bank is the Apex Bank in India.

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