The central bank works as a commercial bank for the government. Central bank provides all services and facilities to the government like ordinay banks provide services to public. Central bank manages all governement departments undertaking and the funds of government. It provides loans to government when expenditure exceeds the revenue. This is called deficit financing through borrowing from RBI. It manages public debt also. It also accepts the payment of taxes from the public on behalf of the government and makes payment for the cheques issued by government.
