Digital Finance Tools i financial services via the digital transa what is Digital financial services financial about.
Digital Financial Services
- Need for Saving Human beings need saving due to the following reasons.
- 1- For the time of need
- 2- To meet future needs 3- To prevent wastefulness
- 4- To remain independent
Disadvantages of keeping cash at home
The following are the disadvantages of keeping cash at home.
- There is a fear of security
- Capital does not increase
- There is a problem in the transaction of capital away from home.
- Need of Bank Man needs a bank because of the following reasons.
1- Providing security to capital
2- Getting interest on capital
- Easy access to loan at the time of need 4- Promote the habit of saving
- To get rid of moneylenders and cheat fund company.
- Transactions can be done easily through check and D.D.
Types of Bank Account
- There are four types of bank accounts.
- Current Account is a type of account for merchants for savings, in which transactions can be done many times in a single day. This account is generally opened in the name of the firm, in which the facility of check book is available. No interest is paid on this account. On the contrary, the bank also charges some service charge on this account. Partnership account does not have a nominee.
- Saving account- 4% interest rate has been fixed by RBI on this account. But the bank can give 6% or 7% interest rate according to its own. There is no limit to the transaction, but if the bank wants, it can determine the transaction amount or the number of transactions. Check book facility is available.
- Recurring Deposit- This account is used to save monthly fixed amount. The purpose of this type of account is for child education, daughter marriage etc. The bank also charges a penalty if the monthly installment is not deposited on time. The interest rate on this account is given similar to that of FD.
It is also called term deposit or bond, its time period ranges from 7 to 10 years. In FD, an amount is deposited in the bank for some time period, after that time period the maturity amount is provided by the bank. FDs can also be broken prematurely. For which 1% is to be paid as penalty. The interest rate of FD is dependent on the market value.
Government subsidy is given on the concept. Banks provides loans are the given following many types
- the loan taken for the property
- would have been
- Loan for purchase of land Loan for repair of house
- loan for house construction
This loan can be used by a person for any work, on this the interest rate is high.
Vehicle loan- Loan taken to buy car, bike etc. is called vehicle. This would have happened if the installment is not deposited on the vehicle being taken back by the bank.
Education loan This is a loan given to the students to study. When he gets a job after completing his studies, he collects the loan installments from his salary.
Loan taken by mortgage of gold is called gold loan.
6- Agriculture is the loan given to farmers for agriculture, through which farmers buy tools, fertilizers, pesticides etc. and after selling the crop, repay the loan.
7- Loan against Insurance on any insurance after completion of the year
can be taken. This loan is given by both Insurance Company Bank.
Loan against FD
Loan can also be taken against FD given by banks. The interest paid on FD taken on this loan is high.
Loan against Shares and Mutual Funds and Loan against Mutual Funds can also be taken. The loan amount is less than the value invested in the share.
Over the amount deposited in the account from the current account of any bank
Removal is overdraft. For this the bank fixes a limit.
11-Cash This facility is given by the bank to its customers, in which a loan of customer value is given to any security. It has to be renewed every year. • Steps of Filling DD Form While filling the Demand draft, fill the following information
1- Name of the dam in which the DD is being applied for. 2- Tick to tell that it is a DD and not Banker’s check
3- Date writing 4- In Favour of (whose name is to be made DD)
5- Amound (the amount of DD to be made)
6- Paybleat (name of that city) 7- Payble branch (branch on which DD is to be paid)
8- Applicant Signature (Signature of the applicant)
- Applicant full name as per document original document of applicants.
- Steps of filling a cheque- The check once issued remains valid for 3 months. While filling the check, fill the following information
1- Date– On the check, write the date of the day on which it is being filled. If the date on the check is written on a later day then it is called post dated cheque.
2- Name of the Person/Company– In whose name the check is given, it is payee interest. If the name of the payee is not written then it is not valid for payment. If we want that the same person can cash the check in whose name the check is, then we cut off the word “bearer” from the end of the line with Payble.
3- Amount – After entering the price in words, a line should be drawn so that the price cannot be modified.
4- Amount in box– The value is written in Figure (count) inside the box. 5- Put your signature on your name.
5- Account payee– If you want to secure this check, then write “A/C Payee” on the left side between the two cross lines. This check can only be deposited in the account and not cashed.
- Know Your Customer (KYC) – is the process of verifying the identity of your client.
This process is used to prevent identity theft, financial fraud money laundering and terrorism financing. KYC is used at the following time
- At the time of account opening
- While applying for the credit card 3. While providing the locker facility
- To invest in Mutual Funds
- UIDAI and Aaadhaar card- UDAI (Unique Identification Authority of India) is a central government agency that collects the biometric and demographic data of citizens into a single
What is E-KYC ? How tis Used EKyc : EKYc online Aadhar Ekyc and Other
Stores in the central server. This agency provides a unique 12-digit number to the citizens, which is called Aadhar number. This Aadhaar card is used as identity and address proof.
Alternative Channel of Banking
- The bank does banking work through its various channels, these channels are-
1- ATM (Automatic Teller Machine)
- POS Terminals
There is a type of mobile ATM for rural areas which is near the bank friend. Less amount can be transacted from this ATM. Rupee and Debit card are used in this ATM. Through Micro ATM, the customer can do cash transaction near the house. Use of Biometric Authentication in Micro ATM.
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