Banking chapter

There are two types of bank in our banking system one is central bank and another is commercial bank (Bank of Baroda, BOI)... Central bank is an imp institution of our economy as it does the work of issue of money, controlling credit through various policies it is bank of govt as bank does all its transaction through central bank and eve it help in suggesting financial maters, it also said as lender of last resolvt as whenever the commercial bank fails to get finance from other it can reach RIB so its know as last resolvt...It also performs various open market operations through direct sale or purchase of securities.. Commercial Banks are the banks which have a basic function of lending loans and accepting deposits(money which a person keeps in bank).. It also has some agency functions like collection of bill, int premiums, etc and also some service facilities like ATM, RTGS, locker etc