financial_Literacy_classVIII

Page 1: Introduction to Financial Literacy

• NTS: National Testing Service

• NPCI: National Payments Corporation of India provides the framework for payment systems in India under the regulation of the Reserve Bank of India.

• Central Board of Secondary Education (CBSE): Governing entity responsible for the academic management of secondary education in India.

Page 2: Preface

• Importance of Financial Literacy: Essential for adapting to the changing pragmatic needs of the world.

• Goals of the Handbook: To introduce foundational concepts of financial literacy that spans individual financial responsibilities, aiming for holistic knowledge in the context of modern economy.

• Criteria for Curriculum Development: Developed in collaboration with NPCI to communicate relevant financial concepts to students.

Page 3: Acknowledgements

• Contributors: Listing of individuals responsible for editorial and creative input, content development, and reviews.

• Significant Roles: Key officials in CBSE and NPCI instrumental in crafting the content for the Handbook.

Page 4: Contents Overview

• Units Included: A list of topics covered in the handbook:

  • Teamwork

  • Introduction to Financial Literacy

  • Banking

  • Security

  • Modes of Digital Payments (Card Based, Biometric Based, Mobile Based, etc.)

  • Answer Key

Page 5: Unit 1 - Teamwork

• Learning Objectives: To encourage understanding and appreciation for teamwork dynamics.

• Content Focus:

  • Concept and benefits of teamwork

  • Roles of team members

• Learning Outcomes: Define teamwork, identify roles, and describe contributions in teams.

Page 6: Teamwork Definitions and Benefits

• Definition of Team: A group working towards a common goal.

• Benefits:

  • Higher productivity

  • Better cooperation

  • Enhanced creativity and problem-solving abilities

  • Share workload.

Page 7: Team Roles

• Individual Roles:

  • Shaper: Drives direction and forward motion.

  • Implementer: Puts ideas into action.

  • Coordinator: Manages team dynamics.

  • Resource Generator: Supplies necessary info and resources.

  • Plant: Innovates and generates ideas.

  • Specialist: Brings specialized knowledge.

Page 8: Unit 2 - Introduction to Financial Literacy

• Learning Objectives: Awareness of basic financial concepts.

• Content Overview:

  • Financial terms, trade and money, cash memos.

• Learning Outcomes: Explain basic concepts, identify loan-providing organizations beyond banks.

Page 9: Importance of Financial Literacy

• Needs vs. Wants:

  • Needs: Essentials for survival (food, clothing).

  • Wants: Non-essential desires (luxury items).

Page 10: Understanding Financial Concepts

• Bank: Financial institutions handling deposits and loans.

• Account: Record of transactions.

• Income: Money earned through goods/services.

• Loan: Advance payment with terms and interest.

Page 11: Barter System and Evolution of Trade

• Barter System: Pre-currency exchange system based on mutual needs.

• Historical Trade: Evidence of trade among early civilizations before currency established.

Page 12: Money and Trade Connection

• Evolution of Money: From barter systems to various forms (coins, paper money).

• Silk Road: Historical trade route that facilitated international trade.

Page 13: Importance of Bill/Cash Memos

• Historical Documents: Hundi and Chitti for transaction facilitation before banking systems.

• Banking Evolution: Transition from indigenous systems to formal banking structures.

Page 14: Summary of Unit 2

• Key Financial Concepts:

  • A bank’s role and services.

  • Definition and significance of accounts and loans.

  • Evolutionary impact of the barter system and trade on modern finance.

Page 15: Unit 3 - Banking Overview

• Learning Objectives: Understand banks' importance and functions.

• Content Focus: Essential roles played by banks in the economy.

Page 16: Evolution of Money

• Historical Development: From barter to electronic transactions.

• Key Stages in Money Evolution: Commodities, Gold, Paper, Digital Money.

Page 17: Types of Banks

• Central Bank: Reserve Bank of India (RBI) responsible for currency issuance and regulation.

• Commercial Banks: Public (government-owned) and Private banks (owned by organizations).

Page 18: Banking Services Provided

• Commercial Banks' Services: Management, deposits, lending, online banking.

• Cooperative Banks: Focusing on savings in rural areas.

• Specialized Banks: Serve specific sectors of industry or access foreign markets.

Page 19: Types of Bank Accounts

• Account Types:

  • Savings: Encourages saving.

  • Current: Used by businesses.

  • Fixed Deposits: Long-term investment with higher interest.

  • Recurring: Encourages systematic savings.

Page 20: Summary of Banking Unit

• Focal Points: Evolution, types of banks, account categories, and services offered.

Page 21: Unit 3 Self-Test Questions

• Sample Questions:

  • Older transaction methods and banking function comprehension.

  • Knowledge on bank types and services.

Page 22: Unit 4 - Security

• Learning Objectives: Understand RBI's role and digital banking.

• Content Outline: The fundamental role of RBI and its functions.

Page 23: Reserve Bank of India (RBI) Roles

• Core Functions: Monetary policy, financial regulation, currency management.

Page 24: National Payments Corporation of India (NPCI)

• About NPCI: Centralized payment and settlement systems' regulatory framework in India, innovations in payment infrastructure.

