INTERNSHIP REPORT

ON
FINANCIAL LITERACY AND DIGITAL PRODUCTIVITY
A report submitted in partial fulfillment of the requirements for the Award of
Degree of

BACHELOR OF TECHNOLOGY
in

ELECTRONICS AND COMMUNICATION ENGINEERING

by

PAGOLU BAJI BALU

Regd. No.: 21FE1A04B1

Under the Esteemed guidance of

Mrs.P.V.N.LAKSHMI , M. Tech(Ph.D)
Assistant Professor

DEPARTMENT OF ELECTRONICS AND COMMUNICATION ENGINEERING

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 STUDENT’S DECLARATION

We hereby declare that the internship entitled “FINANCIAL LITERACY”

has been undertaken by me and this work has been submitted to VIGNAN’S
LARA INSTITUTE OF TECHNOLOGY AND SCIENCE affiliated to
JNTUK, Kakinada in the partial fulfillment of the requirements for the
award of BACHELOR OF TECHNOLOGY (B. Tech) in the department of
Electronics and Communication Engineering, is the result of the work
done by us under the guidance of Mrs. P.V.N.LAKSHMI ,Assistant
Professor of ECE department.

I further declare that this project work has not been submitted in full or partial
requirements for the award of any degree in any other educational institution .

P.BAJIBALU - 21FE1A04B1

Place: Vadlamudi

Date

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 CERTIFICATE

This is to certify that the “Internship report on FINANCIAL LITERACY AND

DIGITAL PRODUCTIVITY submitted by PAGOLU BAJIBALU(Regd. No.:
21FE1A04B1) is work done by his and submitted during 2023-2024 academic year, in
partial fulfillment of the requirements for the award of the degree of BACHELOR OF
TECHNOLOGY in ELECRTONICS AND COMMUNICATION ENGINEERING.

Internship Guide Head of department

Mrs.P.V.N.LAKSHMI ,M.Tech.,Ph.D Dr. B. HARISH ,M.Tech, Ph.D

Assistant Professor Professor

External examiner

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4
 ACKNOWLEDGEMENT

While bringing out this dissertation to its final form, I came across a number of
people whose contributions in various ways helped my field of explore and they deserve
special thanks. It is a pleasure to convey my gratitude to all of them.
We are more thankful to our chairman Dr. LAVU RATHAIAH who helped us to
have a technical incubation by providing the required infrastructure.
We are very much thankful to our principal Dr. K.PHANEENDRA KUMAR who
extended a timely help at each and every step of our academic career.

We are very thankful to our Head of the department Dr. B.HARISH an amicable
person who supported us very much and helped to a maximum extent and made this
internship successful.
Their efforts in this aspect are beyond the preview of the acknowledgement.

We are heartily thankful to our project guide Mrs.P.V.N.LAKSHMI , Assistant

Professor, the person with vibrant knowledge and amicable by nature who laid a best guide
lines and for the efforts made by him to make the project a successful one.

Finally, we are thankful to each and every faculty members both technical and non-
technical, friends and all the persons who helped us directly or indirectly in making our
project a successful one.

P.BAJIBALU - (21FE1A04B1)

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 CONTENTS
 Introduction

 Overview of the Financial Literacy

 Essential Financial Concepts

 Savings and Banking

 Loans

 Know your customer

 Digital Payments

 Insurance

 Currency

 Notes , Coins & Currency chest

 Career awareness

 Conclusion

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 INTRODUCTION

Financial literacy is the ability to understand and effectively use various

financial skills, including personal financial management, budgeting, and
investing. When you are financially literate, you have the foundation of a
relationship with money, and it is a lifelong journey of learning. The earlier you
start, the better off you will be, because education is the key to success when
it comes to money.

Financial literacy is an essential skill for making savvy financial decisions,

understanding the world around us, and being a good citizen. Changes in the
pension system, the increasing complexity of financial instruments (including
new instruments such as crypto assets), inflation, and increased risks (from the
war in Ukraine to climate change) are some of the reasons behind the
increasingly urgent need for individuals to have the knowledge and skills that
will increase their financial resilience and wellbeing. The OECD
Recommendation on Financial Literacy, adopted in 2020, recognized financial
wellbeing as the ultimate goal of financial literacy. Financial management is
integral in leading a quality life.

