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""IMPORTANT COMMITTEES"" RBI:- Hilton Young Committee Priority Sector Lending Certificates (PSLCs):- M.V. Nair Committee NABARD:- Shivaraman Committee Payment banks:- Dr. Nachiket Mor Committee Establishment of RRBs & NPA:- Narasimham Committee IRDAI:- Malhotra Committee Small Finance Bank:-Usha Thorat Committee Urban Cooperative Banks:-K. Madhav Das Committee

""Types of Money"" There are many forms of money. Following are the main forms of money. 1. Metallic Money 2. Paper Money 3. Bank Money 4. Legal Money 5. Plastic Money 6. Near Money 1. Metallic Money The money made of any metal such as gold, silver etc is called metallic money. It exists in the form of coins. In our country the coins of Rs. 1, 2 and 5 are the current examples of metallic money. Due to its weight, it is difficult to use this money in large quantity. Therefore coins are used in small amounts only the metallic money has the following two types: A) Full Bodied Coins B) Token Money A) Full Bodied Coins When the face value of the coin is equal to the value of metal contained in the coin, the coin is called a full bodied coin. The gold and silver coins of old times are examples of full bodied coins. B)Token Money When the face value of a coin is greater than the value of the metal it contains, it is called token money. In our country, all the coins are token money. 2. Paper Money Paper money refers to notes of different value made of paper which issued by the central bank or government of the country. The paper money can be classified into following types: A) Representative Money B) Convertible Money C) Inconvertible Money/fiat Money A) Representative Money Representative money is that money which is fully backed by equal metallic reserve. The holder of a bank note can easily get it converted into metallic (gold & silver) form on demand B) Convertible Money It is the form of money which can be converted into gold, silver i.e. metallic reserves. But all these notes issued by the government are not fully backed by gold. The amount of gold kept by the government is a particular proportion of the notes issued. C) Inconvertible/Fiat Money Inconvertible or fiat money is one that we have in our pocket and use in daily business. The face value of such money is more than the value of the paper. e.g. the value of the paper of 100 rupee note is almost nil but its purchasing power is equal to Rs.100. it has this value because it has been declared as legal money by the government, so it is generally accepted as a medium of exchange. 3. Bank Money This is the most modern form of money this money is also called credit. It only consists of cheques, bill of exchange and drafts. A) Cheques A cheque is an unconditional order by the client on his bank to pay a certain sum of money to him or to any other party. B) Bills of Exchange A bill of exchange is an order by the drawer to the drawee to pay a sum of money to the drawer or to any other party. C) Draft: Draft is a cheque drawn by a bank on its own branch or the branches of another bank requesting it to pay on demand a specific amount to a person named on it. 4. Legal Tender Money The money that a person accepts as a means of payment and in discharge of debt is called legal tender notice. All the notes and coins issued by the govt. and the central bank are legal tender money. Legal tender money is of two types: A) Limited Legal Tender Money The money which can be used a means of payment up to a certain limit is called limited tender money e.g. coins. B) Un-limited Legal Tender Money The money that can be used a mean of payment up to any limit or amount e.g all the notes issued by SBP. Non legal tender money Bank money is the form of cheques, bills of exchange, a promissory notes is not legal tender money. Robertson says it “optional money”. So non legal tender money is money which a person may or may not accept as a mean of payment. 5. Plastic Money Plastic money means the credit cards, smart cards. Plastic cards which have specially printed set of characters. Recently the use of this money has increase. 6. Near Money A type of money which can easily be converted into money. It included deposits, government bonds, printed bonds etc.

RRB Clerk prelims 2021 Admit card Link : https://ibpsonline.ibps.in/rrbsoaxmay21/cloea_jul21/login.php?appid=ced18ddc4689444e9cc2c1301a6efd8f

What is the full form of VTM? (a) Virtual Truncated Machine (b) Vehicle Teller Machine (c) Virtual Timer Machine (d) Virtual Teller Management (e) Virtual Teller Machine Ans.(e) Sol. Virtual Teller Machine (VTM) is a flagship product of Iserve- Self Service kiosks that is a state-of-the-art kiosk that can automate 90% of the teller transactions.

The Banking Ombudsman Scheme was introduced under ______ of the Banking Regulation Act, 1949 by RBI with effect from 1995. (a) Section 25A (b) Section 35A (c) Section 45A (d) Section 15A (e) Section 55A Ans.(b) Sol. The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.

National Securities Depository Limited is an Indian central securities depository based in ___ (a) New Delhi (b) Chennai (c) Hyderabad (d) Mumbai (e) Bengaluru Ans.(d) Sol. National Securities Depository Limited is an Indian central securities depository based in Mumbai.

A Public Provident Fund (PPF) account holder can deposit a maximum of- (a) 1.5 Lakhs (b) 2.5 Lakhs (c) 1.0 Lakh (d) 3.5 Lakhs (e) 5.0 Lakhs Ans.(a) Sol. A Public Provident Fund (PPF) account holder can deposit a maximum of Rs 1.5 lakhs in his/her PPF account.

India Infrastructure Finance Company Ltd (IIFCL) is a wholly-owned ________ company set up in 2006. (a) NABARD (b) SEBI (c) RBI (d) Finance Ministry (e) Government of India Ans.(e) Sol. IIFCL is a wholly-owned Government of India company set up in 2006 to provide long-term finance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI.

Which of the following is mainly used by the banks in order to meet their temporary requirement of Cash on a daily basis? (a) Commercial Paper (b) Certificate of Deposit (c) Collateralized Borrowing and Lending Obligations (CBLO) (d) Call Money (e) None of the given options is true Ans.(d) Sol. Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation only to scheduled commercial banks and the primary dealers.

Which of the following is not available to depositors of NBFCs? (a) Deposit Insurance facility (b) Acquisition of shares (c) Loans and Advances (d) All of the Above (e) None of the given options is true Ans.(a) Sol. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

"Important For Banking mains exams" 1.Original headquarters of RBI were located at ___? [A] Calcutta [B] Bombay [C] Madras [D] New Delhi Correct Answer: A [ Calcutta ] Notes: Original headquarters of RBI were in Kolkata, but in 1937, it was shifted to Shahid Bhagat Singh Marg, Mumbai.