Computer
Concepts - Introduction to Computer
In today's world, we use computers for all our tasks. Our
day-to-day activities: paying bills, buying groceries, using social media,
seeking entertainment, working from home, communicating with a friend, etc., can
all be done using a computer. So it is important not only to know how to use a
computer, but also to understand the components of a computer and what they do.
This topic explains all concepts related to computer in detail,
from origin to end. The idea of computer literacy is also discussed, which
includes the definition and functions of a computer. You learn about the
components of a computer, the concept of hardware and software, representation
of data/information, the concept of data processing and applications of IECT.
What is a Computer?
A computer is an electronic device that accepts
data from the user, processes it, produces results, displays them to the users,
and stores the results for future usage.
Data is a collection of unorganized facts & figures and does
not provide any further information regarding patterns, context, etc. Hence
data means "unstructured facts and figures".
Information is a structured data i.e. organized meaningful and processed
data. To process the data and convert into information, a computer is used.
HP 14s, AMD Ryzen 5-5500U 14 inches(35cm) FHD, IPS, Micro-Edge Display Laptop (8GB RAM/512GB SSD /Radeon Graphics/Windows 11/Alexa/Backlit Keyboard/MS Office/1.46kg, 14s-fq1092au)
Functions of Computers
A computer performs the following functions −
Receiving Input
Data is fed into computer through various input devices like
keyboard, mouse, digital pens, etc. Input can also be fed through devices like
CD-ROM, pen drive, scanner, etc.
Processing the information
Operations on the input data are carried out based on the
instructions provided in the programs.
Storing the information
After processing, the information gets stored in the primary or
secondary storage area.
Producing output
The processed information and other details are communicated to
the outside world through output devices like monitor, printer, etc.
|
Sr.No. |
Computer Concepts & Description |
|
1 |
The history of the computer dates back to
several years. There are five prominent generations of computers. Each
generation has witnessed several technological advances which change the
functionality of the computers. |
|
2 |
Characteristics of Computer System Characteristics of Computer System involve
Speed, Accuracy, Diligence, Versatility, Reliability, Automation, Memory. |
|
3 |
Basic Applications of Computer Computers play a role in every field of life.
They are used in homes, business, educational institutions, research
organizations, medical field, government offices, entertainment, etc. |
|
4 |
Computer systems consist of three components
as shown in below image: Central Processing Unit, Input devices and Output
devices. |
|
5 |
Input Devices – Keyboard and Mouse Input devices help to get input or data from
user. |
|
6 |
There are few other input devices which help
to feed data to the computer. |
|
7 |
Output devices help to display output to user |
|
8 |
Computer memory refers to storage area where
data is stored. It is of two types Primary Memory & Secondary
Memory. |
|
9 |
Concept of Hardware and Software The term hardware refers to mechanical device
that makes up computer. Software can be categorized into two types -
System software & Application software |
|
10 |
The languages that are used to write a program
or set of instructions are called "Programming languages".
Programming languages are broadly categorized into three types - Machine
level language, Assembly level language, High-level language. |
|
11 |
Representation of Data/Information Computer does not understand human language.
Any data, viz., letters, symbols, pictures, audio, videos, etc., fed to
computer should be converted to machine language first. Computers represent
that data into different forms. |
|
12 |
Data Processing & Data Processing Stages Data processing is a process of converting raw
facts or data into a meaningful information. |
|
13 |
IECT stands for Information Electronics and
Communication Technology. |
Summary
In this chapter, we discussed different components of a computer,
and familiarized ourselves with concept of hardware and software, representation
of data/information, concept of data processing, and applications of IECT.
Introduction to GUI based
Operating System
Personal computer has advanced a lot in a short period of time,
and much of the advancement is due to ongoing progresses in operating systems.
Evolution of operating systems had made PCs easier to use and understand,
flexible and reliable. This chapter is the study of primary operating systems
currently used in personal computers and network servers, and their basic
features.
This topic presents a broad survey of concepts and terminologies
related to operating systems like: Basics of operating system, user interface,
basic settings of operating system, file & directory management, and types
of files.
Apple iPhone 13 (128GB) - Midnight
AD
Basics of Operating System
Operating System
Operating system is a software that controls system’s hardware and
interacts with user and application software.
In short, an operating system is computer’s chief control program.
Functions of Operating System
The operating system performs the following functions −
·
It offers a user
interface.
·
Loads program into
computer’s memory.
·
Coordinates how program
works with hardware and other software.
·
Manages how information
is stored and retrieved from the disk.
·
Saves contents of file
on to disk.
·
Reads contents of file
from disk to memory.
·
Sends document to the
printer and activates the printer.
·
Provides resources that
copy or move data from one document to another, or from one program to another.
·
Allocates RAM among the
running programs.
·
Recognizes keystrokes or
mouse clicks and displayes characters or graphics on the screen.
|
Sr.No. |
Operating System Concepts & Description |
|
1 |
There are four types of operating systems. |
|
2 |
Basics of Popular Operating Systems Windows Operating System is developed by
Microsoft Corporation, Linux is a multitasking operating system that supports
various users and numerous tasks. It is open source, i.e., code for Linux is
available for free of cost |
|
3 |
While working with a computer, we use a set of
items on screen called "user interface". In simple terms, it acts
as an interface between user and software application or program |
|
4 |
The operating system offers an interface
between programs and user, as well as programs and other computer resources
such as memory, printer and other programs. |
|
5 |
Operating System Simple Setting We will learn different settings in Operating
System such as changing system date and time, changing display properties,
etc. |
|
6 |
File is nothing but a collection of
information. The information can be of numbers, characters, graphs, images,
etc. Directory is a place/area/location where a set of file(s) will be
stored. |
|
7 |
The file management system is a software which
is used to create, delete, modify and control access and save files. |
|
8 |
There are five types of files such as Ordinary
files, Directory files, Device files, FIFO files |
Summary
This topic had given a detailed description of operating system,
user interface, changing simple settings in the operating system, files &
directory management and types of files.
