Banking service is the nerve center of industry and commerce in a country. It plays a vital role by providing the money required for their regular functioning and development. The word Bank, normally refers to commercial bank. There are many types of banks rendering different types of services. Central Bank is the most important one among them.
Every nation has one central bank. It is owned by the Government of the country. The control over the entire banking system of a country is vested with this apex bank. Central banks are known by different names in different countries. Their functions also vary from country to country. A Central bank is set up as an autonomous or quasi- autonomous body. Stability and growth of the country’s economy are the main goals of a Central bank. In India the Reserve Bank of India (RBI) is the central bank.