RBSE Solutions for Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions are part of RBSE Solutions for Class 7 Social Science. Here we have given Rajasthan Board RBSE Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions.
| Board | RBSE |
| Textbook | SIERT, Rajasthan |
| Class | Class 7 |
| Subject | Social Science |
| Chapter | Chapter 16 |
| Chapter Name | Reserve Bank of India (RBI) and Its Functions |
| Number of Questions Solved | |
| Category | RBSE Solutions |
Rajasthan Board RBSE Class 7 Social Science Chapter 16 Reserve Bank of India (RBI) and Its Functions
Exercise from textbook
Question 1.
Fill in the blanks
(i) Central Bank of India is ………
(ii) The function of Reserve Bank of India is to ……… the ……… system of the country and to monitor it.
(iii) The most popular account for the people is ………….
(iv) Duration of maturity for a recurring deposit account may be from ………….. to …………
(v) Some banking activities can be done by using ………..from a mobile phone.
(vi) With the use of NEFT, amount deposit can be done within ……….hours to the account of beneficiary.
Answer:
(i) Reserve Bank of India
(ii) regularise banking, financial
(iii) saving bank account
(iv) 6 months, 120 months
(v) mobile banking
(vi) 2.
Question 2.
When was Reserve Bank of India established ?
Answer:
In 1935.
Question 3.
Who is the governor of Reserve Bank of India, at present ?
Answer:
Mr Urjit Patel.
Question 4.
Mention one advantage of saving account over a current account.
Answer:
There is no interest on the depoist in current account, whereas we get interest on the deposits of saving account.
Question 5.
Write down names of different Bank accounts.
Answer:
Names of Bank Accounts :
- Current Account
- Saving Account
- Recurring Deposit Account
- Fixed Deposit Account.
Question 6.
Mention the name of the account which fetches no interest.
Answer:
There is no interest on the deposits in current account.
Question 7.
What is RTGS?
Answer:
RTGS is a system, by which an amount from a customer of any bank account can be transferred to any account of any customer of another bank by way of electronic orders/placements. In this system, a minimum amount of 2 Lakhs can be transfered on a real time basis.
Question 8.
What is NEFT ?
Answer:
NEFT is a banking system whereby if a person desires to make a payment to a person or company, he/she can contact his/her bank and transfer the payment to the beneficiary directly. In this system the transfer of money to the account of the beneficiary is done within two hours. There is no limit of money for the transfer through this system.
Question 9.
Describe about Internet Banking.
Answer:
Internet banking is such a system by which people (customers) can use banking activities by Internet from any place of any time without going to the bank branch. By this teachnology, online exchange, enquiry of account and payment of bills can be done.
Question 10.
Distinguish in clear terms between NEFT and RTGS.
Answer:
Transaction between NEFT and RTGS is tabulated as follows :
| N.E.F.T. | R.T.G.S. |
| (i) By this provision a person, who wants to make payment to other person or company can contact his or her bank and ask it to transfer amount directly to the account of the specified person or company | (i) By this, in order to transfer money from the account of any customer of any bank to another customer of any other bank, electronic
instructions/orders can be placed. |
| (ii) By this, the money is transfered to the account of the beneficiary within two hours. | (ii) This provides facility of immediate transfer of cash from one account to another within different cities. |
| (iii) In this method of transfer, there is no limit minimum or maximum of the amount to be transferred. | (iii) By this system, a minimum amount of 2 lakhs is transferred on a real time basis. |
Question 11.
What is mobile banking?
Answer:
Mobile Banking : The process/ technology to perform or utilize certain banking related activities, such as inquiry of account balance, transfer of money, payment of bills etc. with the use of a mobile net (phone) is called mobile banking. A customer can get his facility by way of registration with the bank.
Activities From Textbook
Activity
Question 1.
Mention the list of notes issued by the Reserve Bank of India.