Elements of Word Processing
Microsoft Word is a popular word processing software. It helps in arranging
written text in a proper format and giving it a systematic look. This formatted
look facilitates easier reading. It provides spell-check options, formatting
functions like cut-copy-paste, and spots grammatical errors on a real-time
basis. It also helps in saving and storing documents.
It’s also used to add images, preview the complete text before
printing it; organize the data into lists and then summarize, compare and
present the data graphically. It allows the header and footer to display
descriptive information, and to produce personalized letters through mail. This
software is used to create, format and edit any document. It allows us to share
the resources such as clip arts, drawing tools, etc. available to all office
programs.
In this chapter, you will learn about Concepts related to MS Word
in detail. You will know about Word Processing Basics, Opening and Closing the
Document, Text Creation and Manipulation, Formatting Text, and Table Manipulation.
Campus Men's Barley Running Shoes
Basics of Word Processing
Word processor is used to manipulate text documents. It is an
application program that creates web pages, letters, and reports.
|
Sr.No. |
Word Processing Concepts & Description |
|
1 |
Opening Word Processing Package Word processing package is mostly used in
offices on microcomputers. To open a new document, click on "Start"
button and go to "All Programs" and click on "Microsoft
Word". |
|
2 |
Word automatically starts with a blank page.
For opening a new file, click on "New". |
|
3 |
Page setup options are usually available in
"Page Layout" menu. Parameters defined by the user help in
determining how a printed page will appear. |
|
4 |
This option is used to view the page or make
adjustments before any document gets printed. |
|
5 |
In this section, we shall learn how to use
cut, copy and paste functions in Word. |
|
6 |
Manipulation of table includes drawing a
table, changing cell width and height, alignment of text in the cell,
deletion/insertion of rows and columns, and borders and shading. |
Summary
This topic provides us with a clear idea about components of word
processing basics, opening and closing the documents, text creation and
manipulation, formatting the text, table manipulation, etc.
Computer Concepts - Spread Sheet
Zebronics ZEB-COUNTY 3W Wireless Bluetooth Portable Speaker With Supporting Carry Handle, USB, SD Card, AUX, FM & Call Function. (Black)
Microsoft Excel is a spreadsheet application which is used to
create and manage lists of information. Excel allows to enter, edit, manage and
analyze large amount of data in a worksheet and create colorful charts and
graphs. It uses formulae to calculate and analyze data. It helps to combine a
series of commands using "Macros", thus saving time. At higher
levels, you can use it as a complete development tool catering to many complex
requirements.
|
Sr.No. |
Spread Sheet Concepts & Description |
|
1 |
Elements of Electronic Spread Sheet The topics explaining the entire concepts
related to spread sheet in detail, i.e., Elements of an electronic spread
sheet, manipulation of cells, functions and charts. |
|
2 |
Manipulation of cells is entering and
modifying the contents of the cells. |
|
3 |
Creating Text, Number and Date Series Here, we will look into how to create text
series, how to create number series and how to create data series |
|
4 |
Modifying or adding text or using cut, copy,
paste operations to an existing document is known as editing. |
|
5 |
We shall learn how to use functions and charts
in Microsoft Excel Using Formulas like Addition, Subtraction, Multiplication,
Division |
|
6 |
A chart is a graphical representation of
worksheet data. Charts can make data interesting, attractive and easy to read
and evaluate. They can also help you to analyze and compare data. |
Example Program
We shall discuss an example to understand this concept −
Aim
To prepare a bar chart.
Procedure
·
Click Start →
All programs → MS-Office → MS-Excel.
·
Insert a table in
the worksheet.
·
Select Insert →
Chart icon.
·
Select column option
from chart type.
·
In the title bar, Click
on chart title box and type, population of metropolitan
cities.
Result
The given database is created in excel worksheet using the bar
chart.
Summary
This topic had given detailed description about the concepts of
opening new and existing worksheets, renaming the work sheet, organizing spread
sheet, printing spread sheet, saving workbooks, manipulation of cells, entering
text, numbers and dates, creating text, number and date series, editing
worksheet data, inserting and deleting rows & columns, changing cell height
and width, using formulas, and creating a chart. This chapter also focused on
cell address, numbers and text, title bar, menu bar, formula bar, and functions
& charts.
Introduction to Internet, WWW and
Web Browsers
Internet is a global communication system that links together
thousands of individual networks. It allows exchange of information between two
or more computers on a network. Thus internet helps in transfer of messages
through mail, chat, video & audio conference, etc. It has become mandatory
for day-to-day activities: bills payment, online shopping and surfing,
tutoring, working, communicating with peers, etc.
In this topic, we are going to discuss in detail about concepts
like basics of computer networks, Local Area Network (LAN), Wide Area Network (WAN),
concept of internet, basics of internet architecture, services on internet,
World Wide Web and websites, communication on internet, internet services,
preparing computer for internet access, ISPs and examples
(Broadband/Dialup/Wi-Fi), internet access techniques, web browsing software,
popular web browsing software, configuring web browser, search engines, popular
search engines/search for content, accessing web browser, using favorites
folder, downloading web pages and printing web pages.
