Mrunal's Economy for UPSC Prelims-2024-25 PDF
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Summary
This document provides information about an economy course for the UPSC Prelims exam, focusing on the topic of money, covering barter to bitcoin. It includes important details regarding the course structure and content. The course is aimed at UPSC Prelims aspirants.
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Mrunal’s Economy for UPSC Prelims-2024-25 (PCB10-RAFTAAR) 10 🏛🏛BRIEF INFO ABOUT THE COURSE (PCB10-RAFTAAR) - UPSC Syllabus, Strategy, Booklist, Cut-off: https://mrunal.org/syllabus - Economy: how much I’ll teach, what books do you’ve to read on your own etc. https://mrunal.org/pcb10 -...
Mrunal’s Economy for UPSC Prelims-2024-25 (PCB10-RAFTAAR) 10 🏛🏛BRIEF INFO ABOUT THE COURSE (PCB10-RAFTAAR) - UPSC Syllabus, Strategy, Booklist, Cut-off: https://mrunal.org/syllabus - Economy: how much I’ll teach, what books do you’ve to read on your own etc. https://mrunal.org/pcb10 - Basically this PCB10-Raftaar Course deals only with Prelims-Specific Economy. - This is NOT Mains Economy. Not Microeconomics. (separate courses for it, u don’t have to pay extra, it’s part of your Netflix/Unacademy subscription). More explained in Lecture#1 - Only for serious competitive exam mindset candidates shd attend this. Timepass Babushone/ Faaltu-ki-PHD krnewalle, harr baat pe 🚩🚩Zhandaa-uthaane-walle (those with habit of making mountain out of molehills) should avoid my courses. Old Students (PCB1to9) NEED NOT Sit again. They should see FREE UPDATE next year [Win24]. 10.2.1 🏛🏛🏛🏛 What has UPSC asked from Economy in recent years? Prelims P1 (GS 100 🔠🔠❓MCQs) Mains GSM-1-2-3 (750 Marks) 6 Pillars of Utility in exam 2023* economy 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 💳💳1_Money Banking, Most useful in Prelims but 7 7 9 6 8 7 0 0 15 15 0 Finance & less in Mains Insurance 🍋🍋2_Budget, Second lowest utility after FC, GST, 4 1 1 1 3 1 25 25 15 20 0 5_Infra FRBM 💱💱3_Intl_Tr Third lowest utility after 4 7 7 2 4 3 30 0 15 15 0 ade, BoP 2_Budget. 🛒🛒4_Sectors, GDP, Useful for both prelims and Inflation, 3 8 5 5 4 4 50 65 55 60 85 Mains. Microecono mics Lowest utility among 6 🏗🏗5_Infra 1 3 1 0 2 4 15 15 15 30 20 pillars. Less in prelims but more in 6_HRD 6 2 0 0 0 2 60 75 85 45 20 Mains. 25 28 23 14 21 21 180 180 200 185 125 Total Qs Qs Qs Qs Qs Qs m m m m m *FAQ: Why 2023-Mains column EMPTY? Ans. Handout updated on 5th Sept 2023. But, Mains starts on 15th Sept. 💸💸Economy Pillar #1-A1) Money: Barter to Bitcoin (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 1 Table of Contents 10 🏛🏛Brief Info about the course (PCB10-Raftaar)............................................................................ 1 10.2.1 🏛🏛🏛🏛 What has UPSC asked from Economy in recent years?.................................................................... 1 10.3 Barter system & its disadvantages: (व ु व नमय प्रणाली)............................................................... 4 10.4 Money: Functions of (पैसे के कायर्)..................................................................................................... 5 10.5 Money: Evolution & Types (मुद्रा क उ ां त व् प्रकार)............................................................................. 5 10.5.1 Commodity Money / व ु मुद्रा (Intrinsic value: अंतभूर्त मू ? Yes)................................................................. 5 10.5.2 Metallic Money / धातु मुद्रा (Intrinsic value? Yes)........................................................................................ 5 10.5.3 Metallic Money → Full Bodied vs Token Coins................................................................................... 6 10.5.4 Intrinsic value of a coin? (अंतभूर्त मू )................................................................................................................ 6 10.5.5 Paper Money / कागजी मुद्रा (Intrinsic Value? No)........................................................................................ 6 10.5.6 Legal Tender (वैधा नक न वदा).................................................................................................................... 7 10.5.7 Legal Tender (वैधा नक न वदा)- Limited and Unlimited.......................................................................... 9 10.5.8 RBI’s App to help the blind identify currency notes..................................................................... 10 10.5.9 Currency related General Knowledge:................................................................................................. 10 10.5.10 “I promise to pay the bearer…”: Meaning of this promise?.............................................................. 10 10.6 Demonetization of Fiat Money ( वमुद्रीकरण: Previously 1946, 1978)........................................... 11 10.7 ₹2000 WITHDRAWN but continued as legal tender.............................................................. 11 10.7.1 ₹2000 NOT DEMONETIZED but WITHDRAWN from circulation.............................................. 11 10.7.2 ₹ 2000 withdrawn- WHY? ( ों चलन से हटाया गया)........................................................................................ 12 10.8 Redenomination: Iran’s Toman Currency............................................................. 12 10.9 Bank Money / Deposit Money.............................................................................................. 12 10.9.1 Paper orders: Cheque, Demand Draft (DD).................................................................................. 12 10.9.2 DD and Overdraft.................................................................................................................................... 13 10.9.3 Cheque → NPCi’s Cheque Truncation System (CTS) & Positive Pay Mechanism................. 13 10.10 Electronic Orders / Digital payment........................................................................ 14 10.10.1 CBS ( full form: Core Banking Solution /system).......................................................................... 14 10.10.2 RBI’s Next Generation Treasury Application (NGTA), 2020-Oct.............................................. 14 10.10.3 LPSS- lightweight payment and settlement system.................................................................................... 16 10.11 National Payment Corporation of India(NPCi).................................................................. 16 10.12 NPCI → UPI (Unified Payment Interface)........................................................................ 17 10.12.1 UPI: Push vs Pull Transactions.................................................................................................................... 17 10.13 NPCI → UPI → 123PAY for FeaturePhones.................................................................... 18 10.13.1 UPI observations by Economic Survey-ES-2023................................................................................. 18 10.13.2 UPI single-block-and-multiple-debits functionality (2022-Dec)............................................................. 19 10.13.3 UPI-Lite (on-device wallet).......................................................................................................................... 19 (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 2 10.13.4 UPI-Lite + NFC = Offline Retail Payment / Tap-and-pay.................................................................. 19 10.13.5 Conversational payments in UPI................................................................................................................ 20 10.13.6 UPI facility to foreign tourists coming to India (2023).............................................................................. 20 10.13.7 NPCI → UPI BHIM Full form: Bharat Interface for Money (2016)............................................... 21 10.14 NPCI → Rupay Card Payment Gateway (2012)................................................................ 21 10.14.1 NPCI other notable initiatives............................................................................................................... 21 10.14.2 NACH-ABPS : Hybrid / Mixed mode in MGNREGA............................................................................... 22 10.15 Pre-sanctioned credit line........................................................................................................... 23 10.15.1 UPI: Pre-sanctioned credit line/Overdraft in UPI (2023-Apr)................................................................. 