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Give ten differences between commercial bank and central bank

Difference Between Commercial Bank and Central Bank-


Central bank is a banker's bank. It work for the public welfare and economic development of a country. Central bank is governed by the government of a country. It controls the entries banking system of a country. It act as a banker to the Government. Central bank control the supply of money in the Market. Act as a custodian of a foreign exchange of the country.



Commercial bank provides banking services to businesses, institutions and some individuals. All the commercial banks works under the guidelines issued by RBI in India. Operates under the direct control of the central bank. It act as a state or private owned institution. Perform foreign exchange business only on the approval of the central bank. Acts as agents of the central bank.