Mrunal Pcb11 2025 Handout PDF

Mrunal’s Economy for UPSC Prelims-2024-25 (PCB11-RAFTAAR)
Pillar1A1: Money: Barter to Bitcoins

Table of Contents
10 🏛Brief Info about Economy course (PCB11-Raftaar)......................................................................4
10.2 Myths about Economy for UPSC Prelims.................................................................................................4
10.3 🏛💳 PYQ Analysis: Increased diversity in Economy topics in Prelims.................................................5

10.3.1 🏛💳 PYQ Analysis: Marks Distribution in UPSC Prelims and Mains..................................................................8
10.4 🍅🌽 Barter system & its disadvantages: (वस्तु विनिमय प्रणाली)..................................................................9
10.5 📏Money: Functions of (पैसे के कार्य)...........................................................................................................9
10.6 💵 Money: Evolution & Types (मुद्रा की उत्क्रांति व् प्रकार)............................................................................10

10.6.1 🥜Commodity Money / (Intrinsic value:
वस्तु मुद्रा ? Yes).......................................................................10
अंतर्भूत मूल्य
10.6.2 🥇Metallic Money / (Intrinsic value? Yes).................................................................................................10

धातु मुद्रा
10.6.3 💪 Metallic Money → Full Bodied vs Token Coins...............................................................................................10
10.6.4 💍📔Intrinsic value of a coin? ( )..............................................................................................................11
अंतर्भूत मूल्य
10.6.5 💵Paper Money / (Intrinsic Value? No).................................................................................................11

कागजी मुद्रा
10.6.6 💵⚖️Legal Tender ( )............................................................................................................................11

वैधानिक निविदा
10.6.7 💵⚖️Legal Tender ( )- Limited and Unlimited..................................................................................14

वैधानिक निविदा
10.6.8 👩‍🦯🤳🏻RBI’s App to help the blind identify currency notes.....................................................................................15
10.6.9 💵 Currency related General Knowledge:................................................................................................................15
10.6.10 💵 “I promise to pay the bearer…”: Meaning of this promise? ..........................................................................16
10.6.11 Currency Note is not a promissory note?..............................................................................................................16
10.7 💵 Demonetization of Fiat Money (विमुद्रीकरण: Previously 1946, 1978).................................................16

10.8 💵 ₹2000 WITHDRAWN but continued as legal tender........................................................................16
10.8.1 💵 ₹2000 NOT DEMONETIZED but WITHDRAWN from circulation............................................................17
10.8.2 💵 ₹ 2000 withdrawn- WHY? ( )..............................................................................................17
क्यों चलन से हटाया गया
10.8.3 💰🤮 Money Types: Gresham law: good vs bad money | soft vs hard currency.................................................17
10.8.4 Zimbabwe's Gold Coin ‘Mosi-oa-Tunya’.................................................................................................................17
10.8.5 🤫💸👜🥚 Redenomination: Iran’s Toman Currency...........................................................................................18
10.9 🐷🔖Bank Money / Deposit Money.........................................................................................................18

10.9.1 🐷🔖 Paper orders: Cheque, Demand Draft (DD)..................................................................................................18
10.9.2 🔖DD and Overdraft..................................................................................................................................................19
10.9.3 🐷🔖 Cheque → NPCi’s Cheque Truncation System (CTS) & Positive Pay Mechanism.................................19
10.10 🐷💸📡 Electronic Orders / Digital payment........................................................................................19
10.10.1 💸📡CBS ( full form: Core Banking Solution /system)........................................................................................20
10.10.2 📡 NEFT vs RTGS vs IMPS.....................................................................................................................................20
10.10.3 📡 LPSS- lightweight payment and settlement system.........................................................................................21
10.10.4 💸📡 RBI’s Next Generation Treasury Application (NGTA), 2020-Oct...........................................................22
10.10.5 📡🚩👶🏻 RBI's Next-Gen RTGS to comply with ISO-XML standards................................................................22
10.11 🕵🏻 National Payment Corporation of India(NPCi)..............................................................................22
(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 1

10.12 🕵🏻 🤳NPCI → UPI (Unified Payment Interface).................................................................................23
🛍️
10.12.1 UPI: daily transaction limits..............................................................................................................................23
🤌
10.12.2 UPI: Push vs Pull Transactions..........................................................................................................................24
10.12.3 → →NPCI → UPI → 123PAY for FeaturePhones.............................................................................................24
🛍️ 📙
10.12.4 UPI observations by Economic Survey-ES-2023........................................................................................25
🛍️
10.12.5 UPI single-block-and-multiple-debits functionality (2022-Dec)..................................................................25
🛍️
10.12.6 UPI-Lite (on-device wallet)...............................................................................................................................25
10.12.7 🛍️🫰🏻
UPI-Lite + NFC = Offline Retail Payment / Tap-and-pay.........................................................................26
10.12.8 🛍️💬
Conversational payments in UPI..................................................................................................................26
10.13 🔪 Pre-sanctioned credit line.................................................................................................................26

10.13.1 🔪🛍️ UPI: Pre-sanctioned credit line/Overdraft in UPI (2023-Apr).................................................................27
10.13.2 🔪🛍️ UPI: Benefits of UPI-overdraft facility?.......................................................................................................27
10.13.3 🛍️ UPI: Interoperable Card-less Cash Withdrawal (ICCW)...............................................................................28
10.13.4 🛍️ UPI: QR Code based Coin Vending Machine using UPI (2023-Feb)...........................................................28
10.13.5 🕵🏻 🤳NPCI → UPI BHIM Full form: Bharat Interface for Money (2016)........................................................28
10.14 🕵🏻 💳 NPCI → Rupay Card Payment Gateway (2012).........................................................................29
10.14.1 🕵🏻 NPCI other notable initiatives...........................................................................................................................29
10.14.2 🕵🏻NACH-ABPS : Hybrid / Mixed mode in MGNREGA.....................................................................................30
10.15 🤳🏻💸👟 Direct Benefit Transfer (DBT) → E-Rupi by NPCi (2021)....................................................31
10.15.1 e-RUPI vouchers: scope expanded (2023-June)...................................................................................................31
10.15.2 💸🤳🏻🤷🏻‍♂️🤳🏻Interoperability Problem ( इंटरऑपरेबिलिटी)............................................................................................32
10.16 🤳🏻💸QR Codes: compulsory to implement UPI/Bharat QR from 2022..............................................32

10.16.1 🤳🏻💸rMQR (Rectangular Micro QR Code)...........................................................................................................33
10.16.2 💳 Card Types based on Security Features: ( )................................................33
सुरक्षा प्रणाली के हिसाब से कार्ड के प्रकार
10.17 💳 Credit & Debit Cards (also called ‘Plastic Money’).........................................................................33

10.17.1 💳 📧 Card Tokenization (from 1/Oct/2022).......................................................................................................34
10.17.2 💳 CVC Less transactions........................................................................................................................................35
10.17.3 💳 Auto-Debit/E-mandates and Additional Factor of Authentication (AFA).................................................35
10.18 💳 🚕 Card/tech for Transport / Travel.................................................................................................36
10.18.1 💳 🚕 National Common Mobility Card (NCMC, 2019)....................................................................................36
10.18.2 🚝💳 SBI’s Nation First Transit Card (2023)........................................................................................................36
10.18.3 💳 🚕 FASTag for paying toll fees at highways (2017).........................................................................................37
10.19 💳 MDR: Full form: Merchant Discount Rate (व्यापारिक छू ट दर)...........................................................37
10.19.1 💳 MDR Subsidy by MEITY....................................................................................................................................38
10.20 Interchange fee by NPCi (2023-March).................................................................................................39
10.20.1 💳 🏧 ATM and its Types........................................................................................................................................39
10.21 💸📡🤳🏻 📈 Measures to promote Cashless Economy...........................................................................39
10.21.1 🕵️‍♂️ 💳📯 Payments Infrastructure Development Fund (PIDF) by RBI..............................................................39
10.22 🌐🤝Global Money Transfer..................................................................................................................40
10.22.1 UPI facility to foreign tourists coming to India (2023)........................................................................................40
10.22.2 Nostro-Vostro / Rupee-Ruble / Rupee-Rial Agreement?....................................................................................41
💳
10.22.3 RUPAY Cards- International acceptance.........................................................................................................41

10.22.4 🛍️ UPI in Srilanka, Mauritius (2024).....................................................................................................................41
10.22.5 🛍️ India-UAE: LCSS: UPI-IPP linkage (2023-Aug).............................................................................................41
10.22.6 💸📞Financial Messaging Systems: SWIFT- Russia gets banned.......................................................................42
10.23 👨‍⚖️📜🗓 Payment System Operators?....................................................................................................42
10.23.1 👨‍⚖️New Umbrella Entity (NUE) for Retail Payments System (2019).................................................................43
10.23.2 🤳🏻 Third Party Application Providers (TPAPs): Google Pay, Whatsapp Pay...................................................43
10.24 🕵️‍♂️ 💳 Digital Payment Regulatory bodies (नियंत्रण संस्थाएँ )...................................................................44
10.24.1 🕵️‍♂️ 💳 Digital Transactions Ombudsman (DTO-2019).......................................................................................44
10.24.2 🕵️‍♂️ RBI: BPSS (Statutory body)................................................................................................................................44
10.24.3 🕵️‍♂️Payment Regulatory Board (PRB)......................................................................................................................45
10.25 🐯📊 Digital Payment related Index / Competitions/Reports by RBI.................................................45
10.26 🔗💮 Crypto-Currency & Blockchain Technology...............................................................................45
10.26.1 👝Hot Wallet vs Cold Wallet..................................................................................................................................45
10.26.2 🔗💮📉:🥶☃️Crypto-Winter in Bitcoin Prices ( ).........................................................46
भाव गिरा अब उठ नहि रहा है
10.26.3 🔗💮📉:🥶☃️ Crypto-scams - Recent Global Scams...........................................................................................46
10.26.4 🔗💮:Crypto currency observations by 📙EcoSurvey’23.....................................................................................47
10.26.5 🔗💮:🍋 Cryptocurrency Profit pe 30% Tax and 1% TDS in 👜🥻Budget-2022..............................................47
10.27 ⚖️🔗💮✋ Cryptocurrency Banned in other nations?..........................................................................47

10.27.1 Crypto currencies as legal tender is in some countries........................................................................................47
10.27.2 🔗💮 🤩
: Cryptocurrency Permitted in Other Nations/Groups..........................................................................48
10.28 🔗💮🥇 Cryptocurrency → global regulations.....................................................................................48

10.28.1 Global Regulations → MICA regulation by EU (2023).......................................................................................48
10.28.2 Global Regulations → CARF Framework by OECD (2022)...............................................................................48
10.28.3 🔗💮🥇 Cryptocurrency → Stable-coins..............................................................................................................49
10.28.4 World Coin Project (2021–22)................................................................................................................................49
10.29 🐯🔗💮 Central Bank Digital Currency (CBDC)..................................................................................49

10.29.1 🚩👶🏻 Zhande-walle Babushono ke liye special instruction: ( )..........................................................50
अग्रिम सूचना
10.29.2 💮 Indian CBDC symbol (e₹)..................................................................................................................................50
10.29.3 💮 (e₹) CBDC wholesale vs Retail..........................................................................................................................50
10.29.4 💮(e₹) Indian CBDC = digital token of legal tender............................................................................................51
10.29.5 💮 (e₹) → Settlement finality..................................................................................................................................51
10.29.6 💮(e₹) Indian CBDC = no interest earning ( ).............................................................................51
नहीं मिलेगा ब्याज।
10.29.7 💮 📲 (e₹) CBDC - Interoperability permitted with UPI QR Codes..................................................................52
10.29.8 💮(e₹) CBDC - programability & offline features.................................................................................................52
10.29.9 E-Rupee vs E-Rupi....................................................................................................................................................53
10.29.10 🐯🔗💮=👌🥰Benefits of CBDC ( कें द्रीय बैंक डिजिटल मुद्रा के फायदे).........................................................................53
10.29.11 🐯🔗💮= ✋🥵Challenges of CBDC ( चुनौतियां)...................................................................................................53
10.30 💠≠ ❇️ Fungibility?................................................................................................................................54
10.30.1 💮(e₹): Fungibility of CBDC...................................................................................................................................54
10.30.2 💠 Non-fungible token (NFT: - ).....................................................................................................55
ग़ैर फ़ं जीबल टोकन
10.30.3 💠🤩NFT-Charms? ( )...................................................................................................................................56

आकर्षण
10.30.4 💠😰NFT-Challenges: ( ).............................................................................................................................56

चुनौतियां

10.30.5 ✍️ Mains Answer Writing.......................................................................................................................................56
10 🏛B RIEF INFO ABOUT ECONOMY COURSE (PCB11-RAFTAAR)
Covered in
Area Comment, if any
PCB11?
Prelims ✅ Yes Yes- theory, current, NCERT, MCQ, PYQ- everything covered
Separate course for it. You've Two Options:
Mains ✋🚨No (A) Either wait for next Live course (QEP4) in Jun/July’24.
(B) finish from Past Recorded Course (QEP3) Click Me.
Micro
Economics
✋🚨 No UPSC asked only 2 question in last 12 years. Finish
from Recorded Course of 2023-May. Click Me
- UPSC Syllabus, Strategy, Booklist, Cut-off: https://mrunal.org/syllabus
- Economy: how much I’ll teach, what books do you’ve to read on your own etc.
https://mrunal.org/pcb11
- Basically this PCB11-Raftaar Course deals only with Prelims-Specific Economy.
- This is NOT Mains Economy. Not Microeconomics. (separate courses for it, u don’t have to pay
extra, it’s part of your Netflix/Unacademy subscription). More explained in Lecture#1
- Only for serious competitive exam mindset candidates shd attend this. Timepass Babushone/
🚩
Faaltu-ki-PHD krnewalle, harr baat pe Zhandaa-uthaane-walle (those with habit of making
mountain out of molehills) should avoid my courses.
- Old Students (PCB1to10) Need NOT Sit again. They shld see FREE UPDATEs [Win24] at
Mrunal.org/win24
10.2 MYTHS ABOUT ECONOMY FOR UPSC PRELIMS

I’m not making Memes for everything, otherwise pages will increase so just accept following:
Myths Reality
In Economy, ONLY concepts are important for UPSC. Both facts and concepts are asked.
if something is not asked in the last 3 years, then such topic UPSC examiner asks trend-
will never be asked. breaking questions.
if some economy topic is older than one year, then it is not UPSC asked many Economy MCQs
important. Only last one year current affairs is important. from events older than one year.
We've to read economic-times, business line, etc newspapers. NOT required.
10.3 🏛💳 PYQ A NALYSIS: INCREASED DIVERSITY IN ECONOMY TOPICS IN PRELIMS

• From table given below, you can see that the diversity and variety of economy MCQs
questions has increased/changed in recent Prelims, so it is inevitable that handouts will get
lengthy. जब प्रश्नों की विविधता और जटिलता बढ़ रही है तो ये लाजमी है कि ज्यादा नोट्स लम्बे बनाने पड़ेंगे.
• So, please do not be fooled by the "negative-PR toolkit" circulated by Delhi-offline coaching
mafia against my notes via timepass vloggers and bikaau-royal-entry toppers.
• Black background cell = NOTHING asked from said topic in that year.
Economy Pillar 2023 2022 2021 2020

1A1_Digital • CBDC & • NFT ke features • NOTHING • Blockchain
Payment & SWIFT asked Technology

Economy Pillar 2023 2022 2021 2020
Bitcoin
• expansionis
• Money
t monetary
multiplier
• Central Banks policy
increases when
1A2_Monetary globally hiking • RBI responsible to • multiplier If
• Indian Bond
policy loan interest control inflation you
Yield
rates withdraw 1
influenced by
00 000 in
what factors
cash
• Lender of last • District
resort means Central
1B1_Classificati • Credit rating
• what Cooperativ
on Bank NBFC agencies
• UCBs e Banks
regulation (DCCBs)
1B2_NPA/Bad • Appointment • Interest
Loan Burning • • BBB of RBI Coverage
Issues Governor Ratio
• InVITS pe
Income Tax &
SARFAESI Act
• Capital markets • Call Money
ke sub-markets • IIB pe Income & other
• Stock Market:
1C_Sharemarke • Beta in Tax instruments
NDS-OM &
t Sharemarket • Convertible • non-
CDSL
• intangible Bonds financial
investments debt
• Capital
Expenditures of
a company
• cyber
1D1_Insurance • • •
insurance
• Causal
1D2_Pension • • Workers get •
EPFO or not
• Kisan
1D3_ Financial
• SHG ko Loans • • Credit Card
inclusion
scheme
2B_FC • 15th FC • Vodafone indirect • Black Money is •
Horizontal transfer bad why?

