Mrunal's Economy For UPSC & Other Competitive Exams 2021: Baba Age Attempt

Mrunal’s Economy for UPSC & Other Competitive Exams 2021
Figure 1: �ोंिक बहोत सारे ब�े ये सबसे ज�री चीज समजते नहीं, और �चकनी-चुपड़ी बाते करनेवाले Baba-लोगों के ‘अंध-े भ�’ बनके अपने age/attempt बबार्द करते है।
Figure 2: या�न क� इधर Economy मे हमको B.Com, M.Com, CA, BBA, MBA, PHD करना नहीं है! #थोड़ा-पढ़ो-आगे-बढ़ो #लेके-मत-बेठे-रहो
For more: Refer to Topicwise Papers & Trend analysis available: Mrunal.org/Prelims and Mrunal.org/Mains
🎙🎙Instructions for Live Class
1. If audio/video stuck then refresh page by Ctrl+SHIFT+R; If electricity / internet outage, fear not, because recording
will be available in your account.
2. Keep following things ready before the class (1) Handout PDF saved in your harddisk. No need to take printouts.
You may get them printed after Corona is subdued. (2) Two pens of different colors 3) Unruled A4 sized pages.
Don’t staple/spiral the pages or printouts, so you can add more blank pages in future to add your own updates.
3. If doubts in lecture itself, notedown in paper/diary → Ask in Google query form after class, which I’ll reply in a
combined PDF file on weekly basis. (गूगल फॉमर् से �मले आपके प्र�ों का सा�ािहक क्रम से जवाब िदया जाएगा, �न��ंत रिहए!)
(Batch:PCB2) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 1

📚📚UPSC CSE-2021: Basic Reading List for GS
(#) का मतलब है िक ये िकताब� / PDF िहंदी म� भी उपल� ह�
🌨🌨Geography ⚖Polity
 # NCERT: First class11-12’s four textbooks on - # Indian Polity by M.Laxmikanth
physical, Indian & human geography. Then - # Governance in India by M.Kartikeyan for GSM2
NCERT 7-10 Social Science- only those chapters - # IYB21: ch.2,3, 20, 28.
not covered in Class 11-12. - Current Affairs: Notable judgements, Committees,
 Geography Lecture in your [+] subscription Appointments.
 Goh Cheng Leong: All ch EXCEPT 4 to 10. - # PrsIndia.org: Passed Acts
 # Majid Hussain’s Geography of India: All - # (Selective) NCERT Socio and PolSci 11-12
chapters EXCEPT 1, 4, 5, 6, 9, 14, 15, 16. ☮International Relations (IR)
 # If time, IYB-2021* ch. 1 and 30, else ignore. - Pavneet Singh’s IR Book (selective study).
🌽🌽Agriculture - Followed by CA from Newspaper/PDF/Mags.
- # NCERT Geography, Science Textbooks, ⚔History-Culture
Followed by Current Affairs (CA) related to - No need for old NCERTs. Poor Cost:Benefit
Biotech - Refer to Tamilnadu (New Color Edition) Class11-12, #
- Agri’s Economy / Scheme / Budget angles → New NCERT
Mrunal’s class & handout - Freedom Struggle: i) (#)Spectrum for Prelims ii)
🌱🌱Environment (#)Plassey to Partition for Mains
- # NIOS PDF on Environment ⚗Science Tech
- ShankarIAS’s Book, # IYB21 Ch. 12 - # Ravi Agrahari’s Science-Tech book.
- # NCERT Chemistry Class11: Ch. on Environ. - (then, If time permits) Read all chapters: NCERT 7-10.
Chemistry. (then, If time permits) Read only selective chapters of:
- # NCERT Biology 11-12: selective study of NCERT 11-12 related to Environment, Biotech, Spectrum
chapters related to flora-fauna, biotech waves etc.
💲💲Economy 📣📣Current & Contemporary Affairs (CCA)
- Theory, Contemporary, and Current issues from - Any one newspaper: Daily IndianExpress or theHindu.
Mrunal’s lecture series and its handouts. Not both! Only one.
- ✋No need for NCERT 9-10 or Class12 - Make newspaper NOTES ONLY FOR Optional Subject,
Micro/Macroeconomics or Old NCERT or Cases Quotable for Essay / GSM4, & factoids imp. for
Tamilnadu State Board textbooks. ✋No need UPSC interview i.e. about your home-state, hobbies,
for Ramesh Singh, Sanjeev Verma, Nitin graduation & job (if any). No need to make notes for GS.
Singhania, SriRAMIAS or any other - It’s true that not many Qs are coming from PDF/Mag
book/materia. compilation, but if you manually try to make your own
To improve vocabulary & expression skills for Mains: current affairs notes from newspaper, you’ll never finish
other parts of syllabus.
- ✅# NCERT Class 11 Indian Economic Dev.
- So, use any one FREE PDF/Mag compilation: VisionIAS,
- ✅# After my course is over, read Introductions
iasparliament, (#)DrishtiIAS, etc. from 1/1/2019 (Ref:
and conclusions of each chapter of vol1 of all
Graph below)
economic surveys from 2015 onwards from
http://indiabudget.gov.in/
- ✅# Chief Editor’s Desk (Preface page) of last 2
years’ Yojana & Kurukshetra mags from
http://yojana.gov.in/Recent_archive_2019.asp
(change year number for previous Archives)

- * IYB-2021= India (yearbook) 2021 by Ministry of Info & Broadcasting to be published next year. Don’t
buy India 2020. Infact no need to buy even 2021’s edition, just refer to free e-summaries on NET.
- CSAT-Paper2: Use any Paper-II Manual by McGraw-Hill, Arihant, Pearson, Disha etc. solve few
🔠🔠❓MCQs from each section.
Table 1: What has UPSC asked from Economy in recent years?
Prelims P1 (GS 100 🔠🔠❓MCQs) Mains GSM-1-2-3 (750 Marks)

Economy: 6 PillarsTM Remarks
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020*
Most useful in
💳💳1_Money Banking, 6 6 7 7 9 25 0 0 0 Prelims but less in
Finance & Insurance Mains
Second lowest utility
🍋🍋2_Budget, FC, GST 3 3 4 1 1 12.5 30 25 25 after 5_Infra
Third lowest utility
💱💱3_Intl_Trade, BoP 11 4 4 7 7 25 0 30 0 after 2_Budget.
🛒🛒4_Sectors, GDP, 4 8 3 8 5 25 60 50 65
Useful for both
Inflation, Microeconomics prelims and Mains.
Lowest utility among
🏗🏗5_Infrastucture 2 4 1 3 1 37.5 10 15 15 6 pillars.
Useful for both
�6_HRD 3 4 6 2 0 50 40 60 75 prelims and Mains.
Total 29Qs 29Qs 25Qs 28Qs 23Qs 175m 140m 180m 180m
*2020-Mains scheduled on January-2021. This page was typed in 2020-Oct. So, fillup column after exam done
10 💸💸ECONOMY PILLAR #1-A1) MONEY: BARTER TO BITCOIN

10 💸💸Economy Pillar #1-A1) Money: Barter to BitCoin ...................................................................................... 3
10.2 🍅🍅🍅🍅 Barter system & its disadvantages: (व�ु �व�नमय प्रणाली)................................................................. 5
10.3 📏📏Money: Functions of (पैसे के कायर्) .......................................................................................................... 6
10.4 💵💵 Money: Evolution & Types (मुद्रा क� उ�ां�त व् प्रकार) .............................................................................. 6
10.4.1 🥜🥜Commodity Money / व�ु मुद्रा (Intrinsic value: अंतभूर्त मू�? Yes) ............................................. 6
10.4.2 🥇🥇Metallic Money / धातु मुद्रा (Intrinsic value? Yes)........................................................................ 6
10.4.3 💵💵Paper Money / कागजी मुद्रा (Intrinsic Value? No) ....................................................................... 7
10.4.4 💵💵⚖Legal Tender (वैधा�नक �न�वदा).................................................................................................. 7
10.4.5 � (New) Visually Handicapped (VH) friendly Coins, 2019-March .......................................... 9
10.4.6 ��RBI’s App to help the blind identify currency notes .......................................................... 9
10.4.7 💵💵 (NEW) Mahatma Series Currency Notes in India .................................................................. 9
10.4.8 💵💵 “I promise to pay the bearer…”: Meaning of this promise? ................................................ 10
10.5 🤫🤫🤫🤫🤫🤫🤫🤫 Redenomination: drop zeros, change name................................................................... 10
10.5.1 🤫🤫🤫🤫🤫🤫🤫🤫 Iran = Toman to replace Iranian Riyal (2020) ...................................................... 11

10.5.2 🤫🤫🤫🤫🤫🤫🤫🤫 Zimbabwe: new dollar to replace old dollar (2006).............................................. 11
10.6 🐷🐷🐷🐷Bank Money / Deposit Money .................................................................................................... 11
10.6.1 🐷🐷🐷🐷 Paper orders: Cheque, Demand Draft (DD).................................................................... 11
10.6.2 🐷🐷🐷🐷 Cheque → NPCi’s Cheque Truncation System (CTS-2010)......................................... 12
10.6.3 🐷🐷🐷🐷🐷🐷 Cheque → Positive Pay Mechanism for Cheques .................................................... 12
10.7 🐷🐷🐷🐷🐷🐷 Electronic Orders / Digital payment .................................................................................... 12
10.7.1 💸💸💸💸CBS ( full form: Core Banking Solution / िह�ी अनाव�क) .................................................. 13
10.7.2 💸💸💸💸Next Generation Treasury Application (NGTA), 2020-Oct ............................................ 13
10.7.3 💸💸💸��Interoperability Problem (इं टरोऑपरे�ब�लटी) ............................................................. 14
10.8 �What is NPCi?..................................................................................................................................... 14

10.8.1 QR Codes: compulsory to implement UPI/Bharat QR from 2022 ............................................. 16
10.8.2 �📜📜📜📜 Perpetual Licence for Payment System Operators? .................................................. 16
10.8.3 �New Umbrella Entity (NUE) for Retail Payments System (2019) ........................................ 17
10.8.4 � Google Gpay / Tez App............................................................................................................ 17
10.8.5 💸💸💸💸 Digital Payment- Misc: → Semi-closed PPI (2019) ........................................................ 17
10.9 💳💳 Credit & Debit Cards (also called ‘Plastic Money’)....................................................................... 18
10.9.1 💳💳 Card Types based on Security Features: ................................................................................. 19
10.9.2 💳💳 📧📧 Card Tokenization (RBI allowed it, 2019) ...................................................................... 19
10.9.3 💳💳 🚕🚕 National Common Mobility Card (NCMC, 2019) ........................................................ 19
10.9.4 💳💳 🚕🚕 FASTag for paying toll fees at highways (2017) ............................................................. 20
10.9.5 💳💳 🏧🏧 ATM and its Types ............................................................................................................. 20
10.10 💳💳 MDR: Full form: Merchant Discount Rate (�ापा�रक छू ट दर) ....................................................... 21
10.11 💸💸💸💸💸 📈📈 Measures to promote Less-Cash Economy .............................................................. 21
10.11.1 �📒📒 RBI’s Nandan Nilekani Panel (2019: Jan to May) ............................................................ 22
10.11.2 �📒📒 Payment and Settlement Systems in India: Vision 2019 – 2021 ..................................... 23
10.11.3 🕵🕵🕵💳💳💳💳 Payments Infrastructure Development Fund (PIDF) 2020-Jun ........................ 23
10.11.4 🕵🕵🕵💳💳 📯📯 Scheme of Offline Retail Payments Using Cards and Mobile Devices............. 23
10.12 🕵🕵🕵💳💳 Digital Payment Regulatory bodies ...................................................................................... 24
10.12.1 🕵🕵🕵💳💳 Digital Transactions Ombudsman (2019) ...................................................................... 24
10.12.2 🕵🕵🕵💳💳 Online Dispute Resolution (ODR) for Digital Payments (2020, Aug) .................... 24