PrimeSpot Square Automatic 7 Color Changing LED Digital Alarm Clock with Date, Alarm & Time for Bedroom, Students (Multicolour, Plastic)
|
Sr.No. |
Internet, WWW, Web Browsers Concepts & Description |
|
1 |
Computer network is an interconnection between
two or more hosts/computers. Different types of networks include LAN, WAN,
MAN, etc. |
|
2 |
Internet is called the network of networks. It
is a global communication system that links together thousands of individual
networks. Internet architecture is a meta-network, which refers to a
congregation of thousands of distinct networks interacting with a common
protocol |
|
3 |
Internet acts as a carrier for numerous
diverse services, each with its own distinctive features and purposes. |
|
4 |
communication can happens through the the
Internet by using Email, Internet Relay Chat, Video Conference etc. |
|
5 |
Preparing Computer for Internet Access We shall learn how to use functions and charts
in Microsoft Excel Using Formulas like Addition, Subtraction, Multiplication,
Division |
|
6 |
A chart is a graphical representation of
worksheet data. Charts can make data interesting, attractive and easy to read
and evaluate. They can also help you to analyze and compare data. |
|
7 |
"World Wide Web" or simple
"Web" is the name given to all the resources of internet. The
special software or application program with which you can access web is
called "Web Browser". |
|
8 |
Search Engine is an application that allows
you to search for content on the web. It displays multiple web pages based on
the content or a word you have typed. |
|
9 |
Search Engine is an application that allows
you to search for content on the web. It displays multiple web pages based on
the content or a word you have typed. |
|
10 |
Search Engine helps to search for content on
web using the different stages |
|
11 |
There are several ways to access a web page
like using URLs, hyperlinks, using navigating tools, search engine, etc. |
Summary
This topic summarized the concepts of internet like LAN, WAN,
internet architecture, internet services, WWW, communications on the internet,
internet service providers, internet access techniques, web browsers, search
engines, favourites folder, configuration of web browsers, and downloading
& printing web pages.
Communication and Collaboration
Communication refers to exchange of information between persons
through internet. Internet provides a basis for communication and collaboration
which can be done using mail, chat, skype, etc. When dealing with official
matters, electronic mail helps in the exchange of messages text documents, web
pages, audio, video, etc.
In this topic, we are going to discuss in detail about basics of
email, email addressing, configuring email client, using emails, opening email
client, mailbox, creating and sending a new email, replying to an email
message, forwarding an email message, sorting and searching emails, advance
email features, sending documents by email, activating spell check, using
address book, sending softcopy as attachment, handling spam, instant messaging
and collaboration, using emoticons and some of the internet etiquettes.
Basics of E-mail
Electronic mail is an application that supports interchange of
information between two or more persons. Usually text messages are transmitted
through email. Audio and video transfer through email depends on the browser in
use. This provides a faster way of communication in an affordable cost.
Advantages of E-mail
Functionalities like attachment of documents, data files, program
files, etc., can be enabled. This is a faster way of communication at an
affordable cost.
Disadvantages of E-mail
If the connection to the ISP is lost, then you can’t access email.
Once you send an mail to a recipient, you have to wait until she/he reads and
replies to your mail.
Email Addressing
Email address is a unique address given to the user that helps to identify
the user while sending and receiving messages or mails.
Username − Name that identifies any user’s mailbox
Domain name − Represents the Internet Service Provider (ISP).
@ Symbol − Helps to concatenate username and domain name.
For example − user_name@domain_name
Username − user, Domain name − gmail.com
Vivo Y75 (Dancing Waves, 8GB RAM, 128GB ROM)
|
Sr.No. |
Communication and Collaboration Concepts & Description |
|
1 |
Configuring email client is setting up a
client which includes the various steps. |
|
2 |
The main purpose of using email is to exchange
information between persons. The process starts with opening of client email
and ends with sending and verifying mail to recipients. |
|
3 |
Inbox is an area where you can see all the
received mails. Outbox is an area where the outgoing messages or messages
which are in process of sending or which are failed to send are stored. |
|
4 |
Email provides many advanced features which
includes sending attachments like documents, videos, images, audio, etc. |
|
5 |
Instant Messaging and Collaboration Instant messaging is real time mutual
communication between persons via internet. This is a private chat. Once the
recipient is online, you can start sending messages to him/her. |
|
6 |
Internet etiquettes are also called as
"Netiquette".Netiquettes are basic rules or techniques which are
accepted worldwide |
Summary
This chapter has given a clear idea about the electronic mail and
its features. Thus, we gained a deep understanding about the basics of email,
email addressing, configuring email client, using emails, opening email client,
mailbox, creating and sending a new email, replying to an email message,
forwarding an email message, sorting and searching emails, advance email
features like sending document by email, activating spell check, using address
book, sending softcopy as an attachment, handling SPAM, Instant Messaging and
Collaboration, using smiley/emoticons and some internet etiquettes.
Computer Concepts - Application
of Presentations
Microsoft PowerPoint is one of the powerful tools of MS-Office,
which helps in creating and designing presentations. PowerPoint Presentation is
an array of slides that convey information to people in an attractive manner.