23 10.15.2 UPI: Benefits of UPI-overdraft facility?...................................................................................................... 24 10.15.3 UPI: Interoperable Card-less Cash Withdrawal (ICCW).......................................................................... 24 10.15.4 UPI: QR Code based Coin Vending Machine using UPI (2023-Feb)...................................................... 24 10.16 DBT → E-Rupi by NPCi (2021)............................................................................... 25 10.16.1 e-RUPI vouchers: scope expanded (2023-June)......................................................................................... 25 10.16.2 Interoperability Problem (इं टरऑपरे ब लटी)................................................................................ 26 10.17 QR Codes: compulsory to implement UPI/Bharat QR from 2022................................ 26 10.17.1 rMQR (Rectangular Micro QR Code)............................................................................................. 26 10.17.2 Card Types based on Security Features: (सुर ा प्रणाली के िहसाब से काडर् के प्रकार)................................................. 27 10.18 Credit & Debit Cards (also called ‘Plastic Money’)............................................................ 27 10.18.1 Card Tokenization (from 1/Oct/2022).......................................................................................... 28 10.18.2 CVC Less transactions............................................................................................................................ 29 10.18.3 National Common Mobility Card (NCMC, 2019)...................................................................... 29 10.18.4 FASTag for paying toll fees at highways (2017)........................................................................... 29 10.19 MDR: Full form: Merchant Discount Rate ( ापा रक छू ट दर)..................................................... 30 10.19.1 MDR Subsidy by MEITY....................................................................................................................... 30 10.20 Interchange fee by NPCi (2023-March)...................................................................................... 31 10.20.1 ATM and its Types.......................................................................................................................... 32 10.21 Measures to promote Cashless Economy.......................................................... 32 10.21.1 Payments Infrastructure Development Fund (PIDF) 2020-Jun............................................ 32 10.22 Global Money Transfer................................................................................................................ 32 10.22.1 India-UAE: LCSS: UPI-IPP linkage (2023-Aug)........................................................................................ 32 10.22.2 Nostro-Vostro / Rupee-Ruble / Rupee-Rial Agreement?.......................................................................... 33 10.22.3 RUPAY Cards- International acceptance.................................................................................................... 33 10.22.4 Financial Messaging Systems: SWIFT- Russia gets banned................................................................ 33 10.23 Payment System Operators?.................................................................................... 34 10.23.1 New Umbrella Entity (NUE) for Retail Payments System (2019)...................................................... 34 10.23.2 Third Party Application Providers (TPAPs): Google Pay, Whatsapp Pay....................................... 35 10.24 Digital Payment Regulatory bodies ( नयं त्रण सं ाएँ )............................................................ 35 (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 3 10.24.1 Digital Transactions Ombudsman (DTO-2019).......................................................................... 35 10.24.2 RBI: BPSS (Statutory body).................................................................................................................... 35 10.24.3 Payment Regulatory Board (PRB)......................................................................................................... 35 10.25 Digital Payment related Index / Competitions/Reports by RBI......................................... 36 10.26 Crypto-Currency & Blockchain Technology................................................................. 36 10.26.1 Hot Wallet vs Cold Wallet...................................................................................................................... 37 10.26.2 :Crypto-Winter in Bitcoin Prices (भाव गरा अब उठ निह रहा है)................................................................... 37 10.26.3 : Crypto-scams - Recent Global Scams........................................................................................... 37 10.26.4 :Crypto currency observations by EcoSurvey’23..................................................................... 38 10.26.5 : Cryptocurrency Profit pe 30% Tax and 1% TDS in Budget-2022................................. 38 10.27 Cryptocurrency Banned in other nations?.............................................................. 38 10.27.1 Crypto currencies as legal tender is in some countries.............................................................................. 38 10.28 : Cryptocurrency Permitted in Other Nations/Groups.................................................. 39 10.29 Cryptocurrency → global regulations.................................................................... 39 10.29.1 Global Regulations → MICA regulation by EU (2023)............................................................................ 39 10.29.2 Global Regulations → CARF Framework by OECD (2022).................................................................... 39 10.30 Cryptocurrency → Stable-coins.............................................................................. 39 10.31 World Coin Project (2021–22).................................................................................................... 40 10.32 Central Bank Digital Currency (CBDC).................................................................. 40 10.32.1 = Benefits of CBDC (क द्रीय ब क िड जटल मुद्रा के फायदे).................................................................. 41 10.32.2 = Challenges of CBDC (चुनौ तयां)...................................................................................... 42 10.32.3 E-Rupee vs E-Rupi......................................................................................................................................... 42 10.33 ≠ Non-fungible token (NFT: ग़ैर-फ़ं जीबल टोकन)..................................................................... 42 10.33.1 = ( + + + ) Fungibility: Meaning?..................................................................................... 43 10.33.2 Non-fungible token (NFT: ग़ैर-फ़ं जीबल टोकन)............................................................................................... 43 10.33.3 NFT-Charms? (आकषर्ण)......................................................................................................................... 43 10.33.4 NFT-Challenges: (चुनौ तयां)..................................................................................................................... 44 10.33.5 Mains Answer Writing........................................................................................................................... 44 10.3 🍅🍅🍅🍅 BARTER SYSTEM & ITS DISADVANTAGES: (व ु व नमय प्रणाली) Barter system was introduced by Mesopotamian tribes. It has following challenges: (चुनौ तया ) - 😰😰Double co-incidence of Wants (आव कताओ का दोहरा सं योग नहीं होगा तो ापार असं भव). - 😰😰Search Cost & Transaction cost is high. (सही दाम पर चीज ढूँ ढने व लेनदेन क लागत बढ़ जाती है) (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 4 - 😰😰Storage of perishable commodities is difficult, results in loss of value. (नाशवान व ुओ का मू हास) - 😰😰Doesn’t encourage specialization and division of labour (श्रम वभाजन को प्रो ािहत नहीं करता). 10.4 📏📏MONEY: FUNCTIONS OF (पैसे के कायर्) Primary:2 functions[प्राथ मक] Secondary(S-T-D) 3functions [सहायक कायर्] Contingent 3functions [प्रासं गक कायर्] 1. 📏📏Measure of 1. 🐷🐷🐷🐷Store of Value (मू का 1. Basis of credit system, Value: gm=wt, सं चय) Financial markets (share, ml=vol, ₹=value (मू bond etc.: More in 2. 🚛🚛Transfer of Value (मू का का मापक). 📑📑Pillar#1C-sharemarket) ानांतरण). Soldier in Kashmir to 2. 