A bank is a financial institution that enables you to manage your finances,

thereby empowering you to live a financially secure life. Banks provide an array
of financial services encompassing savings and investments, which help you

gradually build a corpus.

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 OVERVIEW OF THE FINANCIAL LITERACY

According to National Council of State Legislatures (NCSL) “Financial literacy

is a broad term that has multiple meanings, depending on an individual’s
situation. It may mean learning how to create and manage a household budget,
learning how to invest money for retirement, or participating in one-on-one
coaching and counselling to determine how to buy a house or start a business. It
also is part of an overall strategy to increase economic security for lower-
income families.

Financial education, just like reading and writing, affects the well-being of
every individual. It also affects the economic and social well-being of every
community and, ultimately, the overall strength of the nation’s
economy.”Preparing young people to understand and participate in their own
financial well-being is providing them with a vital skill. The economic stability
of our communities and the resulting growth of our state’s economy are
influenced by personal financial literacy.

Implementing financial topics into a district’s curriculum may take many forms.
Many Wisconsin districts have already successfully accomplished this. Stand-
alone courses in personal finance, revamping existing classes, or requiring a
financial literacy component for graduation have all been used in districts, and
all have their own advantages and disadvantages. The section, “Building an
Effective Financial Literacy Program” can assist in determining what will best
fit with individual districts’ needs. The importance of integrating personal
finance topics and concepts into the individual school district’s program of

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studies cannot be overstated. Schools must rise to the challenge of getting the
information to their students across all grade levels and subject areas.

ACTIVITY LOG FOR THE FIRST WEEK

Day Person In-

& Brief description of the daily Charge
Learning Outcome
Date Activity Signature

Introduction to Essential Financial Acquired Financial

Day – 1 Concepts Concepts

Income and Expenditure Able to know about Income

Day - 2 and Expenditure

Needs and Wants Needs of Financial

Day – 3 literacy

Day – 4 Savings and Budgeting Knowing how to save

money

Day – 5 Opening a Bank Account How to open a new bank

about

Deposting and withdrawing How we can deposit and

Day –6 Money withdraw the money

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 WEEKLY REPORT
WEEK – 1 (From Dt ………..….. to Dt… ............... )

Objective of Activity Done: Here we Learned the essential concepts of

financial literacy .
 Budgeting
 Savings
 Investing
 Compound Interest
 Credit Score
 Debt Management
 Risk Management
 Inflation
 Retirement Planning
 Emergency Fund

1.Budgeting:

Creating and sticking to a budget helps manage income and expenses,

providing a clear overview of your financial situation.

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2.Savings:
Savings accounts can be safe places to keep the money you don’t intend to
spend right away. These accounts are useful when planning for short-term
needs, such as an emergency fund, and longer-term goals like stashing away
cash for a down payment on a home.

3. Investing:

Growing wealth through strategic investment in stocks, bonds, real

estate, or other vehicles is a key financial concept.

4. Compound Interest:
Earning interest not just on the initial sum but also on previously earned
interest can significantly boost savings and investments over time
5. Credit Score:

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 A numerical representation of creditworthiness, influencing your ability
to secure loans and interest rates.

6. Debt Management:

Understanding and managing debt responsibly, including credit cards,

loans, and mortgages, is vital for financial health.

7. Risk Management:

Evaluating and mitigating financial risks through strategies like

insurance or diversified investments.

8. Inflation:

The gradual increase in the general price level of goods and services,
eroding purchasing power over time.

9. Retirement Planning:

Preparing for financial security in later years through retirement

savings and pension plans.

10. Emergency Fund:

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 A reserve of funds set aside for unforeseen expenses or emergencies,
preventing reliance on credit in times of need.

BANKING
Banking implies an activity where a licensed financial institution safeguards
your money. You can park your hard-earned money in Current and Savings
Accounts. You can also earn attractive interest income by investing in interest
generating term deposits.
Banks also offer a wide variety of loans and overdraft facilities, depending on
the type of account you open.

