This document provides an overview of various banking and financial concepts including the barter system, evolution of money, types of bank accounts, and the role of the Reserve Bank of India (RBI). It discusses how the barter system worked as an early form of exchange before money was invented. It then outlines the evolution of different forms of money from commodities to precious metals to paper money and bank deposits. The document also describes common types of bank accounts such as current accounts, savings accounts, fixed deposits, recurring deposits, and NRI accounts. Finally, it summarizes the key roles and functions of RBI as India's central bank.

1. Name :- xyz
Class :- 7th A
Roll No.:- 24
Subject:- Skill Based
SESSION :- 2029-
2030

2. INDEX:-
BARTER SYSTEM
EVOLUTION OF MONEY
TYPES OF ACCOUNTS
ROLE OF RBI

3. A barter system is an old method of
exchange. This system has been
used for centuries and long before
money was invented. People
exchanged services and goods for
other services and goods in return…
The value of bartering items can be
negotiated with the other party
BARTER
SYSTEM

5. Directly exchange goods or services for
other goods or services without using a
medium of exchange, such as money.
Eg :- A farmer may exchange a bushel of
wheat for a pair of shoes from a
shoemaker.

6. USES OF BARTER :-
 Bartering is usually conducted directly
between two parties; however, it may
be done multilaterally through
a trade exchange. Developed
countries typically don’t engage in
barters unless they’re done in
association with the standard monetary
system of your country, and even then,
it is only practiced in rare instances .

7.  In times of monetary crisis, a
barter system is often established
as a means to maintain
the trading of goods and services
as well as to hold a country
functioning. This may occur if
physical money is not available or
if a country sees hyperinflation or
a deflationary spiral.

8. EVOLUTION
OF MONEY
Today when in India we think of money, it is
generally in terms of rupee notes, in the USA it
is in terms of dollar notes and in Great Britain
it is in terms of Pound Sterling, and all of these
are mostly made of paper. However, in the
beginning it was commodities which was
selected as a medium of exchange and thus
came to be used as money.

9. s Bows, sea shells, beads, arrows, furs and skin
etc. were adopted as money at different times
in the early stages of development, especially
in the hunting stage of human development.
With further development and in the pastoral
stage, animals such as sheep and cattle (goats
and cows) were started being used as money,
that is, as a medium of exchange of goods. The
use of cattle and other animals as money
suffered from certain disadvantage.

11. Since all cows and goats were not identical,
they could not serve as a standard unit of
measurement. Secondly, the supply of
animals such as cows, sheep and goats were
subject to large and abrupt fluctuations.
Thirdly, ordinary commodities and animals
cannot serve as a satisfactory store of value.
METTALIC
MONEY
In view of the above limitations of ordinary
commodities and animals for being used as money and
with further progress of human civilisation, ordinary
commodities and animals were replaced by

12. precious metals such as gold and silver for
being used as money. Thus sum up the
superiority of precious metals like gold and
silver for monetary use “They are easily
handled and stored, they do not deteriorate,
they have the just the right degree of scarcity
and they can be relied upon neither to increase
nor to diminish in quantity except gradually.”
But with invention of coinage, it was coins made
of gold and silver which began to be widely
used as money rather than simple and plain bits
of gold and silver whose value were difficult to
be ascertained. It is important to note that

13. because they were scarce, For a thing to
serve as money scarcity is more important
than value. These days, it is the scarcity of
paper money which is responsible for its
efficiency as money, its lack of value is no
hindrance for it to serve as money.
PAPER MONEY
As it came to be firmly realized for a sound
money, scarcity is more important than value,
precious metals were replaced by paper money.
In the beginning paper money, that is, paper
notes were simple claims to and substitutes for
metallic money. But in the course of time paper

14. itself. Paper money took the form of bank notes
which were not mere substitutes but were
considered as an addition to the supply of
money. At first, notes could be issued by all
commercial banks but with the passage of time
when paper money became inconvertible into
metallic money issuing of notes became the
monopoly of the Central Bank of a country.
Central Bank of India is named as Reserve Bank
of India.

15. BANK DEPOSITS AS
MONEY
Finally, there was further development in the
form of money. In the developed countries
the main type of money is not paper notes
issued by the central bank but the bank
deposits (especially, demand deposits) which
people hold with the commercial banks and
against which cheques can be drawn. In India
too bank money (i.e. bank deposits) or which
is also called credit money has become a
significant part of the total money supply. It
is worth mentioning that chequeable bank
deposits held by the public in the banks

16. serve as money because through drawing
cheques on them we can use them for
making payments for purchase of goods and
services and assets. An essential pre-
requisite of money which needs to be
emphasised is that it should be generally
acceptable in a society as a medium of
exchange. You accept paper notes in
payment for goods or services you sell
because you are confident that others will
accept them from whom you wish to buy
goods or services. If people lose confidence
in any money, they will not accept it in

17. payment for goods and services.
Thus, when people lose confidence in any
money as, for instance, when its value is fast
depreciating, the money ceases to be generally
acceptable. Indeed, in that case it ceases to be
money. In the early twenties this happened to
‘Mark’ in Germany and it may happen to
‘Roble’ of Soviet Russia at present as its value
in the recent past is fast depreciating.

