Financial Literacy: Banking and Formal Financial Institutions
Description
This subject provides comprehensive knowledge of India's banking system, regulatory framework, and banking products essential for effective financial management. It covers the structure and role of the Reserve Bank of India as India's central bank, explains different types of banks (commercial, payment, small finance, cooperative), guides account opening procedures with KYC norms, and explores various savings and transaction products. Learners develop practical skills in selecting appropriate bank products, understanding interest mechanisms, and managing banking relationships. The subject emphasizes India's financial inclusion goals and the accessibility of banking services to all citizens.
Learning Objectives
Upon successful completion of this subject, learners will be able to: (1) explain the role and evolution of the Reserve Bank of India and its regulatory authority, (2) understand the Banking Regulation Act and its implications for bank operations, (3) distinguish between different types of banks in India including commercial, payment, small finance, and cooperative banks, (4) understand KYC (Know Your Customer) norms and their importance in banking, (5) complete account opening procedures at banks, (6) select and open appropriate savings bank accounts for their needs, (7) understand account features including interest rates, transaction limits, and service charges, (8) open and manage current accounts for business purposes, (9) use fixed deposits effectively for structured saving with understood returns, (10) access recurring deposits for systematic accumulation, (11) benefit from Basic Savings Bank Deposit Accounts for financial inclusion even without minimum balance, (12) read, understand, and reconcile bank statements to detect errors, (13) understand simple and compound interest calculations, (14) optimize interest earnings through appropriate product selection.