10.12.3 🕵🕵🕵(Proposed) Payment Regulatory Board (PRB)........................................................................ 24
10.13 🔗🔗🔗🔗 Crypto-Currency & Blockchain Technology ....................................................................... 25
10.14 🔗🔗🔗🔗 Cryptocurrency legal status: → India ................................................................................. 26
10.14.1 💮💮💮💮💮💮 Cryptocurrency & India → RBI ban revoked by SC .............................................. 26
10.14.2 India → ⚖🔗🔗🔗🔗 Banning of Cryptocurrency Bill, 2019....................................................... 27
10.14.3 🔗🔗🔗🔗 Cryptocurrency usage outside India (�वदेशों म� िक्र�ो मुद्रा का प्रयोग) ....................................... 27
10.14.4 🔗🔗🔗🔗🔗🔗 Cryptocurrency → Stable-coins ................................................................................ 28
10.14.5 🔗🔗🔗🔗🔗🔗 Cryptocurrency → Stable-coins → Facebook’s Libra ........................................... 28
10.15 🐯🐯🐯🐯🐯🐯 Central Bank Digital Currency (CBDC) ........................................................................ 28
10.15.1 🐯🐯🐯🐯🐯🐯=👌👌👌👌Benefits of CBDC ............................................................................................ 29
10.15.2 🐯🐯🐯🐯🐯🐯= ✋🥵🥵Challenges of CBDC ...................................................................................... 29
10.15.3 🐯🐯🐯🐯🐯🐯� CBDC: Conclusion / �न�षर् .................................................................................... 30

10.16 Essay: Cashless Economy- Charms and Challenges ......................................................................... 30
10.16.1 T � Conclusion: Cashless Economy (�न�षर्) .................................................................................. 31
10.16.2 �🎷🎷🎷🎷1⃣✋ Mock question for Mains/ESSAY ....................................................................... 31
10.2 🍅🍅🍅🍅 BARTER SYSTEM & ITS DISADVANTAGES: (व�ु �व�नमय प्रणाली)
Barter system was introduced by Mesopotamian tribes. Barter system has following disadvantages:
- 😰😰Double co-incidence of Wants (आव�कताओ का दोहरा सं योग).
- 😰😰Search Cost & Transaction cost is high. (सही दाम पर चीज ढूँ ढने व लेनदेन क� लागत बढ़ जाती है)
- 😰😰Storage of perishable commodities is difficult, results in loss of value. (नाशवान व�ुओ का मू�हास)
- 😰😰Doesn’t encourage specialization and division of labour (श्रम �वभाजन को प्रो�ािहत नहीं करता).
- 😰😰Fungibility problems:
• Fungible item= Division & Mutual substitution possible e.g. 1kg gold bar = 100gm x 10 smaller
bars, Currency Notes.
• Non-fungible items example: Diamonds, Shares-Bonds of different companies

10.3 📏📏MONEY: FUNCTIONS OF (पैसे के कायर्)
Primary [प्राथ�मक] 2functions Secondary (S-T-D) [सहायक] 3functions Contingent [प्रासं �गक] 3
1. 📏📏Measure of Value 1. 🐷🐷🐷🐷Store of Value (मू� का सं चय) 1. Basis of credit system, Financial
(मू� का मापक). gm=wt, 2. 🚛🚛Transfer of Value (मू� का markets (share, bond etc.: More
ml=vol, ₹=value �ानांतरण). Soldier in Kashmir to in 📑📑Pillar#1C-sharemarket)
2. 🛒🛒Medium of parents in Kanyakumari �व�ीय बाजार का आधार है पैसा
Exchange 2. Employing factor of production
3. ⏰Deferred Payments (��गत
(�व�नमय का मा�म). Buy & i.e. Land, Labour, Capital (More
Sell goods and services
भुगतानो का मानक). E.g. Buy iphone12
@₹3177 only per month x 36 in 📑📑Pillar#4C) उ�ादन के कारक
using money as the
‘medium’. months’ Equated Monthly 3. Creation & Redistribution of
Installments (EMIs) = ₹1,14,372. National Income via taxation.
Actual price is ₹79,900, but (📑📑Pillar#2) रा��ीय आय का
₹34,472 extra Interest. पुन:�वतरण करने म� मदद
10.4 💵💵 MONEY: EVOLUTION & TYPES (मुद्रा क� उ�ां�त व् प्रकार)

Paper /Token /
Commodity Metallic Bank Money,
Representative / Crypto Currency
Money Money Deposit Money
Fiat Money
10.4.1 🥜🥜Commodity Money / व�ु मुद्रा (Intrinsic value: अंतभूर्त मू�? 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, अ�ीकार भी कर सकते है.
10.4.2 🥇🥇Metallic Money / धातु मुद्रा (Intrinsic value? Yes)

⇒ Traders & Kings stamped their marks on gold nuggets for uniformity & trust.
⇒ Indo Greek kings & Kushana kings issued gold coins, but Gupta Gold coins most spectacular- king is
playing Veena, shooting animals, standing with wife, taking selfies.
⇒ Delhi Sultanate Kings: Silver Tanka. Sher Shah Suri Rupiyah silver coin. Akbar: Muhr.
⇒ Metal has INTRINSIC VALUE i.e. Metallic money =Use it as "money", or you can melt the metal → use
that metal for making jewellery / weapons because metal itself has its value / usages. उस मुद्रा क� धातु �पघला कर
कु छ और चीजे भी बना सकते है. �ोिक धातु का अपना : अंतभूर्त मू� / उपयो�गता है.
⇒ On the other hand, paper-currency note= You can't use currency-note's paper as a notebook or diary. So
currency notes have no intrinsic value. उसके कागज का उपयो�गता कु छ नहीं है, �ोिक उसपे छपाई कर दी है.
Further SELF STUDY: History of Indian coins from Nitin Singhania’s book on Indian Art & Culture (2nd
Ed.) Ch.23 OR (3rd Ed.) Ch.24. IF you don’t have the book, then ref: NCERT & TN History Textbooks.

Table 2: Types of Coins
Gupta Coin: ~8 gm GOLD 50 paisa modern coin: ~4 gm steel

Full Bodied Coins Token Coins (प्रतीकका�क)
Intrinsic Value (अंतभूर्त मू�) is Equal to or MORE LESS.
than its Face Value (अंिकत मू�)
Challenge? ⇒ 1330s: Tughlaq's Token coin experimentation =
⇒ Debasement: decreasing the amount of metal in #EPICFAIL because Thomas Grisham’s Law-
coins. Usually happens when king’s treasury bad money drives out good money.
gets poor e.g. Aurangzeb, Roman Kings. ⇒ Modern Indian coins are token coins.
Cupronickel metal used to discourage melting.
Coinage Act 2011 prohibits melting of coins.
10.4.3 💵💵Paper Money / कागजी मुद्रा (Intrinsic Value? No)

Fiat money (वैधा�नक मुद्रा): It MUST fulfil two conditions SIMULTANEOUSLY: दो शत� का एकसाथ पालन होना चािहए।
1. It MUST BE in the form of Physical Currency Coin / Physical Currency Notes / VirtualCoin/ DigitalCoin/
CryptoCoin 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.
⇒ ₹ 1 Note signed by Finance Secretary (�व� स�चव)
⇒ ₹ 1 note doesn’t contain “I promise to pay bearer…”
⇒ RBI issues: Currency notes other than ₹ 1 Note using the powers of 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. 👴👴👴👴आंदोलनकारी बनना है वो झं डा लेके जं तर-मं तर जाए। �IAS-exam पास करना है तो Next Topic पढ़ो….
10.4.4 💵💵⚖Legal Tender (वैधा�नक �न�वदा)

To become a ‘legal tender’, a given coin/currency MUST fulfil two conditions SIMULTANEOUSLY: एक साथ दो
शत� को पूरा करना होगा.
1. It must be a FIAT MONEY (जो हमने ऊपर के से�न म� पढ़ा). AND SIMULTENOUSLY
2. It must be legally valid for all debts & transactions throughout the country. Other party can’t refuse to
accept.

Table 3: fiat money and legal tender in India
D) At present, is it E) Is it
A) Is it in form C) Result: Is it
B) Is it issued by legally valid for LEGAL
of a physical Fiat money?
Central Bank / transaction in Tender in
ITEM coin OR physical (YES If Both
Govt / King / India as per India (Yes, IF
Note OR Digital Cell A+B give
Queen Coinage Act or C+D give
Coin ✅+✅)
RBI Act? ✅+✅)
₹ Indian Rupee:
Coins & Notes ✅ ✅ ✅ ✅ ✅
Demonetized
(�वमुद्रीकृ त) ₹500,₹1000 ✅ ✅ ✅ ✋ ✋
Dollar$, Yuan, Yen,
Euro etc ✅ ✅ ✅ ✋ ✋
G-Sec, T-Bill ✋ ✅ ✋ ✋ ✋
Shares, Bonds, DD,
Cheque, ATM, Cards,
Kirana coin, Casino ✋ ✋ ✋ ✋ ✋
coin, Filmstar-Notes
Bitcoins ✅ ✋ ✋ ✋ ✋
Marshall Island: SOV
Venezuela: Petro ✅ ✅ ✅ ✋ ✋
⇒ Commemorative Coins (�ृ�त�च� �प �स�े ) = Fiat money yes but not legal tender unless notified to be used
as legal tenders.
Table 4: Fiat Money: Two types of legal tenders

A) 🚯🚯Limited legal tenders B) ∞ Unlimited legal tenders:
(सी�मत वैधा�नक �न�वदा) (असी�मत वैधा�नक �न�वदा)
Payment beyond a limit can be refused. No such restriction.

