Page 95 - VIRANSH COACHING CLASSES

5. Restrictions
There are no restrictions on the The customer have certain re- Amount becomes due on the
operation of a current account strictions on withdrawals. expiry of the fixed period. If
as long as there is balance in withdrawn earlier, then the
the acount. rate of interest will be less than
applicable.
6. Interest Rate
Normally interest is not given Interest rate is low Interst rate is higher, longer the
period, higher will be the rate of
interest.
7. Nature of account
It is of continuous Nature It is of continuous Nature It is for fixed period of time
except when the fixed deposit
receipt is renewed.
8. Facilities
Temporary overdraw facility is No overdraft facility is given. 90% of the amount of fixed
given deposit can be given as loan.

3) Commercial Bank and Central Bank.
Commercial Bank Central Bank
1. Function
The main function is to accept deposits The main function of the central bank (RBI) is to regu-
from public for lending to industry and late the money supply in the country.
others.
2. Printing of currency
The commercial banks cannot print The central bank can print currency notes.
currency
3. Acceptance of deposits
The commercial bank accept deposits The Central Bank does not accept deposits from public.
from public
4. Loans
The commercial banks provide loan to The Central bank provide loans to bankers and financial
industry and commerce. institutions
5. Ownership
It can be owned by private and /or by the It is owned and controlled by the government of India
government agencies.
6. Number of banks
There are many commercial banks in There is only one Central Bank (RBI) in India.
India.
7. Monetary policy
The commercial banks do not frame any The Central Bank frames the monetary and credit policy.
monetary policy

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