Answer:
Reserve Bank of India issues ‘note’s of the following denomination :
- 2
- 5
- 10
- 20
- 50
- 100
- 200
- 500
- 2000.
Question 2.
With the help of your teacher, mention the names of ten leading bank of India.
Answer:
Names of ten leading (main) banks of India are as follows :
- State Bank of India
- Bank of Baroda
- Punjab National Bank
- Syndicate Bank
- Bank of Maharashtra
- I.C.I.C.I. Bank
- Axis Bank
- Yes Bank
- HDFC Bank
- Union Bank.
Other Important Questions
(A) Objective Type Questions
Question 1.
The Central Bank of India is :
(a) The Reserve Bank of India
(b) State Bank of India
(c) Union Bank
(d) None of these
Answer:
(a) The Reserve Bank of India
Question 2.
The main function of Reserve Bank of India is:
(a) To issue currency .
(b) To manage foreign money (exchnage)
(c) Government Banker
(d) All these
Answer:
(d) All these
Question 3.
When a bank receives money from public, the money is called :
(a) Credit Card
(b) Debit card
(c) Deposit money
(d) Loan
Answer:
(c) Deposit money
Question 4.
The most popular account is :
(a) Current Account
(b) Saving Account
(c) Recurring Deposit Account
(d) Fixed Deposit Account
Answer:
(b) Saving Account
Question 5.
New Banking technology is :
(a) RTGS
(b) NEFT
(c) Internet Banking
(d) All the above
Answer:
(d) All the above
(B) Fill In the Blanks
1. Reserve Bank of India was established in ………..
2. Coins and one-rupee notes are issued by ……….
3. Notes issued by the R.B.I. bear the signature of ……….
4 ………… is a form of short-term credit.
5. In a traditional way, ………..accounts can be repened in Indian Banks.
6. Time duration of a fixed deposit account is from ……….. to ………….
Answer:
1.1935
2. Government of India
3. Governor of the Reserve Bank of India
4. Credit card
5. Four types of
6. 7 days, 10 years.
(C) Very Short Answer Type Questions
Question 1.
Write the name of the Central Bank of our country.
Answer:
Reserve Bank of India.
Question 2.
State main functions of Reserve Bank of India.
Answer:
The main functions of Reserve Bank of India is to regularise Banking and Financial system of the country and keep monitoring over it.
Question 3.
What ‘pledge’ is written on the notes issued by Reserve Bank of India.
Answer:
“I promise to pay the bearer the sum of rupees”.
Question 4.
Whose signature is put on one-rupee note ?
Answer:
Finance Secretary, Government of India.
Question 5.
What is a Bank ?
Answer:
Bank is such an institution which receives deposits and then lends money on loan with interest.
Question 6.
What is a loan ?
Answer:
When a bank provides money on credit for the works such as house construction, purchase of car etc., start of a business and farming purpose, then it is called a loan.
Question 7.
What is a credit card ?
Answer:
It is a card issued by the bank by which its holder has an alternative of purchase goods and services without making actual payment. This card is called credit card.
Question 8.
What is a Debit Card ?
Answer:
It is an electronic card issued by the bank and by way of its use, its holder can withdraw money or can purchase services as the holder gets direct contact to its bank account. This type of card is called a Debit card.
Question 9.
Recurring deposit account is opened for what duration ?
Answer:
A recurring deposit account is opened for a duration of 6 months to 120 months.
Question 10.
Which account is the most appropriate one for those who have small monthly savings ?
Answer:
Recurring deposit account.
Question 11.
By RTGS, how much minimum amount is transferred immediately.
Answer:
2 lakhs.
Question 12.
By NEFT, within, how much time, the money is transferred to the account of the beneficiary ?
Answer:
Within 2 hours.
Question 13.
How can a customer get the facility of mobile-banking ?
Answer:
A customer can get the mobile banking facility by way of registering in his bank.
(D) Short Answer Type Questions
Question 1.
Specify the main functions of Reserve Bank of India.