Economy Pillar 2023 2022 2021 2020
BlackMoney Formula
2D_FRBM • G-Sec and
• FRBM
Deficit • Household •
Docx
Disinvestment Savings
• FDI
Meaning
• India
• Switzerland
import-
Gold export
3A_BoP import • Tea Board ka • FDI types of export data
• India ka global
export FDI/FPI Dubai Office instruments • Indo-
export data &
SriLanka
PLI
Trade
• WTI Oil
Contract
• NEER-REER • “Gold
• currency Tranche”
3B_ currency • RBI s exchange and RBI (Reserve
• Devaluation
exchange Sterilization Action Tranche)
• ECB & Fed • GFC- what
Tapering NOT to do
• USA-EU Trade
• IMF Loan facility
and technology
3C_intl.org • G20 Common • TRIMS
Council •
agreements Framework Agreement
• EU s Stability
• AIIB-MTCR-SCO
Growth Pact
• price of rice
affected by
• Small Farmer
• public
Large Field
4A_AGRO • • investment
• Nigerseed pe
in agri
MSP
• MSP All/
NEVER
4B_Mfg Services
• Videshi e-
E-Commerce • MSME & PSL • •
commerce firms
MSME IPR
4C_NITI PC • • Vietnam • • 1991
FYP; economy growth economic
unemployment • Organisation liberalizatio

Economy Pillar 2023 2022 2021 2020
looking after n impact on
industry dispute rural area
• Counter-cyclic
• real sector in the policy to
4D_GDP • •
economy combat
recession
• Demand-Pull
inflation
4E_Inflation • • • CPI vs WPI
• Printing money
causes inflation
• Coal Controller s
5A_Infra-
• Organization • •
Energy Water
(CCO)
5B_Infra- • Private Port etc
• • •
Transport • Infra Corridors
5C_Infra-Rural • S3i ke Infra • Sanitation
• • MPLADS
Urban sectors Coalition
• Janani
6A_HRD-
Suraksha Yojna • Ayushman Bharat
Health Hunger • •
• Anaemia Mukt Digital Mission
Malnutrition
Bharat
7_Microeconom • substitute &
• • •
ics inferior goods
TOTAL MCQ • 20+ MCQ • 20+ MCQ • 14 MCQ • 20+ MCQ
• Free Download Topicwise PYQ booklet at https://unacademy.com/content/upsc/downloads/
(free unlock code: Mrunal.org)
• For more, watch this youtube video: https://youtu.be/KTag3h_kJoE?si=fTsLxkizxivnFT4y
• Note on above table: Every teacher always wants to show that more number of questions are
asked from his subjects. E.g. Economy teacher will say WTO = economy topic whereas IR
teacher may disagree. No need to get into ‘emotional-fanboy-outrage’ around it.
10.3.1 🏛💳 PYQ Analysis: Marks Distribution in UPSC Prelims and Mains

Prelims P1 (GS 100 🔠❓MCQs) Mains GSM-1-2-3 (750 Marks)
6 Pillars of
Utility in exam
2023*
economy
2021
2019
2020
2021
2022
2018
2019
2020
2022
2023
2018
💳1_Money 7 7 9 6 8 7 0 0 15 15 0 0 Most useful in Prelims but

Banking, less in Mains
Finance &

Insurance
🍋2_Budget, Second lowest utility after
FC, GST, 4 1 1 1 3 1 25 25 15 20 0 15
5_Infra
FRBM
💱3_Intl_Tra 4 7 7 2 4 3 30 0 15 15 0 0
Third lowest utility after
de, BoP 2_Budget.
🛒4_Sectors,
GDP,
Useful for both prelims and
Inflation, 3 8 5 5 4 4 50 65 55 60 85 110
Mains.
Microecono
mics
🏗5_Infra 1 3 1 0 2 4 15 15 15 30 20 10
Lowest utility among 6
pillars.
👩🏻‍🎓6_HRD 6 2 0 0 0 2 60 75 85 45 20 95
More useful in Mains than
Pre
25 28 23 14 21 21 180 180 200 185 125 230
Total ---
Qs Qs Qs Qs Qs Qs m m m m m m
💸Economy Pillar #1-A1) Money: Barter to Bitcoin

10.4 🍅🌽 B ARTER SYSTEM & ITS DISADVANTAGES: (वस्तु विनिमय प्रणाली)
Barter system was introduced by Mesopotamian tribes. It has following challenges: (चुनौतिया )
- 😰Double co-incidence of Wants (आवश्यकताओ का दोहरा सं योग नहीं होगा तो व्यापार असं भव).
- 😰Search Cost & Transaction cost is high. (सही दाम पर चीज ढूँढने व लेनदेन की लागत बढ़ जाती है)
- 😰Storage of perishable commodities is difficult, results in loss of value. (नाशवान वस्तुओ का मूल्यहास)
- 😰Doesn’t encourage specialization and division of labour (श्रम विभाजन को प्रोत्साहित नहीं करता).
10.5 📏M ONEY: FUNCTIONS OF (पैसे के कार्य)
Primary:2 functions[प्राथमिक] Secondary(S-T-D) 3functions [सहायक कार्य] Contingent 3functions [प्रासं गिक कार्य]
1. 📏Measure of Value: 1. 🐷🗳Store of Value (मूल्य का 1. Basis of credit system,
gm=wt, ml=vol, सं चय) Financial markets (share,
₹=value (मूल्य का
मापक).
2. 🚛Transfer of Value (मूल्य का bond etc.: More in 📑
Pillar#1C-sharemarket) वित्तीय
2. 🛒Medium of स्थानांतरण). Soldier in Kashmir to
parents in Kanyakumari बाजार का आधार है पैसा
⏰
Exchange: Buy & Sell 2. Employing factor of
goods and services 3. Deferred Payments (स्थगित
production i.e. Land, Labour,
using money as the भुगतानो का मानक). E.g. Buy

Primary:2 functions[प्राथमिक] Secondary(S-T-D) 3functions [सहायक कार्य] Contingent 3functions [प्रासं गिक कार्य]
‘medium’. (विनिमय का
माध्यम).
iphone12 @₹3177 only per Capital (More in 📑
month x 36 months’ Equated Pillar#4C) उत्पादन के कारक जुटाने
Monthly Installments (EMIs) में मदद करता है है पैसा
= ₹1,14,372. Actual price is 3. Creation & Redistribution of
₹79,900, but ₹34,472 extra National Income via
Interest.(ब्याज पर किश्तों में खरीदारी
सं भव)
📑
taxation. ( Pillar#2) अमीरों पे
ज्यादा कर वसूल के राष्ट्रीय आय के
पुन:वितरण करने में मदद
10.6 💵M ONEY: EVOLUTION & TYPES (मुद्रा की उत्क्रांति व् प्रकार)
Paper /Token /
Commodity Metallic Bank Money,
Representative / Crypto Currency
Money Money Deposit Money
Fiat Money
10.6.1 🥜Commodity Money / वस्तु मुद्रा (Intrinsic value: अंतर्भूत मूल्य? Yes)
 Iron Nails, Bear Pelts, Cocoa Beans, Whale Teeth, Gold Nuggets
 Problems? Perishable, not uniform, not pure, foreigners may not accept.
नाशवान, एकसमान नहीं, शुद्ध नहीं, अस्वीकार भी कर सकते है.
10.6.2 🥇 Metallic Money / धातु मुद्रा (Intrinsic value? Yes)
 Traders & Kings stamped their marks on gold nuggets for uniformity & trust. (सोने पर अपना
चिन्ह/छाप लगा देते – ताकि लोगों को उसकी शुद्धता पे यक़ीन हो)
 Indo Greek kings & Kushana kings issued gold coins, but Gupta Gold coins most spectacular-
king is playing Veena, shooting animals, standing with wife.(इन राजाओने सोने के सिक्के निकाले थे)
 Delhi Sultanate Kings: Silver Tanka. Sher Shah Suri Rupiyah silver coin. Akbar: Muhr.
👩🏻‍🎓 Further SELF STUDY: History of Indian coins from History Lecture/Notes.
10.6.3 💪 Metallic Money → Full Bodied vs Token Coins
Table 1: Types of Coins
Gupta Coin: ~8 gm GOLD 50 paisa modern coin: ~4 gm steel

💪 Full Bodied Coins Token Coins (प्रतीककात्मक)
Intrinsic Value (अंतर्भूत मूल्य) is Equal to or MORE LESS. (धातु एकदम सस्ती वाली इस्तेमाल करते हैं या बहुत ही कम
than its Face Value (अंकित मूल्य) वजन की धातु इस्तेमाल करते हैं)
Challenge?  1330s: Tughlaq's Token coin
⏬
 Debasement: decreasing the amount of experimentation = #EPICFAIL (Why?
metal in coins. Usually happens when Prepare in History subject).
king’s rule gets weak/poor e.g. Aurangzeb,  Modern Indian coins are token coins.

Gupta Coin: ~8 gm GOLD 50 paisa modern coin: ~4 gm steel
💪 Full Bodied Coins Token Coins (प्रतीककात्मक)
Roman Kings. सिक्के में धातु की मात्रा को कम किया Cupronickel metal used to discourage
जाए तब लोगों का उस राजा के शासन से विश्वास कम होने melting.
लगता है  Coinage Act 2011 prohibits melting of
coins. (सिक्का पिघलाना एक अपराध है)
10.6.4 💍📔Intrinsic value of a coin? (अंतर्भूत मूल्य)

PRECIOUS METAL COINS (धातु के सिक्के ) PAPER CURRENCY (काग़ज़ी मुद्रा/नोट)
Metal has INTRINSIC VALUE i.e. Metallic You can't use currency-note's paper as a
money =Use it as "money", or you can melt the notebook or diary.
metal → use that metal for making jewellery / So currency notes have no intrinsic value. (उसके
weapons because metal itself has its value / कागज का उपयोगिता कु छ नहीं है, क्योकि उसपे छपाई कर दी है.)
usages. (उस मुद्रा की धातु पिघला कर कु छ और चीजे भी बना
सकते है. क्योकि धातु का अपना : अंतर्भूत मूल्य / उपयोगिता है.)
10.6.5 💵 Paper Money / कागजी मुद्रा (Intrinsic Value? No)

Fiat money (वैधानिक मुद्रा): It MUST fulfil two conditions SIMULTANEOUSLY: दो शर्तों का एकसाथ पालन :
1. It MUST BE in the form of Physical Currency Coin / Physical Currency Notes / VirtualCoin/
DigitalCoin/ CryptoCoin which can measure value AND simultaneously और साथ ही साथ
2. It MUST BE issued by the order of a King / Queen / Government / Central Bank.
 Govt issues all coins upto ₹ 1,000, using powers of powers of Coinage Act 2011.
 Presently, govt issues Rs.50 paisa to Rs.20 coins.
 Rs.20 coin: 12-sided Polygon shape (Dodecagon आकार: बारह बाजुओ वाला चतुष्कोण है)
 ₹ 1 Note signed by Finance Secretary (वित्त सचिव)
 ₹ 1 note doesn’t contain “I promise to pay bearer…”
 RBI issues: Currency notes other than ₹ 1 Note under RBI Act 1934.
 Currency notes have Governor’s sign: “I promise to pay bearer…”
😤 FAQ: why is it like this!!!??? WHY CAN’T RBI ISSUE BOTH coins & currency notes!!?
Ans. Send your suggestion to PM, to merge above two laws. Until it’s implemented, remember table
for passing exam. प्रधानमंत्री को कागज लिखो- दोनों कानूनों का एकीकरण करने के लिए. जब तक वह नहीं होता तो इस handout को रटो।
10.6.6 💵⚖️ Legal Tender (वैधानिक निविदा)
To become a ‘legal tender’, a given coin/currency MUST fulfil two conditions SIMULTANEOUSLY:
एक साथ दो शर्तो को पूरा करना होगा.
1. It must be a FIAT MONEY (जो हमने ऊपर के सेक्शन में पढ़ा). AND SIMULTENOUSLY और साथ ही साथ

2. It must be legally valid for all debts & transactions throughout the country. Other party can’t
refuse to accept. (लेनदार उसको अस्वीकार नहीं कर सकता)
Table 2: fiat money and legal tender in India
A) Is it in form D) At present, is it E) Is it
C) Result: Is it
of a physical B) Is it issued by legally valid for LEGAL
Fiat money?
coin OR physical Central Bank / transaction in Tender in
ITEM (YES If Both
Note OR Digital Govt / King / India as per India (Yes, IF
Cell A+B give
C+D give
Coin that can
measure ‘value’?
Queen
✅+✅) Coinage Act or
RBI Act? ✅+✅)
₹ Indian Rupee:
Coins & Notes, CBDC ✅ ✅ ✅ ✅ ✅
Demonetized
(विमुद्रीकृ त) ₹500,₹1000 ✅ ✅ ✅ ✋ ✋
Dollar$, Yuan, Yen,
Euro etc ✅ ✅ ✅ ✋ ✋
G-Sec, T-Bill
(what is this-Ans.
explained in video)
✋ ✅ ✋ ✋ ✋
Shares, Bonds, DD,
Cheque, ATM, Cards,
Kirana coin, Casino ✋ ✋ ✋ ✋ ✋
coin, Filmstar-Notes
Marshall Island: SOV
Venezuela: Petro coin ✅ ✅ ✅ ✋ ✋
Bitcoins ✅ ✋ ✋ ✋ ##
✋
 Bitcoin is not a Fiat money, yet it is legal tender in El-Salvador nation. But it is an exception.
##
(बिट-कोइन का अल-साल्वाडोर देश में वेधनिक निविदा होना के वल एक अपवाद है, वो पूरी दूनिया के लिए नियम/व्याख्या नहीं है।)
 Commemorative Coins = Fiat money yes but not legal tender unless notified by
RBI/Government to be used as legal tenders. (स्मृतिचिन्ह रूप सिक्के - सामान्य भुगतान में इस्तेमाल नहि हो सकते,
सिवाय के सरकार/आरबीआई उसकी अनुमति दे।)

😤 FAQ: we can use cheque / credit card to pay fees. So, why are they not fiat money/legal tender?
😤 FAQ: I did not understand this thing and/or I want to engage in intellectual debate why “X” thing
is legal tender? Ans. Please watch lecture’s recorded video again at 1X speed, more peacefully.
FOR FULL MATERIAL

