The document discusses various topics related to currency and monetary systems including: - Historically, currencies were backed by gold (the gold standard) which helped control inflation and compare values between countries. However, this had drawbacks like limited gold availability. - Most modern currencies are fiat currencies not backed by commodities. The US dollar dominates internationally due to decisions at Bretton Woods to peg other currencies to the dollar and its stability. - Unlimited printing of currency can cause high inflation, decreasing purchasing power as seen in Zimbabwe. Different payment systems like NEFT, RTGS, IMPS and UPI facilitate funds transfer in India.

2. Introduction

3.  Is our currency printed against gold reserve?
 Why no unlimited cash printing?
 Why dominance of US Dollar?
 Most expensive / least expensive currencies in
the world.
 Difference among NEFT, RTGS, IMPS, UPI?
 VISA , Master card, Rupay Card
 Tips for secure transactions
 Bitcoin
Highlights

4. Barter System

5. Drawbacks of barter system??

6. The gold standard is a monetary
system where a country's currency
or paper money has a value directly
linked to gold. With the gold
standard, countries agreed to
convert paper money into a fixed
amount of gold.
Gold standard

7.  Control inflation
 International trade
 Compare currencies of different countries
e.g, 1 kg gold = 100 US Dollar
1 kg gold = 10000 INR
Now 1 US Dollar = 10 INR
Advantages

8.  Uniform availability of gold as natural
resource
 Limitation for judicial action
Drawbacks

9.  Gold standard
 Pegging : A fixed exchange rate,
sometimes called a pegged exchange rate,
is a type of exchange rate regime in
which a currency's value is fixed against
either the value of another single
currency, a basket of other currencies, or
another measure of value, such as gold
History of modern Currency

10.  Fiat money is government-issued currency
that is not backed by a physical commodity,
such as gold or silver. The value of fiat
money is derived from the relationship
between supply and demand and the
stability of the issuing government, rather
than the worth of a commodity backing it.
Most modern paper currencies are fiat
currencies
Fiat currency

11.  Some of values of all goods and services
produces and exchanged in the country is
equals to some of all currencies present in
the country
Why no unlimited cash
Printing??

12. 
 2001 - 100 %
 2002 – 200 %
 2003 – 600 %
 2006 – 1000 %
 2009 – foreign currency
 2015 – US Dollar
Zimbabwe incident

13.  Inflation
 Decreasing purchasing power
 Lots of millionaire, but same living
standard
Impact

14.  Bretton Woods Agreement
 1944 , July
 Location: New Hampshire , US , Bretton woods
 730 delegates from 44 counties
Why US dollar dominants

15.  Impact of second world war
 Exhausted currencies
 Decreased gold reserve
Why meeting

16.  Most stable currency
 3/4th of gold reserve
 Confidence over USA
Why USA

17.  To fix USD to gold standard at a
exchange rate of 1 ounce gold (pegging)
 Peg all other countries to US Dollar
 Establishment of International monetary
fund (IMF) & World Bank
Major Decisions of Bretton
woods Agreement

18.  1973 , Richard Nixon, Fiat Currency
Suspension of Bretton woods
agreement

19.  Petro currency :currency used in trading
of crude oil.
 Reason : fear of losing dominance
 Nixon –King Faizal meeting @1974
 Agreement with 15 OPEC countries
 Petroyuan
 Decentralized currency
Petrodollar

20.  Kuwaiti Dinar
1 Kuwait Dinar = 226.91 INR
 Bahraini Dinar
1 Bahraini Dinar = 182.63 INR
 Omani Rial
1 Omani Rial = 178.85 INR
 Jordanian Dinar
 British Pound Sterling
Most expensive currencies in
the world

21.  Iranian Rial.
100 Iranial Rial = 0.16 INR
 Vietnamese Dong.
100 Vietnamese Dong = 0.30 INR
 Indonesian Rupiah
100 Indonesian Rupiah = 0.49 INR
Least valued currencies
in the world

22. Discussion
Drawbacks of currency

23. Cashless economy

24.  Payment modes
 NEFT
 RTGS
 IMPS
 UPI
Transfer system

25.  National Electronic Funds Transfer
 2005
 no instant transfer(settlement cycle with a
fixed time )
 Amount can be transferred: up to 10 lakh
rupees
 Service charges 2.5rs to 25rupees
 Time :during banking hours
NEFT

26.  Real-time gross settlement
 2005
 Amount can be transferred :2 Lakh to
10Lakh
 Instant transfer
 Transaction fee :rs25to rs 50
RTGS

27.  Immediate Payment Service.(2010)
 Developed by :NPCI(National Payments
Corporation of India )
 RTGS without limitations
 24*7
 At a time maximum 2 lakh
 Per day maximum 10 lakh
 Transaction charges 5 rupees to 15 rupees
IMPS

28.  Unified Payments Interface
 Developed by: NPCI
 No account number name IFSC..etc
 UPI id to link different bank accounts
 Maxim amount can be transferred : set by
company
 No transaction fee… no OTP
 Eg: Google pay, phone pe etc
UPI

29.  Crowd in banks
 ATM cards
 Shopping Debit card
 POS machines
 Other bank's ATM
 Bank has to pay issuing theses cards
 Seller has to pay for each transactions
Visa , master card,RuPay

30.  Why depending foreign companies for this
facility?
 NPCI for digital India and make in India
 No payment for bank to avail these services
Pros: Cash back, reward point, low
processing fee
Cons: No international transaction ,No credit
card
RuPay cards

31. Why Pay pal ???

32. Measures to keep your money safe
during online payments/ purchases
Discussion

33.  Type, don't click
 Use a dedicated computer
 Use a dedicated email
 Avoid public Wi-Fi/computers
 Keep your data yourself
 Avoid apps that you cant trust
 Buy from a reputed merchant
 Use antivirus and antimalware both
 Use virtual keyboard for online banking login

35.  Decentralized virtual currency that provide
secure global transaction very quickly without
any third party manipulation.
 E.g, biticoin , Ethereum, Z cash
Crypto Currency

36.  Registered in 2008
 Invented by Satoshi Nakamoto
 2008 - 1 bitcoin = 10 -15 INR
 Now 1 bitcoin = 2,73,942.69 INR
Biticoin

37.  Maximum bitcoin can happen 21 million
 17 million reached in the market already

38.  Last 1 year – 20 double value hike
 2017 January – 750 dollar
 2017 December – 19500 dollar
 2018 January – 13000 dollar
Fluctuations

39. Usage in the countries
South Korea : 10 lakh people
India : 500 dealers
Usage in the areas : mostly using
terrorist groups , in black markets,
weapon markets, illegal drug
markets
USAGE

40.  Direct transaction
 Accountability?
 ledger ?
 Peer to peer network
 Block chain technology
Bitcoin Transactions

41.  Bitcoin miners verify bitcoin transaction
and thus get transaction fees & block
reward in the form of bitcoin.
Mining