- Coinage Act 2011 - RBI Act 1934 - Section 26: Every bank note is
- Rs. 1 / above → upto Rs.1000 legal tender in India.
- 50 paisa x 20 coins → upto Rs.10 - They can be used for settling any amount of
- Below 50 paisa withdrawn (2011) debt in India**, lender can’t refuse to accept
it.
**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= entire amount.” This rule is to discourage tax-evasion / black money. For
more Ref: 📑📑Pillar#2. But for MCQs: bank notes = unlimited legal tenders. FAQ:
🔠🔠❓MCQ: Which one of the following correctly describes the meaning of legal tender money? (Asked in
UPSC-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
10.4.5 � (New) Visually Handicapped (VH) friendly Coins, 2019-March

 Govt launched new series of VH-friendly coins of ₹ 1, 2, 5, 10, 20. Ascending order of size & weight.
National Institute of Design (NID) helped to design.
 ₹ 20 coin: 12-sided Polygon (Dodecagon), grains/agro motifs, no serration on edges.
 Remaining coins are round shaped.
10.4.6 ��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), circle (500) diamond (1000)
- 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,
- IIT Ropar developed Roshni App.
- Separately, 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), by Daffodil Software company has
developed it for RBI. If a user is both blind and deaf, the app will identify note by giving different set of
vibrations.
10.4.7 💵💵 (NEW) Mahatma Series Currency Notes in India

₹ 10 Sun Temple, Konark, Odisha. 13th Century Narsimhadev-I
₹ 20 Greenish Yellow, Ellora Caves in reverse.
₹ 50 Humpi Chariot from Vittala Temple, Karnataka
₹ 100 Lavender color. Rani ki Vav on Saraswati river, Patan. Rani Udaymati for King Bhima-I of
Chalukya / Solanki dynasty in 11th century, UNESCO Heritage site
₹ 200 Sanchi Stupa, Madhya Pradesh.
₹ 500 Red Fort, Delhi by Shah Jahan. 26th January parade chief guests= 2018: 10 ASEAN leaders;
2019: South Africa President Cyril Ramaphosa. 2020: Brazil President Jair Bolsonaro
₹ 1000 (update when/if released)
₹ 2000 Mangal Yaan / Mars Orbiter Mission, 2013

New rupee - ₹: through competition by Dept of Eco.Affairs in 2010. Designed by D.Udaya Kumar,
symbol an Associate Professor @IIT Guwahati.
Nation - Lion Emblem: Sarnath Pillar, Uttar Pradesh से �लया गया है
Symbol - “Satyamev Jayate”: Mundaka Upanishad से �लया 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)

Museum Budget-2020: a museum on numismatics and trade (�स�ाशा� और �ापार का सं ग्रहालय) will be
built at the historic ‘Old Mint Building’ in Kolkata .
You can read more about currency notes’ features at https://paisaboltahai.rbi.org.in
10.4.8 💵💵 “I promise to pay the bearer…”: Meaning of this promise?

Currency note is zero interest, anonymous bearer bond / Promissory Note.
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.
10.4.8.1 💵💵 Demonetization of Fiat Money (�वमुद्रीकरण: Previously 1946, 1978)

Definition? Demonetization is the wholesale withdrawal of currency notes from circulation. (मुद्राचलन म� से कु छ
खास िक� क� नोटों को सरकार द्वारा हटा देना)
⇒ 8/Nov/2016: FinMin → Dept of Economic Affairs gazette 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…”. Old notes can’t be kept except for research or numismatics or museum- and that too in limited
amount! More in 📑📑pillar#2: taxation → black money.
10.5 🤫🤫💸💸👜👜🥚🥚 REDENOMINATION: DROP ZEROS, CHANGE NAME
Figure 3: expression when you need 2.5 lakh riyal for a box of eggs👜👜
⇒ Inflation (मुद्रा��त/मं हगाई) is the rise in the general level of prices of goods and services in an economy over
a period of time. [More in 📑📑Pillar4C lecture]
⇒ REDENOMINATION involves removing zeros from currency’s face value, to facilitate transactions
during high inflation.
⇒ Here, the old currency is not instantly declared illegal / withdrawn from circulation immediately. Old
currency is allowed to continue side by side with new currency.
⇒ But people are given the option to switch to the new currency. Thus redenomination is considered to be
different than demonetization.
⇒ REDENOMINATION doesn’t fix inflation problem in reality because 1) not increasing the supply of
goods 2) not increasing your salary. Proportionally your purchasing power remains the same as before.
Further PHD useless. More on inflation @Pillar4C lecture.

10.5.1 🤫🤫🤫🤫👜👜👜👜 Iran = Toman to replace Iranian Riyal (2020)
Iran suffering from
⇒ 1) High levels of inflation. 1 box of eggs cost ~250,000 Iranian rials.
⇒ 2) Weak exchange rate (कमजोर �व�नमय दर). $1 costs ~42,000 Iranian rials. [More in 📑📑Pillar3A lecture]
⇒ So, very inconvenient to carry/count such a large quantity of paper currency.
⇒ 2020-May: Iranian Parliament approved a new paper currency “Toman” to replace its existing paper
currency “Iranian Rial” at the rate of 1 TOMAN = 10,000 Rial.
⇒ Although it’s not an ‘instant demonetization’ of Iranian Riyal. It will be replaced with TOMAN gradually
in the next 2-5 years.
⇒ 🤩🤩Benefit? Ease of carrying currency and making transactions.
10.5.2 🤫🤫🤫🤫👜👜🥚🥚 Zimbabwe: new dollar to replace old dollar (2006)

⇒ 2006: One toilet paper roll cost 1.45 lakh (old) Zimbabwean dollars (ZWD).
⇒ So, the Government issued “Redenomination”.
⇒ 1000 (old) ZWD = 1 (new) ZWD currency note.
Paper /Token /
Commodity Metallic Bank Money,
Representative / Crypto Currency
Money Money Deposit Money
Fiat Money
10.6 🐷🐷🔖🔖BANK MONEY / DEPOSIT MONEY
10.6.1 🐷🐷🔖🔖 Paper orders: Cheque, Demand Draft (DD)

- Viceroy Ripon’s Negotiable Instruments Act, 1881: Primary Objective? Cheque dishonor & forgery
(परक्रा� �लखत अ�ध�नयम: ब�क खाते मे अप्रा� रकम के चलते चेक अ�ीकार होना/जालसाजी).
- 2017: It was amended for faster justice to victim.
- THREE parties in a cheque: 1) Drawer (Sender), 2) Drawee (Bank), 3) Payee (Recipient)
- Types of cheques: 1) Stale: Not withdrawn in 3 months, 2) Post-dated: After a specific date, 3) Ante-
Dated: notimp for IAS exam.
- Open / bearer cheque: No ‘crossing’. Anyone can encash.
- IFSC code: Indian Financial System Code- 11 alphanumeric numbers to identify the bank branch, just
like PINCODE identifies an area.
- MICR code: Magnetic Ink Character Recognition. 9 digits code written in Iron Oxide ink for automated
clearance.
- Demand Draft (DD): can’t be dishonored because sender has to pay amount beforehand to Bank before
the Bank issued DD to him.

- 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
o Loans is mainly for longer term higher value expenses.
10.6.2 🐷🐷🔖🔖 Cheque → NPCi’s Cheque Truncation System (CTS-2010)

- CTS= canned image of cheque electronically sent to the drawee branch for faster clearance without theft
or tempering. MICR readers NOT required.
10.6.3 🐷🐷🔖🔖🔖🔖 Cheque → Positive Pay Mechanism for Cheques

Suppose Roman (Axis Bank, Bengaluru) sends ₹50,000 cheque to Mrunal (SBI, A'bad)
Cheque clearance Until now 🤩🤩Positive Pay Mechanism (Extra-steps)

Sender (Roman) Roman writes check, gives to Roman (issuer) clicks cheque’s photo
recipient Mrunal (🤳🤳IMAGE#A) & uploads on Axis Bank's App /
Bank's Webportal or send details via SMS2Axis
ke "I've given this cheque number-X with
Amount-Y to Mrunal on Date-Z"
Reciepient (Mrunal) Deposits cheque in SBI, A’bad Same
Recipient’s Bank SBI staff sends scans cheque Same
(SBI) → sends (📠📠IMAGE#B)
to Axis via NPCi’s CTS
Sender’s Bank (Axis) Receives msg via CTS, → Axis crosschecks whether
verifies (📠📠IMAGE#B) → 📠📠IMAGE#B = 🤳🤳IMAGE#A?
releases ₹₹ If, no mismatch/discrepancy → releases ₹₹
Benefit? 😰😰What if Mrunal 🤩🤩Positive Pay Mechanism prevents such
(reciepient) manipulated/ tempering / fraud by Cheque Recipient.
tempered cheque. E.g. 50k
add “00” → 50 lakhs!
⇒ 2016: ICICI Bank introduced Positive Pay for its customers.
⇒ 2020: RBI has ordered all banks to implement it from 1/1/2021 onwards. (✋Exact DATE NOT IMP)
o (Optionally available to customers) for amounts above ₹50,000/- (✋Exact AMT NOT IMP)
o (Compulsory required) IF amount = ₹5 lakh and above. (✋Exact AMT NOT IMP)
10.7 🐷🐷💸💸💸💸 ELECTRONIC ORDERS / DIGITAL PAYMENT

Payment & Settlement System Act 2007 empowers RBI to regulate card payment, e-payment related products
and services. (भुगतान और �नपटान प्रणाली अ�ध�नयम 2007)
10.7.1 💸💸📡📡CBS ( full form: Core Banking Solution / िह�ी अनाव�क)

It is a banking software with web-platform for centralized data management & branch-less banking. E.g.
Finacle (by Infosys, used in PNB); BanCS (TCS); E-Kuber (RBI)
10.7.2 💸💸📡📡Next Generation Treasury Application (NGTA), 2020-Oct

⇒ RBI planning this web based application / software for management of
o 🗃🗃Money Market Securities (📑📑Ref: HDT-Pillar#1C)
o Gold Reserves, 💱💱Foreign exchange, 💱💱Multi currency transactions (📑📑Ref: HDT-Pillar#3A)
⇒ ✋Will this replace E-Kuber? How will it work? Ans. Topic still under development. Further operational
aspects not important for the scope of IAS exam. #🕰🕰थोड़ा-पढ़ो-आगे-बढ़ो
🔠🔠❓MCQ: The term ‘Core Banking Solutions’ correct term? (Asked in 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
Table 5: Digital Payment Systems- transaction limits may differ, depending on banks
NPCi’s IMPS:
RBI’s RTGS: Real Time ⏰RBI’s NEFT: National
� Type Immediate
Gross Settlement Electronic Funds Transfer
Payment Service
💸💸 Transfer Min ₹2 lakh to ₹2000 crores ₹ 1 to maximum ₹2
upto ₹10 lakhs (SBI).
Amount (SBI). lakhs (SBI)
� Target Bizmen wanting high value
Ordinary retail customers
customers transactions instantly
- Settles net amount
🚛🚛 Settlement - Instant
Instant settlement between banks at
mechanism settlement
interval of 30 min.
BEFORE: Only working days - BEFORE: from 8 am to
8AM to 5:30PM(SBI) 7 pm on working days.
⏰ Timing - 24/7 on all days
- From 2019-Dec: NEFT
From 2020-Dec: 24/7 operates on 24/7 basis.
💰💰 Fees fee + GST** fee + GST#
Banks + (PPI) /
� Who can provide Only Banks can provide this facility as it requires IFSC
mobile-wallet cos like
this facility? branch code.
Phonepe, Mobikwik
⇒ ** 2019-Jul, RBI fees & asked banks to pass benefit to customers. → from 1/1/2020 no fees if doing
online transactions. (but if NEFT/RTGS done by filling paper-form at bank branch then fees may be
levied.)
⇒ # Although some banks don’t charge IMPS fees for transactions upto ₹1,000/-

� 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.“सर आपने बोल phonePe App म� ‘x’ चीज नहीं हो सकती, लेिकन मेने try िकया तो अब हो सकती है, तो आपने
ऐसा �ों बोला क� वो नहीं हो सकती?” जवाब: भाई वो �सफर् आपको concept को उदाहरण से समजाने के �लए है। UPSC asking only general
broad MCQs from this. If they ask technical, then goto page1, Fig#2. #🕰🕰थोड़ा-पढ़ो-आगे-बढ़ो
10.7.3 💸💸💸��Interoperability Problem (इंटरोऑपरे�ब�लटी)
Figure 4: can’t connect Apple Watch to Android Phone 🤷🤷
- (Definition) Interoperability is the ability of customers to transact across commercially and technically
independent payment platforms. �ावसा�यक और तकनीक� �प से �तं त्र भुगतान �ेटफाम� के बीच लेन-देन करने क� सु�वधा
- Legal complications under Payment & Settlement System Act 2007, so, we don’t have full interoperability;
We can’t transfer money between one wallet to another wallet, can’t use wallet to pay all type of taxes,
fees, insurance premiums etc. कानूनी बाधाओं के चलते सं पूणर्ता इं ट�ॉपरे�ब�लटी नहीं थी
- This is an obstacle to ‘cashless-economy’. So, 2018-October, RBI issued guidelines for interoperability in
a gradual / phase wise manner. चरणबद्ध तरीके से इस सु�वधा को लागू करने के �लए िदशा �नद�श िदए,
Figure 5: in above diagram, interoperability is absent
10.8 �WHAT IS NPCI?

