Basic Financial Education by RBI Raju and the Skyladder

Basic Financial Education by RBI Raju and the Skyladder - Transcript

Financial Education Series
Basic Banking
In this booklet, through the experiences of Raju, we learn about the
importance of banking habits and how our money grows when saved in a
bank. The saga of Raju's adventures is also available at
www.rbi.org.in/financialeducation

* Published in February 2008 by Reserve Bank of India, New Delhi
For more information or to get this comic book, you may please write or call:
Reserve Bank of India
Information Cell
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New Delhi-110001
011-23731463
Email id:infocellnewdelhi@rbi.org.in
I
Raju was living happily with his mother in his village. He had a
garden full of trees which bore delicious fruits and he made
a good living by selling them at a good price.
Raju used his money wisely. After purchasing the monthly grocery and household
goods......
....Raju saved the rest in his
bank account.
1
2Time passed smoothly for Raju. Lying on his cot under the star studded sky at night,
Raju often dreamt about using some money and his experience to help others prosper in
life like Gopi Chacha had helped him.
One night Raju had a new dream.
He dreamt that he was climbing
a skyladder and was amazed to
find himself amidst the stars
and the moon and the skyladder
was branching out like a bridge
leading to various stars.
3I will ask Gopi
Chacha. He will
definitely tell me
how this can be
made possible.
What's the matter? Can we get a skyladder which will also act as a bridge to
prosperity for all the people in our village?
Raju eagerly waited for Gopi Chacha's
visit.
Why can't we have a sky ladder like that
leading to success and prosperity?
Thank God, you
have come! I
was anxiously
waiting for you.
4Listen Raju, making a skyladder and
starbridges requires a great effort.
But even the longest journey starts
with a small step!
See how you learnt to save money and
have come to lead a comfortable life.
You can teach your friends also to do
that. This is the first step and it will
put all of you on the road to prosperity.
What? A skyladder? A bridge to
prosperity? Hmmm… Yes, I get
the idea!
Gopi Chacha was amazed at Raju's
imagination.
How and where shall we start,
Gopi Chacha?
Here goes Raju
with one more of
his dreams.
Let me see
i f I c a n
m a k e h i s
dream come
true.
5Meanwhile, Raju
started visiting
t h e b a n k a n d
discussing with
the bank manager.
He gathered a lot
of information.
One day Raju and Gopi Chacha were passing by Shamu's house. Shamu was sitting with
his father Bhola and sister Tara. They were excitedly discussing something. Raju and
Gopi Chacha joined them.
Well, I am sure, a person like you will soon find an
opportunity to do this.
On the way to bank....
6Tara, what's that paper you
are holding in your hand?
Raju took the cheque and examined it
closely.
....You can withdraw the money from
your account as and when you need it.
My school has given me a
scholarship of Rs. 1000 per
month and this is the first
time I have ever seen a
cheque.
And we don't
know what to
do with it.
Simple.
Open a bank account. Once the money
gets deposited in your bank account...
7But I have heard that anyone can
directly give the cheque to a bank
and exchange it for cash?
Yes, but you can't do
that with this cheque.
Why not?
Well, see this cheque? It is an account
payee cheque. Do you see the two diagonal
lines at the top left hand side corner?
This is called the 'crossing' of the
cheque. When the cheque is crossed
and made account payee, you can not
directly receive the payment in cash at
the bank counter.
8The amount mentioned in a crossed or an account
payee cheque can only be credited to the bank
account of the person whose name is written in the
first line of the cheque.
Had the cheque been a bearer cheque
meaning if it had not been crossed at the
top,
Anyone could have exchanged it for
cash by producing it at the bank
counter. It's not very safe.
OR
BEA
RER
ABC
BAN
K
This ensures that your money
reaches only you and no one else.
1001
500
307
268
AB
C
BA
NK
9The main advantage of such an
account is that you can easily deposit
and withdraw your money from the
bank and you also earn interest on
the money lying in your account.
There are different kinds of bank
accounts. The Savings Bank (S/B)
account is the most popular.
Raju, you know so much. Please tell us
something more about a bank account.
I also receive some payments for my
fruits by cheque when the buyers
come from the city. That is how I know
about it.
How can you be so sure?
Yes. Raju is right.
10
What are the other types of
bank accounts?
Well, the other types of accounts
are Current Account and Fixed
Deposit Account.
And what about the Fixed Deposit
accounts?
The Fixed Deposit or Term Deposit
Accounts are deposits accepted by
a bank for a fixed period.
You can withdraw money from this
account for a fixed number of times
during a month.
You can issue
cheques against
the amount in
your account.
Current Accounts are mainly used by
business people who need to frequently
deposit and make payments from their
accounts. You can withdraw money from
your current account any number of times
during a month but you don't earn
interest.
Such an account earns a higher rate of
interest than the savings bank account.
Your money however, gets blocked for a
fixed period of time .
In case you wish to withdraw the money
before the end of the fixed period, you
may have to accept a lower rate of
interest as a penalty for not having
retained the deposit with the bank for
the specified period.
A variation of the Fixed Deposit is
the Recurring Deposit Account
