Distinguish between the following: Commercial bank & Central bank

Distinguish between the following:
Commercial bank & Central bank

ANSWER:


Basis of Difference
Loan
Overdraft
Meaning
In the case of loan, a certain amount is advanced for a specific purpose and a specific period.
It is a facility given to a current account holder to withdraw amount more than what he/she has in his/her account.
Eligibility
Any account holder can get a loan from a bank.
Only current account holders can enjoy this facility.
Rate of interest
Comparatively low interest rate is charged.
A high interest rate is charged.
Duration
It is meant for a long period.
It is meant for a short period.
Amount
The amount given as a loan is high.
The amount of an overdraft is comparatively smaller.
Separate account
Separate account is required.
Separate account is not required.
Basis of Difference
Commercial Bank
Central Bank
Objective
The main objective of a commercial bank is to make profits.
The main objective of the central bank is to regulate and control the functioning of other banks.
Issue of notes
It cannot issue currency notes and coins.
It has the exclusive right to issue currency notes and coins.
Deposits
It accepts deposits from the general public.
It does not accept deposits from the general public.
Public dealings
It directly deals with the general public.
It does not directly deal with the general public.
Ownership
It can be owned by private players or the Government.
There is only one central bank in India, i.e., RBI.
Number
There are many commercial banks in India.
There is only one central bank in India, i.e., RBI.