⇒ 2008: National Payment Corporation of India is a “Not for Profit Company” registered under Company
Act. Originally it had 10 promoter banks with ₹ 100cr capital
⇒ Objective? Provide cost-effective payment solutions / technology for Banks. (�रयायती लागत पर ब�िकंग टे�ोलॉजी)
⇒ Its UPI-BHIM app & other mechanisms also help in financial inclusion of villagers & poors by expanding
the reach of banking network. (गरीबों / गाँववालों के �व�ीय समोवेशन म� मदद के �लए अलग अलग तकनीक� आ�व�ार िकए है)
Table 6: NPCi has built following mechanisms / platforms / systems / apps:

Bharat Bill Payment system for automated monthly payments of utility bills (gas,
BBPS
electricity etc.)
NACH National Automated Clearing House for bulk monthly payments of utility bills,

dividends, salaries, pension / insurance premiums etc.
NFS National Financial switch runs the ATM network, IMPS, UPI and BHIM
CTS Cheque Truncation System (2010) learned in previous section
Full Form: Unified Payment Interface
It’s a technology for building digital payment apps based on IMPS with following
features:
⇒ QR Scan & Pay to merchants.
⇒ You can link Current Account (CA) Savings Account (SA) for direct transfer of
money without storing 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.
UPI 1.0 ⇒ Examples of UPI based app: SBI’s SBIBuddy, Axis Bank’s AxisPay and NPCi’s
(2016) own BHIM.
Upgraded version of UPI, with following features:
UPI 2.0 - Overdraft Account linked [until now only CA,SA]
(2018 - Cash on Delivery, User mandate for future date e.g. DTH / Gym.
Aug) - Invoice in the inbox.
- QR authenticity checker – whether merchant verified or not?
Full form: Bharat Interface for Money (remember this Fullform for exam!)
⇒ It works on Android, iOS/Apple mobile phones as an APP, and 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. App has 3 factor authentication system.
⇒ 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
BHIM stage, PhonePe etc private apps also included UPI type mechanism so storing
(2016) money in ‘wallet’ became optional but we need not engage in Hairsplittery/PHD.)
⇒ No cards involved so no MDR or such hidden charges.
⇒ Sweden: “Swish” app to make their country 100% cashless by 2020.
RuPay ⇒ Rupee + Payment = RuPay card is world’s 7th payment gateway similar to
(2016) Mastercard, Visacard, China’s Union Pay- but at less service charges.
⇒ Works in 3 channels: ATM, Point of Sale Device (PoS/card reader machine),
Online.
⇒ Used by banks, railway and even Dairies (to pay ₹₹ to milk depositor farmers).
⇒ Rupay debit card given free with PMJDY (Jan Dhan) Bank account.
⇒ 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.
AEPS ⇒ Useful for Direct Benefit Transfer (DBT: प्र�� ह�ांत�रत लाभ) into beneficiary’s
account for MNREGA wages, LPG subsidy, scholarship etc. 📑📑More in Pill#6
⇒ It’s also required for Bankmitra-MicroATM system.

NETC ⇒ National Electronic Toll Collection provides backend technological support to the
FASTag toll collection.
PAI chatbot ⇒ Pai is an Artificial Intelligence (AI) based chatbot to reply to people’s online
queries about NPCI’s products like FASTag, RuPay, UPI, AePS etc. real time 24/7
real time basis
BharatQR(2016) Developed by NPCi with help of Visa and Mastercard.
10.8.1 QR Codes: 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 7: ✋Difference between UPI QR vs Bharat QR? NOT.IMP.4.EXAM ⏳📚📚थोड़ा-पढ़ो-आगे-बढ़ो
Proprietary e.g. Paytm or PhonePe ke exclusive QR codes.

QR code 😰😰Problem? Other companies’ app may not be able to scan and pay it.
UPI QR code Generated by UPI app of NPCi
Bharat QR code Developed by NPCi with help of Visa and Mastercard.
⇒ 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. RBI has prohibited them from launching any
new proprietary QR code.
⇒ 🤩🤩Benefit? All Payment apps will be able to scan these QR codes → 'interoperability'.
10.8.2 �📜📜📜📜 Perpetual Licence for Payment 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, PayTM Wallet 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 backend digital
Provider infrastructure for share/bond/foreign currency deals etc.
(📑📑Ref: HDT-Pillar#1C)
2020-Oct: RBI introduced following reforms in PSO-licence validity
😰😰Before 🤩🤩After (2020-Oct)

📜📜📜📜 License validity= 5 years. 📜📜📜📜 Perpetual License = valid for infinite time period.
Afterwards, RBI may renew again. हर 5 साल (सदा के �लए/ सतत अव�ध के �लए मा� लाइस�स)
पर लाइस�स का पुनः नवीनीकरण कराना पड़ता था
⇒ Company owner's uncertainty: ⇒ Ease of Doing Biz. Now company owner can focus on
whether my licence will be renewed his business peacefully.🤩🤩 (�ापार म� सुगमता/ आसानी/
or not? 😰😰 �न��ता)
⇒ RBI officers' time saved. (समय क� बचत)

⇒ RBI officers' time also wasted in
processing the files / docs every5yrs.
10.8.3 �New Umbrella Entity (NUE) for Retail Payments System (2019)
⇒ Presently, Paytm has rival companies like Mobikwick, Phonepe; Mastercard vs Visa; SBI vs Axis Bank;
but there is no rival company against NPCi. उसका प्र�त�ध� 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 �लए नई छतरी इकाई).
Subject to these technical “XYZ” technical eligibility requirements” [What are those eligibility conditions
e.g. Minimum Capital, Shareholding Pattern etc ?✋NOTIMP4EXAM, no matter how many private
mock-test-walla ASK it in their Faaltu-Tests]
⇒ 🤩🤩Benefits? More companies like NPCi → more competition → more innovation and cheaper services
for users. (�धार् बढ़ेगी तो नए तकनीक� आ�व�ार होंग,े िड�जटल भुगतान सेवाएं पहले से भी �ादा स�ी / िकफायती, ग्राहक का फायदा)
🔠🔠❓Prelims-2018: Find Correct Statement(s)
1. National Payments Corporation of India (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
🔠🔠❓Prelims-2018: Find Correct Statement(s)
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
10.8.4 � Google Gpay / Tez App

⇒ Google Pay (GPay, formerly called ‘Tez’) is an App by Google for online payments.
⇒ As such, Payment Service Operators need to register with RBI under Payment and Settlement Systems
Act, 2007. But google functioned without such authorization. �बना आरबीआई के लाइस�स/ पं जीकरण के चला रहा है
⇒ 2019-April: Delhi HC inquired. Google clarified: “Google Pay operates as a technology service provider to
its partner banks, using UPI infrastructure. We are not part of payment processing or settlement.
Payment is directly done from one bank account to another. So, we require no license / authorization /
registration required from RBI.” Beyond that ⚾📻📻⚾✋ �जसको आंदोलनकारी बनना है → वो झं डा लेकर जं तर-मं तर
पर धरना प्रदशर्न करे, �जसको आईएएस बनना है वह आगे का Next topic पढ़े….
10.8.5 💸💸💸💸 Digital Payment- Misc: → Semi-closed PPI (2019)

Prepaid Payment Instrument (PPI: प्रीपेड भुगतान साधन) is a money storage and transfer tool. It can be used to buy
goods and services; & sending ₹₹ to friends, family, etc.
⇒ Eg. Paytm Wallet, Airtel Money, PhonePe, Mobikwik, Amazon Gift card, Railway prepaid cards etc.
⇒ RBI regulates them under Payment and Settlement Systems Act 2007

⇒ 2019-Dec: RBI introduced a new type of semi-closed prepaid payment instrument (PPI) with following
features: <✋NOT VERY GREATLY IMP For UPSC>
o Maximum ₹ 10,000 can be loaded in it per month. Money can be loaded only from a bank
account Can be used only for purchase of goods and services and bill payments.✋ Can’t be used
for money transfer to friends/family etc.
o Users must provide an 'officially valid document' (OVD: आ�धका�रक तौर पर वैध द�ावेज) listed in the
Know Your Customer (KYC: अपने ग्राहक को जानो) guidelines of RBI such as driving license/Aadhar
card/voter id etc.
10.9 💳💳 CREDIT & DEBIT CARDS (ALSO CALLED ‘PLASTIC MONEY’)
Table 8: 💳💳 Card Types based on Payment modality
1) Credit Card 2) Debit Card

⇒ It allows holder to make purchase on credit - It allows holder to make purchases upto the
(=loan), even if he may / may not have extent of the amount lying in own his bank
sufficient balance in his bank account at the balance. अपने ब�क खाते म� �जतना पैसा है उतना ही इ�ेमाल
time of purchase. एक तरह से कज� पर खरीदने क� सेवा - Customer does shopping using debit card →
⇒ Customer does shopping using credit card → bank transfer ₹ ₹ from customer’s own bank
bank transfers ₹ ₹ to merchant from bank’s account to merchant. So, if he has insufficient
own funds and later bank recovers ₹ ₹ from balance, he may not be able to make purchase.
customer. Although nowadays e-commerce sites allow
⇒ Customer can pay entire due amount at once or debit-card based EMIs but that much
convert it into Equated Monthly Installments 🎓🎓PhD/Hairsplittery unnecessary for IAS
(EMI). बकाया रकम िक�ों म� भुगतान कर सकता है
⇒ Interest rate may be charged depending on For 🔠🔠❓MCQ. Simply remember: Debit card=
billing cycle, grace period and other terms and shopping ONLYIF you have ₹ in bank balance,
conditions 🎓🎓PhD करने क� हमको ज�रत नहीं है. Credit card= shopping without ₹ in bank balance.
If Credit card used for withdrawing money from Debit card can be used to withdraw ₹ ₹ from ATM
ATM, then it’s a type of ‘borrowing’, so, bank levies from your existing bank balance. So, it’s not
interest rate. ‘borrowing’.
Credit card vs Overdraft? ----
1. Credit cards = for shopping. You carry card in
your pocket. Bank may give u some reward-
points/gifts if you spend “₹.X” per year
2. - for overdraft= you have to manually visit the
bank branch, fillup form. It’s not in the 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 containing 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 काडर् म� दोनों का मजा
⇒ 4) Pre-paid card: It’s a subtype of debit card. While debit card is linked to a given bank account, a person
can buy pre-paid card 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. Backend support provided by Union Bank of India
(UBI) and NPCi’s Rupay gateway. (इसको पैसा देके खरीदना पड़ता है। लेिकन ब�क खाता होना ज�री नहीं । )
10.9.1 💳💳 Card Types based on Security Features:

