Difference Between Reserve Bank and State Bank

Hello friends, in today's article we will know what is Reserve Bank and State Bank and what is the difference between them. Will learn about them in detail. After reading this article, you will not have to read another article about the difference between Reserve Bank and State Bank. So definitely read this article till the end, then let's start.

Difference Between Reserve Bank and State Bank

What is Reserve Bank?

     RBI whose full name is Reserve Bank of India, which is called Indian Reserve Bank in Hindi. Reserve Bank Of India is the central bank of India, about which almost everyone knows. RBI is the apex bank of the country, all other banks whether it is an Indian bank or a foreign bank operating in India, they have to obey the orders of the Reserve Bank.

        The establishment of the Reserve Bank of India was first recommended by the Hilton Young Commission in 1926, after which the Indian Banking Act was enacted in 1934 and the Reserve Bank of India was established on 1 April 1935. But at that time there was British rule and this right was not given as much as it should have been but when our country India became independent, then it was nationalized on January 1, 1949. And the Government of India was given all those rights which were not given by the British Government.

What is State Bank?

      SBI whose full name is State Bank of India, which is called State Bank of India in Hindi. State Bank Of India is a commercial banker of India. About which almost everyone knows. It is a public bank. There are many people among you whose bank account will definitely be in this. Its branches are in India as well as abroad. And it is the oldest commercial bank in India.

      During the British era in India, there were three commercial banks Bank of Bengal, Bank of Bombay, Bank of Madras which used to perform different functions. But on January 27, 1921, the British government merged these three banks into one bank named Imperial Bank. For many years, this bank continued to do its work properly and after a few years of India's independence, it was nationalized by the Government of India on 1 July 1955 and at the same time its name was also changed from "Imperial Bank" to "State Bank of India". It was done and till today this bank is doing its work successfully with this name.

What is the difference between Reserve Bank and State Bank?

• Reserve Bank is the apex bank of the country i.e. the Central Bank. Whereas State Bank is the commercial bank or commercial bank of the country.
• Reserve Bank works for the interest and welfare of the people without any profit, while the same State Bank works for the purpose of earning profit, its only purpose is to earn profit.
• The Reserve Bank performs major functions such as monitoring and controlling the financial system of the country's economy, etc., while the State Bank performs the main functions such as depositing the money of common citizens and providing loans when needed, etc. works .
• Only the central bank of every country has the right to print notes, in the same way notes are printed by the Reserve Bank, the central bank of our country. But the State Bank does not have any such right.
• The State Bank acts as the agent of the Reserve Bank while the Reserve Bank acts as the agent of the Government of India.
• The Reserve Bank has control over all the banks working in the country, whether the bank is from abroad or the same State Bank of its country has control only over itself.
• The Reserve Bank opens the account of the government, banks, the same Commercial Bank i.e. the State Bank opens the account of the common citizen.
• When common citizens like us need a loan, we go to the commercial bank, but when the commercial bank and the government need a loan, they go to the Reserve Bank.

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