SEARCH :- @KINGRAISTARBOT
10.6.7 💵⚖️Legal Tender (वैधानिक निविदा)- Limited and Unlimited
Table 3: Fiat Money: Two types of legal tenders
A) 🚯Limited legal tenders B) ∞ Unlimited legal tenders:

(सीमित वैधानिक निविदा) (असीमित वैधानिक निविदा)
Recipient can refuse accepting payment beyond a No such restriction.**

limit (एक हद से ज्यादा छू टटे पेसे स्वीकारने से सामने वाला मना कर
सकता है)
 Coinage Act 2011  RBI Act 1934 - Section 26: Every bank
 Paper Note: Rs. 1 (एक रुपए की काग़ज़ी नोट) note is legal tender in India.
 Coins Rs. 1 / above → upto Rs.1000  They can be used for settling any amount
 Coins 50 paisa x 20 coins → upto Rs.10 of debt in India**, lender can’t refuse to
 Below 50 paisa coins are withdrawn (in 2011) accept it.
✋
So, 10 paisa, 25 paisa are not legal tenders.
(10 पैसा और 25 पैसा वैधानिक निविदा नहीं है। 50 पैसा
वैधानिक निविदा है)
**Although in real life, Finance Act 2017: “Cash transactions for less than Rs.2 lakh only. Beyond that
use Cheque, DD, NEFT etc. else penalty.” This rule is to discourage tax-evasion / black money. For
more Ref: 📑Pillar#2. But for MCQs, simply accept that bank notes = unlimited legal tenders. हालांकि
वास्तविक जीवन में काले धन / करचोरी को रोकने के लिए नगदी लेनदेन पर कु छ सीमा के बाद रोक है, किन्तु MCQ के लिए स्वीकार लो की
🚩👶🏻 FAQ# my shopkeeper doesn’t accept 50 paisa. Then how it is legal tender? मेरा दुकानदार नहीं लेता 50
पैसा का सिक्का। तो आप कै से कह सकते है वो वैधानिक निविदा है?
Ans. as per RBI notification, 50 paisa is legal tender. So, accept it for MCQ & move to next topic.
Further, feel free to file police case against shopkeeper, if you have plenty of free time/outrage for it.
🚩👶🏻 ₹1 one rupee paper note is limited legal tender or unlimited legal tender? Ans. Read above
table carefully. it's given in it in the left column.
🔠❓MCQ: Which correctly describes the meaning of legal tender money? (Pre-2018)
(a) The money which is tendered in courts of law to defray the fee of legal cases
(b) The money which a creditor is under compulsion to accept in settlement of his claims
(c) The bank money in the form of cheques, drafts, bills of exchange, etc.
(d) The metallic money in circulation in a country
🔠❓MCQ: Consider the following statements (Asked in UPSC-CDS-2011-II)
1. In India the minimum denomination coin acceptable for transaction is 50 paise.

2. Coins below 50 praise is not a legal tender for payment.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2 (c) Both 1 and 2 (d) Neither 1 nor 2
10.6.8 👩🦯🤳🏻
‍ RBI’s App to help the blind identify currency notes
80 lakh people in India are blind (नेत्रहीन). To help them identify currency notes:
 Old series of Gandhi notes have square (50), triangle (100) shaped markings.
 New series of Gandhi notes have bleed lines, raised printing of Gandhi etc.
 But, so many varieties of notes, difficult for VH persons to remember size & shapes so,
2020-Jan: RBI launched ‘Mobile Aided Note Identifier (=MANI)’ App.
 Mobile camera scan & identifies the note (Even if it’s half folded), gives audio notification in
Hindi/English, also works offline
 But can’t validate whether note is genuine or fake (Counterfeit जाली नोट नहीं पकड़ सकता यह ऐप),
 If a user is both blind and deaf, the app will tell him by giving vibrations.(मोबाइल कं पन)
10.6.9 💵 Currency related General Knowledge:
Which note has what colour, which note has Red Fort / Sun Temple photo etc? General Knowledge
✋Less important for UPSC-exams, more IMP for Non-UPSC Exams. So I’m removing it from
Raftaar-Handout. You can learn such general knowledge from https://paisaboltahai.rbi.org.in/
New rupee ₹: selected through a competition by Dept of Economic Affairs in 2010. Designed by
symbol D.Udaya Kumar, a Professor @IIT Guwahati.
Nation - Lion Emblem: Sarnath Pillar, Uttar Pradesh से लिया गया है
Symbol - “Satyamev Jayate”: slogan from Mundaka Upanishad से लिया गया है
Languages While Constitution’s 8th Schedule has 22 languages, but currency note has only 17.
(15 on Reverse + Hindi & English on frontside (obverse) = 17)
🤯FAQ: Why it is like this? Ans. Either some Indian languages have similar fonts
and/or send suggestion to RBI.
Museum Budget-2020: a museum on numismatics and trade (सिक्काशास्त्र और व्यापार का सं ग्रहालय) will
be built at the historic ‘Old Mint Building’ in Kolkata .

10.6.10 💵 “I promise to pay the bearer…”: Meaning of this promise?
Colonia era: Promised to convert into full bodied gold or silver bars / coins worth
the equal value in weight. E.g. 1 US Dollar = ~14 grams of gold. 1 British pound =
~73 grams of gold.
👨🏫
( ‍ in my handout ‘~’ means ‘approximate’)
 Modern era: Conversion into other Bank notes and “token coins” of equal face value. ₹ 2000 =
500 x 4 Nos.= 100 x 20 Nos etc.
 Not inflation adjusted value. Not linked with weight of gold or silver.
 Currency note is zero interest, anonymous bearer bond / Promissory Note.
10.6.11 Currency Note is not a promissory note?

Doubt: according to some website, currency note is not a promissory note under the negotiable
instrument act. then what is write?
as per academic books on as per the law (Negotiable

Doubt
economy? Instruments Act)
Is currency note a Yes it has the features of
No. It is not.
promissory note? promissory note.
FAQ: Then what should I tick in MCQ? Ans. Depends on the context and options given in the MCQ.
10.7 💵D EMONETIZATION OF FIAT MONEY (विमुद्रीकरण: PREVIOUSLY 1946, 1978)

Definition? Demonetization means the REMOVAL of legal tender status of currency notes. (किसी मुद्रा
की वैधानिक-निविदा के दर्जे/ क़ानूनन वैधता को रद्द करना- उसे विमुद्रीकरण या नोटबं दी कहते हैं)
 8/Nov/2016: Finance Ministry → Dept of Economic Affairs → notification to ban the
“Specified Bank Notes” (SBN) of Mahatma Gandhi series ₹ 500 and 1000.
 Specified Bank Notes (Cessation of Liabilities) Act 2017= RBI not required to honor “I promise
to pay…”.
 Banned notes (500,1000) can’t be kept except for research or numismatics-hobby or museum-
📑pillar#2: taxation → black money.
and that too in limited amount! More in
 SC Judgement on Demonetization ? Ans. REFER📑pillar#2: taxation → black money.
10.8 💵 ₹2000 WITHDRAWN BUT CONTINUED AS LEGAL TENDER

2016-Nov: RBI introduced ₹2000 note, to meet the currency requirement of the economy in an faster
manner after demonetisation of ₹500 and ₹1000 (नोटों की किल्लत पूरा करने के लिए इसको छापा जा रहा था)
- 2018–19: printing of ₹2000 banknotes was stopped.

- 2023-May-23rd: RBI asked people to either any of the following thing by two things
30/Sept/2023.
Option at Bank Limit
Deposit this note in your bank account no limit. Whatever money you have you
अपने बैंक खाते में जमा करवादो can deposit- 2 lakh, 2 crore doesn’t matter
Exchange ₹2000 note with other notes e.g. ₹20,000/- per visit
100/200/500 बदलवा दो
10.8.1 💵 ₹2000 NOT DEMONETIZED but WITHDRAWN from circulation

(इसका विमुद्रीकरण नहीं हुआ. बस चलन में इसे हटा दिया गया है)
- 2023-June: Reporter asked : Will the RBI withdraw the legal tender of ₹2000 note after
September 30?
- RBI Governor Shaktikanta Das replied: “There is no such idea.” That means
Question interpretation
is ₹2000 fiat money? Yes
is ₹2000 legal tender? Yes
is ₹2000 in withdrawn from circulation? Yes
is ₹2000 DEMONETIZED? NOT YET.^^
• ^^As of 2024-Jan: this is the status, as per RBI official website & CNBC Article.
• 2024-Jan: over 97% of ₹2000 notes returned. Only ₹9330 cr worth notes NOT yet returned.
10.8.2 💵₹ 2000 withdrawn- WHY? (क्यों चलन से हटाया गया)

We will only prepare the official reasons given by the RBI.
 2000 Notes were issued as a temporary measure to address shortage of currency. Now there is
adequate supply of other currency notes e.g. 100/200/500.
 This note is not commonly used for transactions. (वैसे भी भुगतान में इसका उपयोग कम ही होता है)
 RBIs clean note policy: to ensure availability of good quality banknotes to the members of public.
 2000 note’s paper has a lifespan of 4–5 yrs. Since most of these notes were printed in 2016–2017.
So by 2022–23 its paper quality may start to deteriorate. (चार पांच वर्षों में कागज वैसे भी खराब हो जाता है)
 THERE IS NO MENTION of fighting black money/ corruption / fake notes by ISI-Dawood in
RBI press release.
10.8.3 💰🤮 Money Types: Gresham law: good vs bad money | soft vs hard currency
 Wait till we reach Pillar 3B: currency exchange. Presently, we’re in Pillar 1A1.
 If unable to hold patience, watch https://youtu.be/x7rcf13JGh8?si=rkIwvohe38Gbw_FR
10.8.4 Zimbabwe's Gold Coin ‘Mosi-oa-Tunya’

 Wait till we reach Pillar 3B: currency exchange. Presently, we’re in Pillar 1A1.

10.8.5 🤫💸👜🥚 Redenomination: Iran’s Toman Currency
 Removed for #RAFTAAR. Those who want to waste time/satisfy curiosity can learn it from last
course (PCB6) at https://unacademy.com/course/mrunals-economy-course-for-upsc-prelims-
mains-2022-52/I1OWWV6Y (मेरे को अब ये परीक्षा के नजरिये से बहुत काम का नहीं लगता, इसलिए टॉपिक हटा दिया है)
Paper /Token /
Commodity Metallic Bank Money,
Representative / Crypto Currency
Money Money Deposit Money
Fiat Money
10.9 🐷🔖B ANK MONEY / DEPOSIT MONEY
10.9.1 🐷🔖 Paper orders: Cheque, Demand Draft (DD)

Law Viceroy Ripon’s Negotiable Instruments Act, 1881: Primary Objective? Cheque
dishonor & forgery (परक्राम्य लिखत अधिनियम: बेंक खाते मे अप्राप्त रकम के चलते चेक अस्वीकार होना/जालसाजी के
ख़िलाफ़ क़ानून).
Chequ - THREE parties in a cheque: 1) Drawer (Sender), 2) Drawee (Bank), 3) Payee
e (Recipient)
- Types of cheques: 1) Stale: Not withdrawn in 3 months (3 महीनों में नहीं डाला तो
बासी/अस्वीकार्य होगा), 2) Post-dated: After a specific date, 3) Ante-Dated: notimp for
IAS exam.
- Open / bearer cheque: No ‘crossing’. Anyone can encash.
IFSC IFSC code: Indian Financial System Code- 11 alphanumeric numbers to identify the
bank branch, just like PINCODE identifies an area. ( कौन सी बैंक ब्रांच है उसे चिन्हित करता है)
MICR MICR code: Magnetic Ink Character Recognition. 9 digits code written in Iron Oxide
ink for automated clearance. (चुम्बकीय स्याही से चेक के नम्बर को जाँचने के लिए।)

10.9.2 🔖DD and Overdraft
- Overdraft: When person has insufficient bank balance, still he may withdraw money from his
account (as a loan). Such facility is called Overdraft. Pradhan Mantri Jan-Dhan account has
Overdraft upto Rs 10,000/- with certain conditions. (More in Pillar1D: Financial Inclusion).
o Overdraft is mainly for short-term operating expenses. (अस्थाई रूप से लघु अवधि के लिए कर्ज)
o Loans is mainly for longer term higher value expenses. (दीर्घ अवधि के लिए मोटी रकम का कर्ज
लेना)
10.9.3 🐷🔖 Cheque → NPCi’s Cheque Truncation System (CTS) & Positive Pay Mechanism
NPCi’s Mechanism Benefit (first SEE THE DIAGRAM)
Cheque Truncation If SBI sent the copy of cheque in post/courier = more time wasted.
System (CTS) CTS IS FASTER because SBI sending scanned image online.
Positive Pay If Mrunal (recipient) manipulated the cheque numbers e.g. using magic-
Mechanism marker/eraser to write ₹5,00,000 in place of ₹50,000 YET Roman
(Sender) will be protected because both images will not match → then
cheque will be rejected by his bank.
 🙋🏼‍♀️FAQ: I still DID NOT understand this. Ans. Watch The video lecture.
 🤔FAQ: I’ve 500 counter arguments about how James Bond villain can misuse it? Ans. NOT
IMP.#RAFTAAR.
10.10 🐷💸📡 E LECTRONIC ORDERS / DIGITAL PAYMENT

Payment & Settlement System Act 2007 empowers RBI to regulate card payment, e-payment related
products and services. (भुगतान और निपटान प्रणाली अधिनियम 2007)

10.10.1 💸📡 CBS ( full form: Core Banking Solution /system)
 It is a banking software with web-platform for centralized data management & branch-less
banking. E.g. Finacle software; BanCS software; E-Kuber (used in RBI)
🚩👶🏻🎓 FAQ I didn’t understand this. Ans. Watch lecture, sufficiently explained in it.
🚩👶🏻🎓 FAQ: What is the difference between Core Banking Solution (CBS) versus Core Banking
System (CBS)? Ans. Fundamentally it is the same thing. Dictionary word difference/legal
pedantry/academic pedantry/hairsplittery= notimp4exam. # 🕰थोड़ा-पढ़ो-आगे-बढ़ो
🔠❓MCQ: The term ‘Core Banking Solutions’ correct term? (UPSC Prelims-2016)
1. It is a networking of a bank’s branches which enables customers to operate their accounts
regardless of where they open their accounts.
2. It is an effort to increase RBI’s control over commercial banks through computerization.
3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by
another bank.
Answer Codes: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
10.10.2 📡 NEFT vs RTGS vs IMPS

Table 4: Digital Payment Systems- transaction limits may differ, depending on banks
RBI's centralised payment systems (CPS)## NPCi’s IMPS
⏰RBI’s NEFT: National
👩‍💻 Type RBI’s RTGS: Real Time
Gross Settlement Electronic Funds
Immediate
Payment Service
Transfer
💸 Transfer Min ₹2 lakh to ₹2000

upto ₹10 lakhs (SBI).
₹ 1 to maximum
₹5 lakhs
Amount crores (SBI).
💁‍♂️Target Bizmen wanting high

value transactions
Ordinary retail customers (आम जनता के छोटे भुगतानों
customers के लिए है)
instantly
🚛 Settlement 🤩Instant settlement - Settles net amount

between banks at
🤩Instant
mechanism (झटपट/ तुरंत निपटारा) settlement
interval of 30 min.
BEFORE: only weekday BEFORE: only weekday
⏰ Timing office hours.