🛒🛒Medium of व ीय बाजार का आधार है पैसा parents in Kanyakumari Exchange: Buy & Sell 3. ⏰Deferred Payments ( गत 2. Employing factor of goods and services भुगतानो का मानक). E.g. Buy production i.e. Land, Labour, using money as the iphone12 @₹3177 only per Capital (More in ‘medium’. ( व नमय का मा म). month x 36 months’ Equated 📑📑Pillar#4C) उ ादन के कारक Monthly Installments (EMIs) जुटाने म मदद करता है है पैसा = ₹1,14,372. Actual price is 3. Creation & Redistribution of ₹79,900, but ₹34,472 extra National Income via Interest.( ाज पर िक ों म खरीदारी taxation. (📑📑Pillar#2) अमीरों पे सं भव) ादा कर वसूल के रा ीय आय के पुन: वतरण करने म मदद 10.5 💵💵 MONEY: EVOLUTION & TYPES (मुद्रा क उ ां त व् प्रकार) Paper /Token / Commodity Metallic Bank Money, Representative / Crypto Currency Money Money Deposit Money Fiat Money 10.5.1 🥜🥜Commodity Money / व ु मुद्रा (Intrinsic value: अंतभूर्त मू ? Yes) ⇒ Iron Nails, Bear Pelts, Cocoa Beans, Whale Teeth, Gold Nuggets ⇒ Problems? Perishable, not uniform, not pure, foreigners may not accept. नाशवान, एकसमान नहीं, शुद्ध नहीं, अ ीकार भी कर सकते है. 10.5.2 🥇🥇Metallic Money / धातु मुद्रा (Intrinsic value? Yes) ⇒ Traders & Kings stamped their marks on gold nuggets for uniformity & trust. (सोने पर अपना च /छाप लगा देते – तािक लोगों को उसक शुद्धता पे यक़ न हो) ⇒ Indo Greek kings & Kushana kings issued gold coins, but Gupta Gold coins most spectacular- king is playing Veena, shooting animals, standing with wife.(इन राजाओने सोने के स े नकाले थे) ⇒ Delhi Sultanate Kings: Silver Tanka. Sher Shah Suri Rupiyah silver coin. Akbar: Muhr. Further SELF STUDY: History of Indian coins from History Lecture/Notes. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 5 10.5.3 💪💪 Metallic Money → Full Bodied vs Token Coins Table 1: Types of Coins Gupta Coin: ~8 gm GOLD 50 paisa modern coin: ~4 gm steel 💪💪 Full Bodied Coins Token Coins (प्रतीकका क) Intrinsic Value (अंतभूर्त मू ) is Equal to or MORE LESS. (धातु एकदम स ी वाली इ ेमाल करते ह या ब त ही कम than its Face Value (अंिकत मू ) वजन क धातु इ ेमाल करते ह ) Challenge? ⇒ 1330s: Tughlaq's Token coin ⇒ Debasement: ⏬decreasing the amount of experimentation = #EPICFAIL (Why? metal in coins. Usually happens when Prepare in History subject). king’s rule gets weak/poor e.g. Aurangzeb, ⇒ Modern Indian coins are token coins. Roman Kings. स े म धातु क मात्रा को कम िकया Cupronickel metal used to discourage जाए तब लोगों का उस राजा के शासन से व ास कम होने melting. लगता है ⇒ Coinage Act 2011 prohibits melting of coins. ( स ा पघलाना एक अपराध है) 10.5.4 💍💍📔📔Intrinsic value of a coin? (अंतभूर्त मू ) PRECIOUS METAL COINS (धातु के स े ) PAPER CURRENCY (काग़ज़ी मुद्रा/नोट) Metal has INTRINSIC VALUE i.e. Metallic You can't use currency-note's paper as a money =Use it as "money", or you can melt the notebook or diary. metal → use that metal for making jewellery / So currency notes have no intrinsic value. (उसके weapons because metal itself has its value / कागज का उपयो गता कु छ नहीं है, ोिक उसपे छपाई कर दी है.) usages. (उस मुद्रा क धातु पघला कर कु छ और चीजे भी बना सकते है. ोिक धातु का अपना : अंतभूर्त मू / उपयो गता है.) 10.5.5 💵💵Paper Money / कागजी मुद्रा (Intrinsic Value? No) Fiat money (वैधा नक मुद्रा): It MUST fulfil two conditions SIMULTANEOUSLY: दो शत का एकसाथ पालन : 1. It MUST BE in the form of Physical Currency Coin / Physical Currency Notes / VirtualCoin/ DigitalCoin/ CryptoCoin which can measure value AND simultaneously और साथ ही साथ 2. It MUST BE issued by the order of a King / Queen / Government / Central Bank. ⇒ Govt issues all coins upto ₹ 1,000, using powers of powers of Coinage Act 2011. ⇒ Presently, govt issues Rs.50 paisa to Rs.20 coins. ⇒ Rs.20 coin: 12-sided Polygon shape (Dodecagon आकार: बारह बाजुओ वाला चतु ोण है) ⇒ ₹ 1 Note signed by Finance Secretary ( व स चव) ⇒ ₹ 1 note doesn’t contain “I promise to pay bearer…” (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 6 ⇒ RBI issues: Currency notes other than ₹ 1 Note under RBI Act 1934. ⇒ Currency notes have Governor’s sign: “I promise to pay bearer…” 😤😤 FAQ: why is it like this!!!??? WHY CAN’T RBI ISSUE BOTH coins & currency notes!!? Ans. Send your suggestion to PM, to merge above two laws. Until it’s implemented, remember table for passing exam. प्रधानमं त्री को कागज लखो- दोनों कानूनों का एक करण करने के लए. जब तक वह नहीं होता तो इस handout को रटो। 10.5.6 💵💵⚖Legal Tender (वैधा नक न वदा) To become a ‘legal tender’, a given coin/currency MUST fulfil two conditions SIMULTANEOUSLY: एक साथ दो शत को पूरा करना होगा. 1. It must be a FIAT MONEY (जो हमने ऊपर के से न म पढ़ा). AND SIMULTENOUSLY और साथ ही साथ 2. It must be legally valid for all debts & transactions throughout the country. Other party can’t refuse to accept. (लेनदार उसको अ ीकार नहीं कर सकता) Table 2: fiat money and legal tender in India A) Is it in form D) At present, is it E) Is it C) Result: Is it of a physical B) Is it issued by legally valid for LEGAL Fiat money? coin OR physical Central Bank / transaction in Tender in ITEM (YES If Both Note OR Digital Govt / King / India as per India (Yes, IF Cell A+B give Coin that can Queen Coinage Act or C+D give ✅+✅) measure ‘value’? RBI Act? ✅+✅) ₹ Indian Rupee: Coins & Notes, CBDC ✅ ✅ ✅ ✅ ✅ Demonetized ( वमुद्रीकृ त) ₹500,₹1000 ✅ ✅ ✅ ✋ ✋ (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 7 A) Is it in form D) At present, is it E) Is it C) Result: Is it of a physical B) Is it issued by legally valid for LEGAL Fiat money? coin OR physical Central Bank / transaction in Tender in ITEM (YES If Both Note OR Digital Govt / King / India as per India (Yes, IF Cell A+B give Coin that can Queen Coinage Act or C+D give ✅+✅) measure ‘value’? RBI Act? ✅+✅) Dollar$, Yuan, Yen, Euro etc ✅ ✅ ✅ ✋ ✋ G-Sec, T-Bill (what is this-Ans. ✋ ✅ ✋ ✋ ✋ explained in video) Shares, Bonds, DD, Cheque, ATM, Cards, Kirana coin, Casino ✋ ✋ ✋ ✋ ✋ coin, Filmstar-Notes Marshall Island: SOV Venezuela: Petro coin ✅ ✅ ✅ ✋ ✋ Bitcoins ✅ ✋ ✋ ✋## ✋ ⇒ Bitcoin is not a Fiat money, yet it is legal tender in El-Salvador nation. But it is an exception. ## ( बट-कोइन का अल-सा ाडोर देश म वेध नक न वदा होना के वल एक अपवाद है, वो पूरी दू नया के लए नयम/ ा ा नहीं है।) ⇒ Commemorative Coins = Fiat money yes but not legal tender unless notified by RBI/Government to be used as legal tenders. ( ृ त च प स े - सामा भुगतान म इ ेमाल निह हो सकते, सवाय के सरकार/आरबीआई उसक अनुम त दे।) FAQ: we can use cheque / credit card to pay fees. So, why are they not fiat money/legal tender? FAQ: I did not understand this thing and/or I want to engage in intellectual debate why “X” thing is legal tender? Ans. Please watch lecture’s recorded video again at 1X speed, more peacefully. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 8 10.5.7 💵💵⚖Legal Tender (वैधा नक न वदा)- Limited and Unlimited Table 3: Fiat Money: Two types of legal tenders A) 🚯🚯Limited legal tenders B) ∞ Unlimited legal tenders: (सी मत वैधा नक न वदा) (असी मत वैधा नक न वदा) Recipient can refuse accepting payment beyond a No such restriction.** limit (एक हद से ादा छू टटे पेसे ीकारने से सामने वाला मना कर सकता है) ⇒ Coinage Act 2011 ⇒ RBI Act 1934 - Section 26: Every bank ⇒ Paper Note: Rs. 1 (एक पए क काग़ज़ी नोट) note is legal tender in India. ⇒ Coins Rs. 1 / above → upto Rs.1000 ⇒ They can be used for settling any amount ⇒ Coins 50 paisa x 20 coins → upto Rs.10 of debt in India**, lender can’t refuse to ⇒ Below 50 paisa coins are withdrawn (in 2011) accept it. So, 10 paisa, 25 paisa are ✋not legal tenders. (10 पैसा और 25 पैसा वैधा नक न वदा नहीं है। 50 पैसा वैधा नक न वदा है) **Although in real life, Finance Act 2017: “Cash transactions for less than Rs.2 lakh only. Beyond that use Cheque, DD, NEFT etc. else penalty.” This rule is to discourage tax-evasion / black money. For more Ref: 📑📑Pillar#2. But for MCQs, simply accept that bank notes = unlimited legal tenders. हालांिक वा वक जीवन म काले धन / करचोरी को रोकने के लए नगदी लेनदेन पर कु छ सीमा के बाद रोक है, िक ु MCQ के लए ीकार लो क 🚩🚩 FAQ# my shopkeeper doesn’t accept 50 paisa. Then how it is legal tender? मेरा दुकानदार नहीं लेता 50 पैसा का स ा। तो आप कै से कह सकते है वो वैधा नक न वदा है? Ans. as per RBI notification, 50 paisa is legal tender. So, accept it for MCQ & move to next topic. Further, feel free to file police case against shopkeeper, if you have plenty of free time/outrage for it. 🔠🔠❓MCQ: Which correctly describes the meaning of legal tender money? (Pre-2018) (a) The money which is tendered in courts of law to defray the fee of legal cases (b) The money which a creditor is under compulsion to accept in settlement of his claims (c) The bank money in the form of cheques, drafts, bills of exchange, etc. (d) The metallic money in circulation in a country 🔠🔠❓MCQ: Consider the following statements (Asked in UPSC-CDS-2011-II) 1. In India the minimum denomination coin acceptable for transaction is 50 paise. 