HSC Arts 12th Board ExamMaharashtra State Board
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There is No Difference Between the Central Bank and a Commercial Bank. - HSC Arts 12th Board Exam - Economics

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Question

There is no difference between the Central bank and a commercial bank.

Solution

No, I do not agree with this statement because there are differences between Commercial Bank and Central Bank.

  Commercial Bank Central Bank
1

Meaning

The commercial bank is that bank which accepts deposits from public for the purpose of lending. It also performs secondary functions.

 

The Central Bank (RBI) regulates money supply in the country. It also acts as a banker to the Government and to the other banks.

2

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.

3

Printing of Currency:-The commercial bank cannot print currency notes and coins

The RBI has the power to print currency notes in India. (Except 1 Rs. Notes)

4

Acceptance of Deposits

The commercial bank accepts deposits from the public

 

The RBI does not accept deposit from the public

5

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.
6

Ownership

It can be owned by private and /Government agencies.

 

It is owned and controlled by Government of India.

  Is there an error in this question or solution?

APPEARS IN

 2014-2015 (March) (with solutions)
Question 5.5 | 4.00 marks
Solution There is No Difference Between the Central Bank and a Commercial Bank. Concept: Definition - Central Bank.
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