Is there a way to configure summary module so that it shows only updates that are related to me, my friends and my groups?

It kind of depends on what the journal entry security is set to. If it is set to Everyone, then you are going to see journal items from everyone in your summary. But if it is set to Friends, then you wont be able to see journal items when you go to a user's profile, who is not your friend.

We need a summary module in 2 pages. First Page is "Community" which shows all the updates by everyone and second page "My Community" which shows only updates related to my friends and my groups. Looks like we need to develop custom module for "My Community"?