Chapter 13 of 30
Revision Notes
Banking — Revision Notes
Telangana Open School (TOSS) · Class 12 · Economics
Banking revision notes for Telangana Open School (TOSS) Class 12 Economics: 4 topics in quick points. Includes Concept and Definitions of Banking.
44 questions30 flashcards5 concepts
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Key Topics to Revise
1
Concept and Definitions of Banking
- The word 'banking' comes from the Greek word 'banque', meaning bench.
- In ancient times, temples were used as depositories for money and lending.
- Modern banking began in the 19th century with the development of commercial banks.
2
Functions of Commercial Banks
- Accepting deposits: Current, Savings, Fixed, and Recurring deposits.
- Providing loans and advances: Demand loans, short-term loans, cash credit, overdraft, bill discounting, and credit cards.
- Credit creation: Banks create money by lending more than their cash reserves.
3
Net Banking and Digital Services
- Net banking allows customers to perform banking transactions online via internet or mobile apps.
- Services include fund transfer, bill payment, account statements, and online shopping.
- Examples: NEFT, RTGS, ECS, mobile banking.
4
Reserve Bank of India (RBI)
- Established on April 1, 1935, nationalized in 1949.
- Objectives: Monetary stability, price stability, regulating credit, and financial supervision.
- Functions: Issue of currency, banker to government, banker’s bank, lender of last resort, clearing house, custodian of forex, credit control.
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Full NotesKey Concepts
Financial institutions that accept deposits fromPrimary functions include accepting depositsBanks create credit by lendingOnline banking allows customers to performThe central bank of India established
Frequently Asked Questions
What are the important topics in Banking for Telangana Open School (TOSS) Class 12 Economics?
Key topics in Banking include Concept and Definitions of Banking, Functions of Commercial Banks, Net Banking and Digital Services, Reserve Bank of India (RBI). Study these first, then practise questions on each for the Telangana Open School (TOSS) Class 12 board exam.
How should I revise Banking for the Telangana Open School (TOSS) Class 12 board exam?
Learn the core ideas first, then work through the 44 practice questions on Banking. Revise definitions regularly and use flashcards for quick recall before the exam.
Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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