In this chapter, we are going to discuss in detail about the
applications of presentation using Microsoft PowerPoint, opening and saving a
presentation, creating presentation using templates and a blank presentation,
entering and editing text, inserting and deleting slides in a presentation,
preparing slides, inserting word table or an excel worksheet and other objects,
adding clip arts, resizing and scaling of objects, providing aesthetics by
enhancing text presentation, working with colors and line style, adding movie
and sound, header and footer, viewing a presentation, choosing a set up for
presentation, printing slides and handouts, Slide Show, running a Slide Show,
transition and slide timings, automating a Slide Show.
|
Sr.No. |
Application of Presentations Concepts & Description |
|
1 |
Microsoft PowerPoint is one of the powerful
tools of MS-Office, which helps in creating and designing presentations |
|
2 |
A presentation is made up of number of slides
that are displayed in a sequence. Each slide has sub-topics and different
content related to the given topic. |
|
3 |
Preparation of slides involves inserting a
word table, excel worksheet, adding clip art pictures and inserting other
objects |
|
4 |
This feature helps our Powerpoint presentation
to look more attractive and interesting. |
|
5 |
Here will create a simple presentation with at
least 5 slides to introduce a friend and include audio in slides. |
|
6 |
Presentation of Slides has the feature like
Viewing a presentation, choosing a set up for presentation, Printing slides
etc |
|
7 |
Slide Show view of the presentation is used to
display content of presentation to the audience. Editing is not possible in
the Slide Show view. |
Example Program
We will look at the below example to understand the concept
clearly −
Aim
·
To create a simple
presentation with at least 5 slides on the essay, "An astrologer's
day" by R. K. Narayan.
Procedure
·
Boot the system under Microsoft
Windows 2013.
·
Click start → program →
MS-Office → MS-PowerPoint.
·
Once you open
PowerPoint, choose the type of presentation you want and click Ok.
·
Select Insert → Text
box.
·
Draw the text box in the
slide and enter information about the essay, "An astrologer's day".
·
Right click on the text
box and select custom animation in it.
·
Select an effect and
click ok.
·
Right click in the empty
space of the slide.
·
Select background color
and click apply button.
·
Click Transition select
an effect and press ok.
·
Click the first slide
and drag the mouse to select all the slides.
·
Run your presentation by
clicking on "From Beginning" option from Slide Show or by pressing F5
key.
Result
·
Thus, a simple
presentation for the essay "An astrologer's day" by R.K.Narayan is
created.
Summary
In this chapter, we have clearly learnt various concepts in
PowerPoint presentation such as opening and saving a presentation, creating
presentation using templates and a blank presentation, entering and editing
text, inserting and deleting slides in a presentation, preparing slides, etc.
Application of Digital Financial
Services
In today's world, everything is digitized, which means we can
access or get every service in digital format through mobile phones, computers,
tablets, etc. The invention of computers and smartphones has created a huge
impact on financial services. Today using computers and mobile phones, a person
can access his/her bank account, verify account details, transfer funds,
deposit cash, renew deposit, pay bills, book tickets, etc. Also, the invention
of ATMs reduced the time taken to withdraw money from banks. Digital services
help to save time by providing services in a single touch. The introduction of
digital wallets has also made a big positive impact on financial services.
In this topic, we are going to discuss in detail the importance of
savings, importance of bank, banking products like accounts, deposits, loans,
procedure for opening an account, banking services through a bank branch, ATM,
internet banking, mobile banking, mobile wallets, insurance and various schemes
introduced by the Prime Minister of India.
Why are savings needed?
Savings is the percentage of income which is not spent on present
expenditures, instead conserved for future use. Being totally unaware of the
future happenings, one should be ready to face any kind of unpredictable
events. In such tough situations, our savings will be very helpful and
beneficial to us.
Emergencies
Emergencies may come at anytime and we should always have a backup
to handle such situations. Some examples of emergencies from our day to day
life are −
·
Personal and family
health issues.
·
Loss due to sudden
natural calamities like flood, earthquake or cyclone, etc.
·
Loss due to theft or any
other unanticipated events.
·
Sudden financial help
for friends or relatives.
·
Unplanned trips or any
other plans.
Future Needs
Few future needs are listed below −
Retirement
The main purpose to save money is for your retirement. The earlier
you start saving for retirement, the less you have to save in future. Saving
for retirement makes you self-dependent and financially secure.
Own a property
Everyone dreams of owning a house. Though it is not an easy task,
saving from early stages can help in fulfilling this dream.
Own your own vehicle
In today's scenario, transportation has become difficult in
metropolitan cities. To explore places with ease and comfort, a person needs a
car.
Education
Cost of education has become a burden these days, especially for
higher studies. In order to attain higher degrees, one should save money.
To rescue debts and large expenses
We should start saving to deal with large expenses like −
·
Buying property: house
or land
·
Buying vehicles
·
Buying gold or expensive
jewelry
·
Handling emergency needs
like health-related issues
·
Going on a family tour
·
Facing complex
situations during natural calamities
Drawbacks of keeping cash at home
Here, we list certain drawbacks of maintaining cash at home −
Unsafe
It is unsafe to keep cash at home as there is a chance of theft or
robbery.
Loss of Growth Opportunity
Keeping cash at home causes huge loss to the country's economy as
it does not participate in national growth.
·
Recurring
Deposit −It is referred to
as a monthly deposit for particular period of time for which the interest will
be provided by banks to their customers.
·
Fixed
Deposit −It is bulk amount
deposited by the customer for a fixed period of time, i.e., an year or two.
·
In any of the schemes
provided by banks, there will be profit.
·
We can even earn
interest or dividend by depositing our money in saving bank account.
No Credit Eligibility
·
A person should have
minimum balance in savings account to apply for credit cards or loans.
·
If we save money at home
instead of banks, we can't avail the credit facility provided by the financial
institutions during tough times.
