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Money and Banking - Short Trick

Money, M0–M4, banking history, specialised banks, institutions and committees — one sentence each

3 trick sentences1 pairs6 parts
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How to read
  • Guru Ram Each coloured word = one name in the list, shown below in the same colour
  • Panda Two colours in one word = two names
  • ➜ Order the numbered order matters · ⇄ Any order no order
1

Money — Evolution, Issue and Printing

The five stages of money, who issues notes and coins, and where notes are printed and coins minted.

Trick 1

Five stages in the evolution of money

➜ oldest to newest

Bunty made Tina fry laddoos.

  1. 1Bartergoods against goods
  2. 2Metal moneygold, silver, copper coins
  3. 3Token moneyno worth of its own — paper currency, crypto
  4. 4Fiat moneytoken money issued by a competent authority
  5. 5Legal tenderfiat money nobody may refuse

Every fiat money is token money and every legal tender is fiat money, not the other way round · crypto is token money but neither fiat nor legal tender · the e-rupee (RBI) is both fiat and legal tender — e-Wholesale 1 November 2022, e-Retail 1 December 2022.

Pairs

Who issues what — whose signature

1 sentences

Notes carry the Governor and coins the Secretary.

Notes of ₹2 and above · Coins and the ₹1 note=Notes of ₹2 and above — the RBI, signed by the RBI Governor · the ₹1 note and all coins — the Ministry of Finance, signed by the Finance Secretary

Minimum reserve system (since 1956) — the RBI keeps ₹200 crore in reserve: ₹115 crore of gold bullion + ₹85 crore of other assets · demonetisation three times — 1946, 1978, November 2016 · withdrawing the ₹2000 note in 2023 was not demonetisation.

Trick 2

Where notes are printed — four presses

⇄ Any order

SPMCIL — Government of IndiaNani hugged Dev.

BRBNMPL — RBISally loves Mysore pak.

  1. NashikMaharashtra
  2. DewasMadhya Pradesh
  3. SalboniWest Bengal
  4. MysoreKarnataka

SPMCIL = Security Printing and Minting Corporation of India Ltd. (Government of India) · BRBNMPL = Bharatiya Reserve Bank Note Mudran Private Ltd. (RBI).

Trick 3

Where coins are minted — four mints

⇄ Any order

Nonu kicked a mug into the hut.

  1. Noida
  2. Kolkata
  3. Mumbai
  4. Hyderabad
2

Money Supply — M0 to M4

Each aggregate’s number as a word, with its name or what it adds.

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3

History of Banking and Deposits

The three “first” banks, the chain that made the SBI, the two nationalisations, the SBI associates and the types of deposit.

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4

The Structure of Banking

The four specialised banks and their committees, RRBs, the five payments banks and the rural cooperative structure.

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5

Financial Institutions and Inclusion

Refinancing institutions — work, year and headquarters — and the weights in the Financial Inclusion Index.

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6

Committees — on what subject

The six committees of this chapter and what they recommended.

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Read the full chapter for the complete notes — a trick helps you remember the list; understanding comes from the notes.