SAVINGS RELATED PRODUCTS

Introduction to Savings Products: Various savings related products are available to the public, including deposit schemes offered by banks, government deposit schemes, and public deposits issued by companies.
Benefits of Keeping Money in Banks: Keeping money in banks is beneficial due to the drawbacks of keeping cash at home, such as:
- Safety: Money can be stolen or lost due to natural calamities.
- Growth Opportunities: Loss of interest income.
- Credit Eligibility: Deposit in banks creates eligibility for taking loans.

Banking

Regulation: Commercial banks are regulated by the Reserve Bank of India (RBI).
Bank Deposits: Bank deposits are relatively lower-risk investments, offering various types of deposits depending on customer needs.
Deposit Insurance: The Central Government deposit insurance scheme ensures that all deposits are insured by the Government up to a limit of ₹5 lakhs per customer in that particular bank.

Know Your Client (KYC) Norms: Customers need to undergo the KYC process to open any type of bank account.
KYC Documents: Generally accepted KYC documents include:
- Photograph
- Proof of Identity (PAN Card, Aadhaar Card, etc.)
- Proof of Address (electricity bill, driving license, passport, Aadhaar card, etc.)

Savings Bank (SB) Account: Low interest, highly liquid, and facilitates payment mechanisms through ATMs.
Basic Savings Bank Deposit Account (BSBDA): Zero-balance savings account with relaxed conditions for deposits and withdrawals.
Fixed Deposit (FD) Account: Involves placing funds with the bank for a fixed term at a certain interest rate.
Recurring Deposit (RD) Account: A fixed amount is deposited at monthly intervals for a predetermined term.
Special Bank Term Deposit Scheme: A tax-saving scheme available with banks, with a 5-year lock-in period.

Digital Modes of Transferring Funds: Include NEFT, RTGS, IMPS, and Unified Payment Interface (UPI).
New Categories of Banks and Business Correspondents: Introduced by the RBI, including Payment Banks, Small Finance Banks, and Business Correspondents.

Secure Online Transactions: Use passwords, visit secure websites, and log out after transactions.
Mobile Banking Security: Update mobile banking apps, use virtual keyboards, and register for SMS alerts.

Credit Card: Provides a credit facility for a certain period, with interest levied if the outstanding amount is not paid on time.
Debit Card: Linked to a savings or current account, used for withdrawing cash and making payments.

RBI Guidelines: Customers have no liability for unauthorized transactions due to fraud, contributory negligence, or bank deficiency, if reported within three days.

Central Bank of India: Established on April 1, 1935, to regulate the country's currency and credit systems.
Monetary Policy: Formulates, implements, and monitors India's monetary policy to maintain price stability and ensure credit flow to productive economic sectors.

Grievance Redressal: Refer to Chapter 12 of the booklet for redressal of grievances regarding banking industry products/schemes.
Government Schemes: Refer to Chapter 9 of the booklet for information on various government schemes in the banking industry.