Why is bank needed?
Bank is an official financial institution that accepts money from
public and lends money to public.
Secure Money, Earn Interest, Get
Loan
Bank functions in various ways. Few of them are listed below −
Secure Money
·
Bank helps to save our
money very securely.
·
Loading all your cash at
home isn't safe.
·
You can loose your money
in situations like fire, flood or earthquake
·
In order to avoid the scenarios
given above, we need a bank.
Earn interest
Banks provide us with interest if we save money through RD and FD.
In any of the schemes provided by the bank there will be an opportunity of
growth in our money.
Get Loan
Bank will provide several kinds of loans if we satisfy the
criteria issued by a bank and submit all necessary documents. Types of loans
provided by bank are −
·
Home
Loan − Home loan is the
money lent by banks to buy properties at a certain rate of interest to be paid
every month as EMI.
·
Personal
Loan − Banks provide
you with personal loans for marriage, emergency periods, etc.
·
Jewel
Loan − Banks provide
you with jewel loans where you pledge your jewelry to get loan.
CHANCE TO WIN IPHONE13 >> Click Hear
Remittances using Cheque and Demand
Draft
Remittance is defined as the transfer of money or funds from one
bank to another, either the same bank or different. Remittance can be done
using Demand draft by Cheque, Pay slip, Mail Transfer, etc. A demand draft or
"DD" is a popular mode of money transfer, where most of the banks in
India use this for the effective transfer of money. Demand draft is usually
issued on request of the client, for bill payments, and for transfer of
property of deceased to legal heirs, etc. DD form requires the following details
to be filled by the customer −
·
Type of instrument
needed.
·
Receiver's Name.
·
Transmitter's Name.
·
Total amount to be
transferred.
·
The bank or location
where the transferred money is to be funded.
·
The way money is to be
paid, i.e. in "Cash" or through a "Bank Account" in which
you will pay money, i.e. in cash or by debit to your account.
·
You should submit form
along with cheque or cash.
Avoid risk of Chit Funds and
Sahukars
Using banks to save money, we can avoid the below stated risks −
Chit Fund
Chit funds are local bodies which help to save money. It is run by
one or more people of that area. Chit fund is purely based on trust. It is easy
to join the chit fund because no proper background is needed except some
paperwork. If you deposit money in chit fund you can take out that money
whenever you need. Instead, in banks you must wait until the time period get
completed.
Risk in saving money in chit funds or Sahukars
·
Chit funds are not
authorized parties to deposit money.
·
People who are running
chit funds can wind up their chit fund if they wish to do so.
·
There are chances of
loss or theft of money.
·
There is no security or
assurance for the money you deposit in chit funds.
·
There is a chance that
the fund manager disappears with mass amount.
·
A member could disappear
after winning the first bid.
Banking Products
We shall learn various banking products −
Accounts
An agreement with a bank, where an account holder can deposit and
withdraw money or savings as needed.
Types of Accounts
There are three types of accounts avaliable, namely −
Personal account
Account that represents an individual or an organization is termed
as "Personal account". Examples: Mr. Rama's account → Individual
persons account; Samsung's account → Organization's account.
Real account
The account that represent tangible assets, that is, which can be
physically sensed, is termed as "Real account". Examples include:
cash, goods, stock accounts, etc.
Nominal account
Account that represents expenses and incomes is termed as
"Nominal account". Examples include: salary, loss of asset accounts,
etc.
Deposit
Accumulation of money in the bank is termed as deposits. There are
two types of deposits: Time deposit and Demand deposit. Time deposit is defined
as money deposited for a particular period of time which cannot be withdrawn
before the time gets lapsed.
·
Fixed
deposit − A bulk amount is
deposited for a fixed period like a year or two years etc.
·
Re-investment
deposit − Interest is
accumulated quarterly and paid on maturity.
·
Recurring
deposit −Fixed amount is
deposited at regular intervals like a month or quarterly etc.
Demand deposit is the scheme where the customer can withdraw money
on demand without earlier notice to the bank. Demand deposit may or may not
provide interest to the customer. Examples of demand deposits include current
account and a savings account.
Types of Loan and Overdrafts
Loan is termed as the fund lent to a person on having a promise
that he/she will return the money within a certain period with interest. Loan
falls under the following categories.
Secure Loan is a loan where the borrower pledges any of his/her assets
like house, land, jewel or any of the belongings as security. The financial
institution has a right to sell these if repayment is not done on time.
Unsecure Loan is where the borrower does not submit any of the belongings
as security to the bank. The example includes peer-peer lending, personal
loans, credit debts, etc.
Demand Loan is a loan where a person borrows money on demand. It doesn't
fix return time.
Educational Loan is money borrowed to support one's
education. He/she doesn't have to repay the money while studying.
Personal Loan is a loan that is borrowed based on personal interest for
marriage, world tour, other expenses, etc.
Commercial Loan is lent to an organization for improvement
purposes.
Overdraft
An overdraft is a condition that occurs when a person attempts to
withdraw money from zero balance account. The types of overdraft include −
·
Secured
Overdraft −Secure overdraft
is where the customer pledges any of his/her assets to bank as security.
·
Unsecure
Overdraft − Unsecure
overdraft is the one where the customer does not submit any of the belongings
as security to the bank.
Filling up of Cheque, Demand Drafts
We will separately learn how to fill cheques and demand drafts
below −
Filling up of Cheque
You must provide the following details while filling a cheque.
·
Write date at the top
right corner of your cheque.
·
Write name of the
receiver to whom the cheque is to be encashed.
