Data Entry: Manual or automated input of data.

Computer Application to Functional Areas: Accounting, Inventory Control, Business Reporting.

Cybersecurity: Protection of information systems from theft or damage to hardware, software, or electronic data, as well as from disruption or misdirection of the services they provide.

Banking and Financial Institutions

Core Concept Summary: In-a-nutshell

Banking involves financial institutions that accept deposits, offer loans, and facilitate payments, acting as crucial intermediaries in the economy.
Financial Institutions are entities that provide financial services, such as commercial banks, development banks, and regulatory bodies like the RBI and SEBI.
The sector has undergone significant reforms, embracing digital transformation and new banking models to enhance financial inclusion and efficiency.

Statutory & Professional Framework

Relevant Sections/Acts:
- Reserve Bank of India Act, 1934: Governs the functioning of the RBI.
- Banking Regulation Act, 1949: Regulates commercial banks in India.
- The Negotiable Instruments Act, 1881: Deals with legal aspects of instruments like cheques, bills of exchange, and promissory notes.
- SEBI Act, 1992: Governs the Securities and Exchange Board of India.

Definitions & Quotes (The 'Value Adders')

Authoritative Definition (Bank): "A bank is an institution which collects money from those who have it to spare and lends it to those who require it." - Crowther
Contextual Quote: "Banking is necessary, banks are not." - Bill Gates. This quote highlights the evolving nature of financial services, moving beyond traditional bank branches to digital platforms.

Key Technical Points

Importance of Banking: Facilitates trade, investment, savings, and economic growth.
Functions of Commercial Banks:
- Primary: Accepting deposits (demand, time) and granting loans/advances.
- Secondary: Agency services (fund transfer, bill payments) and general utility services (locker facilities, ATM).
Types of Banks and their Functions:
- Reserve Bank of India (RBI): Central bank, monetary policy, currency issuance, banking regulation.
- NABARD (National Bank for Agriculture and Rural Development): Apex development bank for agriculture and rural credit.
- Rural Banking: Regional Rural Banks (RRBs), Cooperative Banks.
- Development Banks: IDBI, IFCI, SFCs, UTI, SIDBI - providing long-term finance.
Banking Sector Reforms in India: Initiated in the 1990s, focusing on liberalization, privatization, and globalization.
Online- E-Banking: Internet banking, mobile banking, NEFT, RTGS, IMPS.
Development of Banking:
- New Banking Institutions: Payment Banks, Small Finance Banks.
- MUDRA Bank: Micro Units Development & Refinance Agency Bank, supporting micro-enterprises.
The Negotiable Instruments Act, 1881:
- Legal Aspects: Defines promissory notes, bills of exchange, and cheques.
- Special Features: Endorsement, negotiation, dishonour.
Important Institutions related to Banking and Payments: NPCI (National Payments Corporation of India)