Key Points

Financial infrastructure is the network of institutions like banks, payment systems, and stock markets that help people, businesses, and governments manage money and conduct financial transactions.

Banks perform two main functions: they accept money from people as deposits for safekeeping and lend this money as loans to borrowers who need credit.

The three main types of bank accounts are Savings accounts for regular saving, Current accounts for businesses with frequent transactions, and Fixed Deposit accounts for lump-sum savings over a fixed period.

Compounding is the process of earning interest on both the original amount of money and the accumulated interest from previous periods. This powerful concept helps savings grow exponentially over time.

Banks earn income from the difference, or spread, between the higher interest rate they charge on loans and the lower interest rate they pay to people on their deposits.

Launched in 2014, the Pradhan Mantri Jan Dhan Yojana is a major government initiative that aimed to provide every Indian household with access to a bank account, promoting financial inclusion.

The Reserve Bank of India, established in 1935, is India's central bank. It acts as the banker to other banks, supervises the entire banking system, and manages the printing of currency.

Payment modes are methods used to transfer money. They range from traditional methods like cash and cheques to modern electronic methods like debit cards, internet banking, and mobile payments.

Launched in 2016 by the National Payments Corporation of India (NPCI), UPI is an instant digital payment system that enables quick and easy money transfers using a mobile phone.

The stock market is a marketplace where people buy and sell shares. A share represents a small part of ownership in a company.

The Bombay Stock Exchange (BSE), established in 1875, is one of the oldest stock exchanges in Asia. It is a key marketplace for trading shares in India.

Share prices fluctuate due to various factors, including the company's financial performance, changes in government policies, and major economic shocks or events.

To prevent digital financial fraud, it is crucial to never share personal details like your PIN or One-Time Password (OTP) with anyone and be cautious of suspicious calls or messages.

If you become a victim of financial fraud, you should immediately report it to the national cybercrime helpline number 1930 or file a complaint on the National Cybercrime Reporting Portal.