·
Write the amount both in
numbers as well as words.
·
Put your signature at
bottom left corner of the cheque.
Filling up of Demand Drafts
You must provide the following details while filling a demand
draft.
·
Type of instrument
needed.
·
Receiver's Name.
·
Transmitter's Name.
·
Total amount to be
transferred.
·
The bank or location
where the transferred money is to be funded.
·
Mode of transaction,
i.e. in "Cash" or through a "Bank Account" in which you
will pay money, i.e. in cash or by debit to your account.
·
You should submit the
form along with cheque or cash.
Documents for Opening Accounts
You need the below documents to open account in banks −
Know your Customer (KYC)
Know your Customer is a process in which banks acquire details
about the identity and address of the customers. It is practice accomplished by
banks when you open an account with that bank. Banks in regular intervals will
update their customer details. The KYC process helps to make sure that the bank
services are not misused.
Photo ID Proof, Address Proof
RBI issues a certain norm to be followed while opening an account.
One of that is KYC during account opening. We should be providing ID proof and
Address proof during the KYC process.
·
ID
Proof − KYC process
accepts Voter ID card, Aadhaar Card, Driving license, PAN card, Passport, etc.,
as ID proof.
·
Address
Proof − Ration card,
rental agreement, gas book, telephone bill, voter ID, Aadhar card, etc., are
accepted as address proof.
Indian Currency
Indian currency is issued by "Reserve Bank of India".
Indian rupee is the official currency of India. The word "Rupee" is
the derivative of the Sanskrit word "Rupya" (meaning silver coin). It
is denoted by the code "INR". We have 10, 20, 50, 100, 200, 500,
2000-rupee notes and 1, 2, 5, 10-rupee coins.
Banking Service Delivery Channels - I
We shall learn different banking service delivery channels in this
section −
Bank Branch and ATM
Bank branch is one of the easiest and simplest ways of providing
banking services. Every area has one or more bank branches depending on the
space coverage of the area through which we can access bank services. We can go
to the branch physically and avail services like money deposit or withdrawal,
salary update, pension withdrawal, etc.
Automatic Teller Machine has reduced lot of human workload. This
is one of the cheapest sources of bank delivering 24/7 service. This
facilitates us with the service of money withdrawal. We also have cash deposit
machines, passbook update machines, etc.
Bank Mitra with Micro ATM
Bank Mitra is also called as "Customer Service Point".
Mitra provides services like account opening, cash deposit, cash withdrawal,
fund transfer, etc., and is a representative of mini bank which provides
services to rural areas. It especially provides services to villages where no
bank branches are available.
Point of Sales
Point of Sales (POS) support for real-time transactions. Suppose
if you are purchasing anything in shops and decided to use your debit card, the
consumer will be having a POS machine in which your debit/credit card is swiped
to deduct the amount for your purchase. This provides cashless transaction
facility.
Banking Service Delivery Channels - II
This section deals with online delivery channels −
Internet Banking
Internet banking helps to save your time by providing digital
services like −
·
Transfer funds from your
account to another account.
·
Verify your bank account
particulars and statements.
·
Make payment of utility
and credit card bills.
·
Open and renewal of
fixed deposit account.
·
Recharge and payments of
daily needs like prepaid mobile/DTH, train bookings or bus tickets, etc.
National Electronic Fund Transfer
(NEFT)
National Electronic Fund Transfer is a nationwide fund transfer
system formulated and maintained by RBI. It helps to transfer funds between
customers of the bank across the country. It was started in the year 2005. NEFT
follows batch wise fund transfer process that it works from 8.00 AM to 6.30 PM
on Monday to Saturday excluding 2nd, 4th Saturday and government holidays.
Real Time Gross Settlement (RTGS)
Real Time Gross Settlement (RTGS) is a real-time electronic fund
transfer system between banks. Unlike NEFT which follows a batch process, RTGS
helps to transfer funds in real-time and gross basis. Real-time settlement
refers to that there is no waiting time for the money to get transferred. Gross
refers to one-to-one transaction. The minimum amount to be transferred through
RTGS is 2,00,000 rupees. Apart from money this helps to transfer securities
(tradable financial asset).
Immediate Payment Services (IMPS)
Immediate Payment Services (IMPS) was launched in the year 2010.
IMPS is available 24/7 and even on holidays. IMPS is managed by National
Payments Corporation of India. It offers interbank electronic fund transfers
and it is accepted by almost all banks and financial institutions.
Insurance
Insurance is an agreement to deliver a compensation amount by the
financial institution for certain loss, destruction, ailment, or demise in
return for payment of a specified premium.
Necessity of Insurance
Insurance is protection for financial loss and provides medical
support in case of severe ailments. It provides safety and security to human
life as well as business. It generates financial resources, encourages savings
by investing regular premium and promotes economic growth by mobilizing
domestic savings. Insurance. Insurance accelerates economic growth by
collecting and investing funds in industrial development. Insurance helps to
get loans. Insurance helps in medical emergencies.
Life Insurance and Non-Life Insurance
In the subsequent section, we shall discuss various about various
Life Insurance schemes and various other schemes −
Life Insurance
An agreement to deliver compensation amount by the financial
institution on demise of an insured person in return for payment of a specified
premium.
Necessity for Life Insurance
·
To give heirs a
financial support after a person's demise.
·
To protect your family
and loved ones.
·
To pay off debts taken
by you.
·
To support uncertainties
in life.
Non-life Insurance
General or non-life insurance saves individual against
uncertainties, loss, destruction and damage caused by natural events.