1. Magnetic Card: 60s technology. Data on magnetic strip. But, such data can be duplicated, cloned,
skimmed while swiping the card = fraud. So, RBI stopped such cards from 1/1/2019 using powers under
Payment & Settlement Act. चुंबक�य काडर् म� जालसाजी का खतरा इस�लए आरबीआई ने प्र�तबं �धत िकया
2. EMV card: Full form: Europay+Mastercard+Visa chip infrastructure with encryption. RBI had ordered
migration in 2013- finally effective from 1/1/2019. Two sub-types
o (A) EMV-Contact: cards must remain in Point of Sale (PoS) Terminal during transaction.
o (B) EMV-contactless cards: simply tap the card on terminal using RFID (radio-frequency
identification) technology.
HomeWork: Read about RFID & NFC from Sci-Tech book/internet.
10.9.2 💳💳 📧📧 Card Tokenization (RBI allowed it, 2019)
Figure 6: Thappad se darr nhi lagtaa, Identity theft se lagtaa hai!
⇒ Amazon, Paytm & other sites / app allow users to store their card information (owner's name, card
number, expiry date) so next transaction can be finished faster without having to re-type those details.
⇒ But such facility also exposes customer to hacking, privacy, identity theft, misuse so, Tokenization =
Token number is generated for a given credit/debit card.
⇒ Card customer gives the token number during any type of online / physical shop transaction → so his
original card number, its expiry date etc. are masked/hidden from the third party seller / wallet / app /
portal = more security and privacy.
10.9.3 💳💳 🚕🚕 National Common Mobility Card (NCMC, 2019)
Figure 7: NCMC card unboxing ka video bhi youtube & Instagram pe daalte hai!

Ministry of Housing & Urban Affairs (MoHUA) got India’s 1st indigenously developed ‘One Nation One
Card Model’ with the help of NPCi, Bharat Electronics Limited (BEL), CDAC and some banks. It has 3
components:
⇒ 1) NCMC Card: To be issued by banks. Nature can be Debit/Credit/Prepaid. Can be used for metro, bus,
suburban railways, toll, parking, smart city payments and retail shopping.
⇒ 2) SWEEKAR: Automatic Fare Collection System.
⇒ 3) SWAGAT: Swachalit / Automated Gate.
10.9.4 💳💳 🚕🚕 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.
 2013 onwards Govt required vehicle manufactures to install RFID tags on windscreens.
 2017: National Highways Authority of India (NHAI, a statutory body under Highways ministry)
launched 2 mobile apps MyFASTag and FASTag Partner to facilitate Electronic Toll Collection (इले��ॉ�नक
पथकर/टोल वसूली).
 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 = faster traffic movement. (and hidden benefit: tracking
of vehicle theft, criminal’s movement etc.)
 FASTag is vehicle specific and once it is affixed to a vehicle, it cannot be transferred to another vehicle.
 NPCi’s has National Electronic Toll Collection (NETC) provides technological support.
 Highways Ministry is also trying to bring inter-operability (आंतरसं चालनीयता) of the FASTags i.e. single
FASTag can be used for paying ₹
- at State Highways Toll Plaza (under State Governments’ purview) as well as
- at National Highways Toll Plaza (under Union Government’s purview).
 From 15 Jan 2020, it shall be mandatory for all vehicles passing through tolls to have FASTags. Vehicles
th
without FASTags will have pay up 2x normal rates at toll gates.
10.9.5 💳💳 🏧🏧 ATM and its Types
⇒ Automated Teller Machine (ATM) allow bank customer to withdraw money or check balance without
visiting any branch of a bank.
⇒ ATM network works on NPCi’s NFS (National Financial Switch).
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 from Economic
Times Article 2015.
White label Non-Bank owns and operates. E.g. Muthoot Finance, Tata Communication, Prism
⇒ In 2012: RBI invited application, 4 companies given license.
⇒ From 2013-19 no new applications invited.

⇒ 2019-Aug: RBI announced ‘on-tap’ licensing system for white label ATM i.e. a
company can apply to RBI as and when it wants (just like applying for driving
license), company doesn’t have to wait for applying (unlike IAS exam notification).
Micro-ATM Bankmitra manually makes entries of deposit and withdrawal for customer. He uses
handheld device for using card & Aadhar biometrics. NPCi’s AEPS technology gives
backend technological support.
2019-June: RBI setup V G Kannan Committee to examine ATM charges by banks such BankingGK
#notIMP4IAS.
10.10💳💳 MDR: FULL FORM: MERCHANT DISCOUNT RATE (�ापा�रक छू ट दर)

⇒ 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.
⇒ MDR hurts merchants’ profit margin, discourages them from adopting Point of Sale (PoS) terminals
(=card swiping machine) → obstacle to digital economy. �ापारी के मुनाफे पर असर होता है इस�लए वह काडर् मशीन
अपनाने म� उदासीनता िदखाते है
Table 9: 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.
MEITY ⇒ WEF 1/1/18: Ministry of Electronics & Information Technology (MEITY) started MDR-
subsidy to acquirer bank on bills upto ₹ 2,000, if payment made via Debit Card
⇒ Scheme valid for 2 years.
⇒ 🤩🤩Direct benefit: Encourage digital payments ecosystem.
⇒ Indirect Hidden benefit: Datamining of tax evading merchants
Budget ⇒ Nirmala.S’s Budget-2019: If biz.firm turnover >₹ 50 crore → It must provide facility to
accept Rupay debit card and UPI QR code. (Else penalty under Income Tax Act)
⇒ NO MDR on such transaction.
⇒ RBI and Banks will absorb this ‘burden’ as a benefit of not handling so much cash.
(Payments and Settlement Systems Act, 2007 rules amended for this part).
^ऐसी सब तकनीक� चीजों का िहंदी तैयार करने क� कोई ज�रत नहीं. Mains म� आसान भाषा म� �लख दो, “िड�जटल भुगतान को प्रो�ाहन देने के �लए
सरकार ने एमडीआर फ�स का बोज कम करने के �लए स��डी और अ� कदम उठाए है।“
10.11💸💸💸💸💸 📈📈 MEASURES TO PROMOTE LESS-CASH ECONOMY

⇒ During 2016-17 in the aftermath of Demonetization (�वमुद्रीकरण के बाद)

 Ratan Watal Committee to Finance Ministry for medium term recommendations to strengthen
digital payment ecosystem. (िड�जटल भुगतान पा�र��तक� तं त्र को मजबूत करना)
 Chandrababu Naidu chief ministers’ Committee to PM to promote digital payment.
 HRD ministry’s Vittiya Saksharta Abhiyan wherein college students explain people about digital
transactions. (िड�जटल भुगतान कै से कर� उसक� जागृ�त फै लाना)
 NITI+NPCi launched lottery / cashback schemes for customers (Lucky Grahak) and merchants
(Digi Dhan Vyapar). Government itself launched further referral bonus, cashback schemes for
using UPI-BHIM.
⇒ Budget-2017: imposed ceilings on cash transactions, gave tax incentives to companies for using digital
transactions, ⏬custom duties on ATM devices. (नगदी �वहारों पर रोकथाम, िड�जटल भुगतान अपनाने पर करों म� �रयायत)
⇒ Budget-2018: promised to explore blockchain technology [of cryptocurrencies] for promoting digital
economy.
⇒ Budget-2019 by Nirmala.S: imposed TDS on withdrawal of ₹1 cr/> cash from a single user account.
<More in 📑📑Pillar2: Taxation → Black Money> (अपने ब�क खाते से मोटी नगदी रकम उठाने पर टीडीएस लगेगा)
Table 10: Awareness campaigns for Digital Payments- ✋DONOT lose Sleep. बहोत �ादा उपयोगी नहीं है।
Digidhan ⇒ Ministry of Electronics and Information Technology (MeitY), to create awareness

Mission (2017) about digital payments. It’ll expire on 31/3/2020, unless renewed further.
⇒ MEITY also launched a DIGIDHAN DASHBOARD web portal to monitor the
digital transactions in India.
Digital Payment ⇒ MEITY + Google India + Data Security Council of India (DSCI, a not-for-profit
Abhiyan organization by NASSCOM)
(2019-Sept) ⇒ They launched this nationwide awareness campaign for digital payment- how to
use UPI, wallets, cards, online banking etc
10.11.1 �📒📒 RBI’s Nandan Nilekani Panel (2019: Jan to May)
Nilekani (Ex-chairman of UIDAI) gave total 70+ suggestions. Notable among them are:
Suggested Reforms @Government

⇒ Under Direct Benefit Transfer (DBT: प्र�� लाभ अंतरण) mechanism, Government transfers subsidies and
payments directly to beneficiaries account such as MGNREGA or Pahal-LPG subsidy.
⇒ But poor people withdraw cash from bank account entirely because local merchants not accepting digital
payments. So, raise awareness about BHIM-UPI and its adoption.
⇒ Government’s MDR subsidy expires on 2019-Dec. Extend it for another 2 years.
⇒ Give companies tax incentives (कर प्रो�ाहन) for using digital payments. ⏬ the taxes on the devices
required for digital payments.
⇒ Government organizations should not charge convenience fees (सु�वधा शु�) from citizens while accepting
digital payments. GSTN portal should allow card payments.

⇒ National Common Mobility Card (NCMC): Allow its usage in all transit routes and PoS. Future mobiles
may have NFC technology, then cards may become redundant anyways.
⇒ Setup Computer Emergency Response Team for finance (FIN- CERT: आपातकालीन प्र�तिक्रया टीम).
�📒📒 Nilekani’s Suggested Reforms @RBI

⇒ RBI should prepare area wise ‘Digital Financial Inclusion Index’ (िड�जटल �व�ीय समावेशन सूचकांक) to monitor
progress & take remedial steps. Ensure no user is more than 5 kms away from a banking access point.
Local vendor should be made Banking Correspondent (BC: ब�क�मत्र).
⇒ Setup an Acceptance Development Fund (िड�जटल भुगतान �ीकृ �त �वकास �न�ध) to develop digital payment
infrastructure in poorly served areas e.g. subsidy on PoS devices. RBI and Banks should co-contribute ₹ ₹
in this fund.
⇒ ⏬Reduce the MDR / card payment fees. Allow customer to do “x” no. of digital payment transactions
per month with no charges.
⇒ RBI should make NEFT available 24/7 and review charges on its usage. (2019-June: RBI removed charges
on both NEFT and RTGS and asked the banks to pass on the benefits to customers.)
�📒📒 Nilekani’s Suggested Reforms @NPCi

 NPCI shd offer RuPay and BHIM UPI in other countries to facilitate remittance to India.
 Encourage local language apps/ software for digital payments.
Nilekani also suggested many technical reforms but notimp4exam
🔠🔠❓MCQ. Who among the following was the Chairman of the Committee on Deepening Digital Payments
appointed by the RBI ? (Asked in CDS2019-II-Q116)
(a) H.R.Khan (b) Nandan Nilekani (c) N.R.Narayana Murthy (d) Sanjay Jain
10.11.2 �📒📒 Payment and Settlement Systems in India: Vision 2019 – 2021
RBI published this document in 2019-May. it repeated most of the points that Nilekani report said. As such
✋not much IMP unless preparing for RBI exams, then
rbi.org.in/Scripts/PublicationVisionDocuments.aspx?Id=921
10.11.3 🕵🕵🕵💳💳💳💳 Payments Infrastructure Development Fund (PIDF) 2020-Jun