2. Coins below 50 praise is not a legal tender for payment. Which of the statements given above is/are correct? (a) Only 1 (b) Only 2 (c) Both 1 and 2 (d) Neither 1 nor 2 (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 9 10.5.8 RBI’s App to help the blind identify currency notes 80 lakh people in India are blind (नेत्रहीन). To help them identify currency notes: ⇒ Old series of Gandhi notes have square (50), triangle (100) shaped markings. ⇒ New series of Gandhi notes have bleed lines, raised printing of Gandhi etc. ⇒ But, so many varieties of notes, difficult for VH persons to remember size & shapes so, 2020-Jan: RBI launched ‘Mobile Aided Note Identifier (=MANI)’ App. ⇒ Mobile camera scan & identifies the note (Even if it’s half folded), gives audio notification in Hindi/English, also works offline ⇒ But can’t validate whether note is genuine or fake (Counterfeit जाली नोट नहीं पकड़ सकता यह ऐप), ⇒ If a user is both blind and deaf, the app will tell him by giving vibrations.(मोबाइल कं पन) 10.5.9 💵💵 Currency related General Knowledge: Which note has what colour, which note has Red Fort / Sun Temple photo etc? General Knowledge Less important for UPSC-exams, more IMP for Non-UPSC Exams. So I’m removing it from Raftaar-Handout. You can learn such general knowledge from https://paisaboltahai.rbi.org.in/ New rupee ₹: selected through a competition by Dept of Economic Affairs in 2010. Designed by symbol D.Udaya Kumar, a Professor @IIT Guwahati. Nation - Lion Emblem: Sarnath Pillar, Uttar Pradesh से लया गया है Symbol - “Satyamev Jayate”: slogan from Mundaka Upanishad से लया गया है Languages While Constitution’s 8th Schedule has 22 languages, but currency note has only 17. (15 on Reverse + Hindi & English on frontside (obverse) = 17) 🤯🤯FAQ: Why it is like this? Ans. Either some Indian languages have similar fonts and/or send suggestion to RBI. Museum Budget-2020: a museum on numismatics and trade ( स ाशा और ापार का सं ग्रहालय) will be built at the historic ‘Old Mint Building’ in Kolkata. 10.5.10 💵💵 “I promise to pay the bearer…”: Meaning of this promise? Colonia era: Promised to convert into full bodied gold or silver bars / coins worth the equal value in weight. E.g. 1 US Dollar = ~14 grams of gold. 1 British pound = ~73 grams of gold. ( in my handout ‘~’ means ‘approximate’) (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 10 ⇒ Modern era: Conversion into other Bank notes and “token coins” of equal face value. ₹ 2000 = 500 x 4 Nos.= 100 x 20 Nos etc. ⇒ Not inflation adjusted value. Not linked with weight of gold or silver. ⇒ Currency note is zero interest, anonymous bearer bond / Promissory Note. 10.6 💵💵 DEMONETIZATION OF FIAT MONEY ( वमुद्रीकरण: PREVIOUSLY 1946, 1978) Definition? Demonetization means the REMOVAL of legal tender status of currency notes. (िकसी मुद्रा क वैधा नक- न वदा के दज / क़ानूनन वैधता को रद्द करना- उसे वमुद्रीकरण या नोटबं दी कहते ह ) ⇒ 8/Nov/2016: Finance Ministry → Dept of Economic Affairs → notification to ban the “Specified Bank Notes” (SBN) of Mahatma Gandhi series ₹ 500 and 1000. ⇒ Specified Bank Notes (Cessation of Liabilities) Act 2017= RBI not required to honor “I promise to pay…”. ⇒ Banned notes (500,1000) can’t be kept except for research or numismatics-hobby or museum- and that too in limited amount! More in 📑📑pillar#2: taxation → black money. ⇒ SC Judgement on Demonetization ? Ans. REFER📑📑pillar#2: taxation → black money. 10.7 💵💵 ₹2000 WITHDRAWN BUT CONTINUED AS LEGAL TENDER 2016-Nov: RBI introduced ₹2000 note, to meet the currency requirement of the economy in an faster manner after demonetisation of ₹500 and ₹1000 (नोटों क िक त पूरा करने के लए इसको छापा जा रहा था) - 2018–19: printing of ₹2000 banknotes was stopped. - 2023-May-23rd: RBI asked people to either any of the following thing by two things 30/Sept/2023. Option at Bank Limit Deposit this note in your bank account no limit. Whatever money you have you अपने ब क खाते म जमा करवादो can deposit- 2 lakh, 2 crore doesn’t matter Exchange ₹2000 note with other notes e.g. ₹20,000/- per visit 100/200/500 बदलवा दो 10.7.1 💵💵 ₹2000 NOT DEMONETIZED but WITHDRAWN from circulation (इसका वमुद्रीकरण नहीं आ. बस चलन म इसे हटा िदया गया है) - 2023-June: Reporter asked : Will the RBI withdraw the legal tender of ₹2000 note after September 30? - RBI Governor Shaktikanta Das replied: “There is no such idea.” That means Question interpretation is ₹2000 fiat money? Yes is ₹2000 legal tender? Yes is ₹2000 in withdrawn from circulation? Yes is ₹2000 DEMONETIZED? NOT YET. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 11 10.7.2 💵💵 ₹ 2000 withdrawn- WHY? ( ों चलन से हटाया गया) We will only prepare the official reasons given by the RBI. 2000 Notes were issued as a temporary measure to address shortage of currency. Now there is adequate supply of other currency notes e.g. 100/200/500. This note is not commonly used for transactions. (वैसे भी भुगतान म इसका उपयोग कम ही होता है) RBIs clean note policy: to ensure availability of good quality banknotes to the members of public. 2000 note’s paper has a lifespan of 4–5 yrs. Since most of these notes were printed in 2016–2017. So by 2022–23 its paper quality may start to deteriorate. (चार पांच वष म कागज वैसे भी खराब हो जाता है) THERE IS NO MENTION of fighting black money/ corruption / fake notes by ISI-Dawood in RBI press release. 10.8 🤫🤫💸💸👜👜🥚🥚 REDENOMINATION: IRAN’S TOMAN CURRENCY ⇒ Removed for #RAFTAAR. Those who want to waste time/satisfy curiosity can learn it from last course (PCB6) at https://unacademy.com/course/mrunals-economy-course-for-upsc-prelims- mains-2022-52/I1OWWV6Y (मेरे को अब ये परी ा के नज रये से ब त काम का नहीं लगता, इस लए टॉ पक हटा िदया है) Paper /Token / Commodity Metallic Bank Money, Representative / Crypto Currency Money Money Deposit Money Fiat Money 10.9 🐷🐷🔖🔖BANK MONEY / DEPOSIT MONEY 10.9.1 🐷🐷🔖🔖 Paper orders: Cheque, Demand Draft (DD) Law Viceroy Ripon’s Negotiable Instruments Act, 1881: Primary Objective? Cheque dishonor & forgery (परक्रा लखत अ ध नयम: ब क खाते मे अप्रा रकम के चलते चेक अ ीकार होना/जालसाजी के ख़लाफ़ क़ानून). Cheque - THREE parties in a cheque: 1) Drawer (Sender), 2) Drawee (Bank), 3) Payee (Recipient) - Types of cheques: 1) Stale: Not withdrawn in 3 months (3 महीनों म नहीं डाला तो बासी/अ ीकायर् होगा), 2) Post-dated: After a specific date, 3) Ante-Dated: notimp for IAS exam. - Open / bearer cheque: No ‘crossing’. Anyone can encash. IFSC IFSC code: Indian Financial System Code- 11 alphanumeric numbers to identify the bank branch, just like PINCODE identifies an area. (कौन सी ब क ब्रांच है उसे च त करता है) MICR MICR code: Magnetic Ink Character Recognition. 9 digits code written in Iron Oxide ink for automated clearance. (चु क य ाही से चेक के न र को जाँचने के लए।) (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 12 10.9.2 🔖🔖DD and Overdraft - Overdraft: When person has insufficient bank balance, still he may withdraw money from his account (as a loan). Such facility is called Overdraft. Pradhan Mantri Jan-Dhan account has Overdraft upto Rs 10,000/- with certain conditions. (More in Pillar1D: Financial Inclusion). o Overdraft is mainly for short-term operating expenses. (अ ाई प से लघु अव ध के लए कजर्) o Loans is mainly for longer term higher value expenses. (दीघर् अव ध के लए मोटी रकम का कजर् लेना) 10.9.3 🐷🐷🔖🔖 Cheque → NPCi’s Cheque Truncation System (CTS) & Positive Pay Mechanism NPCi’s Mechanism Benefit (first SEE THE DIAGRAM) Cheque Truncation If SBI sent the copy of cheque in post/courier = more time wasted. System (CTS) CTS IS FASTER because SBI sending scanned image online. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 13 Positive Pay If Mrunal (recipient) manipulated the cheque numbers e.g. using magic- Mechanism marker/eraser to write ₹5,00,000 in place of ₹50,000 YET Roman (Sender) will be protected because both images will not match → then cheque will be rejected by his bank. ⇒ FAQ: I still DID NOT understand this. Ans. Watch The video lecture. ⇒ 🤔🤔FAQ: I’ve 500 counter arguments about how James Bond villain can misuse it? Ans. NOT IMP.#RAFTAAR. 10.10🐷🐷💸💸💸💸 ELECTRONIC ORDERS / DIGITAL PAYMENT Payment & Settlement System Act 2007 empowers RBI to regulate card payment, e-payment related products and services. (भुगतान और नपटान प्रणाली अ ध नयम 2007) 10.10.1 💸💸💸💸CBS ( full form: Core Banking Solution /system) ⇒ It is a banking software with web-platform for centralized data management & branch-less banking. E.g. Finacle software; BanCS software; E-Kuber (used in RBI) 🚩🚩🚩🎓🎓 FAQ I didn’t understand this. Ans. Watch lecture, sufficiently explained in it. 