Podcast
Questions and Answers
EMI stands for _____________.
EMI stands for _____________.
- Equal Monthly Investment
- Equated Monetary Instalment
- Equated Monthly Instalment (correct)
- Equal Monthly Instalment
The Imperial Bank of India was renamed as __________________.
The Imperial Bank of India was renamed as __________________.
- State Bank of India (correct)
- HDFC
- Bank of Baroda
- The Central Bank of India
Interest on a current account is earned on the available balance.
Interest on a current account is earned on the available balance.
False (B)
What is required to operate an Automated Teller Machine (ATM)?
What is required to operate an Automated Teller Machine (ATM)?
The rate of interest on a fixed deposit account is __________ than that of a savings account.
The rate of interest on a fixed deposit account is __________ than that of a savings account.
Match the following banking services with their descriptions:
Match the following banking services with their descriptions:
Name one advantage of Internet Banking.
Name one advantage of Internet Banking.
Where did banking first originate?
Where did banking first originate?
The State Bank of India was originally started as the Imperial Bank of India in 1955.
The State Bank of India was originally started as the Imperial Bank of India in 1955.
What is the role of a depositor in a bank?
What is the role of a depositor in a bank?
To open a bank account, an individual must provide a copy of _____ proof.
To open a bank account, an individual must provide a copy of _____ proof.
Match the type of bank account with its purpose:
Match the type of bank account with its purpose:
Which document is used to record all transactions in a bank account?
Which document is used to record all transactions in a bank account?
An individual can withdraw money without using an ATM card.
An individual can withdraw money without using an ATM card.
What must a borrower pay in addition to the loan amount?
What must a borrower pay in addition to the loan amount?
Flashcards
What is a Bank?
What is a Bank?
A financial institution where people can deposit money for safekeeping and withdraw it when needed.
Who is a Depositor?
Who is a Depositor?
A person who deposits money into a bank account.
Who is a Borrower?
Who is a Borrower?
A person who borrows money from a bank.
What is Interest?
What is Interest?
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What is a Passbook?
What is a Passbook?
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What is an ATM Card?
What is an ATM Card?
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What is a Cheque Book?
What is a Cheque Book?
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What is a Saving Bank Account?
What is a Saving Bank Account?
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Savings Account Interest
Savings Account Interest
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Current Account
Current Account
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Fixed Deposit
Fixed Deposit
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Recurring Deposit
Recurring Deposit
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PIN (Personal Identification Number)
PIN (Personal Identification Number)
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ATM (Automated Teller Machine)
ATM (Automated Teller Machine)
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Internet Banking
Internet Banking
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Mobile Banking
Mobile Banking
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Study Notes
Origin of Banks
- Banking originated in temples of Babylonia before 2000 BC.
- Greek, Jewish, and Italian banking systems followed.
- Bank of Bengal was the first banking institution in India.
- Imperial Bank of India was established in 1921, later becoming State Bank of India (largest in India).
What is a Bank?
- A bank is a place to deposit and withdraw money safely.
- Depositors earn interest.
- Borrowers repay loans with interest (EMIs).
- Required documents for account opening include: account opening forms, copies of address proof, and a photograph.
- Banks issue account numbers and associated documents (e.g. pay-in-slips, cheque books, passbooks, logins)
Bank Account Types
- Savings Bank Account: Promotes saving habits, often with restrictions on the number and deposit amounts. Earns interest on deposits.
- Current Bank Account: Used by businesses and companies. Allows overdrafts, more frequent transactions, and higher withdrawal limits that don't always include interest payments.
Bank Services
- ATM Cards (Debit Cards): Allow deposits and withdrawals, balance checks, and transactions without visiting a branch.
- Passbooks: Record all transactions in a bank account.
- Cheque Books: Used for payments; signatures are essential for valid cheques
- Investment services: Banks provide various investment options.
- Other services: Accepting payment for utility bills, taxes, and various other fees.
Other Account Details
- Fixed Deposits: Depositors invest a lump sum for a set period; fixed interest rates are typically higher than savings accounts.
- Recurring Deposits: Regular deposits of specific amounts over a set period (monthly or quarterly) earns interest for the set period.
Electronic Banking
- Allows banking activities from home.
- Enables checking balances, transactions, and bill payments (electricity, phone, etc.).
- Bank account holders can make requests for cheque books.
Additional Information
- PIN stands for Personal Identification Number (crucial for ATM security).
- EMI stands for Equated Monthly Installment.
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