where you need to deposit a fixed
amount of money at fixed intervals
(every week/ month) for a particular
period of time, say, a year or two as
per your convenience.
11
This account also earns a higher rate of interest than
the Savings Bank account. You can keep money in such
deposit accounts if you plan to meet large expenditure
like marriage, college admission or house construction
at some fix time in the future.
Yes. This account is most
suited for managing
household expenditure,
paying periodical bills,
etc.
Then I think the Savings Bank
account is best suited for Tara's
needs.
You cannot
w i t h d r a w
money from
this account
before the
fixed period.
Y o u c a n
w i t h d r a w
the money
only at the
end of that
period.
12
Yes, I will open a savings account. Every
month I can save some money and put it
in the recurring deposit account. At the
end of two years I have some lumpsum
for my college entrance expenditure.
I also get my
pension payment
t h r o u g h m y
Sav i ngs Bank
account and have
given instruction
for payment of
my telephone,
electricity bills,
etc., from the
balance in the
account.
That's a very wise way of saving
money, Tara.
This way you will not have to go to the bank every month just to
deposit some money. This is called a standing instruction and it
saves you the trouble of going to the bank every month just to
withdraw from one account and put it in another.
You can also instruct your bank to
transfer a fixed amount every month
from your Savings Bank account to
your Recurring Deposit account.
You can also
give standing
instruction to
your bank to
d o o t h e r
routine chores
l i ke pay i ng
your regular
bills, insurance
premium, etc.,
That's great!
All leave for the bank.
Good, Raju. See how you are setting
your friend's feet on the journey to
prosperity?
13
My skyladder and star
bridge!!
Ag
e
Any document that has your photo and
address will be accepted as proof of
identity and proof of residence. So you
can take documents like voter's identity
card, ration card, PAN (permanent
account number) card, driving licence,
passport, etc..
But do not worry too much. If
you do not have much money ,
you can open a ‘no-frills’
account and still meet your
basic banking needs.
Yes. But do not forget to take your
photographs, an identity proof and a
proof of your address.
Let us all go to the
bank branch so
that we can learn
about the process
while opening the
account.
We will need to give these
to the bank alongwith our
application for opening the
account. And remember to
carry the minimum amount
of money too to open the
account!
This is the account opening
form. Please fill up all the
details in the form like your
name, address, operational
instructions, nominee, etc.
After filling up the form give it to me
along with a copy of the documents of
proof of your identity and address that
you have brought.
In case you have any problem in
filling up the forms, I will help you.
What is the meaning of operational
instructions?
14
Your bank must know how you would
operate your account.
AP
PLI
CA
TI
ON
FO
R
OP
EN
IN
G O
F A
SA
VI
NG
S A
CC
OU
NT
S
We all have come to open
a bank account.
Hello ! Can I help you?
APPLICATION FOR
OPENING OF A SAVINGS ACCOUNTS
APP
LIC
ATI
ON
FO
R
OPE
NIN
G O
F A
SA
VIN
GS
ACC
OU
NT
S
You can either operate your account by
yourself or with someone like your
mother, father, brother….that is, in
single name or in joint names with
somebody else.
Joint names?
Yes. A joint account is an account in the
names of two or more persons.
Two or more persons? You mean Tara
and I can open an account jointly?
Can Shamu withdraw the money lying
in my account without my knowledge?
15
Yes
That you will have to choose and indicate
in this form. If you choose to operate
singly, you can indicate that. If you want
to operate the account jointly with your
brother then both of you will have to sign.
You can also choose for either one of you
to operate the account at a time.
If you choose 'either or survivor'
option, the money can be withdrawn by
any of the account holders on their own
without taking the signature of the
other account holder.
This option is really useful in case one of
the account holders dies or cannot
operate the account for some reason.
The other holder can continue to
operate the account without any
difficulty. This is actually very useful
for elderly people and for officials
who travel a lot as their family
members can operate the account for
meeting expenses in their absence.
If you opt for joint operation, the money
can be withdrawn only when all the
account holders sign.
In other words, if you take this
option then Shamu cannot withdraw
money from your account without
your knowledge!
16
Such an option ensures that none of the
other account holders can withdraw the
money without the consent of the
others.
This is also useful for groups and
organisations who maintain accounts
which are required to be operated by
two or more officials together.
There is still one more option -
'former or survivor'. When you
choose this option, only the person
whose name appears first can
operate the account.
The other account holder can
operate the account only after
the death of the ‘former’ person.
Gopi Chacha takes them to the bank
manager who is very happy to see new
customers.
Hello, Raju. I am happy to see that
today you have brought your
friends to the bank for opening
accounts.
You have to make this
choice at the time of
opening the account.
You can change the
choice later if you want
to. But you must give
clear instructions to
your bank.
17
Namaste
Ramansa'b.
Namaste Gopi Chacha.
You can always
c h o o s e t o
operate your
account.
T
A
R
A