After RBI reforms
office hours.
After RBI reforms
24/7 on all days
(दिन रात अविरल रूप से)
24/7. 24/7.
💰 Fees BEFORE: fee + GST Tax**

After RBI Reforms: Rs.0
fee + GST#
👨🏻‍✈️Who can - BEFORE-2021: Only Banks can provide this Banks + Prepaid
provide this facility Payment
- 2021: RBI announces that non-bank entities can Instrument
facility?
also become members of centralized payment

RBI's centralised payment systems (CPS)## NPCi’s IMPS
(PPI)/ / mobile-
systems (CPS = NEFT & RTGS).
wallet companies
- So, in future, Amazonpay, PhonePe etc could also
like Phonepe,
directly allow this
Mobikwik etc.
 # Although some banks don’t charge IMPS fees for transactions upto ₹ ”X”/- (EXACT Fig
NOTIMP)
 ##
FAQ: 🚩👶🏻🎓 Why doesn’t RBI Merge RTGS & NEFT? Ans. RBI may have some technical
operational reasons for it. RBI never bothered to disclose it in some big press release or
newspaper headline. So I never bothered to do James-Bond Google search/PHD on it. Because it
is an inefficient way of preparing for UPSC. Nonetheless, if u feel morally-outraged then send
suggestion to RBI Governor. Until implemented, prepare things as given in handout.
10.10.3 📡 LPSS- lightweight payment and settlement system
- RBI’s (emergency/backup) alternative to NEFT, RTGS and IMPS/UPI.

- To provide a temporary & portable solution during natural disasters and war. (प्राकृ तिक आपदा या युद्ध
के चलते बाकी प्रणालियाँ बं द हो जाए तो अस्थायी रूप से इसको इस्तेमाल कर सकते)
- Can be operated from anywhere by a bare minimum staff. How it works, what are the features?
NOTIMP.

10.10.4 💸📡 RBI’s Next Generation Treasury Application (NGTA), 2020-Oct
Deleting from handout. Because yet to be implemented. This topic didn’t develop much after 2020.
10.10.5 📡🚩👶🏻 RBI's Next-Gen RTGS to comply with ISO-XML standards

🚩👶🏻 FAQ by Zhande-walle Babushone: in a recent social media handle, RBI had explained about
RTGS and related issues....there i did'nt understand a term, i.e. RBI is doing Next Generation
RTGS (NG-RTGS) system upgrade to comply with international ISO 20022 XML standards?
Ans. All such technical things are not important for the scope of exam until they continuously grab
major newspaper headlines repeatedly. And more importantly, you should stop wasting your time
on social media handles with hopes of getting some exam-oriented UPSC knowledge.
👨‍🏫 Mrunal comments before next section: In the digital wallet apps → companies introduce new features &
RBI introduces new technical norms on daily basis. We are not here to write a MBA research paper on their
business-model & RBI regulations. Q.“sir u said x thing can’t be done in phonepe App but now it can be done…as
per my experience!! Ans. I’ve given simple illustration to explain thing. They keep adding new features in the App.
UPSC asking only general broad MCQs from this. # 🕰थोड़ा-पढ़ो-आगे-बढ़ो
10.11 🕵🏻 N ATIONAL PAYMENT CORPORATION OF INDIA(NPCI)
 2008: NPCi is registered under Company Act as a “Not for Profit Company”. (मुनाफा रहित कं पनी)
 Originally it was founded by 10 banks with ₹ 100cr capital. Later on in 2020: Paytm, PhonePe,
Amazon Pay etc also became shareholders of NPCi (ये सब शेयर धारकों ने पूं जी डालकर इस कं पनी को बनाया है)
 Objective? cost-effective payment solutions / technology for Banks. (रियायती लागत पर बैंकिं ग टेक्नोलॉजी)
 Its UPI-BHIM app & other mechanisms also help in financial inclusion of villagers & poors by
expanding the reach of banking network. (गरीबों / गाँववालों के वित्तीय समोवेशन में मदद के लिए अलग अलग
तकनीकी आविष्कार किए है) ✅More abt financial inclusion in 📑Pillar# 1D.
🔠 MCQ-EPFO-2023: Consider the following statements:
- Statement I: In India, the RTGS and NEFT payment systems are owned and operated by
National Payment Corporation of India (NPCI).
- Statement II: National Payment Corporation of India is an entity promoted (=owned) by banks.
(a) Both right, st2 explains st1 (b) Both right, but st2 doesn’t explain st1
(c) St1 is correct but St2 is wrong. (d) st1 is wrong but st2 is right.

Above is not hundred percent technically correct explanation, but it is just to help you visualise the
concept.
10.12 🕵🏻 🤳NPCI → UPI (U NIFIED PAYMENT INTERFACE)

It is a technology for building digital payment apps based on IMPS with following features:
 QR Scan & Pay to merchants.
 You can link bank account for direct transfer of money without storing money in ‘wallet’ first.
(unlike AmazonPay / Mobikwick etc)
 Such app can have Push transaction (e.g. Remittance to family), Pull Transaction (e.g. monthly
bill deduction by Electricity Co.) or even Bill sharing among friends.
 Examples of UPI based app: SBI’s SBIBuddy/Yono, Axis Bank’s AxisPay and NPCi’s BHIM.
 UPI 2.0 (2018): Upgraded version of UPI. What are its new features? How is it different than UPI
1.0? Ans. NOTIMP #RAFTAAR ️ 🏎🐢
 NPCI has been signing agreements with organisations in Bhutan, Nepal, Singapore, Europe,
Mauritius, Srilanka etc. so that directly Indian tourists in those foreign countries can directly
spend the money from their Indian bank account by using UPI-Based Apps. How? Ans.
NOTIMP #RAFTAAR 🏎🐢
10.12.1 🛍️ UPI: daily transaction limits
Max amount Category of daily transaction
₹1 lakh/day Normal transactions.
Capital Markets (e.g. Mutual Funds) Credit card payments, Loan re-payments/
₹ 2 lakhs/day
EMI, Insurance premium/fees payment etc.

 Purchase of G-Sec under Retail Direct Scheme, IPO Subscriptions. What is the
₹5 lakh/day meaning of the term? (Ref: Pillar#1C)
 Medical and educational services payment.
Note: above is the status as of 2023-Dec.
10.12.2🤌 UPI: Push vs Pull Transactions

UPI based apps allow for both 👉Push transactions and 👉Push transactions.
👉Push transactions 🤌Pull transaction
👉Push = when u send money by your own 🤌Pull transaction = when you have given
discretion e.g. sending money to a command that every month electricity
relative/friend based on your mood. (आपकी मर्ज़ी company should cut the money from my bank
या विवेक से आप ख़ुद जो पैसा भेजते है।) account → company will pull money without
requiring u to push/click buttons every month.
🚩👶🏻FAQ: Beyond that, whether “X” thing is push/pull?= Ans. NOTIMP #RAFTAAR 🏎️🐢
10.12.3 🕵🏻 🤳NPCI → UPI → 123PAY for FeaturePhones
Figure 1: बेटी मेरे नोकिया के non-smart phone पे UPI आसानी से कै से इस्तेमाल करूँ ?
 If user doesn’t have a smartphone. If he has a Basicphone/Featurephone- with number pads:-

still he can use UPI using USSD (Unstructured Supplementary Service Data) code (99#).
 However this feature was very cumbersome. It was not very popular among the people. (स्मार्टफ़ोन में
तो UPI आधारित ढेर सारी एप्स हैं किन्तु बेजिक/फ़ीचर फ़ोन में UPI द्वारा पैसों का लेन देन काफ़ी जटिल और कनिष्ठ क़िस्म का था.
इसलिए लोग इसे इस्तेमाल नहि करते थे। रिज़र्व बैंक और NPCI ने मिलकर नई मुहिम/ प्लेटफ़ॉर्म बनाया ‘123PAY’)
So, 2022-March: RBI launched a new UPI platform named 123PAY (with help of NPCI) to give more
UPI-payment options for Featurephones/Basicphones such as-
- 1) USSD – (This was already available.)
- 2) Interactive voice response or (IVR)
- 3) missed call-based payments - user sends a missed call and then system calls him back in IVR
mode (आदमी मिस्ड कॉल देता है तो सामने से उसे स्वचालित फ़ोन कॉल आएगा जहाँ वो रिकॉर्डेड आवाज़ द्वारा दिए गए सूचनाओं के
हिसाब से अलग अलग नंबर दबाकर पैसों का भुगतान कर सकता है।)
- 4) proximity sound-based payments -allow transactions using sound waves for contactless
payments to other phones. (ध्वनि आधारित स्पर्श-हीन भुगतान)
- 5) easier utility bill payment (gas, electricity etc) via feature phone

- 6) user need to link the bank account with feature phone. → Money transfer, check account
balances, pay utility bills, recharge FAST Tags of their vehicles etc
- 7) New app for Featurephone
Benefit? 😍⏫Digital payment- esp. among the poor people who do not have smart phones but have
feature phones. (ग़रीब लोग जिनके पास महँगा वाला स्मार्टफ़ोन नहीं है वे भी डिजिटल भुगतान कर पाएं गे.)
10.12.4 🛍️ UPI observations by 📙Economic Survey-ES-2023

Year Total No. of Digital Transactions (Crores) UPI’s Share of Digital Transactions
FY19 3,100 17%
FY20 4,600 27%
FY22 8,840 52%
 total number of digital transactions steadily increased in the last three years.
 % share of UPI in the total digital transactions also steadily increased in the last three years.
यूपीआई द्वारा डिजिटल भुगतान में काफी बढ़ोतरी हुई है और यह सब बहुत महान है ऐसा आर्थिक सर्वेक्षण ने पाया.
🛍️
10.12.5 UPI single-block-and-multiple-debits functionality (2022-Dec)
Not important for the scope of exam / poor cost:benefit in spending time over this topic... after
observing the previous years papers.
10.12.6 🛍️ UPI-Lite (on-device wallet)
User adds money from his bank account to his UPI Lite wallet on his mobile App. (e.g. Google Pay
App, BHIM App)
Usage (NUMBER NOT VERY IMP) UPI-LITE Limit as of 01/Sep/23
Max. Limit PER transaction ₹500
Max. Balance / storage capacity of wallet ₹2,000
Max. TOTAL transaction within 24 HRS (i.e. by adding new ₹4,000
money in wallet repeatedly after previous balance is finished.
ताकि एसा दुरुपयोग ना हो की हेकर २-२००० हज़ार ख़ाली करके फिर भरता रहेगा और
पीड़ित का बड़ा नुक़सान हो जाए।)
🤩 Benefits of UPI-Lite wallet?
- 🤩Faster. Because No need to provide UPI-PIN number during transaction.

- 🤩Less chances of transaction failure- even if sender’s bank server is facing technical issues.
10.12.7 🛍️🫰🏻UPI-Lite + NFC = Offline Retail Payment / Tap-and-pay
RBI aims to implement Near Field Communication (NFC) in ‘UPI-LITE’. For following benefits
- 1) off-line transaction will be possible. Helps in villages with poor internet connectivity.
- 2) contactless / Tap and Pay facility / touch and pay facility by touching your mobile with
merchant’s device.
- 3) More faster / error-free transaction.
- 🙋🏼‍♀️FAQ1: What is NFC? Ans. Refer Sci-Tech material. E.g. in USA, u can tap Apple smartwatch
with coffeeshop’s POS-device to pay money.
- 🙋🏼‍♀️FAQ2: UPI developed by NPCi. Then why is RBI making all these announcements? Ans.
Because RBI is the regulator of such all digital payment technologies. उनके आशीर्वाद के बिना नहीं हो
सकता।
10.12.8 🛍️💬 Conversational payments in UPI

- It will help users to chat/converse with AI-powered systems to make payments.
- e.g. similar to how Smart speakers function: ‘Hey Siri/Alexa/Google remind me to buy milk on X
date.’.
- you can similar payment such a instruction via TEXT or voice note to UPI system.
- How it works? Ans. Wait till the official features release.
Benefit?
- 🤩Voice command more convenient for blind users.
- 🤩Text based chat can happen within shopping site. No need to redirect to third-party payment
Gateway website like CCBill, CCAvenue, Razerpay, etc. = more secure / efficient.
10.13 🔪P RE-SANCTIONED CREDIT LINE

When a banker allows an account holder to borrow upto a predetermined amount of money, without
having to apply for a loan, it is called Pre-Sanctioned Credit Line. ( इसका हिंदी करने का मतलब नहीं है. मुख्य परीक्षा में
इस प्रकार की चीजें नहीं पूछते)

10.13.1 🔪🛍️ UPI: Pre-sanctioned credit line/Overdraft in UPI (2023-Apr)
- RBI allowed Pre-Sanctioned Credit Line / overdraft facility extended to UPI. (यूपीआइ में ओवर ड्राफ्ट
की सुविधा)
- So, even if a person does not have balance in his bank account, still he can PAY using UPI while
shopping. (and then later, when he gets the salary/pension/income deposited in his bank
account, then the banker will recover the principal and interest.)
10.13.2 🔪🛍️ UPI: Benefits of UPI-overdraft facility?

- Help customers in “Buy now pay later (BNPL)” format of shopping. (Ref: Pillar#1B1 for more)
- Poor people require small small amount of money/loans during last weeks of a month. They
cannot travel to the city’s bank branch for the paperwork and banker may take many days to pass
application. Consequently, poor villagers borrow from the local moneylender/Shroff/Baniya at
high interest rate. UPI-Overdraft can help overcoming this to some extend. = helps in Financial
inclusion of the poor. (गरीबों के वित्तीय समावेशन में मदद)

10.13.3 🛍️ UPI: Interoperable Card-less Cash Withdrawal (ICCW)
- (ATM मशीन में बिना CARD डाले, मोबाइल ऐप के ज़रिए पैसा निकाला जा सके ऐसी सुविधा)
- Benefit? If physical card not inserted in ATM machine → ⏬ dangers of card cloning, etc scams.
🙋🏼‍♀️FAQ: How does it work? My bank not giving this facility?! Ans. 1 line word association for
MCQ is enough.
10.13.4 🛍️ UPI: QR Code based Coin Vending Machine using UPI (2023-Feb)
Traditionally New experiment by RBI in 2023

insert paper-note to get coin scan QR code➡️transfer money from bank account via UPI ➡️to
get coins from machine
कागदी नोट ➡️मशीन में डालकर छु ट्टे पैसे अपने बैंक खाते से UPI/QR-code द्वारा पैसा कटवाके बदले में मशीन से छु ट्टे पैसे निकालो
निकालो
10.13.5 🕵🏻 🤳
NPCI → UPI BHIM Full form: Bharat Interface for Money (2016)
 Money transfer app designed by NPCi. It works on Android, iOS/Apple mobiles as an APP,
 Works even on non-smart (=basic feature) phones using *99# USSD- Unstructured
Supplementary Service Data.
 Bank to bank / peer to peer transaction using mobile phone (xyz@upi). No need to install
multiple apps for each bank account (SBIBuddy, AxisPay etc) just one BHIM app to use all such
bank accounts.
 (1) App has 3 factor authentication system- as per Indianexpress (2) App has 2 factor
authentication system as per NPCi website. ( 🚩👶🏻
FAQ: then which fact is true? Ans. i'd go for
official website.)
 Your money stays in bank account and earns interest. It’s not stored in ‘wallet outside your bank
account’ as it happens in Mobikwick, Phonepe etc. (PS: in later stage, PhonePe etc private apps

also included UPI type mechanism so storing money in ‘wallet’ became optional but we need not
engage in Hairsplittery/PHD.)
 No cards involved so no MDR or such hidden charges.
10.14 🕵🏻 💳 NPCI → R UPAY CARD PAYMENT GATEWAY (2012)
 Rupee + Payment = RuPay card is world’s 7th payment gateway similar to Mastercard, Visacard,
China’s Union Pay. Rupay charges less fees than other companies.
 Works in 3 channels: 1) ATM, 2) Point of Sale Device (PoS/card reader machine), 3) Online
portals.
 Rupay debit card given free with PMJDY (Jan Dhan) Bank account (Refer Pill#1D).
 Rupay has signed collaboration agreements with some digital payments companies in Singapore,
Japan etc. So, it may be used in those countries. But presently Rupay is not having the widest
reach across all the countries unlike MasterCard and Visa.
10.14.1 🕵🏻 NPCI other notable initiatives