Necessity for Non-Life Insurance
·
It provides peace of
mind to the insured person or business man.
·
It replaces lost income,
destroyed property or damaged objects.
Pradhan Mantri Jan-Dhan Yojana (PMJDY)
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is launched by Prime
Minister of India, Narendra Modi on 28 August 2014.PMJDY is a National Mission
for Financial Inclusion to ensure access to financial services, namely,
Banking/Savings & Deposit Accounts, Remittance, Credit, Insurance and
Pension in an affordable manner. Account can be opened in any bank branch or
Business Correspondent outlet. PMJDY accounts are being opened with zero
balance. However, if the account-holder wishes to get cheque book, he/she will
have to fulfill minimum balance criteria.
Benefits of PMJDY
·
Interest on deposit
·
Accidental insurance
cover of Rs. 1.00 lakh
·
No minimum balance
required
·
Life insurance cover of
Rs.30,000/-
·
Easy transfer of money
across India
·
Beneficiaries of
Government Schemes will get a direct benefit transfer in these accounts.
·
After satisfactory
operation of the account for 6 months, an overdraft facility will be permitted.
·
Access to pension,
insurance products
·
Accident insurance
cover, repay debit card must be used at least once in 45 days.
·
Overdraft facility up to
Rs.5000/- is available in only one account per household, preferably lady of
the household.
Social Security Schemes
There are lots of social security schemes launched by the Prime
Minister "Narendra Modi". Some of the important schemes are described
in detail below.
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
The scheme offers to provide you or your family a cover of up to
Rs. 2 lakhs in case of any accidents, resulting in death or disability of the
insured. In case of death or full disability, you or your family will get Rs. 2
lakhs and in case of partial disability, you will get Rs.1 lakh. Full
disability means loss of both eyes, both legs, both hands, whereas partial
disability means loss of one eye or leg or hand.
Age of the Insured – Savings bank account holders aged
between 18 years and 70 years are eligible to apply for this scheme. People
aged more than 70 years will not be able to get the benefits of this scheme.
Premium Amount – It costs you just Rs. 12 in annual premiums for having an
accidental death or disability cover of Rs. 2 lakhs under this scheme. It works
out to be just Re. 1/month, which is extraordinarily low. Again, your age has
nothing to do with the premium payable for your insurance cover under this
scheme as the premium is fixed at Rs. 12 for a cover of Rs. 2 lakhs.
Period of Insurance – You will remain insured for a period of
one year from June 1, 2015 to May 31, 2016. Next year onwards, the risk cover
period will remain to be June 1 to May 31.
Administrators for PMSBY– The scheme would be offered/administered by
many general insurance companies, both in the public sector as well as in the
private sector. Participating banks will be free to engage any such general
insurance company for implementing the scheme for their subscribers. National
Insurance Company Limited, Oriental Insurance Company Limited and ICICI Lombard
are some of the companies which would be offering this scheme.
Auto Debit Facility – You will be required to provide your
consent for auto debit of Rs. 12 as the annual premium from any one of your
bank accounts at the time of enrolling for this scheme. This premium of Rs. 12
will get deducted from your savings bank account through auto debit facility
every year between May 25 and June 1.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a "Life
insurance" coverage by "Government of India". The following are
the features of this life insurance scheme −
Age of the Insured – Bank account holders aged between 18 and
50 years are eligible to apply in this scheme. So, if you are aged more than 50
years, you are not eligible to enroll yourself in this scheme. But, once
enrolled, you can continue with this scheme till you attain the age of 55
years.
Premium Amount – Less than Re. 1 a day or an annual premium
of Rs. 330 is what you need to pay to get a life cover of Rs. 2 lakhs. No
matter what your age is, the premium is fixed at Rs. 330 for a life cover of
Rs. 2 lakhs. This annual premium of Rs. 330 has been fixed for the first three
years from June 1, 2015 to May 31, 2018, after which it will be reviewed again
based on the insurers' annual claims experience.
Period of Insurance – June 1st, 2015 to May 31st, 2016 is the period for
which this scheme will cover all kinds of risks to your life in the first year
of operation. Next year also, the risk cover period will be from June 1 to May
31.
Auto Debit Facility – Annual premium of Rs. 330 will get
deducted from your savings bank account through auto debit facility. You will
have to give your consent for auto debit of premium from any one of your bank
accounts at the time of enrolling for this scheme.
Atal Pension Yojana (APY)
The Government of India is concerned about the old age income
security of the working poor and is focused on encouraging and enabling them to
save for their retirement. To address the longevity risks among the workers in
the unorganized sector and to encourage the workers in the unorganized sector
to voluntarily save for their retirement, the Government of India has announced
a new scheme called Atal Pension Yojana (APY) in 2015-16 budget. The APY
focuses on all citizens in the unorganized sector. The scheme is administered
by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS
architecture.
Eligibility for APY − Atal Pension Yojana (APY) is open to all
bank account holders who are not members of any statutory social security
scheme.
Age of joining and contribution period − The minimum age of joining APY is 18
years and the maximum age is 40 years. One needs to contribute till he/she
attains 60 years of age.
Enrollment agencies − All Points of Presence (Service
Providers) and Aggregators under Swavalamban Scheme would enroll subscribers
through the setup of the National Pension System.
If a person joined Atal Pension Yojna at 35 years, he will
contribute till the age of 60 years i.e. for 25 years. If he wants monthly
pension of Rs. 1000 he would contribute Rs. 181 a month. On his death his wife
will receive Rs. 1000 per month and after her death the nominees will get 1.7
lakh. If he wants monthly pension of Rs.3000 he would contribute Rs. 543 a
month. On his death, his wife would get Rs. 3000 per month and after a death
the nominees will get 5.1 lakh.
