Banking Exam Question - What are the Main Difference Between Commercial Bank & Central Bank? Explain

Introduction - Difference Between Commercial Bank & Central Bank

• If the central bank prepares the policy of the country, then the committees should comply with it, as the Bank of the Banks are called Central Banks, to control, direct and provide necessary services and facilities to other banks.
• The objective of the central bank is not to earn profit but the purpose of commerce banks is to profit.
• If the central bank notes the withdrawal of the job, then the business bank does not.
  If the central bank does not perform normal banking, the Commerce Bank serves simple banking.
• If the central bank controls the credit, the Commerce Bank creates a credit.

Central Bank:

• A central bank, reserve bank, or fiscal specialist is an organization that deals with a state's cash, cash supply, and loan fees. National banks likewise normally administer the business managing an account arrangement of their separate nations.
• NRB, the national bank of Nepal, built up in 1956 under the Nepal Rastra Bank Act 1955 is the money related, administrative and supervisory specialist of banks and monetary foundations. The new Nepal Rastra Bank Act 2002 which replaces the past Act has guaranteed operational self-sufficiency and autonomy to the Bank.

Commercial Bank

• A commercial bank is a foundation that gives administrations, for example, tolerating stores, giving business advances, and offering essential venture items. Business bank can likewise allude to a bank, or a division of an extensive bank, which all the more particularly manages store and advance administrations gave to companies or general people groups.
• A commercial bank is a bank whose fundamental capacities are to acknowledge request stores and to make advances, along these lines encouraging the move of assets in the economy. Regularly, business banks influence credits to business to firms, private people, and government related substances.