Indian Economy | Lecture 5 | Money and Banking | UPSC 2025*

Telegram Channel: t.me/theIASLab
Email id: [e-mail]
Indian Economy Lecture series for UPSC Prelims 2025
• Indian Economy | Lectu...
• Indian Economy | Lectu...
• Indian Economy | Lectu...
• Indian Economy | Lectu...
• Indian Economy | Lectu...
Prelims Economics Syllabus for UPSC
Indian Economy syllabus for UPSC prelims/UPSC Economics syllabus for prelims/syllabus of Economics for UPSC prelims:
Economic and Social Development: sustainable development, poverty, inclusion, demographics, social sector initiatives, etc.
Here, you must cover topics such as economic growth and development, finance, banking, budget, balance of payments, poverty and related issues, population composition and related characteristics, social sector initiatives related to education, health and sanitation, and international financial institutions.
Important area to focus in the UPSC economy syllabus:
• Economic growth and development - basic concept and definition of economy and economics, uses and transfer of resources, distributive effects, macro and micro economic policy, micro-macro balance, distributive impact of economic policies, development versus growth, determinant of growth and development, concepts such as HPI/MPI, HDI, PQLI, GEM, GDI/GII, TAI, Green index, sustainable development, India’s ranking in the various indices.
• Poverty - definitions, causes, distribution-deprivation, income versus calories, measurement of poverty, status of poverty, eradication programmes, poverty and resource policy, tribal rights and issues, livelihood mission.
• Inclusion - definition, relevance, types, financial inclusion, recent initiatives.
• Demographics - census data, populations by gender, by state, by age group, socio-economic status, caste, religion, literacy levels, etc. Trends in human development - interstate comparison, etc.
• Fiscal policy - definition, component, receipts, revenue and capital account, tax revenue, expenditure, budget.
• Social issues - financing health policy, education policy, sanitation, drinking water, social security, infrastructure policy, international trade issues, regional cooperation.
• Also, focus on issues currently in news related to the above topics - MNERGS, MSMEs, Make in India, industrial corridors, NITI Ayog, black money, international treaties and organisations, India’s policies with neighbours.
Money and banking are the cornerstones of a strong & effective economic & financial system.
But both money and banking have evolved over centuries to reach where they are today. For a very long time in the past, there was no concept of either of the two.
People simply exchanged commodities with each other i.e. barter system existed. The barter system provided people with a way of acquiring things that they didn’t have.
And until we began producing a surplus, we didn’t feel the need to change anything. Subsistence was enough. But once production attained reasonable levels and due to other inherent problems of the existing barter system people gradually shifted towards a more nuanced concept - money and in time banking system was also invented to further other complex functions.
In fact, the history of the development of money and banking is often interrelated.
Money and banking is an important topic for UPSC preparation but to understand it fully one must be thorough with underlying concepts, like money, money supply, monetary aggregates, etc.
What is money?
Money is the most commonly accepted medium of exchange
Any object that is generally accepted as means of payment. Currency, in the form of notes or coins, is one type of money
Do remember that money is not a necessity and our society can exist without it. It acts as a facilitator only.
Functions of money
It acts as a medium of exchange: Any commodity can be bought through money
A common measure of value: All commodities have their value that is expressed in terms of money
Store of value
Acts as a standard for deferred payments: Future monetary obligations can be settled using money. For example A loan which is taken today is settled in installments.
Types of money
Full-bodied money
Token money (paper money/credit money)
Paper money
Representative full-bodied paper money
Inconvertible paper money
Fiat money
Legal tender
Non-legal tender/optional money
Fiduciary money
Near money
Plastic money
Deposit money
Full-bodied money
Money whose face value is equivalent to its intrinsic value. Full value is embedded in the currency itself
Money value = commodity value
For example; gold currency

[@TheIASLab]

👍Like, Share & Subscribe
Join Telegram Channel for Updates & Notes: t.me/theIASLab

[@DSTOnlineEducation]

👍

[@Aamitji5166]

Pdf upload kar dijiyega sir

[@TheIASLab]

Pdf Uploaded in Telegram Channel. You can download it now.