🚩🚩🚩🎓🎓 FAQ: What is the difference between Core Banking Solution (CBS) versus Core Banking System (CBS)? Ans. Fundamentally it is the same thing. Dictionary word difference/legal pedantry/academic pedantry/hairsplittery= notimp4exam. #🕰🕰थोड़ा-पढ़ो-आगे-बढ़ो 10.10.2 💸💸💸💸RBI’s Next Generation Treasury Application (NGTA), 2020-Oct Deleting from handout. Because yet to be implemented. This topic didn’t develop much after 2020. 🔠🔠❓MCQ: The term ‘Core Banking Solutions’ correct term? (UPSC Prelims-2016) 1. It is a networking of a bank’s branches which enables customers to operate their accounts regardless of where they open their accounts. 2. It is an effort to increase RBI’s control over commercial banks through computerization. 3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank. Answer Codes: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Table 4: Digital Payment Systems- transaction limits may differ, depending on banks RBI's centralised payment systems (CPS)## NPCi’s IMPS ⏰RBI’s NEFT: RBI’s RTGS: Real Time Immediate Type National Electronic Gross Settlement Payment Service Funds Transfer 💸💸 Transfer Min ₹2 lakh to ₹2000 ₹ 1 to maximum upto ₹10 lakhs (SBI). Amount crores (SBI). ₹5 lakhs (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 14 RBI's centralised payment systems (CPS)## NPCi’s IMPS Bizmen wanting high Target Ordinary retail customers (आम जनता के छोटे भुगतानों value transactions customers के लए है) instantly - Settles net amount 🚛🚛 Settlement 🤩🤩Instant settlement 🤩🤩Instant between banks at mechanism (झटपट/ तुरंत नपटारा) settlement interval of 30 min. BEFORE: only weekday BEFORE: only weekday office hours. office hours. 24/7 on all days ⏰ Timing After RBI reforms After RBI reforms (िदन रात अ वरल प से) 24/7. 24/7. BEFORE: fee + GST Tax** 💰💰 Fees fee + GST# After RBI Reforms: Rs.0 - BEFORE-2021: Only Banks can provide this Banks + Prepaid facility Payment Who can - 2021: RBI announces that non-bank entities can Instrument (PPI)/ provide this also become members of centralized payment / mobile-wallet facility? systems (CPS = NEFT & RTGS). companies like - So, in future, Amazonpay, PhonePe etc could also Phonepe, directly allow this Mobikwik etc. ⇒ # Although some banks don’t charge IMPS fees for transactions upto ₹ ”X”/- (EXACT Fig NOTIMP) ⇒ ## FAQ: 🚩🚩🚩🎓🎓 Why doesn’t RBI Merge RTGS & NEFT? Ans. RBI may have some technical operational reasons for it. RBI never bothered to disclose it in some big press release or newspaper headline. So I never bothered to do James-Bond Google search/PHD on it. Because it is an inefficient way of preparing for UPSC. Nonetheless, if u feel morally-outraged then send suggestion to RBI Governor. Until implemented, prepare things as given in handout. Also, Plz change your ‘approach’ towards preparation of competitive exam. PHD-walli academic curiosity is of no use. Mrunal comments before next section: In the digital wallet apps → companies introduce new features & RBI introduces new technical norms on daily basis. We are not here to write a MBA research paper on their business- model & RBI regulations. Q.“sir u said x thing can’t be done in phonepe App but now it can be done…as per my experience!! Ans. I’ve given simple illustration to explain thing. They keep adding new features in the App. UPSC asking only general broad MCQs from this. #🕰🕰थोड़ा-पढ़ो-आगे-बढ़ो (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 15 10.10.3 LPSS- lightweight payment and settlement system - RBI’s (emergency/backup) alternative to NEFT, RTGS and IMPS/UPI. - To provide a temporary & portable solution during natural disasters and war. (प्राकृ तक आपदा या युद्ध के चलते बाक प्रणा लयाँ बं द हो जाए तो अ ायी प से इसको इ ेमाल कर सकते) - Can be operated from anywhere by a bare minimum staff. How it works, what are the features? NOTIMP. 10.11 NATIONAL PAYMENT CORPORATION OF INDIA(NPCI) ⇒ 2008: NPCi is registered under Company Act as a “Not for Profit Company”. (मुनाफा रिहत कं पनी) ⇒ Originally it was founded by 10 banks with ₹ 100cr capital. Later on in 2020: Paytm, PhonePe, Amazon Pay etc also became shareholders of NPCi (ये सब शेयर धारकों ने पूंजी डालकर इस कं पनी को बनाया है) ⇒ Objective? cost-effective payment solutions / technology for Banks. ( रयायती लागत पर ब िकंग टे ोलॉजी) ⇒ Its UPI-BHIM app & other mechanisms also help in financial inclusion of villagers & poors by expanding the reach of banking network. (गरीबों / गाँववालों के व ीय समोवेशन म मदद के लए अलग अलग तकनीक आ व ार िकए है) ✅More abt financial inclusion in 📑📑Pillar# 1D. MCQ-EPFO-2023: Consider the following statements: - Statement I: In India, the RTGS and NEFT payment systems are owned and operated by National Payment Corporation of India (NPCI). - Statement II: National Payment Corporation of India is an entity promoted (=owned) by banks. Which of the following is correct in respect of the above statements? a) Both statement I and statement II are correct and statement II is the correct explanation for statement I b) Both statement I and statement II are correct and statement II is not the correct explanation for statement I c) Statement I is correct but statement II is incorrect (D) Statement I is incorrect but statement II is correct (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 16 Above is not hundred percent technically correct explanation, but it is just to help you visualise the concept. 10.12 🤳🤳NPCI → UPI (UNIFIED PAYMENT INTERFACE) It is a technology for building digital payment apps based on IMPS with following features: ⇒ QR Scan & Pay to merchants. ⇒ You can link bank account for direct transfer of money without storing money in ‘wallet’ first. (unlike AmazonPay / Mobikwick etc) ⇒ Such app can have Push transaction (e.g. Remittance to family), Pull Transaction (e.g. monthly bill deduction by Electricity Co.) or even Bill sharing among friends. ⇒ Examples of UPI based app: SBI’s SBIBuddy/Yono, Axis Bank’s AxisPay and NPCi’s BHIM. ⇒ UPI 2.0 (2018): Upgraded version of UPI. What are its new features? How is it different than UPI 1.0? Ans. NOTIMP #RAFTAAR 🏎🏎🐢🐢 ⇒ NPCI has been signing agreements with organisations in Bhutan, Nepal, Singapore, Europe etc. so that directly Indian tourists in those foreign countries can directly spend the money from their Indian bank account by using UPI-Based Apps. How? Ans. NOTIMP #RAFTAAR 🏎🏎🐢🐢 10.12.1 🤌🤌 UPI: Push vs Pull Transactions UPI based apps allow for both 👉👉Push transactions and 👉👉Push transactions. 👉👉Push transactions Pull transaction Push = when u send money by your own Pull transaction = when you have given discretion(मज़ ) e.g. sending money to a command that every month electricity relative/friend based on your mood. company should cut the money from my bank (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 17 👉👉Push transactions Pull transaction account → company will pull money without requiring u to push/click buttons every month. 🚩🚩 FAQ: Beyond that, whether “X” thing is push/pull?= Ans. NOTIMP #RAFTAAR 10.13 🤳🤳NPCI → UPI → 123PAY FOR FEATUREPHONES Figure 1: बेटी मेरे नोिकया के non-smart phone पे UPI आसानी से कै से इ ेमाल क ँ ? ⇒ If user doesn’t have a smartphone. If he has a Basicphone/Featurephone- with number pads:- still he can use UPI using USSD (Unstructured Supplementary Service Data) code (99#). ⇒ However this feature was very cumbersome. It was not very popular among the people. ( ाटर्फ़ोन म तो UPI आधा रत ढेर सारी ए ह िक ु बे जक/फ़ चर फ़ोन म UPI द्वारा पैसों का लेन देन काफ़ जिटल और क न िक़ का था. इस लए ग़रीब लोग इसे इ ेमाल निह करते थे। रज़वर् ब क और NPCI ने मलकर नई मुिहम/ ेटफ़ॉमर् बनाया ‘123PAY’) So, 2022-March: RBI launched a new UPI platform named 123PAY (with help of NPCI) to give more UPI-payment options for Featurephones/Basicphones such as- - 1) USSD – (This was already available.) - 2) Interactive voice response or (IVR) - 3) missed call-based payments - user sends a missed call and then system calls him back in IVR mode (ग़रीब आदमी मस्ड कॉल देता है तो सामने से उसे चा लत फ़ोन कॉल आएगा जहाँ वो रकॉड ड आवाज़ द्वारा िदए गए सूचनाओं के िहसाब से अलग अलग नं बर दबाकर पैसों का भुगतान कर सकता है।) - 4) proximity sound-based payments -allow transactions using sound waves for contactless payments to other phones. ( न आधा रत शर्-हीन भुगतान) - 5) easier utility bill payment (gas, electricity etc) via feature phone - 6) user need to link the bank account with feature phone. → Money transfer, check account balances, pay utility bills, recharge FAST Tags of their vehicles etc - 7) New app for Featurephone Benefit? 