State any three points of distinction between Central Bank and Commercial Banks.
Central Bank:
1. Work for
the public welfare and economic development of a country. A central bank is
governed by the government of a country.
2. Controls
and regulates the entries banking system of a country.
3. Does not
deal directly with the public. It issue guidelines to commercial banks for the
economical development of the country.
Commercial Bank:
1. Operates
for Profit Motive. The Majority of Stake is held by the government as well as
the private sector.
2. Operates
under the direct control and supervision of the central bank. In India all the
commercial banks works under the guidelines issued by RBI.
3. Deals
directly with the Public. It serves the financial requirement of the public by
providing short and medium terms loans and depositing and securing money that
can be drawn on demand.
Central Bank:
1. Work for the public welfare and economic development of a country. A central bank is governed by the government of a country.
2. Controls and regulates the entries banking system of a country.
3. Does not deal directly with the public. It issue guidelines to commercial banks for the economical development of the country.
Commercial Bank:
1. Operates for Profit Motive. The Majority of Stake is held by the government as well as the private sector.
2. Operates under the direct control and supervision of the central bank. In India all the commercial banks works under the guidelines issued by RBI.
3. Deals directly with the Public. It serves the financial requirement of the public by providing short and medium terms loans and depositing and securing money that can be drawn on demand.
