Write the distinction between RBI and Commercial Bank.

Question

Distinction between RBI and Commercial Bank are:BasisCentral BankCommercial BankMeaningThe bank which looks after the mo...

Accepted Answer

Distinction between RBI and Commercial Bank are:BasisCentral BankCommercial BankMeaningThe bank which looks after the mo...

Basis	Central Bank	Commercial Bank
Meaning	The bank which looks after the monetary system of the country	The establishment, which provides banking services to the public is known as Commercial Bank.
What is it?	It is a banker to the banks and the government of the country.	It is the banker to the citizens of the nation.
Examples	Bank of Baroda, Dena Bank, SBI, Central Bank of India etc. are commercial bank.	Reserve Bank of India is the Central Bank in India.
Profit Motive	Central bank does not operate for making profit	Commercial banks operate with the motive of earning profit
Clients	Commercial banks and the government	Individuals and businesses
Governing Act	Commercial Banks in India are governed by the Banking Regulation Act, (BR Act), 1949	The Reserve Bank of India was established under the Reserve Bank of India Act, 1934
Currency Issuance	Performs no such role.	As the Central Bank of India, it has the authority to issue and print currency.
Acceptance of Deposits	The commercial bank accepts deposits from the public	The RBI does not accept deposit from the public
Ownership	Central bank is always having public ownership	Commercial banks can be either public or private in their ownership
Provision of Loans	The commercial bank provides loans to the industry and to the public	The RBI provides loans to scheduled banks and financial institution.