Banks cater to a wide variety of customers – from retail investors to small and
large business corporations.
As a bank customer, you can visit your bank branch or enjoy remote banking
services online through mobile or net banking.
Banks accept deposits and lend money to customers, other individuals, and
businesses.
They earn money from the facilities they provide.
Banks also offer several products and services to their retail and
corporate customers.

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 ACTIVITY LOG FOR THE SECOND WEEK

Day Person In-

& Brief description of the daily Charge
Learning Outcome
Date Activity Signature

Knowing how to grow

Day – 1 Grow Money using Banks money in banks

Interests, Fixed Deposits and Knowing about different

Day - 2 Recurring Deposits deposits

Knowing details of
Day – 3 Know Your Customer customers

What are the different

Day – 4 Government Schemes government schemes
available

Day – 5 Secured Loan How we can securely get

the loans

Day –6 Employee Provident Fund How the employees get the

provident fund

WEEKLY REPORT
WEEK – 2 (From Dt………..….. to Dt…............... )
Objective of Activity Done : Here in the second week of internship we have
learnt about loans and interests.
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 LOANS
The term loan refers to a type of credit vehicle in which a sum of money is lent

to another party in exchange for future repayment of the value

or principal amount. In many cases, the lender also adds interest or finance

charges to the principal value, which the borrower must repay in addition to the

principal balance.

Loans may be for a specific, one-time amount, or they may be available as

an open-ended line of credit up to a specified limit. Loans come in many

different forms including secured, unsecured, commercial, and personal loans.

There are two types of loans:

 Secured Loan :

It is connected to a guarantee or collateral. E.g., car loan, home loan.

 Unsecured Loan :
It doesn't require any type of collateral. Lenders approve unsecured loans based

on a borrower's creditworthiness. E.g., personal loans, student loans.

KNOW YOUR CUSTOMER

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Know Your Customer, or KYC, is the process of ensuring that companies can
verify their (current or potential) customers’ identities and their financial profiles.
In the U.S., there are three main components of KYC: the customer identification
program (CIP), which was imposed by the USA Patriot Act in 2011; customer due
diligence (CDD); and regular monitoring of the customer’s account and activities,
which is also called enhanced due diligence (EDD).
 To open an account, you will require 2 passport-size photographs and a
few copies of KYC documents.

 KYC or Know Your Customer is a mandatory procedure done by banks

at the time of opening a new account.

 KYC documents are: Voter's Identity Card,

Driving License,
Aadhar Letter/Card,
NREGA card,
PAN Card.

There are other ways to save money in the bank account:

Fixed Deposit (FD):

An amount is put in a fixed deposit account once. The entire amount is blocked
for the period of deposit. The amount of interest is more than the interest
received in a savings account.
Recurring Deposit (RD):
Money is deposited periodically. The interest rate, once determined, does not
change during the tenure; and on maturity, the individual will be paid a lump
sum amount which includes the regular investments as well as the interest
earned.

ACTIVITY LOG FOR THE THIRD WEEK

Day Person In-

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 & Brief description of the daily Charge
Learning Outcome
Date Activity Signature

Day – 1 Taxation What is taxation and how

is it done

Knowing about how the

Day - 2 Digital payments digital payments are
processed

How the banking

Day – 3 Banking Correspondent correspondent works

What are the types of

Day – 4 Types of digital payments digital payments?

How the security is

Day – 5 Security instruments provided

What are the insurance

Day –6 Insurance Policy policies provided?

WEEKLY REPORT
WEEK – 3 (From Dt………..….. to Dt… ............... )

Objective of Activity Done: Here we able to know what is digital payments

and security.
DIGITAL PAYMENTS

Digital payments are transactions that take place via digital or online modes,
with no physical exchange of money involved. This means that both parties,
the

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payer and the payee, use electronic mediums to exchange money.

The Government of India has been undertaking several measures to promote

and
encourage digital payments in the country. As part of the ‘Digital India’
campaign, the government has an aim to create a ‘digitally empowered’
economy that is ‘Faceless, Paperless, Cashless’. There are various types and
methods of digital payments.