😍😍⏫ Digital payment among the poor people who do not have smart phones but have feature phones. (ग़रीब लोग जनके पास महँ गा वाला ाटर्फ़ोन नहीं है वे भी िड जटल भुगतान कर पाएं गे.) 10.13.1 UPI observations by 📙📙Economic Survey-ES-2023 Year Total No. of Digital Transactions (Crores) UPI’s Share of Digital Transactions FY19 3,100 17% FY20 4,600 27% (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 18 FY22 8,840 52% total number of digital transactions steadily increased in the last three years. % share of UPI in the total digital transactions also steadily increased in the last three years. यूपीआई द्वारा ड जटल भुगतान म काफ बढ़ोतरी ई है और यह सब ब त महान है ऐसा आ थक सव ण ने पाया. 10.13.2 UPI single-block-and-multiple-debits functionality (2022-Dec) Not important for the scope of exam / poor cost:benefit in spending time over this topic... after observing the previous years papers. 10.13.3 UPI-Lite (on-device wallet) User adds money from his bank account to his UPI Lite wallet on his mobile App. (e.g. Google Pay App, BHIM App) Usage (NUMBER NOT VERY IMP) UPI-LITE Limit as of 01/Sep/23 Max. Limit PER transaction ₹500 Max. Balance / storage capacity of wallet ₹2,000 Max. TOTAL transaction within 24 HRS (i.e. by adding new ₹4,000 money in wallet repeatedly after previous balance is finished. तािक एसा दु पयोग ना हो क हेकर २-२००० हज़ार ख़ाली करके िफर भरता रहेगा और पीिड़त का बड़ा नुक़सान हो जाए।) Benefits of UPI-Lite wallet? - 🤩🤩Faster. Because No need to provide UPI-PIN number during transaction. - 🤩🤩Less chances of transaction failure- even if sender’s bank server is facing technical issues. 10.13.4 UPI-Lite + NFC = Offline Retail Payment / Tap-and-pay RBI aims to implement Near Field Communication (NFC) in ‘UPI-LITE’. For following benefits - 1) off-line transaction will be possible. Helps in villages with poor internet connectivity. - 2) contactless / Tap and Pay facility / touch and pay facility by touching your mobile with merchant’s device. - 3) More faster / error-free transaction. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 19 - FAQ1: What is NFC? Ans. Refer Sci-Tech material. E.g. in USA, u can tap Apple smartwatch with coffeeshop’s POS-device to pay money. - FAQ2: UPI developed by NPCi. Then why is RBI making all these announcements? Ans. Because RBI is the regulator of such all digital payment technologies. उनके आशीवार्द के बना नहीं हो सकता। 10.13.5 💬💬 Conversational payments in UPI - It will help users to chat/converse with AI-powered systems to make payments. - e.g. similar to how Smart speakers function: ‘Hey Siri/Alexa/Google remind me to buy milk on X date.’. - you can similar payment such a instruction via TEXT or voice note to UPI system. - How it works? Ans. Wait till the official features release. Benefit? - 🤩🤩Voice command more convenient for blind users. - 🤩🤩Text based chat can happen within shopping site. No need to redirect to third-party payment Gateway website like CCBill, CCAvenue, Razerpay, etc. = more secure / efficient. 10.13.6 UPI facility to foreign tourists coming to India (2023) वदेशी भारत म ब क खाता खोलकर यूपीआई वाली मोबाइल ऐप द्वारा भारत म खरीदारी कर सके ऐसे रजवर् ब क कदम उठा रहा है. BEFORE From 2023 if such non-resident/foreigner came to India, he could not do This facility made available to shopping using UPI money transfer from their NRE/NRO** G20 nations ke tourists coming bank account, to India. ** Non-Resident Indians/foreigners can open bank accounts in Indian banks. Such accounts are known as NRE/NRO/FCNR (Foreign Currency Non-Resident Account). NRE/NRO/FCNR= internal difference is not imp. For our exam. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 20 10.13.7 🤳🤳NPCI → UPI BHIM Full form: Bharat Interface for Money (2016) ⇒ Money transfer app designed by NPCi. It works on Android, iOS/Apple mobiles as an APP, ⇒ Works even on non-smart (=basic feature) phones using *99# USSD- Unstructured Supplementary Service Data. ⇒ Bank to bank / peer to peer transaction using mobile phone (xyz@upi). No need to install multiple apps for each bank account (SBIBuddy, AxisPay etc) just one BHIM app to use all such bank accounts. App has 3 factor authentication system. ⇒ Your money stays in bank account and earns interest. It’s not stored in ‘wallet outside your bank account’ as it happens in Mobikwick, Phonepe etc. (PS: in later stage, PhonePe etc private apps also included UPI type mechanism so storing money in ‘wallet’ became optional but we need not engage in Hairsplittery/PHD.) ⇒ No cards involved so no MDR or such hidden charges. 10.14 💳💳 NPCI → RUPAY CARD PAYMENT GATEWAY (2012) ⇒ Rupee + Payment = RuPay card is world’s 7th payment gateway similar to Mastercard, Visacard, China’s Union Pay. Rupay charges less fees than other companies. ⇒ Works in 3 channels: 1) ATM, 2) Point of Sale Device (PoS/card reader machine), 3) Online portals. ⇒ Rupay debit card given free with PMJDY (Jan Dhan) Bank account (Refer Pill#1D). ⇒ Rupay has signed collaboration agreements with some digital payments companies in Singapore, Japan etc. So, it may be used in those countries. But presently Rupay is not having the widest reach across all the countries unlike MasterCard and Visa. 10.14.1 NPCI other notable initiatives Table 5: NPCi has built following mechanisms / platforms / systems / apps: - Bharat Bill Payment system for monthly payments of utility bills BBPS & UPMS (gas, electricity etc.) (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 21 - 2022-Jan: NPCi ‘s daughter/subsidiary company Bharat BillPay Ltd. Company → launched a Unified Presentment Management System (UPMS) → but technical stuff. NOTIMP4 exam 😤😤FAQ: How is BBPS vs UPMS similar or different? Ans. NOT IMP 4 Exam. These are one-liner GK. Not PHD thesis topics! NFS National Financial switch. This technology runs the ATM network CTS Cheque Truncation System (2010) learned in previous section. NETC ⇒ National Electronic Toll Collection provides technology support to the FASTag toll collection. (राजमागर् पर पथकर वसूलने के लए) PAI chatbot Artificial Intelligence (AI) based chatbot to reply to people’s online queries about NPCI’s products like FASTag, RuPay, UPI, AePS etc. DigiSaathi Helpline RBI launched with help of NPCi. - for digital payment & card payments Number (14431) problems. The No. is 1800 891 3333 (not imp4exam but personal use) DakPay (2020) Payment App by Department of Post and its India Post Payments Bank BharatQR(2016) Given in next section of this handout. Scroll down E-Rupi (2021) Given in next section of this handout. Scroll down 10.14.2 NACH-ABPS : Hybrid / Mixed mode in MGNREGA Both these technologies developed by NPCi. National Automated Clearing House for bulk monthly payments of utility bills, dividends, salaries, pension / insurance premiums etc. NACH 😤😤FAQ: How is BBPS vs UPMS vs NACH similar or different? Ans. NOT IMP 4 Exam. These are one-liner GK. Not PHD thesis topics! AEPS: Aadhar ⇒ Useful for Direct Benefit Transfer (DBT: प्र ह ांत रत लाभ) into Enabled Payment beneficiary’s account for MNREGA wages, LPG subsidy, scholarship etc. System 📑📑More in Pill#6 ------ ⇒ It’s also required for Bankmitra-MicroATM system. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 22 Aadhaar-based 😤😤FAQ: difference between Aadhaar Enabled Payment system (AEPS) VS Payment System Aadhaar-based Payment System (ABPS)? Ans. NOTIMP. It is enough to (ABPS) know, these are related to money transfer to bank account linked with Aadhar number. - Mahatma Gandhi National Rural Employment Guarantee Act, 2005: Rural development Ministry provides 100 days work to villagers. (Ref: Pillar#6 for more) - Presently both NACH and ABPS methods used for giving salaries to MGNREGA workers. Thus, it’s called Mixed payment mode/hybrid mode for MGNREGA wages. - Government wants to shift completely to ABPS method. But due to operational and technical issues, deadline keeps getting delayed. So, topic remains in negative news. 10.15PRE-SANCTIONED CREDIT LINE When a banker allows an account holder to borrow upto a predetermined amount of money, without having to apply for a loan, it is called Pre-Sanctioned Credit Line. (इसका िहदं ी करने का मतलब नहीं है. मु परी ा म इस प्रकार क चीज नहीं पूछते) 10.15.1 UPI: Pre-sanctioned credit line/Overdraft in UPI (2023-Apr) - RBI allowed Pre-Sanctioned Credit Line / overdraft facility extended to UPI. (यूपीआइ म ओवर ड ा क सु वधा) (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 23 - So, even if a person does not have balance in his bank account, still he can PAY using UPI while shopping. (and then later, when he gets the salary/pension/income deposited in his bank account, then the banker will recover the principal and interest.) 