Answer:
The main functions of Reserve Bank of India are as follows :
- Issuance of currency
- Government’s banker and its loan management
- Banker for banks
- Regulation of financial institutions and their monitoring
- Management of foreign currency
- Regulation and monitoring of payment and settlement systems
- To maintain financial ownership.
Question 2.
What do you know of Debit Card ?
Answer:
Debit card is an electronic card issued by a bank and with the use of it, a card holder can withdraw cash or purchase services without visiting his bank branch. He can also make payment by ATM at shops through electronic channel. By this card, payment is directly made to the account of the seller.
Question 3.
What is Automated Teller Machine ? Explain in brief.
Answer:
Automated Teller Machine is known as ATM. It is such an electronic machine by which a customer can perform/utilize different banking facilities such as – withdrawal of cash, enquiry for account balance, payment of bills and transfer of money. This machine provids round-the-clock services. For the use of this, a customer has to go to ATM machine. He has to insert ATM/Debit card into the ATM system.
The system asks for a pin number as an alternative identity proof with the secret pin number being correct, the ATM system provides permission to execute transactions.
Question 4.
Explain about Saving bank account.
Answer:
Saving Bank Account (A/c) : It is the most popular account this account is opened with an aim to allow customers to save money and also motivate them to deposits. These accounts provide minimum interest rates. These accounts are oepned in the name of an individual or in joint names.
Question 5.
Write a brief note on Recurring deposit account.
Answer:
Recurring deposit account is also known as RD account. This account is opened for those who wish to make regular deposits in the account in order to get benefit of higher rates. In this account, a fix amount is deposited every month and a sum of amount with interest is paid to the depositor at the time of its maturity. This account is quite useful for the people having small savings in a month. This account is opened for a time period starting from 6 months to 120 months. This account is opened in the name of an individual or even in joint names.
Question 6.
What do you know about Fixed Deposit Account ?
Answer:
Fixed Deposit Account: This account is known by the name, ‘FD account’. This account is opened with a fixed amount for a specified period of time. This duration may be from 7 days to 10 years. At the time of its maturity, a sum with interest is paid. This account cannot be closed or withdrawn before the date of its maturity, but under compulsion of a need, this account can be closed with a payment of certain monetary penalty. The duration of such an account can be renewed for the next duration.
Question 7.
How can an account be opened by a minor/an under aged in a bank ?
Answer:
According to the rules of Reserve Bank of India, a minor of an age over ten years is authorised to independently open and operate a saving account. Further more a minor of any age can open a saving account, fixed or recurring deposit account through his/her natural or legally appointed guardian or Patron.
(E) Long Answer Type Questions
Question 1.
Explain with regard to banking technologies. Or Which services are being provided by banks with the use of new technologies.
Answer:
1. Real Time Gross Settlement (R.T.G.S.) : It is such a system through which an electronic direction is given to transfer cash from an account of any person of any bank to the account of any person (Customer) of any bank. By the use of this technology, there is a facility to immediately transfer cash from one account to another in different cities. In this context, an amount of minimum ? 2 lakhs can be transferred immediately.
2. National Electronic Funds Transfer (NEFT) : It is such a system through which if any person wants to make payment to another person or a company, (then) he/she can approach his/her bank branch and asks it to transfer the amount from his/her account to
the account of the recipient (beneficiary) directly. By this, the ordered amount in transferred to the account of the beneficiary within 2 hrs. By this methodology, there is no minimum or maximum limits of the money being transferred.
3. Mobile Banking : The process/technology to perform or utilize certain banking related activities, such as inquiry of account balance, transfer of money, payment of bills etc. with the use of a mobile net (phone) is called mobile banking. A customer can get his facility by way of registration with the bank.
4. Internet Banking : By this technology, people (customers) can utilize banking, activities from any place at any time, without visiting his bank branch. With the use of inter¬net banking on-line enquiry on the account balance, payment of bills etc. can be done.
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