UNIFIED PAYMENTS INTERFACE (UPI)

UPI is a payment system that culminates numerous bank accounts into a single
application, allowing the transfer of money easily between any two parties. As
compared to NEFT, RTGS, and IMPS, UPI is far more well-defined and
standardized across banks. You can use UPI to initiate a bank transfer from
anywhere in just a few clicks.

INTERNET BANKING
Internet Banking, also known as e-banking or online banking, allows the
customers of a particular bank to make transactions and conduct other financial
activities via the bank’s website. E-banking requires a steady internet
connection to make or receive payments and access a bank’s website, which is
called Internet Banking.

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 INSURANCE
Insurance is a contract, represented by a policy, in which a policyholder receives
financial protection or reimbursement against losses from an insurance
company. The company pools clients’ risks to make payments more affordable
for the insured. Most people have some insurance: for their car, their house,
their healthcare, or their life.

Insurance policies hedge against financial losses resulting from accidents,

injury, or property damage. Insurance also helps cover costs associated with
liability (legal responsibility) for damage or injury caused to a third party.

KEY TAKEAWAYS
 Insurance is a contract (policy) in which an insurer indemnifies another
against losses from specific contingencies or perils.
 There are many types of insurance policies. Life, health, homeowners,
and auto are among the most common forms of insurance.
 The core components that make up most insurance policies are the
premium, deductible, and policy limits.

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TYPES OF INSURANCE:

There are many different types of insurance. Let’s look at the most important.

Health Insurance

Health insurance helps covers routine and emergency medical care costs, often
with the option to add vision and dental services separately. In addition to an
annual deductible, you may also pay copays and coinsurance, which are your
fixed payments or percentage of a covered medical benefit after meeting the
deductible. However, many preventive services may be covered for free before
these are met.

Home Insurance

Homeowners insurance (also known as home insurance) protects your home,

other property structures, and personal possessions against natural disasters,
unexpected damage, theft, and vandalism. Renter's insurance is another type of
homeowners insurance.

Homeowner insurance won't cover floods or earthquakes, which you'll have to

protect against separately.

Auto Insurance

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Auto insurance can help pay claims if you injure or damage someone else's
property in a car accident, help pay for accident-related repairs on your vehicle,
or repair or replace your vehicle if stolen, vandalized, or damaged by a natural
disaster.

Instead of paying out of pocket for auto accidents and damage, people pay
annual premiums to an auto insurance company. The company then pays all or
most of the covered costs associated with an auto accident or other vehicle
damage.

Life Insurance

A life insurance policy guarantees that the insurer pays a sum of money to your
beneficiaries (such as a spouse or children) if you die. In exchange, you pay
premiums during your lifetime.

There are two main types of life insurance. Term life insurance covers you for a
specific period, such as 10 to 20 years. If you die during that period, your
beneficiaries receive a payment. Permanent life insurance covers your whole
life as long as you continue paying the premiums.

Travel Insurance

Travel insurance covers the costs and losses associated with traveling, including
trip cancellations or delays, coverage for emergency healthcare, injuries and
evacuations, and damaged baggage, rental cars, and rental homes.

ACTIVITY LOG FOR THE FORTH WEEK

Day Person In-

& Brief description of the daily Charge
Learning Outcome

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 Date Activity Signature

Day – 1 Currency Chest What is Currency chest and

how it is useful?

Day – 2 Manufacturing of notes and coins How the notes and coins
are manufactured.

Day – 3 Making safe and wise investments How to make safe and
wise investments.

Day – 4 Importance of Insurance Knowing about the

importance of Insurance

Knowing all about the

Day – 5 All about Financial Literacy concept Financial Literacy

Importance of Career Building What is the importance of

Day –6 Career Building

WEEKLY REPORT
WEEK – 4 (From Dt ………..….. to Dt… ............... )

Obejective of Activity Done: Here we have learnt about currency, career

building.
CURRENCY

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Currency is a medium of exchange for goods and services. In short, it's money,

in the form of paper and coins, usually issued by a government and generally

accepted at its face value as a method of payment.