 ₹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 इं फ्रा��र के �लए �न�ध/कोष: गांव, छोटे शहरों और उ�र-पूव� इलाकों म� �ापा�रयों को काडर् मशीन अपनाने के �लए मदद
10.11.4 🕵🕵🕵💳💳 📯📯 Scheme of Offline Retail Payments Using Cards and Mobile Devices
 While mobile phones, cards, e-wallets, etc.⏫ but, internet connectivity issues especially in remote
areas= obstacle to digital economy 😰😰😰😰

 So, 2020-Aug: RBI announced trials /pilot-testing for Off-line payments through cards, wallets and
mobile devices for small value transactions. (इं टरनेट बं द हो तब भी छोटी रकम के भुगतान िड�जटली िकए जा सके , इस प्रकार के
परी�ण आरबीआई करवा रहा है.)
 How this thing really works is not important for the scope of the exam. #�🚫🚫🚫🚫
10.12🕵🕵🕵💳💳 DIGITAL PAYMENT REGULATORY BODIES
10.12.1 🕵🕵🕵💳💳 Digital Transactions Ombudsman (2019)

⇒ RBI designates senior RBI officials at 21 places across India as DTO (िड�जटल लेनदेन �शकायत �नवारण अ�धकारी).
⇒ They hear customer complaints upto ₹ 20 lakh against prepaid payment instruments, Mobile wallets,
Apps, NEFT/RTGS and other digital transactions.
⇒ 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.
⇒ If matter > ₹ 20 lakh, then matter outside his jurisdiction. Victim has to approach ordinary courts
/consumer courts depending on the case matter.
10.12.2 🕵🕵🕵💳💳 Online Dispute Resolution (ODR) for Digital Payments (2020, Aug)
 RBI ordered Payment System Operators (PSO) to introduce Online Dispute Resolution (ODR) Systems in
a phased manner. (िड�जटल भुगतान क� फ�रयाद का कं �ूटर प्रणाली द्वारा �चा�लत समाधान)
 e.g. failed transaction / transaction done by sender but not reflecting to reciever. → Consumer files
complaint to PayTM/MobiKwick etc→ Computer Algorithm / ARTIFICIAL INTELLIGENCE will
resolve it automatically using certain rules
🤩🤩Benefit? Speedier resolution with minimum human intervention. (मानवीय ह��ेप �ूनतम. ज�ी से फ�रयाद हल)
10.12.3 🕵🕵🕵(Proposed) Payment Regulatory Board (PRB)

⇒ 1998: Narsimhan-II Committee on Banking Reforms suggested regulatory framework for e-banking, card
payment etc.
⇒ 2007: Payment & Settlement Systems Act (भुगतान और �नपटान प्रणाली अ�ध�नयम ) → RBI → (Statutory) Board for
74
Regulation and Supervision of Payment and Settlement Systems (BPSS: भुगतान और �नपटान प्रणाली के �व�नयमन
और पयर्वे�ण के �लए बोडर्). All payment system providers have to register with RBI’s BPSS- whether bank, non-
bank, wallet/Prepaid Payment Instrument (PPI) etc.
⇒ 2016: Ratan Watal Committee on digital payment suggested replacing this BPSS with a Payments
Regulatory Board (PRB: भुगतान �नयामक बोडर् ) in RBI, to look after Interoperability, Consumer protection,
74
Innovation, R&D in digital payments.

⇒ 2018: draft Payment and Settlement System Bill to implement it.
⇒ But, RBI vs Government difference of opinion about who should be chairman, how many members from
Government side etc. �रजवर् ब�क और सरकार के बीच मतभेद के चलते अभी तक बनी नहीं है

10.13🔗🔗💮💮 CRYPTO-CURRENCY & BLOCKCHAIN TECHNOLOGY
⇒ [Definition] Cryptocurrency: is a digital / virtual currency created & stored using blockchain
technology.िक्र�ोमुद्रा एक िड�जटल मुद्रा है �जसे �ॉकचेन तकनीक का उपयोग करके बनाया और सं ग्रहीत िकया जाता है।
⇒ [Definition] Blockchain: A secured decentralized database 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. एक डेटाबेस जो �रकॉडर् क� �नरंतर बढ़ती सूची
को �वके �ीकृ त �प से बनाए रखता है।
⇒ [Origin] Anarchist (अशासनवादी) groups lost faith in FIAT MONEY because Subprime Crisis (2007) eroded
the purchasing power of US Dollar. They also dislike BANK MONEY / DEPOSIT MONEY because of
transaction charges on e-banking, card payments, MDR, interoperability issues.
⇒ 2009: An anonymous user Satoshi Nakomoto launched a cryptocurrency ‘Bitcoin’, total 21 million coins,
wherein 1 Bitcoin (BTC) = 108 Satoshi (the smallest unit).
⇒ Ethereum, Litecoin, Digicoin, Laxmicoin, Ripple etc. are also cryptocurrencies.
3 ways to obtain
🥵🥵👎👎Negative Points / Challenges
Cryptocurrency
1) Mining - Graphics cards demand & price hike: 2x-4x times due to bitcoin mania. E-
of the blockchains using waste generation. Thermal Electricity wastage worth 20 megaton CO 2
powerful computers - If quantum computer invented it’ll solve blockchains in seconds, thus
श��शाली कं �ूटर द्वारा खनन crashing the value of Bitcoins.
2) Selling goods and - Bitcoin wallets have “public address” (like an email) & private key (like a
services to a miner / password). Unlike Paytm wallet, possible to create a Bitcoin wallet without
owner of any phone number or email id. So, difficult to trace by law enforcement
cryptocurrency agencies. Misuse in Narcotics, Illegal trade, Terror finance.**
- Selling goods/services in exchange of Bitcoins= Government deprived of
�जसके पास िक्र�ो मुद्रा है उसे GST, Custom duty, Income tax. सरकार को कर नहीं �मलेगा
कोई व�ु या सेवा बेचो - Scam: can’t get justice under Consumer Protection Act. ग्राहक सुर�ा कानून म� �ाय
नहीं �मलेगा
3) Exchanging legal - For traditional Rupee to Dollar exchange, Forex dealers have to register with
tender to buy RBI under FEMA Act. (Foreign Exchange Management Act, 📑📑Pillar#3)
cryptocurrency. - But, if ₹ or $ exchanged with Bitcoin = terror finance, sending black money
वैधा�नक मुद्रा क� मदद से िक्र�ो to tax havens. (आतं क� �व�पोषण, काले धन को बाहर भेजना)
मुद्रा को खरीदो - Bitcoin exchange rate: speculation, volatility, Government deprived of
Capital Gains Tax (CGT: पूंजीगत अ�भलाभ कर, 📑📑Pillar#2)
- Ponzy investment frauds- so, Government came up with ‘Banning of
Unregulated Deposit Schemes Ordinance, 2019’. (More in 📑📑Pillar1D:
Financial Inclusion.)
** Student Query: How is Bitcoin not traceable, I’ve read at XYZ that we can trace it using XYZ thing ? Ans.
we are not here for B.Tech (Computer Science) Semester exam. #�🚫🚫🚫🚫 #🕰🕰थोड़ा-पढ़ो-आगे-बढ़ो

🔠🔠❓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,SetB-Q20]

1. It is a public ledger that everyone can inspect, but which no single user controls.
2. The 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
10.14🔗🔗🔗🔗 CRYPTOCURRENCY LEGAL STATUS: → INDIA

India was neither the first nor the only country to ban cryptocurrencies. Nepal, Bangladesh, Morocco, Algeria,
Equator, Bolivia et al already banned it. (कई देशों ने इसे प्र�तबं �धत िकया है गैरकानूनी घो�षत िकया है)
⇒ 2017-18: Dinesh Sharma Committee to FinMin & Subhash Chandra Garg
committee to FinMin suggested Government to ban it.
⇒ 2018: Budget says Crypto-currencies are not legal tenders. We’ll eliminate use of
these crypo-currencies in financing illegitimate activities or as part of the payment
systems. (अवैध �व�ीय ग�त�व�धयों म� िक्र�ो मुद्रा का उपयोग बं द करवाएं गे)
⇒ RBI’s Institute for Development and Research in Banking Technology (IDRBT)-
studying how to use blockchain technology for promoting digital economy.
⇒ Since 2013, RBI had been warning people. 2018: RBI directed all banks/PPi/mobile-
wallet cos. to stop relations with any Cryptocurrency company.
10.14.1 💮💮💮💮💮💮 Cryptocurrency & India → RBI ban revoked by SC

Since 2013: RBI had been warning Indians not to get involved in cryptocurrency due to frauds, tax evasion
and terror finance. 2018: RBI directed all banks/NBFCs/PPI/mobile-wallet companies to stop relations with
any Cryptocurrency company. Then some cryptocurrency exchange website companies like CoinDCX etc
went to SC alleging that
⇒ Parliament has not made any law declaring this activity as illegal (unlike possession cocaine / narcotics.)
⇒ Even Japan, USA, Singapore etc has not completely banned investment in cryptocurrency but imposed
regulations to control its misuse/fraud. (सं पूणर्ता प्र�तबं �धत नहीं िकया बस इसक� �नगरानी के �लए स� कानून बनाए ह�)
⇒ Anekantavada philosophy of Jainism: 4 blind men try to describe an elephant but end up describing only
one physical feature of the elephant. (आरबीआई और सरकार को पता ही नहीं है िक िक्र�ो मुद्रा �ा चीज है)
⇒ Similarly, without fully studying the nature/impact of cryptocurrency, a blanket ban was placed, which
has killed their business since no bank is opening their bank accounts. (हमारे �वसाय के हक को छ�न �लया है)
⚖ 2020-March: SC revoked the RBI ban because (सुप्रीम कोटर् ने �रजवर् ब�क के प्र�तबं ध को हटा �दया �ोंिक):

⇒ Article: 19(1)(g): All citizens have the right to practise any profession (�वसाय का हक)- including those
companies dealing with cryptocurrency.
⇒ Same objective (financial fraud protection) could be achieved by imposing a less drastic ban.
⇒ So, RBI ban did not pass the test of proportionality.
o Proportionality test is a legal method used by courts in matters where State’s decision (for public
safety/welfare e.g. Aadhar card or Bitcoin ban) interferes with fundamental rights of people
(right to privacy, right to business)
o अनुपा�तकता क� परी�ा: सरकार जो जनिहत म� �नणर्य ले रही है, वह मूलभूत अ�धकारों का िकस अनुपात म� हनन कर रहा है?
What next? 🐯🐯RBI may release a calibrated regulation on cryptocurrency e.g. PAN card required, can’t
invest more than ₹”x” lakh per month etc. topic is still developing.
10.14.2 India → ⚖🔗🔗💮💮 Banning of Cryptocurrency Bill, 2019

