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Questions and Answers
What is the main purpose of developing the textbook 'Banking and Insurance'?
Who is among the authors of the textbook?
In which year was the first edition of the textbook published?
Where is the Odisha State Bureau of Textbook Preparation and Production located?
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Who reviewed the textbook 'Banking and Insurance'?
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What is the primary purpose of enhancing technology in Indian banks?
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What does the Real Time Gross Settlement (RTGS) system enable banks to do?
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Which of the following is a feature of Electronic Funds Transfer (EFT)?
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The introduction of e-cheques in India signifies a transition to which type of financial instrument?
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What role does the Reserve Bank of India (RBI) play in the RTGS system?
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Study Notes
Textbook Information
- Title: "Banking and Insurance" for +2 First Year Commerce
- Approved by: Council of Higher Secondary Education, Odisha
- Authors: Dr. Satyabrata Tripathy, Dr. Ajoy Mohanty, Dr. Banamali Panda, Dr. Sunil Kumar Jena
- Reviewed by: Prof. (Dr.) Girija Prasad Acharya
- Publication: Odisha State Bureau of Textbook Preparation and Production, Bhubaneswar
Key Publication Details
- First Edition published in 2016, with 5000 copies printed
- Publication No.: 190
- ISBN: 978-81-8005-370-2
- Price: Rs. 78
- Reproduction of content is prohibited without permission
Foreword Highlights
- The book aims to provide essential knowledge in banking and insurance for commerce students
- Emphasis on the importance of technology in banking to enhance competitiveness
- Innovative e-banking services discussed in the text include:
- Electronic Payment Services (E-cheques)
- Real-Time Gross Settlement (RTGS)
- Electronic Funds Transfer (EFT)
- Online Banking
- Mobile Banking
- Electronic Data Interchange (EDI)
Innovative E-Banking Services
- E-Cheques: Digital cheques to replace paper cheques, supported by amendments in the Negotiable Instruments Act.
- RTGS: Enables real-time electronic funds transfer, operational since March 2004, ensuring funds reach beneficiaries instantly.
- EFT: Allows direct bank-to-bank payments with detailed beneficiary information.
- Online Banking: Provides real-time account monitoring and transaction capabilities, accessible via internet-connected devices.
- Mobile Banking: Extends online banking services to mobile phones, facilitating banking from anywhere.
- EDI: Standardized electronic document exchange between businesses, enhancing efficiency in transactions.
Importance of Balance Sheet
- Reflects the bank's activities, financial health, and liquidity.
- Indicates the ability to maintain a balance between assets and liabilities.
- Yearly and inter-bank balance sheet comparisons reveal growth or decline in a bank’s performance.
- Confidence in a bank is often gauged through deposit trends reflected in the balance sheet.
Role of Commercial Banks
- Integral in mobilizing resources for national development, particularly in agriculture and rural industries post-nationalization in 1969 and 1980.
- Engage in essential services while managing portfolios to achieve returns on investments.
Credit Creation
- Refers to the function of banks to increase loans and advances through depositing money.
- Described as the power to expand secondary deposits via lending or investment activities.
- Primary deposits are the initial funds deposited by customers that enable credit creation.
Structure of Topics
- Focuses on credit creation, portfolio management, bank nationalization, and the role of banks in economic development.
- Includes questions for students to assess their understanding of the content.
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Description
This quiz is designed for students in the first year of the Higher Secondary (+2) Commerce stream, focusing on Banking and Insurance. It covers key concepts and practices in the banking sector and the insurance industry, approved by the Council of Higher Secondary Education, Odisha.