Table 5: NPCi has built following mechanisms / platforms / systems / apps:
- Bharat Bill Payment system for monthly payments of utility bills
(gas, electricity etc.)
- 2022-Jan: NPCi ‘s daughter/subsidiary company Bharat BillPay Ltd.
BBPS & UPMS Company → launched a Unified Presentment Management System
(UPMS) → but technical stuff. NOTIMP4 exam
😤FAQ: How is BBPS vs UPMS similar or different? Ans. NOT IMP 4
Exam. These are one-liner GK. Not PHD thesis topics!
NFS National Financial switch. This technology runs the ATM network
CTS Cheque Truncation System (2010) learned in previous section.
NETC  National Electronic Toll Collection provides technology support to
the FASTag toll collection. (राजमार्ग पर पथकर वसूलने के लिए)
PAI chatbot Artificial Intelligence (AI) based chatbot to reply to people’s online

queries about NPCI’s products like FASTag, RuPay, UPI, AePS etc.
DigiSaathi Helpline RBI launched with help of NPCi. - for digital payment & card payments
Number (14431) problems. The No. is 1800 891 3333 (not imp4exam but personal use)
DakPay (2020) Payment App by Department of Post and its India Post Payments Bank
BharatQR(2016) Given in next section of this handout. Scroll down
E-Rupi (2021) Given in next section of this handout. Scroll down
🕵🏻
10.14.2 NACH-ABPS : Hybrid / Mixed mode in MGNREGA
Both these technologies developed by NPCi.
National Automated Clearing House for bulk monthly payments of utility

bills, dividends, salaries, pension / insurance premiums etc.
NACH
😤FAQ: How is BBPS vs UPMS vs NACH similar or different? Ans. NOT
IMP 4 Exam. These are one-liner GK. Not PHD thesis topics!
AEPS: Aadhar  Useful for Direct Benefit Transfer (DBT: प्रत्यक्ष हस्तांतरित लाभ) into
Enabled Payment beneficiary’s account for MNREGA wages, LPG subsidy, scholarship etc.
System 📑
More in Pill#6
------  It’s also required for Bankmitra-MicroATM system.
Aadhaar-based
Payment System
😤
FAQ: difference between Aadhaar Enabled Payment system (AEPS) VS
Aadhaar-based Payment System (ABPS)? Ans. NOTIMP. It is enough to
(ABPS)
know, these are related to money transfer to bank account linked with
Aadhar number.
- Mahatma Gandhi National Rural Employment Guarantee Act, 2005: Rural development
Ministry provides 100 days work to villagers. (Ref: Pillar#6 for more)
- Presently both NACH and ABPS methods used for giving salaries to MGNREGA workers. Thus,
it’s called Mixed payment mode/hybrid mode for MGNREGA wages.
- Government wants to shift completely to ABPS method. But due to operational and technical
issues, deadline keeps getting delayed. Some poor people (without Aadhar card) given
exemption from ABPS.

- Opposition party alleged that government is "weaponizing the technology" to deny money to
poor people without Aadhar card.
10.15 🤳🏻💸👟 D IRECT BENEFIT TRANSFER (DBT) → E-RUPI BY NPCI (2021)

- (Origin) E-rupi is an SMS /QR Code based Prepaid Cashless Electronic Voucher created by
National Payment Corporation of India (NPCI) using its UPI Platform. [क्यूआर कोड आधारित प्रीपेड
नगदीरहित इलेक्ट्रॉनिक रसीद जिसे भारतीय राष्ट्रीय भुगतान निगम (एनपीसीआई) ने अपने यूपीआई प्लेटफॉर्म का उपयोग कर बनाया]
- It is also supported by finance ministries Department of Financial Services and Health ministry’s
National Health Authority (NHA) [वित्त मंत्रालय के वित्तीय सेवा विभाग और स्वास्थ्य मंत्रालय के राष्ट्रीय स्वास्थ्य
प्राधिकरण ने भी इसकी मदद की है]
- Can be used to provide 1) Food for mother, child, poor families under various schemes. 1)
Medicines for TB, Corona etc. 3) Fertilizer subsidies for farmers [खाद्य दवाइयां उर्वरक की सब्सिडी]
- Even private sector companies can issue it for 1] employees e.g. Gym membership, golf club
membership, hotel tourism travel. 2] use it for Corporate Social Responsibility (CSR) programs
(What is CSR? Ans. Big companies have to spend a portion of their profit for social service. Ref
Pillar#1C2). [निजी कं पनियां भी कर्मचारियों को विविध चीजों के लिए दे सकती हैं. कारपोरेट सामाजिक दायित्व अदायगी में भी
इसका इस्तेमाल हो सकता है]
- Following reforms taken in E-Rupi in 2022-Feb

BEFORE After
maximum storage limit ₹10,000 per code ₹1 lakh (महत्तम इतना पैसा सं ग्रहित कर सकते हैं)
code can be used one-time/ single-time  Code can be used more than once /multi-use -
only. (कोड के वल एक-बार इस्तेमाल हो सकता था) until the amount of the voucher is completely
exhausted/redeemed).
 e.g. Out of ₹1 lakh → ₹10,000 paid to furniture
store, ₹20,000 paid to electric-store etc.
10.15.1 e-RUPI vouchers: scope expanded (2023-June)

Before after 2023-June
Who can Buy E-Rupi Government & 1) Government, Companies AND
codes/vouchers? Companies 2) now Individual persons can also buy it (e.g. for
gifting to their maid/driver etc.)
Who can SELL E-Rupi only Banks can 1) Banks AND

codes/vouchers? sell 2) Non-bank Prepaid Payment Instrument (PPI)
e.g. AmazonPay, Mobikwick etc.
🙋🏼‍♀️FAQ: I still didn't understand this! Watch this Youtube Short-
https://youtube.com/shorts/1qoqwvDgbLA?si=VO_aJiHdzisJVCVL
10.15.2 💸🤳🏻🤷🏻‍♂️🤳🏻Interoperability Problem (इंटरऑपरेबिलिटी)
🚩👶🏻FAQ: What are those technical Rules to improve interoperability? NOTIMP #RAFTAAR.
10.16 🤳🏻💸QR C ODES: COMPULSORY TO IMPLEMENT UPI/BHARAT QR FROM 2022
- 1990s: 2 dimensional (2D) Quick Response (QR) Code system developed in Japan.
- Indian E-payment systems function on 3 types of QR Codes, namely,
Table 6: ✋Difference between UPI QR vs Bharat QR? NOT.IMP.4.EXAM ⏳📚थोड़ा-पढ़ो-आगे-बढ़ो
Proprietary QR  e.g. Paytm or PhonePe ke exclusive QR codes.
code  😰
Problem? Other companies’ app may not be able to scan and pay it.
 So, RBI has prohibited companies from launching any new
proprietary QR code.
UPI QR code 🤩
Generated by UPI app of NPCi. It can be scanned by all Apps which are
developed using UPI technology.
Bharat QR code 🤩
Developed by NPCi with help of Visa and Mastercard. It can be scanned
by all Apps which are developed using UPI technology.
 RBI has ordered all the Payment System Operators (PSOs e.g. Paytm, PhonePe, MobiKwik,
Google Pay etc) to shift to UPI QR or Bharat QR by March 31, 2022.
 🤩Benefit? All Payment apps will be able to scan these QR codes → 'interoperability'.

10.16.1 🤳🏻💸rMQR (Rectangular Micro QR Code)
 1990s: JAPANESE ENGINEER Masahiro Hara, designed the square QR code

 Now he’s working on rMQR (rectangular QR code).
 rMQR can be printed in narrow spaces
 rMQR has same scanning speed are normal square shaped QR code.
10.16.2 💳 Card Types based on Security Features: (सुरक्षा प्रणाली के हिसाब से कार्ड के प्रकार)
HomeWork: Read about RFID & NFC from Sci-Tech book/internet.
10.17 💳C REDIT & DEBIT CARDS (ALSO CALLED ‘PLASTIC MONEY’)

Table 7: 💳 Card Types based on Payment modality
1) Credit Card (कर्ज पे शॉपिंग) 2) Debit Card (अपने बैंक बचत का पैसा इस्तेमाल करो)
If Credit card used for withdrawing money Debit card can be used to withdraw ₹ ₹ from
from ATM, then it’s a type of ‘borrowing’, so, ATM from your existing bank balance.
bank levies interest rate. So, it’s not ‘borrowing’.
Credit card vs Overdraft? Debit card vs Overdraft?
1. Credit cards = for shopping. You carry card You should be intelligent enough to self-
in your pocket. Bank may give u some understand that much. शिक्षक हर चीज की स्पून फीडिंग
reward-points/gifts if you spend “₹.X” per करेगा/चम्मच से खिलाएं वह विद्यार्थी के मानसिक विकास के लिए अच्छी
year बात नहीं
2. - for overdraft= you have to manually visit
the bank branch, fillup form. It’s not in the

1) Credit Card (कर्ज पे शॉपिंग) 2) Debit Card (अपने बैंक बचत का पैसा इस्तेमाल करो)
form of a ‘card’. Doesn’t give u points/gifts.
✋Further difference
not.imp.not.here.for.IBPS-exam
 3) Hybrid Card / Duo Card: Single card with two chips for 1) credit card and 2) debit card. So,
you don’t have to carry two separate cards. E.g. Indusbank Hybrid card. एक ही कार्ड में दोनों का मजा 🤩
 4) Pre-paid card: It’s a subtype of debit card. Debit card is linked to a given bank account. But
Pre-paid card can be bought even without having account in the given bank e.g. IRCTC’s UBI
Prepaid Card which can be used for buying rail tickets, meals etc. support provided by Union
Bank of India (UBI) and NPCi’s Rupay gateway. (इस कार्ड को पैसा देके खरीदना पड़ता है। बैंक खाता होना जरूरी
नहीं )
🚩👶🏻FAQ: Other technical benefits / MDR challenge / BizGK / PHD-doubts / real life implications =
not imp.
10.17.1 💳 📧 Card Tokenization (from 1/Oct/2022)
 Tokenisation = creates a set of numbers called ‘token’ to replace/hide the sensitive card data such
as the 16-digit account number, expiry date and security code. (हैकिं ग से बचने वास्ते असली कार्ड नंबर की
जगह टोकन/काल्पनिक-नंबर बनाकर दे दो एसी बात है। ताकि विक्रे ता का आपके कार्ड की गुप्त जानकारी मिले नहीं)

 This ensures your card information is not disclosed to merchant website= protection from
hacking.
 Card owner can generate Tokenization through visiting card-issuer’s/banker’s website/App
through laptops, desktops, tablet, wearables (smartwatch) etc.
 From 1/10/2022, this became effective.
Figure 2: थप्पड़ से डर नहीं लगता, Identity theft se lagtaa hai!
💳
10.17.2 CVC Less transactions
 Normally, during online-transaction, customer has to enter Cardholder Verification Code
(CVC) EVERYTIME when making payment.
 but after the RBI’s tokenisation norms, this may not be required every time.
 Related topic: WHAT IS Mastercard company’s CVC less transactions? Ans. This much Real life
Business general knowledge is not required for exam.
10.17.3 💳 Auto-Debit/E-mandates and Additional Factor of Authentication (AFA)
Auto-Debit/E-Mandate / Recurring = allowing a company to cut money from your bank-account,

credit/debit card. - e.g. monthly netflix subscription. ( मासिक/पुनरावर्ती भुगतान )
Normally, it requires two factors authentication (दो चरणों में सत्यापन)
• (1) username-password or [card number & CVV code] AND
• (2) OTP-SMS (as Additional Factor of Authentication (AFA))

Additional Factor of Authentication (AFA) / OTP-SMS
Amount
required for recurring monthly/annual transactions?
No OTP req. ever for normal transactions e.g. Netflix subscription.
Upto
[only 1st time transaction pe may required. then recurring payment pe not
₹ 15,000
required. हर महीने ओटीपी नहीं मांगेगा]
Upto ₹1 lakh No OTP req. Subscription to mutual funds, insurance premium, Credit card bills.
🙋🏼‍♀️FAQ: do I have to remember all this? Ans. Atleast remember that every card-transaction doesn't
require OTP.
10.18 💳🚕 C ARD/TECH FOR TRANSPORT / TRAVEL
10.18.1 💳 🚕 National Common Mobility Card (NCMC, 2019)
• ‘One Nation One Card Model’ by Ministry of Housing & Urban Affairs (MoHUA) with the
help of NPCi, Bharat Electronics Limited (BEL Company), and some banks. It helps
developing special cards to pay tickets→ Train station/train gate can open automatically,
upon tapping the card, like in hollywood movies.
It has 3 components: (तीन घटक है इसके )
• 1) NCMC Card: To be issued by banks. Nature can be Debit/Credit/Prepaid. Can be used for
metro, bus, suburban railways, toll, parking, retail shopping etc.
• 2) SWEEKAR: Automatic Fare Collection System. (यात्री किराया वसूलने की स्वचालित प्रणाली)
• 3) SWAGAT: Swachalit / Automated Gate at railway/bus station. ( अपने आप खुलने-बं द होने वाले
दरवाजे)
10.18.2 🚝💳SBI’s Nation First Transit Card (2023)

• You can buy this card from SBI, by paying ₹100 or more.
• Card can pay metro, buses, water ferries and parking etc.
• Card can also be used for shopping, e-Commerce, withdrawing money from ATM.
• Card is based on National Common Mobility Card (NCMC) technology.

