Digital India Programme Class 7

Role of Reserve Bank of India

RBI was established in 1935 and nationalised in 1949.  The bank issues currency in India and also destroys notes and coins that are not fit for use.

Besides this, RBI performs following functions:

  1. RBI is the monetary management authority of India that regulates and maintains prices to keep control on inflation.
  2. It is the banker and the debt manager to the GoI.
  3. RBI is also the banker to the other banks in India.
  4. It is the body for financial regulation and supervision in India.
  5. RBI manages and controls foreign exchange and foreign exchange reserves.
  6. It also supervises and regulates market operations, payment and settlement systems, and research and data dissemination.

 

About NPCI

The shareholders of NPCI are Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, Multi State Cooperative Banks, Payments Banks, Payments System Operators and Small Finance Banks.

 

Digital India and Aatmanirbhar Bharat Abhiyan

Digital India is a programme launched by India’s Government for the digital transformation of Indian Economy, by its various initiatives:

  1. Digital Profile of India
    1. Aadhaar - Digital Identity
  2. Digital Governance
    1. eTaal - Growth in e-governance transactions per day
  3. Digital Platforms
    1. Aadhaar - Digital Identity
    2. Goods and Services Tax Network (GSTN)
    3. Government e-Marketplace (GeM)
    4. Digilocker
    5. Unified Mobile App for New-Age Governance (UMANG)
  4. Digital Payments
    1. Unified Payment Interface (UPI)
    2. Unstructured Supplementary Service Data (USSD)
    3. Bharat Quick Response code (QR)
    4. National Automated Clearing House (NACH)
    5. Immediate Payment Service (IMPS)
    6. National Electronic Toll Collection (NETC)
    7. RuPay
    8. Bharat Bill Payment System (BBPS)
    9. Bharat Interface for Money (BHIM) Application
    10. Aadhaar Enabled Payment System (AePS)
    11. Bharat Interface for Money (BHIM) Aadhaar Pay
  5. Digital Infrastructure
    1. BharatNet
    2. National Knowledge Network
    3. Meghraj
    4. National Centre of Geo-Informatics
  6. Digital Inclusion
    1. Common Service Centres (CSCs)
    2. Stree Swabhiman
    3. Rural BPOs
  7. Aatmanirbhar Bharat Abhiyan

 

Aatmanirbhar Bharat Abhiyan

Aatmanirbhar Bharat Abhiyan, or Self-reliant India Mission, is the leading policy from India’s Government towards making India a global economic powerhouse.

Various features of Aatmanirbhar Bharat Abhiyan:

  1. Credit boost to farmers
  2. Leveraging IT for healthcare
  3. Access to the public distribution system (Ration)
  4. Technology-driven systems - online education
  5. Employment boost through MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
  6. Measures for MSMEs
  7. Reforming governance for ease of doing business
  8. Corporate law measures
  9. Other measures covering the financial sector, NBFCs, power sector, space sector, coal and mining sectors, civil aviation etc.

 

Digital Banking

Digital banking allows bank customers to avail banking services using the bank’s website or a mobile app. These services include:

  1. Checking account balance
  2. Transferring funds to another account
  3. Ordering a cheque book
  4. Changing passcodes, etc.

 

Digital Payments

Digital Payments have led to a growing number of online shopping websites and mobile apps that let customers purchase their favourite products from the convenience of their homes.

Benefits of Digital Payments

  1. Fast, easy and convenient: Digital payments can be made at any time of the day using just the smartphone, making these transactions extremely easy and convenient. One need not travel anywhere, and there is no cash handling required.
  2. One-stop solution: We can use digital payments for various purposes, such as making bill payments, purchasing goods and services online, or sending money to a friend or relative. It is indeed a one-stop solution for many purposes.
  3. Digital Record: A unique transaction ID backs each online/digital transaction. It makes digital payments fully secure transactions, and there is minimal risk involved.
  4. Transparent Transactions: Since there is no cash handling involved, digital payments discourage black money. All transactions are transparent and tracked through unique transaction IDs.

 

Banking 7

Check your understanding

MCQs

 

Drag the words

 

Review Drag the words