Central Bank:
1. The central bank is the apex banking institution whose main function is to control, regulate and stabilise the monetary system of the country in the national interest.
2. The main function of central bank is to control, regulate and stabilise the banking and monetary system of the country.
3. It does not deal with public directly. It acts as the banker to government and bankers bank.
4. It enjoys the monopoly right to print and issue currency notes.
5. Central Bank controls the credit.
6. There is only one Central Bank in India. R.B.I. is owned by Government.
Commercial Bank:
1. A commercial bank is a business organisation which basically accepts deposits from public and lends to others who need fund and create credit.
2. The main function commercial bank is to accept deposits and lend loans and advances.
3. It deals with the public directly. They are banker to general public.
4. Commercial banks do not possess such rights.
5. Commercial banks create credit.
6. Owned by private or government. There are several commercial banks like State Bank of India, ICICI Bank, Canara Bank, etc.