10.18.3 💳 🚕 FASTag for paying toll fees at highways (2017)
FASTags are prepaid rechargeable tags that allow for automatic toll
collection at electronic toll collection gates Radio-frequency
Identification (RFID) technology.
 2017: National Highways Authority of India (NHAI, a statutory body under Highway ministry)
launched 2 mobile apps MyFASTag and FASTag Partner to facilitate Electronic Toll Collection
(इलेक्ट्रॉनिक माध्यम से पथकर/टोल वसूली के लिए राष्ट्रीय राजमार्ग प्राधिकरण द्वारा अलग अलग एप बनवाए गए हैं).
 NPCi’s has developed National Electronic Toll Collection (NETC) technology to aid this.
 Persons loads up ₹ ₹ in his mobile app → actives RFID tag in his car → when it passes through
highway toll-booth, the money is automatically deducted. (गाडी टोल नाके से गुजरेगी अपने आप पैसा कट
जाएगा)
 🤩
Benefit? faster traffic movement, tracking stolen cars.
 From 2021, it became mandatory for all vehicles passing through tolls to have FASTags. Vehicles
without FASTags will have pay up more fees/toll at the gates. (ये लगाना अनिवार्य हुआ, अन्यथा ज्यादा फीस)
10.19 💳 MDR: F ULL FORM: MERCHANT DISCOUNT RATE (व्यापारिक छू ट दर)
In above photo, MDR fees % is not actual number but for illustration/example.
 MDR is the fees that a merchant must pay to his (acquirer) bank for every credit / debit card
transaction.
 MDR fees is shared among 3 parties 1) customer’s card issuing bank 2) merchant’s acquiring
bank 3) payment gateway provider. (तीन पक्षों में इस फीस को बांटा जाता है)
 MDR hurts merchants’ profit margin, discourages them from adopting Point of Sale (PoS)
terminals (=card swiping machine) → obstacle to digital economy. (व्यापारी के मुनाफे पर असर होता है
इसलिए वह कार्ड मशीन अपनाने में उदासीनता दिखाते है। )

Table 8: Steps taken to address MDR issue
RBI  2017: Imposed ceilings on MDR fees i.e. MDR can’t be more than “x%” of the
transaction amount. (रिज़र्व बैंक द्वारा तय सीमा से ज्यादा फीस नहीं मांग सकते)
Budget  It imposed some technical rules to help companies. I’m deleting it because old
2019 /faded news, mostly technical.
10.19.1 💳 MDR Subsidy by MEITY
Instrument UPI NPCI's Rupay NPCI's Rupay Credit Card

Debit Card Mastercard/Visa’s Debit/Debit card etc
MDR % on transaction value 0% 0% “x”% (NOT ZERO)
 😥 So, if a banker promotes Rupay debit card / UPI App → Banker will not earn MDR fees. So
bankers promote MasterCard & Visacard to their customers and merchants (instead of
Rupay/UPI). (बैंकर को मज़ा नहीं आता क्योंकि उसे डेबिट कार्ड व यूपीआई एप में MDR की फ़ीस नहि मिलेगी।)
 So, 2021-Dec: MEITY (Ministry of Electronics & Information Technology) announced up to
₹2,000 MDR Subsidy to Merchant's Bank for RuPay debit cards transactions and UPI
transactions.# (तो सरकार ने बैंकरों को बोला की तुमको मज़ा दिलवाने के लिए MDR नुक़सान के एवज़ में सब्सिडी देंगे)
 😍 this will encourage digital payment especially in small towns / rural areas (डिजिटल भुगतान ऊपर
लगने वाले मरचण्ट डिस्काउं ट रेट पर सरकार द्वारा सब्सिडी दी जाएगी यदि भुगतान रुपये डेबिट कार्ड या UPI द्वारा हो रहा है)
 😥 Foreign Players like MasterCard and Visacard are opposed to Indian govt’s preferential
treatment given to India's Rupay. (“रूपे” को मिल रही एसी रियायतों से विदेशी कार्ड कं पनिया नाराज़ है)
🚩👶🏻🎓 FAQ: "I've 500 jaat ke PHD doubts & counter arguments about this MDR subsidy" Ans.
Plz waste your precious time reading egazette.nic.in/WriteReadData/2021/231960.pdf
🔠❓MCQ. Which one of the following best describes the term “Merchant Discount Rate”
sometimes seen in news ? (Pre18 Set-D)
A. The incentive given by a bank to a merchant for accepting payments through debit cards
pertaining to that bank.
B. The amount paid back by banks to their customers when they use debit cards for financial
transactions for purchasing goods or services.
C. The charge to a merchant by a bank for accepting payments from his customers through the
bank’s cards.

D. The incentive given by the Government, to merchants for promoting digital payments by their
customers through Point of Sale (PoS) machines and debit cards.
10.20INTERCHANGE FEE BY NPCI (2023-MARCH)
Note: There are many more terms and conditions to this, but we will not waste time in PHD.
10.20.1 💳 🏧 ATM and its Types
 Automated Teller Machine (ATM) allow bank customer to withdraw money or check balance
without visiting any branch of a bank. (स्वचालित रूप से नकदी मुद्रा देने वाला यांत्रिक डिब्बा)
 ATM network works on NPCi’s NFS (National Financial Switch) technology.
Bank label Bank itself owns and operates the ATM network.
Brown label Bank owns but operations outsourced (cash refilling truck, guard)
 Note: Some books offer different definition, but I’ve taken above definition
from Economic Times Article 2015.(कु छ किताबों में व्याख्या अलग है मैंने इधर से ली है)
White label - Non-Bank owns & operates. E.g. Muthoot Finance, Tata Comm, Prism
- 🚩👶🏻FAQ: What is on-tap licensing system for White-label ATM? Ans.
Outdated topic for 2023.
Micro-ATM Bankmitra manually makes entries of deposit and withdrawal for customer. He
uses handheld device for using (debit or ATM) card & Aadhar biometrics
(fingerprint). NPCi’s AEPS technology gives technological support for this.
10.21 💸📡🤳🏻 📈 M EASURES TO PROMOTE CASHLESS ECONOMY

- 2019: RBI setup Nandan Nilekani committee.
- Budget imposed limits and restrictions on cash transactions (more in Pillar2:Black Money)
- + many small small things for Mains Exam. Ignored here for #RAFTAAR-Prelims.
10.21.1 🕵️‍♂️💳📯 Payments Infrastructure Development Fund (PIDF) by RBI

 ₹250cr from RBI + ₹250 cr from (Banks and Card Gateway Operators) → ₹500 cr fund setup.
 Objective? Provide funding/ subsidy to encourage merchants in the small towns, villages and
North Eastern states to adopt point-of-sale (PoS) card swiping machines. ( भुगतान इंफ्रास्ट्रक्चर के लिए
निधि/कोष: गांव, छोटे शहरों और उत्तर-पूर्वी इलाकों में व्यापारियों को कार्ड मशीन अपनाने के लिए मदद)
 Originally, RBI launched in 2021 for 3 years. Then extended for another 2 years upto Dec, 2025.
Scheme description
PM SVANidhi Govt helps the street vendor to get Biz loan. (Ref: Pillar#1D for more)
Govt helps artisans e.g. carpenter, potter, blacksmith, et cetera. In skill
PM Vishwakarma
training Bank loans. (Ref: Pillar#1D for more)
RBI said we’ll gives PIDF-subsidy to above beneficiaries to adopt PoS devices.
10.22 🌐🤝G LOBAL MONEY TRANSFER
10.22.1 UPI facility to foreign tourists coming to India (2023)
विदेशी व्यक्ति भारत में बैंक खाता खोलकर यूपीआई वाली मोबाइल ऐप द्वारा भारत में खरीदारी कर सके ऐसे रिजर्व बैंक कदम उठा रहा है.
BEFORE From 2023
if such non-resident/foreigner came to India, he could not do This facility made available to
shopping using UPI money transfer from their NRE/NRO** G20 nations ke tourists coming
bank account, to India.
** Non-Resident Indians/foreigners can open bank accounts in Indian banks. Such accounts are
known as NRE/NRO/FCNR (Foreign Currency Non-Resident Account). NRE/NRO/FCNR=
internal difference is not imp. For our exam.

10.22.2 Nostro-Vostro / Rupee-Ruble / Rupee-Rial Agreement?
(Ref: Pillar#3: international trade / currency exchange)
💳
10.22.3 RUPAY Cards- International acceptance
• 2023-June: RBI allowed international use of RuPay cards. That means an Indian travellers in
use them abroad for ATM money withdrawal and shopping. (subject to terms and
conditions)
• 2024: implemented for Mauritius.
🛍️
10.22.4 UPI in Srilanka, Mauritius (2024)
• 2024-Feb: UPI facility now available in Sri Lanka, Mauritius.
• This will help Indian tourists travelling to Sri Lanka and Mauritius to pay through mobile
phones.
• UPI also available at Bhutan, Oman, UAE, South Asian nations, Nepal and France etc.
10.22.5 🛍️ India-UAE: LCSS: UPI-IPP linkage (2023-Aug)

- 2023: Central banks of India and UAE signed Local Currency Settlement System (LCSS)
agreement.
- This will allow importers/exporters/investors/tourists to pay in their respective domestic
currencies i.e. in Indian rupee (INR) and the UAE Dirham (AED). (Without using Dollars.)
- Both nations also trying UPI-IPP linkage for easier Local Currency Settlement System (LCSS).
Country → India UAE

Mobile based Fast Payment Systems (FPSs) → UPI Instant Payment Platform (IPP)
📚 More about currency exchange in (Ref: Pillar#3 Currency Exchange)

10.22.6 💸📞Financial Messaging Systems: SWIFT- Russia gets banned
Globally (वैश्विक स्तर पे पैसा भेजना हो) Within India (भारत के भीतर ही पैसा भेजना हो!)
Society for Worldwide Interbank Structured Financial Messaging System (SFMS)
financial telecommunication (SWIFT)
By a Cooperative organization in designed by Tata Consultancy Services (TCS) for
Belgium’s La Hulpe city (1973). IDRBT (=Research arm of RBI)
To serve the messaging function for to serve the messaging function in NEFT, RTGS, and
Banks, NBFCs & brokers who may / may other inter-bank, intra-bank e-transactions
not have direct bank relations / platforms within India.
settlement systems with each other due to
international borders.
😥 Nations banned from SWIFT: 1) Iran (Capital Tehran) 2) 2022: Russia got ban, after invading
Ukraine. This will make it very difficult for the Russian banks/ NBFCs /businessmen to send and
receive money internationally (यूक्रे न-आक्रमण के ख़िलाफ़ रूस को स्विफ़्ट-वित्तीय सं देश प्रणाली से प्रतिबं धित किया गया है जिसके
चलते रूसी बैंक वित्तीय सं स्थान और उद्योगपतियों को अंतरराष्ट्रीय स्तर पर पैसों के लेन में दिक्कतें आएं गी।)
10.23 👨‍⚖️📜🗓 P AYMENT SYSTEM OPERATORS?

Payment and Settlement Systems Act, 2007: RBI gives license to Payment System Operators (PSOs).
Type of PSO Examples
Umbrella Entity For Retail Payments → NPCi (learned in previous section)
Card Payment Gateway Operator → MasterCard, Visa, Rupay
Crossborder / International Remittance Western Union, MoneyGram
Prepaid Payment Instrument (PPI) AmazonPay, Mobikwik, Phonepe, PayU, etc
Payment Aggregators (PAs) They help the merchant to collect payment from
customer digitally e.g. Paytm, Amazon, GooglePay,
Zomato, CCBill, CCAvenue, Razerpay, Stripe etc.
ATM Operators SBI etc's own ATMs

White label ATMs by Tata, Muthoot, SREI etc
Financial Market Infrastructure Clearing Corporation of India (CCI): provides digital
Provider( 📑Ref: HDT-Pillar#1C) infrastructure for share/bond/foreign currency deals etc.
👨⚖️
10.23.1 ‍ New Umbrella Entity (NUE) for Retail Payments System (2019)
 Paytm has rival companies like Mobikwick, Phonepe; Mastercard vs Visa; SBI vs Axis Bank;
 But there is no rival company against NPCi. वर्तमान समय में NPCi का प्रतिस्पर्धी कोई नहीं है
 NPCi is an umbrella entity for retail payments system - it operates in card payment (RuPay),
Money transfer (IMPS), Mobile Apps (UPI, BHIM), ATM Network (NFS) etc.
 2020: RBI issued a proposal, “if any Indian company interested to compete in this (NPCi-like)
retail payment segment, we’ll license them as new umbrella entity (NUE: खुदरा भुगतान के लिए नई छतरी
इकाई). Subject to these technical “XYZ” technical eligibility requirements”
🤩Benefits? More companies like NPCi → more competition → more innovation and cheaper
services for users. (स्पर्धा बढ़ेगी तो नए आविष्कार होंगे, डिजिटल भुगतान सेवाएं पहले से भी ज्यादा सस्ती / किफायती/बहेतर हो)
 Facebook, Google, Amazon, Flipkart and others had applied for NUE licences. But none of them
met RBI’s expectations. So, 2023-Jan: RBI has put this license process on halt/suspension. (जिन
कं पनियों ने इसके वास्ते अर्जी डाली थी उनके अनुभव और काबिलियत से रिजर्व बैंक सं तुष्ट नहीं था. इसलिए अभी रिजर्व बैंक ने इस पूरे
मामले को ठंडे बस्ते में डाल दिया है)
🔠❓ MCQ. Find Correct Statement(s) [asked in UPSC- Prelims-2017]

1. NPCI helps in promoting the financial inclusion in the country.
2. NPCI has launched RuPay, a card payment scheme.
Answer codes: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
🔠❓ MCQ. Find Correct Statement(s) [asked in UPSC- Prelims-2018]
1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of
authentication.
Answer codes: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
10.23.2 🤳🏻 Third Party Application Providers (TPAPs): Google Pay, Whatsapp Pay
Now PayTM facing problem because:

• Non-banks like Amazon Pay, Google Pay, Mobikwik, PhonePe, and WhatsApp etc. need to
obtain this TPAP license from NPCI to use the UPI, Fastag & other services of NPCi.
• Moreever, TPAP companies need to tieup with Partner banks to do transactions with NPCi.
• Previously, Paytm did not require such license because it was a payment bank. (Ref:
Pillar#1B1 to know more about Payment Banks)
• But, from January 31, 2024, the RBI began restricting all banking activities for Paytm
Payments Bank (Company’s name: One97)
• So, now PayTM applying for TPAP license from NPCi, with help of Axis bank as a 'partner
bank'.
🙋🏼‍♀️FAQ: How can NPCi give license? it is not a statutory body unlike RBI.
Ans. Don’t mix the word ‘license’ with sarkaari type licenses (Gun /vehicle/bank etc.) Here, the word
'license' is in context of getting permission from a company. Example, If you want to use Photoshop
software, you have to “buy” license from Adobe company.
10.24 🕵️‍♂️💳 D IGITAL PAYMENT REGULATORY BODIES (नियं त्रण सं स्थाएँ )
10.24.1 🕵️‍♂️💳 Digital Transactions Ombudsman (DTO-2019)

 RBI designates senior RBI officials at 21 places across India as DTO. They hear customer complaints upto
₹ 20 lakh against prepaid payment instruments, Mobile wallets, Apps, NEFT/RTGS and other digital
transactions. ((डिजिटल लेनदेन शिकायत निवारण अधिकारी/लोकप्रहरी).
 They can order the company / bank to fix problem and pay upto additional ₹ 1 lakh for mental agony of
customer → Higher Appeal to Dy.Gov of RBI. (मानसिक उत्पीड़न के लिए जुर्माना/मुआवजा).
 If matter > ₹ 20 lakh, then matter outside his jurisdiction. Victim has to approach courts. (20 लाख से अधिक
रकम का मामला होगा, तो पीड़ित ने न्याय/इंसाफ के लिए अदालत/कोर्ट में जाना होगा)
🕵️
10.24.2 ‍♂️RBI: BPSS (Statutory body)
 1998: Narsimham-II Committee on Banking Reforms suggested regulatory framework for e-
banking, card payment etc. Then,

 2007: Payment & Settlement Systems Act (भुगतान और निपटान प्रणाली अधिनियम) → RBI → (Statutory)
Board for Regulation and Supervision of Payment and Settlement Systems (BPSS: भुगतान और
निपटान प्रणाली के विनियमन और पर्यवेक्षण के लिए बोर्ड).
 All types of payment system providers have to register with RBI’s BPSS- whether bank, non-
bank, wallet/Prepaid Payment Instrument (PPI) etc. (सभी भुगतान सं स्थाओं ने पंजीकरण करवाना अनिवार्य)
🕵️
10.24.3 ‍♂️Payment Regulatory Board (PRB)
Government wanted to setup this body few years back. But, this is not YET setup and no new
developments. So, Outdated for 2024. Deleted for #Prelims-RAFTAAR 🏎
10.25 🐯📊 D IGITAL PAYMENT RELATED INDEX / COMPETITIONS/REPORTS BY RBI
Below table given if preparing for RBI grade-B officer exam etc. I am not spending time in writing the
ranks because poor cost benefit for #IAS-Prelims-RAFTAAR.
🐯📊REPORT RBI's Payment and Settlement Systems in India Vision 2019 – 2021
🐯📊INDEX/Ranking RBI Digital Payments Index– to check level of digital payment in various areas
of India. (DPI डिजिटल भुगतान सूचकांक)
🐯📊INDEX/Ranking RBI’s Financial Inclusion Index– to check whether every poor person is having
access to banking, loan, insurance pension, etc. (वित्तीय समावेशन सूचकांक)
🐯🏆Competition RBI’s Harbinger Hackathon 2021 competition for innovation in digital
payment.
10.26 🔗💮 C RYPTO-CURRENCY & BLOCKCHAIN TECHNOLOGY