Currency is the primary medium of exchange in the modern world, having long

ago replaced bartering as a means of trading goods and services.

In the 21st century, a new form of currency has entered the vocabulary and

realm of exchange: the virtual currency, also known as cryptocurrency. Virtual

currencies, such as Bitcoin and Ethereum, have no physical form or

government backing in the United States. They are traded and stored

electronically.

Currency chest is the place where the RBI kept all the excess money of banks

under custody. Whenever, RBI prints new currency notes, first it delivers to

currency chests and then currency chests deliver these new currency notes to

banks. A currency chest is a depositary of RBI. It’s not possible for RBI to

reach everywhere so it authorized PSU banks to operate currency chests on its

behalf. The bank, however, must maintain separate account independently of

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the chest which is monitored by RBI. As of March 2016, there were 4102

currency chests and 3783 Small coin depots.

NOTES, COINS & CURRENCY CHESTS

1. Notes: These are paper currency issued by a government as a legal tender.

They come in various denominations and typically feature important symbols,
historical figures, or landmarks.

2. Coins: Metal currency with assigned values, usually smaller denominations.

Coins are durable and often depict national symbols, historical figures, or
cultural motifs. They complement paper money in everyday transactions.

3. Currency Chests: These are secure storage facilities managed by central

banks or authorized agencies. Currency chests hold and distribute physical
currency (notes and coins) to meet the demand in the economy. They play a
crucial role in maintaining the liquidity of money in circulation.

Understanding notes, coins, and currency chests is vital for individuals to

navigate everyday transactions and for policymakers to manage monetary
supply effectively.

CAREER AWARENESS

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In financial literacy, career awareness involves understanding various career
paths related to finance. This includes roles in banking, investment, insurance,
financial planning, and more. Here are key aspects:

1. Diverse Roles: Explore careers such as financial analyst, investment banker,

accountant, financial planner, insurance agent, or auditor. Understand the
responsibilities and qualifications associated with each role to make informed
career choices.

2. Education and Training: Recognize the importance of relevant education

and professional certifications. Many financial careers require degrees in
finance, accounting, economics, or related fields. Continuous learning and
staying updated on industry trends are essential.

3. Networking: Build a professional network within the financial industry.

Attend industry events, connect with professionals on platforms like LinkedIn,
and seek mentorship. Networking enhances career opportunities and provides
valuable insights into the field.

4. Soft Skills: Develop soft skills such as communication, problem-solving, and

analytical abilities. These skills complement technical knowledge and are
crucial in financial careers that involve interaction with clients, colleagues, and
stakeholders.

5. Ethical Considerations: Understand the importance of ethical behavior in

the financial sector. Awareness of ethical standards and practices is essential for
maintaining trust and integrity in financial careers.

By being aware of the diverse career options, obtaining relevant education and
training, building a network, honing soft skills, and prioritizing ethical

25
considerations, individuals can navigate and thrive in various roles within the
financial sector.

CONCLUSION

In conclusion, financial literacy is a vital skill set that empowers individuals to

make informed and responsible financial decisions. Understanding concepts like
budgeting, saving, investing, and debt management is crucial for personal
financial well-being. Moreover, awareness of financial instruments, institutions,
and career paths enhances one's ability to navigate the complex world of
finance. Continuous learning, staying informed about economic trends, and
adopting prudent financial practices contribute to long-term financial success.
As financial literacy spreads, individuals are better equipped to secure their
financial futures and contribute to overall economic stability.

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REFERENCE LINKS:

 http://www.academicjournals.org/AJBMArnone
 http://www.occ.treas.gov
 http://www.jumpstart.org/
 Alliance for Financial Inclusion. 2020. Policy Model for
 National Financial Inclusion Strategy.
 Alliance for Financial Inclusion. 2020. Financial education
 for MSMEs: identifying MSMEs educational needs.
 Alliance for Financial Inclusion. 2020. Policy Framework,
 The Financial Competency Matrix for Adults.
 Alliance for Financial Inclusion. 2019. Uganda’s journey
 to inclusive finance through digital financial services.

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