Pradhan Mantri Mudra Yojana (PMMY)
Prime Minister Narendra Modi launched Micro Units Development and
Refinance Agency Ltd (MUDRA) Bank on 8 April, 2015 with a corpus of Rs. 20,000
crore and a credit guarantee corpus of Rs. 3,000 crore. The launch was the
fulfilment of an announcement made earlier by the Finance Minister Mr. Arun
Jaitley in his FY 15-16 Budget speech.
Objectives of PMMY
·
Regulate the lender and
the borrower of microfinance and bring stability to the microfinance system
through regulation and inclusive participation.
·
Extend finance and
credit support to Microfinance Institutions (MFI) and agencies that lend money
to small businesses, retailers, self-help groups and individuals.
·
Register all MFIs and
introduce a system of performance rating and accreditation for the first time.
This will help last-mile borrowers of finance to evaluate and approach the MFI
that meets their requirements better and whose past record is most
satisfactory. This will also introduce an element of competitiveness among the
MFIs. The ultimate beneficiary will be the borrower.
·
Provide structured
guidelines for the borrowers to follow to avoid failure of business or take
corrective steps in time. MUDRA will help in laying down guidelines or
acceptable procedures to be followed by the lenders to recover money in cases
of default.
·
Develop standardized
covenants that will form backbone of the last-mile business in future.
·
Offer a Credit Guarantee
scheme to provide guarantee to the loans which are being offered to micro
businesses.
·
Introduce appropriate
technologies to assist in the process of efficient lending, borrowing and
monitoring of distributed capital.
·
Build a suitable
framework under the Pradhan Mantri MUDRA Yojana for developing an efficient
last-mile credit delivery system to small and micro businesses.
National Pension Scheme
National Pension Scheme is a voluntary defined contribution
pension system. NPS is administered and regulated by the Pension Fund
Regulatory and Development Authority (PFRDA). NPS is the most economical
pension scheme for Indian citizens between 18-60 age group. The more the
invested money, the more the accumulated pension. A citizen of India, whether
resident or non-resident can avail NPS facility. The NPS is applicable to
central government employees, state government employees, corporate,
individual, unorganized sector workers - Swavalamban Yojana. NPS helps to
protect your future and get tax benefits.
Components of National Pension
System
Point of Presence (POP) − The authorized branches of a POP, called
Point of Presence Service Providers (POP-SPs) act as collection points and
extend a number of customer services to NPS subscribers.
Central Recordkeeping Agency (CRA) − This provides recordkeeping, administration
and customer service functions for all subscribers of the NPS.
Pension Funds (PFs)/Pension Fund Managers (PFMs) − The six Pension Funds (PFs) appointed by
PFRDA would manage your retirement savings under the NPS.
Trustee Bank − The Trustee Bank appointed under NPS shall facilitate fund
transfers across various entities of the NPS system.
Annuity Service Providers (ASPs) − ASPs would be responsible for delivering
a regular monthly pension after you exit from the NPS.
NPS Trust − A Trust, appointed under the Indian Trusts Act, 1882 is
responsible for taking care of the funds under NPS in the best interests of
subscribers.
Pension Fund Regulatory and Development
Authority (PFRDA) − An autonomous
body set up by the Government of India to develop and regulate the pension
market in India.
Public Provident Fund (PPF) Scheme
Public Provident Fund (PPF) is a 15-year investment scheme
launched by government of India to enjoy a tax exempted investment. It was
introduced by the National Savings Institute of the Ministry of Finance in
1968. A minimum yearly deposit of Rs. 500 is required to open and maintain
a PPF account. It provides 7.9% interest. Loan facility is available in
PPF account.
Bank on your mobile
Mobile plays a major role in day-to-day activities. We can access
services provided by bank through mobile.
Mobile Banking
Mobile banking is a facility provided by all banks to make
customers' work easy. Using mobile app, we can do the following activities.
·
Transfer funds from your
account to another account.
·
Verify your bank account
particulars.
·
Make payment of utility
and credit card bills.
·
Open and renewal of
fixed deposit account.
·
Recharge prepaid
mobile/DTH.
Mobile Wallets
Mobile wallet is a virtual wallet, which stores your credit or
debit card information. Instead of physically carrying card, we can use mobile
device. Mobile wallet also helps to store driver's license, social security
number, health information cards, loyalty cards, hotel key cards and bus
or train tickets.
Summary
From this topic, we gained a detailed knowledge on the importance
of savings; importance of bank, banking products like accounts, deposits,
loans; procedure to open an account, banking services, ATM, internet banking,
mobile banking, mobile wallet, insurance, and various schemes introduced by the
Prime Minister of India.
⭐️ NTPC Recruitment 2022 / 2023 for Executive Engineer Trainee (EET)
🔥 Permanent Jobs - Freshers / Final Year Eligible - Check Full Details Now 👇
⭐️ BHEL Recruitment 2022 for Engineer Trainee & Executive Trainee on Regular Basis
🔥 CTC ₹ 12.0 LPA | Freshers Eligible - Check Notification & Apply Online 👇
🔗 ⭐️ BHEL Recruitment 2022 for Engineer Trainee & Executive Trainee on Regular Basis
🔥 CTC ₹ 12.0 LPA | Freshers Eligible - Check Notification & Apply Online 👇
Comments
Post a Comment