D
A
TA
1
2
/0
1
/0
8
U
T
O
N
E

H
S
A
N
D
O
N
L
Y
O
1
0
0
0
Yes Sir. We know that our money will be
safe in the bank and will also earn interest.
Yes, it will. Only since you are depositing
a cheque, the money will show up in your
account after a couple of days
A few minutes later…..
Can I deposit my
cheque now?
Congratulations. We have opened an
account in your name.
And the money will actually get
deposited in my account?
Tara and Shamu fill up the deposit slips
for the money (minimum balance
required to be kept) as they were
opening a normal Savings Bank account
and not a ‘no frill’ account.
18
Will you please help us?
Yes, you can.
Oh sure, Raju. Please give me a
few minutes to verify the
documents.
19
RUPEES
Here is your
passbook.
But Sir, how will I know, the money
has actually come into my account?
The Bank Manager gives them their
passbooks.
We will record all the transactions
you have done in your bank account in
any given period of time in the
passbook.
Tara and Shamu fill up their deposit slips with Gopi Chacha's help.
YOUR SAVING A/C NO.
YOUR BANK BRANCH NAME
It also tells you at any point of time how
much money you have in your account.
See the cash that Shamu has deposited
in his account is already shown in the
pass book.
Suppose I find a mistake and tell you
about it , wi l l you correct it
immediately?
Although, some times, we may take
some days to correct it, if we need to
check something. And in case we do
not correct our mistake in reasonable
time, you must bring it to my notice.
20
Bring the passbook to the branch
day after tomorrow for updating
and you will see the amount of the
cheque credited in your account.
You should get your
passbook updated
regularly .
Yes, and if you find any
mistake in it, you must
tell us immediately.
Yes.
Of
course.
In fact, if you have
any complaint with
your bank you must
first give it in
writing to the
bank.
...you can send your complaint to the
Banking Ombudsman, who has been
appointed by the Reserve Bank of
India to take care of such customer
complaints.
The address of th is Banking
Ombudsman should be available in the
bank branch itself. If the bank does
not give a satisfactory response to your
complaints, the Banking Ombudsman
will.
21
If the bank
d o e s n o t
resolve it in
one month...
Banking Ombudsman. There is one
Banking Ombudsman for each State
who is located in the Office of the
Reserve Bank of India .
omb… What?
Gopi Chacha, is there a possibility that
the bank will close down? And if that
happens, will I get my money back?
All individual bank deposits upto Rs 1
lakh are compulsorily insured, which
means that if any bank fails, these
individual depositors get back their
deposits upto Rs. one lakh.
I would really like to know more about
this. But I can see the Manager uncle
is very busy so may be some other time.
That night, Raju was lying on his bed
looking very satisfied and very happy.
He went to sleep peacefully and
dreamt of Gopi Chacha’s words.
22
23
Raju, this is the real skyladder - the ladder of
knowledge. This is just the beginning, Raju.
As the knowledge spreads, every person in
the village will prosper and the whole village
will have wealth. And that will be the
skyladder to success and prosperity !
24
Yes Gopi Chacha! Knowledge is the real skyladder and a starbridge.
There is no end to what we can learn in life.
Story by Manoj & Shailaja
Art by Anupam Sharma
1.Which is the deposit account most suited for individuals or house holds?
a. Savings account
b. Current account
c. Fixed deposit
2.Which is the deposit account most suited for a business man?
a. Savings account
b. Current account
c. Fixed deposit
3. Which is the deposit account most suited for large expenditure in
the future?
a. Savings account
b. Current account
c. Fixed deposit
4. Which account meets Tara’s needs?
a. Savings account
b. Current account
c. Fixed deposit
5. What is the advantage of a crossed cheque?
a. Immediate cash
b. Unsecured
c. Secured
6.Which account earns more interest?
a. Savings account
b. Current account
c. Fixed deposit
7.Which account allows the facilities like payment of electricity, phone
bills, etc.?
a. Savings account
b. Current account
c. Savings and Current
8. Which of the following documents is acceptable for opening a bank
account?
a. School leaving certificate
b. Birth certificate
c. Ration card
9. You need to keep minimum balance in a ‘no frills account’.
a. Correct
b. Incorrect
10. In the story ‘skyladder’and ‘starbridge’ stand for
a. Prosperity through knowledge
b.Prosperity through sharing
c. Both
Answers: 1.(a) 2.(b) 3.(c) 4. (a) 5.(c) 6. (c) 7. (a) 8. (c) 9. (b) 10.(c)
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