Note: For easier visualisation, I have wrote “bitcoin” instead of “crypto-currency” at most places.
 [Definition] Cryptocurrency: is a digital / virtual currency created & stored using blockchain
technology.क्रिप्टोमुद्रा एक डिजिटल मुद्रा है जिसे ब्लॉकचेन तकनीक का उपयोग करके बनाया और सं ग्रहीत किया जाता है।
 [Definition] Blockchain: A secured decentralized database/ distributed ledger technology (DLT)
that maintains a continuously growing list of records / transactions. Old entries can’t be deleted,
new entries will be visible to all. Mainly used for running cryptocurrency network. But it can also
store any type of data. (ब्लॉकचेन एक डेटाबेस है जो रिकॉर्ड की निरंतर बढ़ती सूची को विके न्द्रीकृ त रूप से बनाए रखता है।)
 [Origin] Anarchist groups lost faith in FIAT MONEY because USA’s Subprime Crisis (2007)
eroded the purchasing power of US Dollar. They also dislike Banks & Card Companies because
of transaction charges on e-banking, card payments, MDR, interoperability issues. (अशासनवादी
समूहों को सरकार द्वारा जारी की मुद्रा नापसं द। इन अशासनवादी समूहों को बैंक और कार्ड कं पनियों से भी नफरत है)
 2009: An anonymous user (अनाम/अज्ञात) Satoshi Nakomoto launched a cryptocurrency ‘Bitcoin’.
 total 21 million Bitcoins, wherein 1 Bitcoin (BTC) = 108 Satoshi (the smallest unit).
 Other examples: Ethereum, Litecoin, Digicoin, Laxmicoin, Ripple, Dogecoin etc.
👝
10.26.1 Hot Wallet vs Cold Wallet
Just like you store money in Paytm DIGITAL Wallet. You can store Bitcoin and other
cryptocurrency in Crypto Digital Wallets. Such wallet could be hot wallet or cold wallet.
 🔥 Hot wallets are connected to the internet, (e.g. an online app)

 ❄️Cold wallets are not connected to internet (e.g. a USB pendrive).
10.26.2 🔗💮📉:🥶☃️️Crypto-Winter in Bitcoin Prices (भाव गिरा अब उठ नहि रहा है)

 Between 2021-Nov to 2022-Jun: Bitcoin fell from ~$70,000 to $20,000 → almost 70% loss! &
similar situation in many other cryptocurrencies.
 Some experts fear the prices will remain frozen in this range for upcoming months, hence using
the term "Crypto-Winter" to denote it. (क्रिप्टो-मुद्राओं के दाम गिर गए हैं और वापस ऊपर नहि चढ़ रहे, लगता है
क्रिप्टो-बाज़ार सर्दी/ठंडी में जम गया है)
10.26.3 🔗💮📉:🥶☃️️Crypto-scams - Recent Global Scams

Binance It is name of an online exchange/portal to buy/sell cryptocurrency. Remains in
negative news because of frauds/scams.
FTX  It is name of an online exchange/portal/exchange to buy/sell cryptocurrency. It
went bankrupt. Resulting into losses for the investors. . Its founder/CEO arrested
for scam → 10 lakh+ investors’ money got stuck.

🚩👶🏻FAQ: FAQ: How were these scams conducted? Ans. Its forensic analysis not important for our
exam. Ans. Sufficient to know these are the dangers associated with crypto currency. ऑनलाइन प्लेटफॉर्म
जहां क्रिप्टो मुद्रा की खरीद बिक्री की जाती थी. 10 लाख से अधिक निवेशकों को चूना लगाया गया/ गबन हुआ है
🚩👶🏻FAQ: FAQ: How is Bitcoin not traceable, we can trace it using XYZ technology?
✅Ans. Using HTML, we can create Wikipedia website and using HTML we can also create gmail
website. While everyone can read Wikipedia, I can’t read your gmail page, unless I know your
username password. Blockchain is similar. It depends on designer to make database “open” or
“private/encrypted”. Beyond that, we are not here for B.Tech (Computer Science) Semester
exam/James Bond recruitment. We just have to memorize 3-4 negative points for exam.
10.26.4 🔗💮 :Crypto currency observations by EcoSurvey’23 📙

 Cryptocurrencies are primarily held by a few big players/“whales”. So they can manipulate the
prices by manipulating the supply.
 Problems related to electricity-consumption, tax-evasion, abnormal fluctuation in prices,
investors-fraud, no-intrinsic value et cetera.
 then economic survey, 2023 give various examples of different-different legal provisions in EU,
Japan, Switzerland, Nigeria etc. But from exam point of view not much benefit chasing it.
 sufficient to know that coordinated international effort required to regulate the sector. OECD
and G20 group are working in this direction. More about these intl.orgs in Pillar3B.
 And ideally, we need strict rules over crypto-market, just like we’ve strict rules over sharemarket
चं द बडे खिलाड़ियों ने ज्यादातर क्रिप्टोमुद्रा अपने कब्जे में की है. और वही खिलाडी इसकी सप्लाई/आपूर्ति को नियंत्रित करके , उसके दामों में छेड़छाड़
करते रहते हैं. क्रिप्टो मुद्रा में बिजली की खपत, कर-चोरी, आम-निवेशक से धांधली होती है. विभिन्न देशों में इसपर अलग-अलग के नियम/कानून
बनाए गए हैं, लेकिन वैश्विक रूप से नियमों में एकरूपता और सहकार की जरूरत है- आर्थिक सर्वेक्षण ने पाया.
10.26.5 🔗💮 🍋: Cryptocurrency Profit pe 30% Tax and 1% TDS in 👜🥻Budget-2022

Refer to Pillar2A: Budget Direct Taxes to learn this matter.
10.27 ⚖️🔗💮✋ C RYPTOCURRENCY BANNED IN OTHER NATIONS?

 Nepal, Algeria, Egypt, Morocco, Turkey , Iran etc: Bitcoin is illegal. (कु छ देशों में क्रिप्टो मुद्रा रखना
गैरकानूनी है)
 Chinese prohibited the banks from providing buying/selling/investment services for bitcoin etc
cryptocurrencies. After this crackdown, Bitcoin prices fallen ⏬⏬ by 30%
10.27.1 Crypto currencies as legal tender is in some countries
Two legal tenders: 1) Bolivar Paper currency issued by Govt 2) Petro
Venezuela
Cryptocurrency issued by Govt.
Capital: Majuro, Sovereign state having free association with USA (for defense,
Marshall social security, budget). Legal Tender was U$D. But,
Islands  2018-Feb: became first country to launch sovereign cryptocurrency named
“Sovereign” [SOV]. So, now two legal tenders: US Dollars and SOV.

 El-Salvador: Two Legal tenders [1) US Dollars (from 2001). [2) Bitcoin
(from 2021).
El-Salvador
 Thus, El-Salvador became 1st nation in the world to allow Bitcoin as legal
tender
😤FAQ: Why El-Salvador allowed Bitcoin? Ans.✋ not important after looking at previous prelims
and mains papers. We’re not preparing for El-Salvadori-ElAS exam
10.27.2 🔗💮:🤩 Cryptocurrency Permitted in Other Nations/Groups

🌐 UNICEF  United Nations International Children's Emergency Fund (UNICEF, HQ-
New York,USA; 1946, later renamed to UN Children's Fund)
 2019: UNICEF setup a Cryptocurrency Fund to accept donations in
cryptocurrencies. It has become the first UN organization to accept
cryptocurrency. (यूनिसेफ सं स्था दान में क्रिप्टो मुद्रा का भी स्वीकार करती है)
🌐 World  2018: World Bank launched World’s first blockchain bond called “Bond-i”
in Australia, denomination: Australian Dollars → public invests, gets ~2%
Bank
interest after 2 years.
(More about
 Blockchain bond requires less cost in server / database /paperwork
this org in 📑 📑
maintenance unlike traditional bonds. More in Pillar#1C:
Pillar#3B) SEBI/Sharemarket
 World Economic Forum (WEF) is a non-government organization in
Bill of Rights Cologny-Geneva, Switzerland. (विश्व आर्थिक मंच. गैर सरकारी सं गठन)
 2020: Published a document, ‘Blockchain Bill of Rights’ . Document talks
(अधिकारो का about rights to accountability, transparency, data privacy, data protection
विधेयक) etc. (ब्लॉकचेन अधिकार पत्र/विधेयक: जवाबदेही, पारदर्शिता, डेटा गोपनीयता, डेटा सुरक्षा आदि के
अधिकार)
10.28 🔗💮🥇 C RYPTOCURRENCY → GLOBAL REGULATIONS
10.28.1 Global Regulations → MICA regulation by EU (2023)

 European union (EU)’s rules called the Markets in Crypto Assets (MiCA)
 To protect people from scams /frauds in crypto currency investment.
 To combat tax-evasion, money laundering (i.e. converting black money into white) AND terror-
finance.
 Doesn’t regulate central bank digital currencies (CBDC).
 Doesn’t regulate nonfungible tokens (NFTs).
10.28.2 Global Regulations → CARF Framework by OECD (2022)

 Crypto-Asset Reporting Framework By OECD (Organisation for Economic Co-operation and
Development) Objective? Similar to EU’s MICA Rules.
To get full course

Contact me :- @Kingraistarbot
10.28.3 🔗💮🥇 Cryptocurrency → Stable-coins
 Stablecoin is a type of cryptocurrency whose price is backed by a reserve asset like gold / dollar /
fiat currency e.g. Facebook’s proposed ‘Libra’, Tether, Basecoin, and TrueUSD.
 😰But, stablecoins challenges: 1) money laundering (धनशोधन / काले धन को वैध बनाना) 2) terror
financing (आतंकी वित्तपोषण) 3) lack of consumer protection (उपभोक्ता सं रक्षण की कमी) 4) financial
frauds (वित्तीय धोखाधड़ी). 2019: France, EU, G20 group opposed. (बड़े देश/सं गठन इसके विरोध में है)
10.28.4 World Coin Project (2021–22)
Pros and Cons? Similar to the Aadhaar card:

- Pros: IF governments across the world ACCEPT this as “identification proof”= easier to avail
various government schemes benefits /college admission / passport application etc. Time-trouble
saved. (यदि देश विदेश की सरकारें इसे एक आधिकारिक पहचान पत्र के रूप में मान लें तो गरीबों को विविध योजना स्कू ल कॉलेज
दाखिले आदि में काफी सुविधा हो सकती है)
- Cons: concerns over privacy / misuse. (निजता का हनन. दुरुपयोग का भय)
🔠❓MCQ. Find correct statement(s) about Bitcoin? [UPSC-CDS-2017-I]

1. It is a decentralized virtual currency.
2. It is generated through complex computer software systems.
3. The Reserve Bank of India recognized it as a legal tender in January 2016.
Answer Codes: (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3
🔠❓ MCQ. Find correct statement(s) about “Blockchain Technology” [UPSC-Prelims-2020]
1. It is a public ledger that everyone can inspect, but which no single user controls.
2. Structure and design of blockchain is such that all the data in it are about cryptocurrency only.
3. Applications that depend on basic features of blockchain can be developed without anybody’s
permission.
Answer Codes: [a) 1 only [b) 1 and 2 only [c) 2 only [d) 1 and 3 only
10.29 🐯🔗💮 C ENTRAL BANK DIGITAL CURRENCY (CBDC)

कें द्रीय बैंक डिजिटल मुद्रा / सं प्रभु डिजिटल मुद्रा
Year Nation Paper Currency CBDC
2020 Bahamas (Capital Nassau) – Bahamaian Dollar “digital B$”, also called ‘sand
1st nation in the world to BSD dollar’. issued Non-Interest
issue CBDC## Bearing CBDC
2021 Nigeria (Capital Abuja) Naira the “eNaira”-Non-Interest
Bearing CBDC.
##🚩👶🏻🎓 Marshal island launched SOV currency in 2018 then shouldn’t we call it the first country
to launch CBDC? why above table says Bahamas is 1st country to launch CBDC?
 Ans. Big Newspapers using such headlines. I didn’t bother to write/ask to their chief-editors. If
asked in Exam, then tick MCQ depending on options.
 China, Britain, Japan, Singapore, Sweden have also started such experiments.
 👜🥻Budget-2022 announced issuance of Digital Rupee using blockchain technology).
10.29.1 🚩👶🏻 Zhande-walle Babushono ke liye special instruction: (अग्रिम सूचना)
• Following are the features told by the (A) Govt to the Parliament and (B) RBI governor in a
press release. So, accept and memorize it.
• Please do not waste your time engaging in academic/legal debates - if you value your time
and wish to complete the syllabus in a timely fashion. (सिलेबस खत्म करना है तो इधर जो दिया है उसका
स्वीकार करो. कृ पया झं डा उठाकर डिबेट में वक्त बर्बाद ना करना- यदि, आपको परीक्षा पास करनी है. )
💮
10.29.2 Indian CBDC symbol (e₹)
• Normal rupee = ₹ or INR. CBDC rupee = e₹ or eINR.
💮
10.29.3 (e₹) CBDC wholesale vs Retail
 Presently RBI doing trials/experiment/pilot-studies in two segments:
Type CBDC-Retail (e₹-R) CBDC-Wholesale (e₹-W)
• Secondary market transactions in
• Person to Person (P2P)
Trial- government securities
• Person to Merchant
Purpose • Interbank borrowing for short-term loans
(P2M) transactions.
• Crossborder payments.
Details given in present handout 1A1 Ref: Pillar#1C to understand these terms.