18. TYPES OF
ACCOUNTS

19. Whether you are a college student, a
business owner or a business house, a retired
professional or Indian living abroad, not having
a bank account is unimaginable. Based on the
purpose, frequency of transaction, and
location of the account-holder, banks offer
a bouquet of bank accounts to choose from.
Here is a list of some of the types of bank
accounts in India.
INTRODUCTION

20. 1.CURRENT ACCOUNT
A current account is a deposit account for
traders, business owners, and entrepreneurs,
who need to make and receive payments more
often than others. These accounts hold more
liquid deposits with no limit on the number of
transactions per day. Current accounts allow
overdraft facility, that is withdrawing more than
what is currently available in the account. Also,
unlike savings accounts, where you earn some
interest, these are zero-interest
bearing accounts. You need to maintain a

21. 2. SAVINGS ACCOUNT
A savings bank account is a regular deposit
account, where you earn a minimum rate of
interest. Here, the number of transactions you
can make each month is capped. Banks offer a
variety of Savings Accounts based on the type
of depositor, features of the product, age or
purpose of holding the account, and so on.
.There are regular savings accounts, savings
accounts for children, senior citizens or women,
institutional savings accounts, family savings
accounts, and so many more.

22. you have the option to pick from a range of
savings products. There are zero-balance
savings accounts and also advanced ones with
features like auto sweep, debit cards, bill
payments and cross-product benefits.
A cross-product benefit is when you have a
savings account with a bank and get to avail
special offers on opening a second account
such as a demand account.

23. 3. SALARY ACCOUNT
Among the different types of bank accounts,
your salary account is the one you have opened
as per the tie-up between your employer and the
bank. This is the account, where salaries of
every employee are credited to at the beginning
of the pay cycle. Employees can pick their type
of salary account based on the features they
want. The bank, where you have a salary
account, also maintains reimbursement
accounts; this is where your allowances and
reimbursements are credited to.

24. 4. FIXED DEPOSIT ACCOUNT
(FD)
To park your funds and earn a decent rate of
interest on it, there are different types of
accounts like fixed deposits and recurring
deposits.
A fixed deposit (FD) account allows you to earn
a fixed rate of interest for keeping a certain
sum of money locked in for a given time, that is
until the FD matures. FDs range between a
maturity period of seven days to 10 years. The
rate of interest you earn on FDs will vary

25. depending on the tenure of the FD. Generally,
you cannot withdraw money from an FD
before it matures. Some banks offer a
premature withdrawal facility. But in that case,
the interest rate you earn is lower.
5.RECURRING DEPOSIT ACCOUNT
(RD)
A recurring deposit (RD) has a fixed tenure. You
need to invest a fixed sum of money in it
regularly -- every month or once a quarter -- to
earn interest. Unlike FDs, where you need to
make a lump sum deposit, the sum you need to
invest here is smaller and more frequent. You

26. cannot change the tenure of the RD and the
amount to be invested each month or quarter.
Even in the case of RDs, you face a penalty in
the form of a lower interest rate for premature
withdrawal. The maturity period of an RD
could range between six months to 10 years
6. NRI ACCOUNT
There are different types of bank accounts for
Indians or Indian-origin people living overseas.
These accounts are called overseas accounts.
They include two types of savings accounts and
fixed deposits -- NRO or non-resident ordinary

27. and NRE or non-resident external accounts.
Banks also offer foreign currency non-resident
fixed deposit accounts

28. ROLE OF
RBI
Reserve Bank of India (RBI) is the Central Bank
of India. RBI was established on 1 April 1935 by
the RBI Act 1934. Key functions of RBI are,
banker's bank, the custodian of foreign reserve,
controller of credit and to manage printing and
supply of currency notes in the country.
OVERVIEW

29. From time to time, we read and watch news
about the Reserve Bank of India (RBI)
implementing some policies, increasing or
decreasing some complex sounding rates, the
RBI Governor talking about how inflation is
rising, etc. Occasionally we might also hear a
friend from finance background talk about how
the latest act of RBI is going to make a
difference in our daily lives and all we do is
stand there nodding our heads in oblivion.

31. WHO IS RBI ?
RBI is India’s Central Bank. Every country has
its own Central Bank. The US has Federal
Reserve Bank (FED) and England has Bank of
England (BOE) while the whole of Europe has
European Central Bank (ECB). Simply put the
role of a Central Bank is to monitor a country’s
economy and stabilize it by using its various
policies. A Central Bank acts like an adviser to
the Government on issues related to the
economy. As opposed to popular belief, the
RBI is NOT controlled by the Government but
instead it works as an independent institution.

32. STRUTURE OF RBI
The RBI was founded in 1935 to tackle the
economic difficulties arising in British ruled India
after the First World War. Since then it has
undergone a lot of changes in its organizational
structure. Currently, the RBI consists of
a central board of directors that overlooks its
functioning.
The board of directors is formed of 21
members:

33. •Governor – appointed by the Government for a
4 year term.
•Deputy Governors – up to 4.
•Executive Directors – nominated from various
fields and regions and also 2 directors
nominated by the Government from the Ministry
of Finance.

35. ROLE OF RBI
1.Issuer of Currency
2. Monetary Authority
3. Manager of Foreign Exchange
4. Regulator and Supervisor of the Financial
System
5. Regulator and Supervisor of Payment and
Settlement Systems
6. Related Functions
7. Developmental Role