⇒ Ministry of Finance→ Department of Economic Affairs has proposed a draft bill called the ‘Banning of
Cryptocurrency & Regulation of Official Digital Currency Bill, 2019’ (िक्र�ो�ूर�सी पर प्र�तबं ध और आ�धका�रक
िड�जटल मुद्रा का �व�नयमन �वधेयक, 2019).
⇒ It aims to ban the use of all types of cryptocurrencies issued by private operators. Non-bailable offense
(गैर-जमानती अपराध), jail upto 10 years.
⇒ However, (if and when) RBI launches a blockchain-based digital currency, it’ll be permitted. Anyways,
the Bill still in the draft stage, its features may be changed/modified in the final version, so #✋DONT-
LOSE-SLEEP. (अभी �सफर् मसौदा या प्रा�प बना है. जब �वधेयक पास हो जाए तब हमने उसको तैयार करना चािहए. )
10.14.3 🔗🔗🔗🔗 Cryptocurrency usage outside India (�वदेशों म� िक्र�ो मुद्रा का प्रयोग)
🌐🌐 UNICEF ⇒ United Nations International Children's Emergency Fund (UNICEF, HQ- New
York,USA; 1946, later renamed to UN Children's Fund)
⇒ 2019-Oct: UNICEF setup a Cryptocurrency Fund to accept donations in
cryptocurrencies. It has become the first UN organization to accept
cryptocurrency. (यू�नसेफ सं �ा दान म� िक्र�ो मुद्रा का भी �ीकार करती है)
⇒ 2018-Aug: World Bank launched World’s first blockchain bond called “Bond-i” in
Australia, denomination: Australian Dollars → public invests, gets ~2% interest
after 2 years.
⇒ Blockchain bond requires less cost in server / database /paperwork maintenance
🌐🌐 World Bank
unlike traditional bonds. More in Pillar#1C: SEBI/Sharemarket
⇒ World Bank’s report “Remittance Prices Worldwide 2020” says it costs an average
6-7%, to transfer money from one country to another, blockchain based money
transfer technologies can help ⏬ �ॉकचेन तकनीक द्वारा पैसा भेजने पर लागत खचर् म� कमी
⇒ World Economic Forum (WEF) is a non-government organization in Cologny-
Geneva, Switzerland. (�व� आ�थक मं च. गैर सरकारी सं गठन)
⇒ 2020-May: Published a document, ‘Blockchain Bill of Rights’ . Document talks
about rights to accountability, transparency, data privacy, data protection etc.
Bill of Rights (�ॉकचेन अ�धकार पत्र/�वधेयक: जवाबदेही, पारद�शता, डेटा गोपनीयता, डेटा सुर�ा आिद के अ�धकार)
⇒ Aims to set global standards for web-developers, corporates and governments
who’re building/using blockchain technology. (वै��क मानदंड बनाएगा)
But, WEF is not as big body as United Nation, and this report is not as great as the
United Nations’ Universal Declaration of Human Rights. So, ✋DON'T LOSE SLEEP.

Capital: Majuro, Sovereign state having free association with USA (for defense, social
security, budget). Legal Tender was U$D. But,
Marshall
⇒ 2018-Feb: became first country to launch sovereign cryptocurrency named
Islands
“Sovereign” [SOV]. So, now two legal tenders: U$D and SOV.
⇒ No anonymity unlike Bitcoins. (गुमनामी क� सु�वधा नहीं.)
- Bolivar currency =little value in Venezuela country due to hyperinflation, and failed
economy. (अ�ा�धक महंगाई के चलते बो�लवर मुद्रा का मू�/खरीद-श�� न के बराबर है)
- So, 2018: President Nicholas Maduro launched “Petro”- a cryptocurrency whose
price is linked with market price of 1 oil barrel. Their Supreme Court recognized it
as “Fiat money – Legal Tender”.
- Can be bought using Dollar, Euro, even other cryptocurrencies.
🈶🈶China - 2020: started trials to for Central Bank Digital Currency (CBDC)
10.14.4 🔗🔗🔗🔗🔗🔗 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 also have challenges: 1) money laundering (धनशोधन / काले धन को वैध बनाना) 2) terror
financing (आतं क� �व�पोषण) 3) lack of consumer protection (उपभो�ा सं र�ण क� कमी) 4) financial frauds (�व�ीय
धोखाधड़ी).
⇒ 2019-Dec: European Union announced, “No stable coins shall be allowed in EU until we frame law.”
⇒ 2019-Jun: G20 summit at Osaka, Japan. The leaders announced similar precautions. (इसी तरह क� सावधा�नयां)
10.14.5 🔗🔗🔗🔗🔗🔗 Cryptocurrency → Stable-coins → Facebook’s Libra

‘Libra’ is a blockchain based cryptocurrency to be launched in 2020 by Facebook's subsidiary company
'Calibra', using programming language 'Move'.
⇒ Visa, Uber, Paypal, PayU etc. also invested in project. But later some of these co-partners left
⇒ Unlike Bitcoin, this Libra coin’s exchange rate will be stable because Libra's value backed with Financial
assets like G-sec, fiat currencies.
⇒ You can buy Libra with Fiat Money → stored in Calibra wallet. Libra can be re-converted to fiat money.
⇒ Usage: Money transfer through Whatsapp, Online shopping.
⇒ All this may happen ONLYIF regulators permit. But France says, “we’ll not allow it in Europe.”
10.15🐯🐯🐯🐯🐯🐯 CENTRAL BANK DIGITAL CURRENCY (CBDC)
क� द्रीय ब�क िड�जटल मुद्रा / सं प्रभु िड�जटल मुद्रा

2020-May: People's Bank of China (PBC) started trials to issue its paper fiat money Yuan/Renminbi in digital
format. (कागजी �प म� मुद्रा छापने क� जगह, िड�जटल �प म� जारी करना → और उसे लाभाथ� को ई-ब�िकंग के ज�रए मुहयै ा कराना)
⇒ PBC will use supercomputer to create its fiat currency (Yuan also called ‘Renminbi’) in digital format →
transfer it to the recipient via e-banking e.g. loan to govt, salary to employee etc.
⇒ European Central Bank (ECB) and RBI have also setup internal committees to study the feasibility of
CBDC. (क� द्रीय ब�क िड�जटल मुद्रा क� �वहायर्ता के �लए स�म�तयां बनाई गई है)
⇒ 2020-Jan to Oct: China's digital Yuan trial experiment # ⚾📻📻⚾✋⏳📚📚थोड़ा-पढ़ो-आगे-बढ़ो
⇒ 2020-Oct: USA's stand: " we don't want to be the 1st to launch the digital currency, rather, we want to do
it error-free. Because there are many risks associated" (इसम� जो�खम ब�त है इस�लए हमको ज�बाजी म� सबसे पहले इसे
लागू करना नहीं है)
10.15.1 🐯🐯🐯🐯🐯🐯=👌👌👌👌Benefits of CBDC

CBDC/ Sovereign Digital Fiat Money / Digital Base Money will provide following benefit
1. ⏬ Cost printing and transporting physical currency. लागत और प�रवहन खचर् म� कमी
2. ⏬ Scope for counterfeiting. जाली नोट बनाना मु��ल
3. ⏫Traceability, ⏬Anonymity: सुराग लगाना आसान, गुमनाम/अ�ात रहेना मु��ल
a. Whether money is reaching the intended beneficiary or not? (लाभाथ� को योजना का पैसा �मला िक 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 �नगरानी आसान)
4. ⏬ masshysteria of Bitcoin & other Cryptocurrencies, which are issued by private actors & pose danger
of Terror Finance, Narcotics etc. (�नजी �ेत्र द्वारा जारी िक्र�ोमुद्रा के प्र�त लोगों का आकषर्ण/ सामूिहक पागलपन कम होगा.)
5. ⏫ Homogeneity and promptness of disbursal: (��रत और एक �प तरीके से पेसा हर जगह/ हर �� को भेजना)
a. With the click of a button, Money could be sent to beneficiaries’ account whether he is located in
Kashmir or Kanyakumari. Irrespective of Curfew/Lockdown/Floods/Bank Hartals- Students will
receive scholarship, farmers will receive subsidy, and senior citizens will receive pension.
6. Can be evolved into a Programmable Digital Currency to control the allocation of new money for
development of various sectors. (अलग-अलग �ेत्रों के �वकास के �लए पैसे को "प्रोग्राम" करके भेजना)
a. E.g. if RBI issues Programmable-Digital-Rupee → SBI → Student Loan → its Interest rate will
be automatically “X%”,
b. but if SBI manager tries to circulate this money as loan-4-buying-luxury-iphone then A) either
computer system will reject it or B) change interest rate to Y%
c. [How will that work? Ans. ✋🎓🎓 #Boycott-PHD #थोड़ा-पढ़ो-आगे-बढ़ो.]
7. ⏬🤮🤮 Spread of virus through physical currency notes. [Mains Logical Structure: low level benefits
should be written at the bottom part of the answer.]
10.15.2 🐯🐯🐯🐯🐯🐯= ✋🥵🥵Challenges of CBDC

1. Digital Divide, Financial Literacy, Access Points: (िड�जटल उपकरणों क� उपल�ता क� खाई, �व�ीय सा�रता का भाव,
िड�जटल भुगतान इ�ेमाल करने के प�ंच �बंदओ
ु ं क� कमी)
a. Not everyone has electronic gadgets or internet connectivity,
b. Not everyone knows how to operate bank account digitally,
c. Not every village shopkeeper accepts payments in the digital form.
2. Cyber Terrorism/Nuclear Attack/Natural Disaster. If electronic equipment stops functioning →
economy will stop functioning. (साइबर आतं कवाद / परमाणु हमला / प्राकृ �तक आपदा: �वद्युत उपकरण बं द तो अथर्�व�ा बं द)

10.15.3 🐯🐯🐯🐯🐯🐯� CBDC: Conclusion / �न�षर्
 Considering above charms and challenges, CBDC
 can ‘supplement’ physical currency BUT cannot substitute/replace it completely, for India. (िड�जटल मुद्रा,
कागजी मुद्रा क� 'पूरक' तो हो सकती है, लेिकन 'स�ूणर् �वक�/एवज' नही)
� Mrunal Comments: We’ve accumulated sufficient points for 250 words. Beyond this further
PHD/intellectualism is unnecessary e.g. USA has blocked Syrian/Iranian banks from accessing the
SWIFT system used in international money transfer. But, China will setup parallel digital messaging
system to transfer digital yuan to fund Iran/Syria for its own subversive purposes against USA. If you
start writing these side-points, you will miss the core points, while time & word limit will be over.
10.16ESSAY: CASHLESS ECONOMY- CHARMS AND CHALLENGES

