Chapter 3 Part 2 - Banking

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Economics Class 12
Macroeconomics

Difference between Central bank and Commercial Bank

Last updated at April 16, 2024 by

Difference between Central bank and Commercial Bank

There are 2 types of banks

  • Banks which do Public Dealing

Example- PNB,SBI,ICICIC

These are called Commercial Banks

  • Banks which do not do Public Dealing

Example- RBI in India

It is called Central Bank

Central Bank vs Commercial Bank - Teachoo.JPG

Difference between Central Bank and Commercial Bank - Teachoo.JPG

NCERT Questions

No questions in this part

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Question 1

In the following questions, select the correct answers:

Which bank controls the banking and monetary structure of India?

a. Reserve Bank of India

b. State Bank of India

c. Axis Bank

d. World Bank

View Answer

Question 2

Which of the following agency is responsible for issuing Rs 1 currency note in India?

a. RBI

b. Ministry of Commerce

c. Ministry of Finance

d. Niti Ayog

View Answer

Transcript

Central Bank vs Commercial Bank Reserve Bank of India (Central bank) State Bank of India (Commercial Bank) Questions In which Bank can we open an account? SBI (Commercial Bank) Which bank can give loan to us? SBI (Commercial Bank) Which bank can give loan to SBI? RBI(Central Bank) Which Bank can issue Currency? RBI (Central Bank) Commercial Bank is Bank of Public (Deals with Public) Central bank(Reserve Bank) is bank of bank Difference between Central Bank and Commercial Bank Central Bank Commercial Bank It is the main body which regulates Banking and Monetary Policy of Country It is banks of banks, it does not deal with public directly There is only 1 Central Bank in Country Example Reserve bank in India It has power to print and issue currency It refers to the Institutions which accept deposits with public and give loan to public It is the bank which deals with public There are many Commercial banks in the Country Example State bank of India, ICICI BankIt cannot issue currency

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