Question
Class 7Social ScienceBanks and the magic of Finance

Match the financial institutions in Column A with their corresponding functions in Column B.

Column A

Column B

1. Reserve Bank of India

(a) Supports rural development and funds banks for farming and the village industries

2. NABARD

(b) Provides savings schemes like NSC and kisan Vikas Patra

3. Post offices

(c) Market place where financial securities like stock are traded

4. Stock Exchange

(d) Supervises Indian banking system issue currency notes

5. NPCI

(e) Launched UPI in 2016 for digital payments

Verified Answer

1 - D (RBI is India's central bank that supervises the banking system, maintains accounts of banks, and has sole authority to issue currency.)

2 - A (NABARD supports rural development by funding banks that provide loans for farming, village industries, and infrastructure like roads and irrigation.)

3 - B (Indian post offices offer financial services including savings schemes like National Savings Certificates, Kisan Vikas Patra, and Sukanya Samriddhi accounts.)

4 - C (Stock exchanges are marketplaces where buying and selling of shares and financial securities take place; BSE was established in 1875.)

5 - E (National Payments Corporation of India launched UPI in 2016, revolutionising digital payments with fast, secure, and user-friendly money transfers.)