💮
10.29.4 (e₹) Indian CBDC = digital token of legal tender
 Indian CBDC (e₹) is based on blockchain technology.
 Indian CBDC (e₹) is a digital token that represents legal tender.
 (e₹) created under RBI Act, 1934 by amending some sections in 2022.
🙋🏼‍♀️
 RBI has issued (e₹) on behalf of Government of India. [ FAQ: I have legal arguments against
this. Ans. ACCEPT it- bcoz Government said this in Parliament.]
 (e₹) is a liability of the RBI e.g. similar to cash note ” I promise to pay the bearer on demand sum
of ₹100 rupee”.
 It is being distributed through financial intermediaries, i.e., banks.
 Just like cash, it (e₹) will not earn any savings interest.
 It offers features of physical cash like trust, safety and settlement finality.
💮
10.29.5 (e₹) → Settlement finality
 “settlement finality” = there is no risk of reversal or cancellation after the financial transaction is
complete. e.g. Cash or CBDC-e₹. (एक बार भुगतान कर दिया तो फिर सामने वाली पार्टी के पास पैसा गया। आप उसको उलट नहीं
सकते।)
 Whereas, if a payment is made via Credit card/ cheque-book → customers can later block the
payment by contacting the banker within a time-limit. So they (creditcard / cheque) do not have
instant-settlement finality. (उधर आप बैंक में शिकायत कर के भुगतान को रोक सकते हैं।)
 🙋🏼‍♀️
FAQ: can we say that as mode of payment (UPI/Debit Card/NEFT-RTGS) also has
settlement finality? Ans. I copied only that much which is given in Newspaper/Press-release. I
did not become Sherlock Holmes to do find further info/PhD. Feel free to delay your syllabus
completion by asking ChatGPT.
10.29.6 💮(e₹) Indian CBDC = no interest earning (नहीं मिलेगा ब्याज।)

• (e₹) stored in a separate digital wallet/separate mobile created by the bankers.
• (e₹) does not earn savings interest rate, unlike normal bank deposits (because you are
keeping it with yourself in a digital wallet. So bankers do not treat it as a deposit).
• (e₹) can be converted to other forms of money, like deposits with banks. But then you will
have to move that money out of your digital wallet → then you cannot use it as (e₹) [ ब्याज
कमाना है तो उसको डिजिटल बटुवे से स्थानान्तरित करना होगा।]
10.29.7 💮📲 (e₹) CBDC - Interoperability permitted with UPI QR Codes

 2022–23: CBDC trials/experiments started in a few cities.
 So bankers have developed separate apps to use CBDC money
App Before AFTER 2023-Sept
(1) SBI Yono App
can scan & pay UPI-QR codes can scan & pay UPI-QR codes
(Normal money)
(2) SBI-e₹ App can’t scan UPI-QR codes. It required
can scan & pay UPI-QR codes
(To use CBDC money) separate codes
Interoperability? ✋🚨Absent/Denied by RBI ✅Present / permitted by RBI
💮
10.29.8 (e₹) CBDC - programability & offline features
• Presently (e₹) can be used for Person to Person (P2P) and Person to Merchant (P2M)
transactions. 2024-Feb: RBI proposed two new experiments:
• (1) Offline functionality (similar to UPI-Lite). in areas with poor or limited internet
connectivity.
• (2) Programability. (given below) 👇
Programability Example
 e.g. If Adani allows a company budget of ₹10,000 (e₹) for his employees to
Biz Travel use for buying railway tickets only. → then employees cannot use it for
buying table chairs, IPL tickets, etc.
Expiry/Validity  e.g. The university gives ₹10,000 (e₹) stipend to students to buy books within
1 month of admission.
 If student does not buy the books, then the money will be returned back to

the university.
Geographical  e.g. It cannot be used outside these XYZ GPS coordinates.
🙋🏼‍♀️FAQ: Aren’t these features similar to the e-Rupi gift cards by NPCi?
Ans. Don’t make khichdi of RBI’s product vs NPCi’s product. View them as separate photo frames.
Observe the PYQs. UPSC unlikely to ask you compare/contrast between them two.
🐎✅🐂✋ Be focused on the track like a race horse. Don’t loiter like a street-bull.
10.29.9 E-Rupee vs E-Rupi

Term E-Rupee E-Rupi
Founder RBI NPCi
Digital GIFT CARD / SMS Code to
Feature Central Bank Digital Currency.
help beneficiary do shopping.
Fiat money and No. Because, this is not money. This
Yes
legal tender? is a tool to use money.
10.29.10 🐯🔗💮 👌🥰
= Benefits of CBDC (कें द्रीय बैंक डिजिटल मुद्रा के फायदे)
CBDC/ Sovereign Digital Fiat Money / Digital Base Money will provide following benefit
1. ⏬ Cost printing and transporting physical currency. (नोट छापने की लागत और परिवहन खर्च में कमी)
2. ⏬ Scope for counterfeiting. (जाली नोट बनाना मुश्किल)
3. ⏫Traceability, ⏬Anonymity: (ढूँढना आसान, गुमनाम/अज्ञात रहेना मुश्किल)
a. Whether money is reaching the intended beneficiary or not? (लाभार्थी को योजना का पैसा मिला
कि नहीं)
b. From where did the businessman accumulate this money, did he pay an appropriate
amount of tax or not? Else auto-alert to the Income tax department for tax evasion.
(करचोरी पर निगरानी आसान)
4. Possible to develop programmable currency. E.g. govt transferring ₹6000 in poor farmer’s
account with condition ke it must be spent WITHIN next 15 days for buying seeds/farming tools
ONLY.
5. Global money transfer more easier. E.g. in future China may give DIGITAL YUAN currency
LOANS directly to Ghana Without converting into US Dollars and without using SWIFT
messaging system.
+ many other things but they are more relevant for Mains rather than Prelims.
10.29.11 🐯🔗💮= ✋🥵Challenges of CBDC (चुनौतियां)
1. 😰Digital Divide, Financial Literacy, Access Points: (डिजिटल उपकरणों की उपलब्धता की खाई, वित्तीय साक्षरता
का भाव, डिजिटल भुगतान इस्तेमाल करने के पहुंच बिंदुओं की कमी)
a. Not everyone has electronic gadgets or internet connectivity, (सबके पास इंटरनेट नहि)
b. Not everyone knows how to operate bank account digitally, (सबको इस्तेमाल करना नहि आता)
c. Not every village shopkeeper accepts payments in the digital form. (दुकानदार नक़दी माँगते है)

2. 😰Cyber Terrorism/Nuclear Attack/Natural Disaster. If electricity stops → economy will stop
functioning. (साइबर आतंकवाद / परमाणु हमला / प्राकृ तिक आपदा: विद्युत उपकरण बं द तो अर्थव्यवस्था बं द)
3. 😰Maintaining the blockchain → 24/7 use of server/electricity → e-waste, pollution. (प्रदूषण)
🔠MCQ.Pre-2023: Find correct about Central Bank digital currencies,:
1) It is possible to make payments in a digital currency without using US dollar or SWIFT system.
2) A digital currency can be distributed with a condition programmed into it such as time-frame for
spending it.
Codes: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
10.30 💠≠ ❇️ F UNGIBILITY?
Item Can it be Is mutual substitution possible in terms of value? Is it

subdivided in fungible?
smaller units?
₹500 Note Yes ₹100x 5 Yes ₹100 x 5 Notes can buy same quantity of ✅Yes
Notes=500 goods as a single ₹500 Note
1kg gold Yes 100gm x 10 Yes 100gm x 10 biscuits can buy same quantity of ✅Yes
bar biscuits=1kg gold goods as a single 1kg gold bar
bar
1Bitcoin 1BTC=10^8 Satoshi Yes 1BTC’s value = 10^8 Satoshi coins. So, ✅Yes
coins theoretically, they buy same quantity of goods
100 gm Bigger single piece diamond considered to be more precious/valuable ✋No
single than small-small pieces diamond. So, 100gm Single_Big_Diamond
Diamond =NOT equal 1gm x 100 small_Diamonds, in terms of value
Shares, NOT possible (How Ref: 📑Pillar#1C: SEBI sharemarket) ✋No
Bonds
NFT NOT possible. Explained in separate section. ✋No
10.30.1 💮(e₹): Fungibility of CBDC

Doubt: if we program the CBDC currency for specific use - example only for purchasing of books,
then it is no longer fungible! Because we cannot use it for any other purpose e.g. buying Pizza!!
 In that case, as soon as the book is purchased, the money goes to the bookshop owner → money
again becomes fungible. Because the bookshop owner can use the money for any purpose
 If the student doesn’t buy the book, → CBDC-money goes back to the school, and fungibility is
restored (because the school admin can use it for any other purpose).
“Thus, programmability does not violate/destroy fungibility (of Rupee), it is only a specific use
binding.”- said RBI Governor. (भले को शर्ती-प्रोग्रामिंग से CBDC ऐसा सिमित कर दिया जाए, की कु छ ही चीजे उससे खरीद सकते
है. लेकिन फिर भी CBDC-रुपया फं जीबल है. )
10.30.2 💠 Non-fungible token (NFT: ग़ैर-फ़ं जीबल टोकन)
 (Definition) NFT is a Digital file photo file (JPEG), Animated image (GIF), music file (MP3) etc
Stored using blockchain Technology. ब्लॉकचेन प्रौद्योगिकी द्वारा सं ग्रहित फ़ोटो, सं गीत इत्यादि की डिजिटल फाइल है।
 NFT may also be used in storing physical assets. E.g. Ownership document of house, boat,
physical-painting etc. (इस भौतिक सम्पत्तियों की मालिकी के दस्तावेजों का भी डिजिटल करण कर एनएफ़टी में सं ग्रहित कर
सकते है)
 NFT cannot be subdivided. Their individual sub-units cannot be exchanged with one another.
Because their values are different based on buyer’s preference. So NFTs are non-fungible. (अलग

अलग चित्र/सं गीत कृ तिऑ का मूल्य, ग्राहक की पसं द से हिसाब से अलग अलग हो सकता है इसलिए उन्हे छोटे टुकड़ों में विभाजित करना /
आपस में उनकी अदला-बदली नहीं हो सकती.)
 Mass Hysteria going on to purchase such digital assets from new-age artists using (mostly)
Ethereum cryptocurrency. (नए ज़माने के डिजिटल चित्र/धुन के एनएफटी ख़रीदने का सामूहिक पागलपन चल रहा है.)
 e.g. American digital artist Beeple’s Painting JPEG auctioned for $70 million
 E.g. Robot Sophia created a digital painting/art "Sophia Instantiation" (NFT)→ Auctioned for
more than 6 lakh dollar$.
 Many sportsmen, filmstars also creating NFT out of their posters/autographs but we’ll not waste
preparing all that General Knowledge (GK). (मशहूर खिलाड़ी और फ़िल्म अभिनेता भी इसे जारी कर रहे हैं)
10.30.3 💠🤩 NFT-Charms? (आकर्षण)

 1) Multimedia Creators: Easier to trade digital assets (डिजिटल चित्रकार/धुनकार के लिए कृ तियों की बिक्री
आसान.)
 2) Easier to verify ownership records. Prevent plagiarism. (सं पती की मालिकी/स्वामित्व की जाँच करना आसान.
नकलचियों के लिए जालसाजी करना / बनावटी दस्तावेज बनाना मुश्किल.)
 3) Cinema / Sports tournament / Travel tickets etc can be stored with ownership records. Helps
in Paperless administration. (सिनेमा / खेल /परिवहन की टिकट की बिक्री डिजिटल स्वरूप से. काग़ज़ मुक्त प्रशासन.)
10.30.4 💠😰NFT-Challenges: (चुनौतियां)

 1) Started in 2017→ steep price rise in 2021. Single GIF /meme file selling for millions dollar$
worth of cryptocurrencies. This mass-hysteria / investment-bubble will collapse. Investors will
lose money. (ये सामूहिक पागलपन /निवेश का गुब्बारा फट जाएगा तब निवेशकों का पैसा डूब जाएगा.)
 2) Money laundering & terror Finance. How: Ref Pillar#2. (धनशोधन और आतंकी वित्तपोषण में दुरुपयोग
सम्भव)
 4) Maintaining such computer blockchain record → Electricity consumption → CO2 ⏫
Emission. (इस डेटाबेस का सं चालन/वहन करने में बहूत ज़्यादा बिजली खपत होती है, जिससे कार्बन डाइऑक्साइड उत्सर्जन में
बढ़ोतरी.)
🔠❓MCQ. Find correct statements abt Non-Fungible Tokens (NFTs) (Prelims-2022)
1. They enable the digital representation of physical assets.
2. They are unique cryptographic tokens that exist on a blockchain.
3. They can be traded or exchanged at equivalency and therefore can be used as a medium of
commercial transactions.
Codes: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
✍️
10.30.5 Mains Answer Writing
From this particular topic, the Mains angles are centred around - why we should promote digital
economy ? what are the challenges? why crypto currencies are bad? how is Blockchain technology
useful? what is CBDC? et cetera
 This Raftaar-courses deals purely with Prelims and NOT with Mains. Goto my Profile
https://unacademy.com/@mrunal.org to check courses related to Mains.
📑Next Handout: Pillar1A2: Monetary Policy: CRR, SLR, Repo etc.

To get full course
Contact me :- @Kingraistarbot

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Mrunal’s Economy for UPSC Prelims-2024-25 (PCB11-RAFTAAR)

Pillar1A1: Money: Barter to Bitcoins

10.3 🏛💳 PYQ Analysis: Increased diversity in Economy topics in Prelims.................................................5

10.6 💵 Money: Evolution & Types (मुद्रा की उत्क्रांति व् प्रकार)............................................................................10

10.6.2 🥇Metallic Money / (Intrinsic value? Yes).................................................................................................10

10.6.5 💵Paper Money / (Intrinsic Value? No).................................................................................................11

10.6.6 💵⚖️Legal Tender ( )............................................................................................................................11

10.6.7 💵⚖️Legal Tender ( )- Limited and Unlimited..................................................................................14

10.7 💵 Demonetization of Fiat Money (विमुद्रीकरण: Previously 1946, 1978).................................................16

10.9 🐷🔖Bank Money / Deposit Money.........................................................................................................18

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 1

10.13 🔪 Pre-sanctioned credit line.................................................................................................................26

10.16 🤳🏻💸QR Codes: compulsory to implement UPI/Bharat QR from 2022..............................................32

10.17 💳 Credit & Debit Cards (also called ‘Plastic Money’).........................................................................33

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 2

10.27 ⚖️🔗💮✋ Cryptocurrency Banned in other nations?..........................................................................47

10.28 🔗💮🥇 Cryptocurrency → global regulations.....................................................................................48

10.29 🐯🔗💮 Central Bank Digital Currency (CBDC)..................................................................................49

10.29.11 🐯🔗💮= ✋🥵Challenges of CBDC ( चुनौतियां)...................................................................................................53

10.30.3 💠🤩NFT-Charms? ( )...................................................................................................................................56

10.30.4 💠😰NFT-Challenges: ( ).............................................................................................................................56

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 3

10.2 MYTHS ABOUT ECONOMY FOR UPSC PRELIMS

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 4

10.3 🏛💳 PYQ A NALYSIS: INCREASED DIVERSITY IN ECONOMY TOPICS IN PRELIMS

Economy Pillar 2023 2022 2021 2020

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 5

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 6

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 7

10.3.1 🏛💳 PYQ Analysis: Marks Distribution in UPSC Prelims and Mains

💳1_Money 7 7 9 6 8 7 0 0 15 15 0 0 Most useful in Prelims but

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 8

💸Economy Pillar #1-A1) Money: Barter to Bitcoin

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 9

Gupta Coin: ~8 gm GOLD 50 paisa modern coin: ~4 gm steel

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 10

10.6.4 💍📔Intrinsic value of a coin? (अंतर्भूत मूल्य)

10.6.5 💵 Paper Money / कागजी मुद्रा (Intrinsic Value? No)

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 11

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 12

FOR FULL MATERIAL

A) 🚯Limited legal tenders B) ∞ Unlimited legal tenders:

Recipient can refuse accepting payment beyond a No such restriction.**

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 14

10.6.9 💵 Currency related General Knowledge:

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 15

10.6.11 Currency Note is not a promissory note?

as per academic books on as per the law (Negotiable

10.7 💵D EMONETIZATION OF FIAT MONEY (विमुद्रीकरण: PREVIOUSLY 1946, 1978)

10.8 💵 ₹2000 WITHDRAWN BUT CONTINUED AS LEGAL TENDER

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 16

10.8.1 💵 ₹2000 NOT DEMONETIZED but WITHDRAWN from circulation

10.8.2 💵₹ 2000 withdrawn- WHY? (क्यों चलन से हटाया गया)

10.8.4 Zimbabwe's Gold Coin ‘Mosi-oa-Tunya’

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 17

10.9 🐷🔖B ANK MONEY / DEPOSIT MONEY

10.9.1 🐷🔖 Paper orders: Cheque, Demand Draft (DD)

(Batch:PCB11-RAFTAAR-ONLY-Prelims) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 18

10.10 🐷💸📡 E LECTRONIC ORDERS / DIGITAL PAYMENT