नगदी-रिहत अथर्तंत्र के आकषर्ण और चुनौ�तयां
- (Origin) In ancient times, people used to trade with each other using barter system. But its limitations _ _
_ _ <give evolution story>. प्राचीन काल म�, लोग व�ु �व�नमय प्रणाली का उपयोग करके एक दू सरे के साथ �ापार करते थे। लेिकन
इसक� मयार्दाओने पैसों को ज� िदया।
- (Definition) A cashless economy is an economy where financial transactions are not conducted with
money in the form of physical banknotes or coins, but rather through electronic methods such as _ _ _
<insert examples>. नगदी-रिहत अथर्तंत्र �व�ीय लेनदेन भौ�तक/नगदी ��प के �स�ों या ब�कनोट म� नहीं, ब�� इले��ॉ�नक तरीकों से
�व�ीय लेनदेन िकए जाते ह�
Stakeholder 🤩🤩: Charms आकषर्ण 😰😰: Challenges चुनौ�तयां
- Saves cost of printing new - MDR, Interoperability, Fintech companies
currency (Rs.27 billion a year) – evolving more rapidly than legal
environment, framework.
- Better efficacy of monetary - KYC: Aadhar vs privacy debate (Ref:
policy updates, NPA/fraud Polity, SC Judgement) आधार काडर् और नाग�रक
surveillance.(More in क� �नजता का सं घषर्
📑📑Pill1A2)
- Better tax surveillance, checks on - Power, telecom infra not available
fake counterfeit currency terror everywhere. बु�नयादी सं चार सु�वधा क� कमी
finance, - Government itself must become a role
- targeted delivery of agri-loans model first in handling tax, tender, tolls,
and subsidies/ DBT: Annually ₹ procurements through digital payment.
1 lakh crore can be saved. सरकारी �वभाग खुद नगदी म� काम पसं द करते है
- Can save farmers from - To encourage digital payment if subsidy,
moneylenders, and poor families tax breaks, lotteries given for perpetual
from Ponzi schemes. (More in time → fiscal deficit. लॉटरी दे दे कर लोगों को
Govt.
📑📑Pill1D) लुभाते रहे तो सरकार का �व�ीय घाटा बढ़ जाएगा
- Post-Demonetization, digital transactions
↑ but then again ↓ so, punitive measures
= :-( सजा देने से लोग सुधरते नहीं

Stakeholder 🤩🤩: Charms आकषर्ण 😰😰: Challenges चुनौ�तयां
Secure, difficult to steal, time, - Digital divide, Low financial literacy-
convenience, financial inclusion. notion of security with holding physical
सुर��त, चोरी करना मु��ल, समय, सु�वधा, �व�ीय currency. सब के पास िड�जटल उपकरण और िड�जटल
समावेशन भुगतान इ�ेमाल करने क� जागृ�त/सा�रता नहीं है
Household - Cyberfrauds, Card cloning, service fees on
NEFT / card payments. जालसाजी/धोखाधड़ी
Homework homework
Businessman
10.16.1 ✍ Conclusion: Cashless Economy (�न�षर्)

- Digital payment is not a panacea, nor is cash all bad. For a developing country like India, “Less cash”
economy better than “Cashless” economy.
- िड�जटल भुगतान को राम-बाण / सवर्रोगहर औष�ध मानना गलत. नगदी �पया हमेशा ही खराब चीज है, ऐसा सोचना भी गलत। भारत जैसे
�वकासशील देश के �लए 'नगदी-रिहत' बनना उपयु� नहीं। िकंतु, नगदी का प्रयोग 'कम' करने क� ज�रत अव� है.)
10.16.2 �🎷🎷🌞🌞1⃣✋ Mock question for Mains/ESSAY

1. Essay: The tenability of work from home. घर से काम- िकतना मुना�सब/तकर् सं गत?
2. Essay: Money is not the root of all evil, greed is. पैसा नही, लोभ सभी बुराईओ का मूल है.
3. (GSM2: e-governance) In the aftermath of the Corona pandemic, there has been greater thrust towards using
electronic mode for doing any activity from home. In this regard, enumerate the charms and challenges of following
in 150 words each
• A) Virtual Parliament (वचुर्अल सं सद) B) Virtual Courts (वचुर्अल �ायालय)
• C) E-Diplomacy (ई-कू टनी�त) D) E-Learning (ई-�श�ा)
4. (GSM3) In 2020, People's Bank of China started experimentation on Central Bank Digital Currency (CBDC).
Examine critically, the charms and challenges of such initiatives for Indian monetary system. 250 words. चीन का ‘क� द्रीय
ब�क िड�जटल मुद्रा’ प्रयोग. भारतीय मौिद्रक प्रणाली के �लए, इस तरह क� पहल के आकषर्ण और चुनौ�तयां क� समी�ा क��जए
5. (GSM3) “While regulatory clearance to cryptocurrencies can open Pandora’s box, the underlying blockchain
technology holds panacea for various areas of governance and economy”. Explain in context of India. 250 words.
िक्र�ो मुद्रा को अनुम�त देने से �वनाश क� प�र��त का �नमार्ण, िक�ु अंतर्�निहत �ॉकचेन टे�ोलॉजी प्रशासन और अथर्तंत्र के �लए रामबाण इलाज बन सकती है.
6. (GSM3) Explain these two terms with respect to ‘less cash economy’ (‘कम नगदी वाले अथर्तंत्र’ के प�रपे� मे): (1) MDR (2)
Interoperability. (150 words)
7. (GSM4) Educational institutions play an important role in inculcating values in students. Examine the ways in
which ‘E-Learning’ amplifies and diminishes that role. �वधाथ�ओमे मू�ों का �संचन करने क� शै��णक सं �ानो क� भू�मका को ई-�श�ा
िकतना मजबूत और कमजोर करती है? समी�ा क��जए।
8. (GSM4: CASE Study) Phulmati Devi visited Ujjwal Bank to withdraw money from her mother Lajmati Devi’s bank
account. She claimed, “my mother is 100 years old, and unable to come in person, due to severe illness. So, she has
sent me on her behalf.” But, Cashier refused to give money. He insisted for physical verification that mother Lajmati
Devi is indeed alive & wishes to withdraw money. Next day, Daughter Phulmati placed her mother on a cot and
dragged cot to the bank (बूढ़ी माँ को चारपाई पे �लटाकर, बेटी चारपाई घसीटते �ए ब�क तक आई). A bystander shot the video, which
became viral on social media, drawing much criticism of the public against the bank's apathy towards poor people.
(गरीबो के प्र�त उदासीनता). As the chairman of Ujjwal Bank, how will you tackle this crisis and prevent its recurrence in
future? 250 words (इस ब�क के चेयरमेन क� भू�मका मे आप इस सं कट से कै से �नपट�गे और भ�व� म� इसक� पुनरावृ�� को के से रोक� गे?)
📑📑Next Handout: Pillar1A2: Monetary Policy: CRR, SLR, Repo etc.

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Mrunal’s Economy for UPSC & Other Competitive Exams 2021

🎙🎙Instructions for Live Class

(Batch:PCB2) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 1

(Batch:PCB2) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 2

Prelims P1 (GS 100 🔠🔠❓MCQs) Mains GSM-1-2-3 (750 Marks)

10 💸💸ECONOMY PILLAR #1-A1) MONEY: BARTER TO BITCOIN

10.3 📏📏Money: Functions of (पैसे के कायर्) .......................................................................................................... 6

10.4 💵💵 Money: Evolution & Types (मुद्रा क� उ�ां�त व् प्रकार) .............................................................................. 6

10.4.2 🥇🥇Metallic Money / धातु मुद्रा (Intrinsic value? Yes)........................................................................ 6

10.4.3 💵💵Paper Money / कागजी मुद्रा (Intrinsic Value? No) ....................................................................... 7

10.4.4 💵💵⚖Legal Tender (वैधा�नक �न�वदा).................................................................................................. 7

10.4.5 � (New) Visually Handicapped (VH) friendly Coins, 2019-March .......................................... 9

10.4.7 💵💵 (NEW) Mahatma Series Currency Notes in India .................................................................. 9

10.4.8 💵💵 “I promise to pay the bearer…”: Meaning of this promise? ................................................ 10

10.5 🤫🤫🤫🤫🤫🤫🤫🤫 Redenomination: drop zeros, change name................................................................... 10

10.5.1 🤫🤫🤫🤫🤫🤫🤫🤫 Iran = Toman to replace Iranian Riyal (2020) ...................................................... 11

(Batch:PCB2) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 3

10.6 🐷🐷🐷🐷Bank Money / Deposit Money .................................................................................................... 11

10.6.1 🐷🐷🐷🐷 Paper orders: Cheque, Demand Draft (DD).................................................................... 11

10.6.2 🐷🐷🐷🐷 Cheque → NPCi’s Cheque Truncation System (CTS-2010)......................................... 12

10.6.3 🐷🐷🐷🐷🐷🐷 Cheque → Positive Pay Mechanism for Cheques .................................................... 12

10.7 🐷🐷🐷🐷🐷🐷 Electronic Orders / Digital payment .................................................................................... 12

10.7.2 💸💸💸💸Next Generation Treasury Application (NGTA), 2020-Oct ............................................ 13

10.7.3 💸💸💸��Interoperability Problem (इं टरोऑपरे�ब�लटी) ............................................................. 14

10.8 �What is NPCi?..................................................................................................................................... 14

10.8.2 �📜📜📜📜 Perpetual Licence for Payment System Operators? .................................................. 16

10.8.4 � Google Gpay / Tez App............................................................................................................ 17

10.8.5 💸💸💸💸 Digital Payment- Misc: → Semi-closed PPI (2019) ........................................................ 17

10.9 💳💳 Credit & Debit Cards (also called ‘Plastic Money’)....................................................................... 18

10.9.1 💳💳 Card Types based on Security Features: ................................................................................. 19

10.9.2 💳💳 📧📧 Card Tokenization (RBI allowed it, 2019) ...................................................................... 19

10.9.3 💳💳 🚕🚕 National Common Mobility Card (NCMC, 2019) ........................................................ 19

10.9.4 💳💳 🚕🚕 FASTag for paying toll fees at highways (2017) ............................................................. 20

10.9.5 💳💳 🏧🏧 ATM and its Types ............................................................................................................. 20

10.11 💸💸💸💸💸 📈📈 Measures to promote Less-Cash Economy .............................................................. 21

10.11.3 🕵🕵🕵💳💳💳💳 Payments Infrastructure Development Fund (PIDF) 2020-Jun ........................ 23

10.12 🕵🕵🕵💳💳 Digital Payment Regulatory bodies ...................................................................................... 24

10.12.1 🕵🕵🕵💳💳 Digital Transactions Ombudsman (2019) ...................................................................... 24

(Batch:PCB2) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 4

10.13 🔗🔗🔗🔗 Crypto-Currency & Blockchain Technology ....................................................................... 25

10.14 🔗🔗🔗🔗 Cryptocurrency legal status: → India ................................................................................. 26

10.14.1 💮💮💮💮💮💮 Cryptocurrency & India → RBI ban revoked by SC .............................................. 26

10.14.2 India → ⚖🔗🔗🔗🔗 Banning of Cryptocurrency Bill, 2019....................................................... 27

10.14.4 🔗🔗🔗🔗🔗🔗 Cryptocurrency → Stable-coins ................................................................................ 28

10.14.5 🔗🔗🔗🔗🔗🔗 Cryptocurrency → Stable-coins → Facebook’s Libra ........................................... 28

10.15 🐯🐯🐯🐯🐯🐯 Central Bank Digital Currency (CBDC) ........................................................................ 28

10.15.1 🐯🐯🐯🐯🐯🐯=👌👌👌👌Benefits of CBDC ............................................................................................ 29

10.15.2 🐯🐯🐯🐯🐯🐯= ✋🥵🥵Challenges of CBDC ...................................................................................... 29

10.15.3 🐯🐯🐯🐯🐯🐯� CBDC: Conclusion / �न�षर् .................................................................................... 30

10.16.2 �🎷🎷🎷🎷1⃣✋ Mock question for Mains/ESSAY ....................................................................... 31

(Batch:PCB2) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 5

10.4 💵💵 MONEY: EVOLUTION & TYPES (मुद्रा क� उ�ां�त व् प्रकार)

10.4.2 🥇🥇Metallic Money / धातु मुद्रा (Intrinsic value? Yes)

(Batch:PCB2) Mrunal’s Economy Pillar#1A1 Money: Barter to Bitcoins → Page 6

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