In a bout of 3 hours, this module covers significant aspects and topics of National Income and Banking Systems, with emphasis on the Indian context of economy and successfully prepares the student for this section of exams
This course includes:
Access over mobile, TV
Videos available on-demand 24✖7
Validity of the course is 6 months
What this module offers
Requirements for access
Interested and eligible candidates/students would be required to purchase the study material contained in the module for NI and Banking Systems.
Description and Course Structure
After successfully completing the Budget and Inflation topics, and having developed in the student a knowledge of the relevant terms, this module proceeds to teach the subject of National Income and Banking Systems. It introduces the idea of National Income and elaborates the related terminology and factors which determine national income. Further, this module deals with the extremely important topic of Banking Systems and explains in detail the RBI, its history, functions and its role in liquidity regulation.
The course module is divided into 5 parts, where the first 2 parts deal with National Income and the latter 3 with Banking Systems. As is her way of teaching, Ms Azmat properly summarizes the entire module in a 5-minute overview at the end of both topics.
The course module runs for 3.5 hours roughly and aspirants can access it anytime and anywhere, according to their convenience. Being a self-paced course, it gives you the option to plan your study time yourself. An aspirant can complete this course in 2 to 3 days, approximately.
Why this course
(a) Our courses have helped a large number of aspirants succeed in numerous competitive exams, who have went ahead to contribute in various government sectors and handle their work responsibly.
(b) The videos and the study material have been developed by Miss Afreen Azmat, who is an expert in economics and carries long-term experience of real-time classroom coaching for this paper.
(c) The course curator has developed multiple e-Learning courses in the past and has more than 25 videos on YouTube; her validation makes the module fool-proof for future aspirants of online coaching at Safalta.
Beginning with the definition of National Income, the Educator, Ms Azmat, lays out the outline of the module wherein students will learn three different sets of methods to calculate National Income, each set comprising of 3 terms/factors.
Set 1: GDP, GNP, NFI
Gross Domestic Product (GDP)= all/total income generated within the domestic boundaries of India by anyone (a citizen or foreigner).
Gross National Product (GNP)= all/total income generated by Indian citizens, within or outside India.
Net Foreign Income (NFI)=[- (income of foreigners who spend it outside India)+ (income of Indians who are earning outside the boundary of India but spending it within Indian borders)]
GNP= GDP + Net Foreign Income
NFI determines whether GDP or GNP is bigger, i.e., if NFI is positive or negative.
The Educator further clarifies concepts by going back and forth in the ways of calculation of GDP and GNP and how to convert one into another through the variant, NFI.
Set 2: Gross, Net value, Depreciation.
Gross Value- total collection/income which is inclusive of all values.
Net Value- The amount of profit or the net in-hand amount, exclusive of all applicable deductions.
Depreciation- Applicable deductions that are included in Gross Value.
Net Value= Gross Value- Depreciation
Set 3: Market Price, Factor Cost, Net Indirect Taxes
Market price (MP)- the price of a good/commodity/service at which it is sold in the market to consumers, inclusive of all applicable taxes
Factor cost (FC)- the cost involved in the production/delivery of the said good/commodity/service, inclusive of profits and cost of transportation
Net Indirect Taxes (NIT)- All indirect taxes applicable in the transaction, minus the applicable subsidies provided.
MP= FC + Net Indirect Taxes (NIT)
MP= FC+ [+all indirect taxes - all types of subsidy applicable]
Net Indirect taxes= [+all indirect taxes - all types of subsidy applicable]
In the extension of the video, Ms Azmat goes on to explain the calculation of various factors of National Income through each other by making broader categories and tricks and using the smaller formulae to solve bigger questions. Conclusively, she takes on board important questions which have been previously asked in exams and hence, completes the chapter on National Income.
For the topic of Banking Systems, the Educator begins with the central concern and authority of banks in India, the Reserve Bank of India (RBI). She introduces the RBI in order by giving various important factual details about the bank and its functions, major being liquidity regulation of the Indian economy.
She then briefly explains the Nationalization of banks that happened under Indira Gandhi’s term and the reasons why it was significant: enhanced financial inclusion, public welfare and removal of private sector domination over the government.
Going further, she begins with the monetary policies of the RBI and explains four of them in this lecture in immense detail and also relates them with examples, to each. The Monetary Policies taken up in this lecture are: Repo Rate, Bank Rate, Marginal Standing Facility and Reverse Repo Rate.
Continuing from the policies of the last lecture and explaining this economic relation with each other, the Educator now moves to the next few policies of Cash Reserve Ratio, Statutory Liquid Ratio, and Open Market Operation.
Cash Reserve Ratio: a fixed percentage of the total deposit that each commercial bank has, which it needs to give in cash to RBI weekly and without interest, in order to ensure the security of the customers of the bank.
Statutory Liquid Ratio: The amount/asset that each bank needs to keep, including RBI, at all points of time. Like Cash Reserve Ratio, SLR is also a compulsory policy for each bank and the RBI.
Introducing the subject for the next lecture, the Educator now introduces classification of bank and introduces the first kind, while the rest are taken in the coming lecture: MUDRA Bank. MUDRA stands for Micro Unit Development Refinance Agency whose purpose is to grant loans to small scale industries and enterprises.
Continuing with the introduced topic of classification of banks, Ms Azmat now moves to the following categories:
NABARD: National Bank for Agricultural and Rural Development, which is the head of all rural and regional banks in India and is headquartered at Mumbai. It is a very significant topic for exam aspirants
Regional Rural Bank- Established in 1975 and now owned by NABARD, the constitution of these banks involves 50% contribution from the Central Govt., 15% from the respective State Govt., and 35% by Sponsor Banks.
Scheduled and Non-Scheduled Banks (Commercial Banks)- Scheduled Banks are banks which are registered under the 2nd Schedule of the RBI Act, 1934 and involve Public, Private and Foreign Banks. Non-Scheduled Banks are the banks which are exempted from the RBI Act of 1934 but present in the Banking Regulation Act.
As usual, Ms Azamt summarizes the whole topic of Banking Systems at the end for the benefit of her students and draws an overall outline of each sub-topic.
Miss Afreen Azmat is a well-known faculty of Economics in the education industry, which focus on entrance exam for government jobs. She is a popular face for some of the most esteemed institutes in the field. She also enjoys a huge fan following on social media, more prominently on YouTube. She has been working as a mainstream teacher for approximately 4 years now.
Miss Azmat has taught in many renowned institutes and has been the faculty of economics in some of the big online education platform. She has also conducted guest lectures regarding the news and current affairs, primarily related to the economy of India and the world, as and when requested by certain institutes, from time to time.
Miss Azmat possesses an honours’ degree in baccalaureates commerce from Delhi College of Arts and Commerce, University of Delhi. She has been an esteemed awardee at Jaypee Youth Parliament in 2013. In addition to that, she also contributed to society as an active member of NSS & organizer in Ambrosia, DCAC.
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