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Recap of the Foundation Course: Banking

Before diving into the Intermediate module on banking, let's quickly recap some key concepts from the Foundation course to ensure you're up to speed:

What is a Bank?

A bank is a place where you can safely store your money, borrow funds when needed, and even earn interest on your savings. Banks help you manage your finances, whether you’re saving for a special goal or simply keeping your money secure.

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Key Features of Banks

  • Depositing Money: Banks provide a secure place to deposit your money, protecting it from theft or loss. You can deposit cash, cheques, or transfer funds electronically.
  • Borrowing Money: Banks lend money to individuals and businesses, charging interest on loans. This interest is how banks earn money. For example, if you borrow ₹5,00,000 at a 10% interest rate, you'll repay ₹5,50,000 - the original amount plus ₹50,000 as interest.

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Role of Banks in Daily Life

    Banks play a crucial role in our daily lives, from helping us save money to facilitating everyday transactions. Whether you’re paying for your morning coffee, shopping online, or paying bills, banks make it all possible through services like debit cards, online banking, and UPI payments.

History of banking

 

Banking has evolved from people storing their money in home vaults or kitchen jars to the establishment of banks as secure places for wealth. Starting in ancient Mesopotamia around 2000 B.C. and advancing through the centuries with the emergence of bank houses in Italy during the 12th and 13th centuries, banking has transformed with the industrial revolution and, more recently, through digitalization. Today, e-banking, mobile apps, and high-speed internet have made banking more accessible and secure than ever.

In the Intermediate module, we’ll build on this foundation by exploring more detailed banking topics. We’ll dive into the various types of banks in India and how they function. You’ll also learn about modern banking channels like WhatsApp banking, mobile banking, and digital banking, which offer seamless convenience at your fingertips. We’ll explore how traditional bank branches are adapting in the digital age and explain how ATMs work to provide quick and easy access to your money. Get ready to deepen your financial knowledge and discover the full spectrum of banking services available to you!