10.15.2 UPI: Benefits of UPI-overdraft facility? - Help customers in “Buy now pay later (BNPL)” format of shopping. (Ref: Pillar#1B1 for more) - Poor people require small small amount of money/loans during last weeks of a month. They cannot travel to the city’s bank branch for the paperwork and banker may take many days to pass application. Consequently, poor villagers borrow from the local moneylender/Shroff/Baniya at high interest rate. UPI-Overdraft can help overcoming this to some extend. = helps in Financial inclusion of the poor. (गरीबों के व ीय समावेशन म मदद) 10.15.3 UPI: Interoperable Card-less Cash Withdrawal (ICCW) - (ATM मशीन म बना CARD डाले, मोबाइल ऐप के ज़ रए पैसा नकाला जा सके ऐसी सु वधा) - Benefit? If physical card not inserted in ATM machine → ⏬ dangers of card cloning, etc scams. FAQ: How does it work? My bank not giving this facility?! Ans. 1 line word association for MCQ is enough. 10.15.4 UPI: QR Code based Coin Vending Machine using UPI (2023-Feb) Traditionally New experiment by RBI in 2023 insert paper-note to get coin transfer money from bank account via UPI scan QR code to get coins from machine कागदी नोट मशीन म डालकर छु ट्टे अपने ब क खाते से UPI/QR-code द्वारा पैसा कटवाके बदले म मशीन से छु ट्टे पैसे पैसे नकालो नकालो (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 24 10.16 💸💸💸💸 DBT → E-RUPI BY NPCI (2021) - (Origin) E-rupi is an SMS /QR Code based Prepaid Cashless Electronic Voucher created by National Payment Corporation of India (NPCI) using its UPI Platform. [ ूआर कोड आधा रत प्रीपेड नगदीरिहत इले ॉ नक रसीद जसे भारतीय रा ीय भुगतान नगम (एनपीसीआई) ने अपने यूपीआई ेटफॉमर् का उपयोग कर बनाया] - It is also supported by finance ministries Department of Financial Services and Health ministry’s National Health Authority (NHA) [ व मं त्रालय के व ीय सेवा वभाग और ा मं त्रालय के रा ी य ा प्रा धकरण ने भी इसक मदद क है] - Can be used to provide 1) Food for mother, child, poor families under various schemes. 1) Medicines for TB, Corona etc. 3) Fertilizer subsidies for farmers [खाद्य दवाइयां उवर्रक क स डी] - Even private sector companies can issue it for 1] employees e.g. Gym membership, golf club membership, hotel tourism travel. 2] use it for Corporate Social Responsibility (CSR) programs (What is CSR? Ans. Big companies have to spend a portion of their profit for social service. Ref Pillar#1C2). [ नजी कं प नयां भी कमर्चा रयों को व वध चीजों के लए दे सकती ह. कारपोरेट सामा जक दा य अदायगी म भी इसका इ ेमाल हो सकता है] - Following reforms taken in E-Rupi in 2022-Feb BEFORE After maximum storage limit ₹10,000 per code ₹1 lakh (मह म इतना पैसा सं ग्रिहत कर सकते ह ) code can be used one-time/ single-time ⇒ Code can be used more than once /multi-use - only. (कोड के वल एक-बार इ ेमाल हो सकता था) until the amount of the voucher is completely exhausted/redeemed). ⇒ e.g. Out of ₹1 lakh → ₹10,000 paid to furniture store, ₹20,000 paid to electric-store etc. 10.16.1 e-RUPI vouchers: scope expanded (2023-June) Before after 2023-June Who can Buy E-Rupi Government & 1) Government, Companies AND codes/vouchers? Companies 2) now Individual persons can also buy it (e.g. for gifting to their maid/driver etc.) Who can SELL E-Rupi only Banks can 1) Banks AND codes/vouchers? sell 2) Non-bank Prepaid Payment Instrument (PPI) e.g. AmazonPay, Mobikwick etc. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 25 FAQ: I still didn't understand this! Watch this Youtube Short- https://youtube.com/shorts/1qoqwvDgbLA?si=VO_aJiHdzisJVCVL 10.16.2 💸💸💸 Interoperability Problem (इंटरऑपरे ब लटी) 🚩🚩🚩FAQ: What are those technical Rules to improve interoperability? NOTIMP #RAFTAAR. 10.17 💸💸QR CODES: COMPULSORY TO IMPLEMENT UPI/BHARAT QR FROM 2022 - 1990s: 2 dimensional (2D) Quick Response (QR) Code system developed in Japan. - Indian E-payment systems function on 3 types of QR Codes, namely, Table 6: ✋Difference between UPI QR vs Bharat QR? NOT.IMP.4.EXAM ⏳📚📚थोड़ा-पढ़ो-आगे-बढ़ो Proprietary QR ⇒ e.g. Paytm or PhonePe ke exclusive QR codes. code ⇒ 😰😰Problem? Other companies’ app may not be able to scan and pay it. ⇒ So, RBI has prohibited companies from launching any new proprietary QR code. UPI QR code Generated by UPI app of NPCi. 🤩🤩It can be scanned by all Apps which are developed using UPI technology. Bharat QR code Developed by NPCi with help of Visa and Mastercard. 🤩🤩It can be scanned by all Apps which are developed using UPI technology. ⇒ RBI has ordered all the Payment System Operators (PSOs e.g. Paytm, PhonePe, MobiKwik, Google Pay etc) to shift to UPI QR or Bharat QR by March 31, 2022. ⇒ 🤩🤩Benefit? All Payment apps will be able to scan these QR codes → 'interoperability'. 10.17.1 💸💸rMQR (Rectangular Micro QR Code) ⇒ 1990s: JAPANESE ENGINEER Masahiro Hara, designed the square QR code ⇒ Now he’s working on rMQR (rectangular QR code). (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 26 ⇒ rMQR can be printed in narrow spaces ⇒ rMQR has same scanning speed are normal square shaped QR code. 10.17.2 💳💳 Card Types based on Security Features: (सुर ा प्रणाली के िहसाब से काडर् के प्रकार) HomeWork: Read about RFID & NFC from Sci-Tech book/internet. 10.18💳💳 CREDIT & DEBIT CARDS (ALSO CALLED ‘PLASTIC MONEY’) Table 7: 💳💳 Card Types based on Payment modality 1) Credit Card (कजर् पे शॉ पंग) 2) Debit Card (अपने ब क बचत का पैसा इ ेमाल करो) If Credit card used for withdrawing money Debit card can be used to withdraw ₹ ₹ from from ATM, then it’s a type of ‘borrowing’, so, ATM from your existing bank balance. bank levies interest rate. So, it’s not ‘borrowing’. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 27 1) Credit Card (कजर् पे शॉ पंग) 2) Debit Card (अपने ब क बचत का पैसा इ ेमाल करो) Credit card vs Overdraft? Debit card vs Overdraft? 1. Credit cards = for shopping. You carry card You should be intelligent enough to self- in your pocket. Bank may give u some understand that much. श क हर चीज क ून फ िडंग reward-points/gifts if you spend “₹.X” per करेगा/च च से खलाएं वह वद्याथ के मान सक वकास के लए अ year बात नहीं 2. - for overdraft= you have to manually visit the bank branch, fillup form. It’s not in the form of a ‘card’. Doesn’t give u points/gifts. ✋Further difference not.imp.not.here.for.IBPS-exam ⇒ 3) Hybrid Card / Duo Card: Single card with two chips for 1) credit card and 2) debit card. So, you don’t have to carry two separate cards. E.g. Indusbank Hybrid card. एक ही काडर् म दोनों का मजा🤩🤩 ⇒ 4) Pre-paid card: It’s a subtype of debit card. Debit card is linked to a given bank account. But Pre-paid card can be bought even without having account in the given bank e.g. IRCTC’s UBI Prepaid Card which can be used for buying rail tickets, meals etc. support provided by Union Bank of India (UBI) and NPCi’s Rupay gateway. (इस काडर् को पैसा देके खरीदना पड़ता है। ब क खाता होना ज री नहीं ) 🚩🚩🚩FAQ: Other technical benefits / MDR challenge / BizGK / PHD-doubts / real life implications = not imp. 10.18.1 💳💳 📧📧 Card Tokenization (from 1/Oct/2022) ⇒ Tokenisation = creates a set of numbers called ‘token’ to replace/hide the sensitive card data such as the 16-digit account number, expiry date and security code. (हैिकंग से बचने वा े असली काडर् नं बर क जगह टोकन/का नक-नं बर बनाकर दे दो एसी बात है। तािक वक्रेता का आपके काडर् क गु जानकारी मले नहीं) ⇒ This ensures your card information is not disclosed to merchant website= protection from hacking. ⇒ Card owner can generate Tokenization through visiting card-issuer’s/banker’s website/App through laptops, desktops, tablet, wearables (smartwatch) etc. ⇒ From 1/10/2022, this became effective. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 28 Figure 2: थ ड़ से डर नहीं लगता, Identity theft se lagtaa hai! 10.18.2 💳💳 CVC Less transactions ⇒ Normally, during online-transaction, customer has to enter Cardholder Verification Code (CVC) EVERYTIME when making payment. ⇒ but after the RBI’s tokenisation norms, this may not be required every time. ⇒ Related topic: WHAT IS Mastercard company’s CVC less transactions? Ans. This much Real life Business general knowledge is not required for exam. 10.18.3 💳💳 🚕🚕 National Common Mobility Card (NCMC, 2019) ‘One Nation One Card Model’ by Ministry of Housing & Urban Affairs (MoHUA) with the help of NPCi, Bharat Electronics Limited (BEL Company), and some banks. It’s basically a card u can use to buy train/bus tickets etc. Outdated for 2023-24 so Deleting for RAFTAAR. 