1. What is Financial Literacy?
Financial Literacy refers to knowledge required for managing personal finance. When people know about the financial products available and are able to evaluate the merits and demerits of each product and suitability of the product for their specific needs, they are in a better position to decide what they want. They will also know enough to demand accountability for the deficiencies in the service and also seek redressal of grievances.
2. What is a Bank?
A Bank is a financial organization where people deposit their money for safety. The bank pays interest to the depositors and lends money to borrowers.
3. Who can open an account with the bank?
Anyone can open a bank account by visiting a nearest bank branch in their locality by filling up an account opening form
4. What are the requirements for opening a bank account?
- Your recent photograph
- A copy of one or more of the following documents
- Photo Identity Card
- Ration Card
- Driving License
- PAN Card
- Telephone bill
- Electricity bill
5. What are the types of bank accounts available?
- Savings Bank account
A common account to keep your savings. The bank pays interest on daily balance and credit the amount once in six months.
- Basic Savings Bank Deposit Account (No Frills Account)
BSBD Account is a normal banking service with ‘Nil’ minimum balance and with ATM / Dr Card facility, where only four withdrawals per month,including ATM withdrawals, are allowed.
- Current account
A current account does not have any limits fixed by banks on the number of transactions permitted in the account and also do not pay any interest on the balances maintained.
6. What are the types of deposits offered by the bank?
- Fixed Deposit/Term DepositFixed deposits or Time deposits are deposits accepted by bank for a specific period of time. The minimum period for which fixed deposits can be accepted is 15 days. Banks pay interest on fixed deposits based on the period of deposits.
- Recurring DepositUnder recurring deposits, specific amount of money is deposited in a bank on monthly basis for a fixed rate of return. The deposits have a fixed tenure, at the end of which the money along with the interest earned is returned to the depositor.
7. What are the types of agricultural activities that bank finance?
Types of agricultural activities the Banks finance are:
- Crop Loans (Seeds/ Fertilizers)
- Irrigation &Pump sets
- Farm Equipment (Tractors/ Tillers)
Other agricultural activities
- Goat rearing
8. What are the types of finances available to the agricultural sector?
Banks provide short term, medium term and long term loans to individuals, Self Help Groups, Joint Liability Group (JLG) for agriculture and related activities like dairy, fishery, piggery, poultry, bee keeping etc . The various credit schemes available are
- Kisan credit card scheme (KCC)
- Crop Insurance
- Live Stock Insurance Schemes
- General Credit Card (GCC) Scheme
- Micro Credit
- Artisan Credit Card (Acc) Scheme
- Laghu Udyami Card Scheme
9. What are the important documents required for availing house loan?
- Proof of income.
- Original title deeds of the property with Encumbrance Certificate and agreement for sale.
- Permission for construction with approved plan issued by Competent Authority.
- Estimation of construction cost, valuation report in case of purchase of ready built house/flat.
- Any other documents depending upon the individual case and as required by banks
10. What are the expenses covered under Educational Loan Scheme?
The Educational Loan Scheme is aimed at providing financial support from the banking system to deserving/ meritorious students for pursuing higher education in India and abroad. The expenses covered are:
- Fee payable to college/ school/ hostel.
- Examination/ Library/ Laboratory fee.
- Purchase of books/ equipments/ instruments/ uniforms.
- Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
- Travel expenses/ passage money for studies abroad.
- Purchase of computers – essential for completion of the course.
- Insurance premium for student borrower
- Any other expense required to complete the course – like study tours, project work, thesis, etc.
11. What is difference between Home Loan Scheme and Reverse Mortgage Scheme?
Under Home Loan, the customer pays monthly installments to own a house and in a Reverse Mortgage Scheme, the Bank pays installments to the customer and takes possession of the house after his/her life time.
12. What are the eligibility criteria for availing Reverse Mortgage Loan Scheme?
- Any individual above 60 years of age (Senior Citizens), Married couples will be eligible as joint borrowers for financial assistance provided one of them is above 60 years of age.
- The property must be a self acquired residential property with absolute, clear title/conveyance and self-occupied and it should be principal residential house/flat, located in India.
- The property should be free from encumbrance and is saleable.
- The residual life of the property should be more than 20 years in the case of single borrower and 25 years in the case of spouse being below 60 years of age.
- Certificate from empanelled engineer/architect is required to be obtained for this purpose, in addition to valuation of property.
13. Can a legal heir redeem the house in case of the borrower’s death under Reverse Mortgage Loan Scheme?
14. How does a credit card differ from a debit card?
Credit card users need to pay the total amount spent through the card once in a month to the bank while in the case of debit cards the spending will be immediately deducted from a deposit account maintained with a bank.