Page 25: Digital India Initiative

• Objectives: Transforming India into a digital society, encompassing various payment systems and user-friendly applications.

Page 26: Digital Payments Overview

• Definition: Modern banking conveniences making transactions easier and efficient without cash reliance.

• Advantages of Digital Payments:

  • Convenience across timings.

  • Quick operations.

  • Accurate records.

  • Greater transaction transparency.

Page 27: Unit 4 Self-Test Questions

• Examples of Assessment Questions: Key understanding of RBI's functions, benefits of digital banking initiatives.

Page 28: Unit 5 - Digital Payments (Card Based)

• Learning Objectives: Card concepts and payment gateway functionalities.

Page 29: Payments Ecosystem

• Different Roles: Acquirers, Issuers, Payment Gateways, Payment Aggregators.

Page 30: Use of Banking Cards

• Types of Banking Cards:

  • Debit: Instant access to bank funds.

  • Credit: Allows borrowing from banks.

  • Prepaid: Funds must be loaded in advance.

Page 31: Guidelines for Banking Cards

• Essential Usage Tips: Keep PIN secure, avoid sharing details, report stolen cards immediately.

Page 32: Point of Sale (PoS) Technology Overview

• Functionality: Innovation in retail, enhancing billing and inventory systems.

Page 33: Mobile Point of Sale (mPoS)

• Definition & Functionality: Facilitates payments via mobile devices for merchants leveraging the benefits of traditional PoS.

Page 34: Benefits of PoS Systems

• Advantages to Merchants:

  • Streamlined processes and better inventory management.

  • Enhanced customer satisfaction through improved service efficiency.

Page 35: Automated Teller Machines (ATMs)

• Functions and Features: Facilitate various banking services including cash withdrawals and account inquiries.

Page 36: RuPay Card and Payments

• Overview: Domestic card framework created for supporting payments in India and reducing reliance on international card systems.

Page 37: Unit 5 Self-Test Questions

• Examples of Evaluation: Understanding banking card functionalities and services.

Page 38: Unit 6 - Biometric Payments and Micro ATMs

• Focus: Relationship between UIDAI, Aadhaar, and biometric-based systems for payment authentication.

Page 39: Unique Identification Authority of India (UIDAI)

• Significance: Ensuring secure identity authentication for digital transactions.

Page 40: Aadhaar Enabled Payment System (AePS)

• Functionality: Seamlessly connecting users to their bank accounts utilizing Aadhaar for transactions.

Page 41: Micro ATMs in Rural Banking

• Description & Benefits: Portable banking solutions enabling access to financial services in rural arenas through biometric systems.

Page 42: BHIM Aadhaar Pay

• Overview of Merchant Solutions: Facilitates merchant payment acceptance via biometric verification systems.

Page 43 - Self-Test Questions

• Examining Knowledge on UIDAI and Payment Systems: Critical thinking on technology in financial literacy.

Page 44: Unit 7 - Mobile Banking and Digital Payments

• Learning Objectives: Understand platforms such as mobile banking, online transfer systems, wallets, and UPI-related services.

Page 45: Internet Banking Services

• Types of Transfers: Key categories include NEFT, RTGS, IMPS, and their functionalities in transaction processing.

Page 46: Unified Payments Interface (UPI)

• Definition & Purpose: A platform facilitating diverse banking transactions through one mobile application linked to multiple bank accounts.

Page 47: Mobile Wallets Description

• Functionality: Application-based transactions providing convenience without cash/cards when shopping.

Page 48: Unstructured Supplementary Service Data (USSD)

• Description: A vital service enabling users without data services to conduct banking transactions simply.

Page 49: Additional Payment Modes

• Overview of NACH, BBPS: Automated systems facilitating large-scale financial transactions and bill payments.

Page 50: National Electronic Toll Collection (NETC)

• Objective: Modernizing toll collection through technology promoting efficient traffic flow and electronic payments.

Page 51: Summary of Digital Payment Methods

• Integration of Payment Systems: Consolidating various payment systems into a comprehensive understanding of functional banking and financial literacy.

Page 52: Self-Test Review

• Evaluation Questions and Answers covering essential concepts learned through the units to reinforce understanding.

Page 53: Key Review Points

• Digital Banking Evolution: How modern technologies have transformed traditional banking methods and practices.

Page 54: Supplemental Concepts in Payments

• National Automated Clearing House (NACH) and its designs tailored for repetitive transactions and bulk payment mechanisms.

Page 55: Bharat Bill Payment System (BBPS)

• Features: Provides a reliable platform for recurring bill payments across diverse services and channels.

Page 56: Unit 7 Self-Test Questions

• Focused Questions: Assess comprehension of internet payments, mobile transactions, and payment applications.

Page 57: Abbreviations Summary and Review

• Listing of Terms: Include basic terminologies associated with financial and digital payments for ease of understanding.

Page 58: Key Vocabulary and Their Functions

• Defined Terms: QR Codes, PoS, PIN, USSD functionalities for clearer operational understanding.

Page 59: Comprehensive Answers to Self-Test Questions

• Complete Responses: Emphasized learning targeted on the key aspects of banking education and literacy.