10.18.4 💳💳 🚕🚕 FASTag for paying toll fees at highways (2017) FASTags are prepaid rechargeable tags that allow for automatic toll collection at electronic toll collection gates Radio-frequency Identification (RFID) technology. ⇒ 2017: National Highways Authority of India (NHAI, a statutory body under Highway ministry) launched 2 mobile apps MyFASTag and FASTag Partner to facilitate Electronic Toll Collection (इले ॉ नक मा म से पथकर/टोल वसूली के लए रा ीय राजमागर् प्रा धकरण द्वारा अलग अलग एप बनवाए गए ह ). ⇒ NPCi’s has developed National Electronic Toll Collection (NETC) technology to aid this. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 29 ⇒ Persons loads up ₹ ₹ in his mobile app → actives RFID tag in his car → when it passes through highway toll-booth, the money is automatically deducted. (गाडी टोल नाके से गुजरेगी अपने आप पैसा कट जाएगा) ⇒ 🤩🤩Benefit? faster traffic movement, tracking stolen cars. ⇒ From 2021, it became mandatory for all vehicles passing through tolls to have FASTags. Vehicles without FASTags will have pay up more fees/toll at the gates. (ये लगाना अ नवायर् आ, अ था ादा फ स) 10.19💳💳 MDR: FULL FORM: MERCHANT DISCOUNT RATE ( ापा रक छू ट दर) ⇒ MDR is the fees that a merchant must pay to his (acquirer) bank for every credit / debit card transaction. ⇒ MDR fees is shared among 3 parties 1) customer’s card issuing bank 2) merchant’s acquiring bank 3) payment gateway provider. (तीन प ों म इस फ स को बांटा जाता है) ⇒ MDR hurts merchants’ profit margin, discourages them from adopting Point of Sale (PoS) terminals (=card swiping machine) → obstacle to digital economy. ( ापारी के मुनाफे पर असर होता है इस लए वह काडर् मशीन अपनाने म उदासीनता िदखाते है। ) Table 8: Steps taken to address MDR issue RBI ⇒ 2017: Imposed ceilings on MDR fees i.e. MDR can’t be more than “x%” of the transaction amount. ( रज़वर् ब क द्वारा तय सीमा से ादा फ स नहीं मांग सकते) Budget ⇒ It imposed some technical rules to help companies. I’m deleting it because old 2019 /faded news, mostly technical. 10.19.1 💳💳 MDR Subsidy by MEITY In above photo, MDR fees % is not actual number but for illustration/example. 🔠🔠❓MCQ. Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news ? (Pre18 Set-D) A. The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank. B. The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 30 C. The charge to a merchant by a bank for accepting payments from his customers through the bank’s cards. D. The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards. Instrument UPI NPCI's Rupay NPCI's Rupay Credit Card Debit Card Mastercard/Visa’s Debit/Debit card etc MDR % on transaction value 0% 0% “x”% (NOT ZERO) ⇒ 😥😥 So, if a banker promotes Rupay debit card / UPI App → Banker will not earn MDR fees. So bankers promote MasterCard & Visacard to their customers and merchants (instead of Rupay/UPI). (ब कर को मज़ा नहीं आता ोंिक उसे डे बट काडर् व यूपीआई एप म MDR क फ़ स निह मलेगी।) ⇒ So, 2021-Dec: MEITY (Ministry of Electronics & Information Technology) announced up to ₹2,000 MDR Subsidy to Merchant's Bank for RuPay debit cards transactions and UPI transactions.# (तो सरकार ने ब करों को बोला क तुमको मज़ा िदलवाने के लए MDR नुक़सान के एवज़ म स डी द गे) ⇒ 😍😍 this will encourage digital payment especially in small towns / rural areas (िड जटल भुगतान ऊपर लगने वाले मरच िड ाउं ट रेट पर सरकार द्वारा स डी दी जाएगी यिद भुगतान पये डे बट काडर् या UPI द्वारा हो रहा है) ⇒ 😥😥 Foreign Players like MasterCard and Visacard are opposed to Indian govt’s preferential treatment given to India's Rupay. (“ पे” को मल रही एसी रयायतों से वदेशी काडर् कं प नया नाराज़ है) 🚩🚩🚩🎓🎓 FAQ: "I've 500 jaat ke PHD doubts & counter arguments about this MDR subsidy" Ans. Plz waste your precious time reading egazette.nic.in/WriteReadData/2021/231960.pdf 10.20INTERCHANGE FEE BY NPCI (2023-MARCH) Note: There are many more terms and conditions to this, but we will not waste time in PHD. (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 31 10.20.1 💳💳 🏧🏧 ATM and its Types ⇒ Automated Teller Machine (ATM) allow bank customer to withdraw money or check balance without visiting any branch of a bank. ( चा लत प से नकदी मुद्रा देने वाला यां त्रक िड ा) ⇒ ATM network works on NPCi’s NFS (National Financial Switch) technology. Bank label Bank itself owns and operates the ATM network. Brown label Bank owns but operations outsourced (cash refilling truck, guard) ⇒ Note: Some books offer different definition, but I’ve taken above definition from Economic Times Article 2015.(कु छ िकताबों म ा ा अलग है म ने इधर से ली है) White label - Non-Bank owns & operates. E.g. Muthoot Finance, Tata Comm, Prism - 🚩🚩🚩FAQ: What is on-tap licensing system for White-label ATM? Ans. Outdated topic for 2023. Micro-ATM Bankmitra manually makes entries of deposit and withdrawal for customer. He uses handheld device for using card & Aadhar biometrics. NPCi’s AEPS technology gives backend technological support. 10.21💸💸💸💸💸 📈📈 MEASURES TO PROMOTE CASHLESS ECONOMY - 2019: RBI setup Nandan Nilekani committee. - Budget imposed limits and restrictions on cash transactions (more in Pillar2:Black Money) - + many small small things for Mains Exam. Ignored here for #RAFTAAR-Prelims. 10.21.1 💳💳💳💳 Payments Infrastructure Development Fund (PIDF) 2020-Jun ⇒ ₹250cr from RBI + ₹250 cr from (Banks and Card Gateway Operators) → ₹500 cr fund setup. ⇒ Objective? Provide funding/ subsidy to encourage merchants in the small towns, villages and North Eastern states to adopt point-of-sale (PoS) card swiping machines. भुगतान इं फ्रा र के लए न ध/कोष: गांव, छोटे शहरों और उ र-पूव इलाकों म ापा रयों को काडर् मशीन अपनाने के लए मदद 10.22🌐🌐🤝🤝GLOBAL MONEY TRANSFER 10.22.1 India-UAE: LCSS: UPI-IPP linkage (2023-Aug) - 2023: Central banks of India and UAE signed Local Currency Settlement System (LCSS) agreement. - This will allow importers/exporters/investors/tourists to pay in their respective domestic currencies i.e. in Indian rupee (INR) and the UAE Dirham (AED). (Without using Dollars.) - Both nations also trying UPI-IPP linkage for easier Local Currency Settlement System (LCSS). (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 32 Country → India UAE Mobile based Fast Payment Systems Instant Payment Platform UPI (FPSs) → (IPP) More about currency exchange in (Ref: Pillar#3 Currency Exchange) 10.22.2 Nostro-Vostro / Rupee-Ruble / Rupee-Rial Agreement? (Ref: Pillar#3: international trade / currency exchange) 10.22.3 RUPAY Cards- International acceptance 2023-June: RBI allowed international use of RuPay cards. That means an Indian travellers in use them abroad for ATM money withdrawal and shopping. (subject to terms and conditions) 10.22.4 💸💸📞📞Financial Messaging Systems: SWIFT- Russia gets banned Globally (वै क र पे पैसा भेजना हो) Within India (भारत के भीतर ही पैसा भेजना हो!) Society for Worldwide Interbank Structured Financial Messaging System (SFMS) financial telecommunication (SWIFT) By a Cooperative organization in designed by Tata Consultancy Services (TCS) for Belgium’s La Hulpe city (1973). IDRBT (=Research arm of RBI) (Batch:PCB10-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 33 Globally (वै क र पे पैसा भेजना हो) Within India (भारत के भीतर ही पैसा भेजना हो!) To serve the messaging function for to serve the messaging function in NEFT, RTGS, and Banks, NBFCs & brokers who may / may other inter-bank, intra-bank e-transactions not have direct bank relations / platforms within India. settlement systems with each other due to international borders. 😥😥 Nations banned from SWIFT: 1) Iran (Capital Tehran) 2) 2022: Russia got ban, after invading Ukraine. This will make it very difficult for the Russian banks/ NBFCs /businessmen to send and receive money internationally (यूक्रेन-आक्रमण के ख़लाफ़ स को फ़्ट- व ीय सं देश प्रणाली से प्र तबं धत िकया गया है जसके चलते सी ब क व ीय सं ान और उद्योगप तयों को अंतररा ी य र पर पैसों के लेन म िद त आएं गी।) 10.23 📜📜📜📜 PAYMENT SYSTEM OPERATORS? Payment and Settlement Systems Act, 2007: RBI gives license to Payment System Operators (PSOs). Type of PSO Examples Umbrella Entity For Retail Payments → NPCi (learned in previous section) Card Payment Gateway Operator → MasterCard, Visa, Rupay Crossborder / International Remittance Western Union, MoneyGram Prepaid Payment Instrument (PPI) AmazonPay, Mobikwik, Phonepe, PayU, PayTM Wallet etc Payment Aggregators (PAs) They help the merchant to collect payment from customer digitally e.g. Paytm, Amazon, GooglePay, Zomato, CCBill, CCAvenue, Razerpay, Stripe etc. ATM Operators SBI etc's own ATMs White label ATMs by Tata, Muthoot, SREI etc
