Win24 1A1 Money Digital Payment Mrunal

Mrunal's Win24 Pillar1A1: Money, Digital Payment, Bitcoin
Table of Contents
10.1 🔠 Economy & Govt Scheme PYQ: Diversity/Variety...............................................................2

10.1.1 🔠 Economy PYQs: Number of MCQs.....................................................................................6
10.2 👨‍🏫 What is Win24 Series?........................................................................................................... 7
10.3 💰 Money: Fiat Money and Legal Tender...................................................................................8
10.3.1 💵 ₹2000 WITHDRAWN but continued as legal tender........................................................9
10.3.2 💵 ₹2000 NOT DEMONETIZED but WITHDRAWN from circulation..............................9
10.3.3 💵 ₹ 2000 withdrawn- WHY? (क्यों चलन से हटाया गया)..................................................................9
10.3.4 💰🤮 Money Types: Gresham law: good vs bad money | soft vs hard currency ...................9
10.4 💰Banking / Digital Payment / E-Banking related updates.....................................................10
10.4.1 🐷🔖 Cheque → NPCi’s Cheque Truncation System (CTS) & Positive Pay ......................10
10.4.2 🪫 LPSS- lightweight payment and settlement system..........................................................10
10.5 🛍️ UPI : truckload of updates...................................................................................................11
10.5.1 🛍️UPI: daily transaction limits................................................................................................11
10.5.2 🛍️ UPI-Lite (on-device wallet)................................................................................................11
10.5.3 🛍️🫰🏻UPI-Lite + NFC = Offline Retail Payment / Tap-and-pay...........................................12
10.5.4 🛍️💬 Conversational payments in UPI...................................................................................12
10.5.5 🛍️ Interchange fee by NPCi (2023-March)............................................................................12
10.5.6 🛍️ UPI in Srilanka, Mauritius (2024)......................................................................................13
10.5.7 🛍️ Pre-sanctioned credit line in UPI.......................................................................................13
10.5.8 🛍️ UPI: Pre-sanctioned credit line/Overdraft in UPI (2023-Apr) .......................................13
10.5.9 🛍️ UPI: Benefits of UPI-overdraft facility?.............................................................................13
10.5.10 🛍️ UPI: Interoperable Card-less Cash Withdrawal (ICCW) ..............................................14
10.5.11 🛍️ India-UAE: LCSS: UPI-IPP linkage (2023-Aug)............................................................14
10.5.12 📲🐻 UPI-ASBA in sharemarket...........................................................................................15
10.5.13 NACH-ABPS : Hybrid / Mixed mode in MGNREGA........................................................15
10.6 💳 Card related Updates........................................................................................................... 16
Mrunal’s Economy Win24 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 1
10.7 💳 🚕 National Common Mobility Card (NCMC, 2019)........................................................16
10.8 🚝💳 SBI’s Nation First Transit Card (2023).............................................................................16
10.8.1 💳 UPAY Cards- International acceptance............................................................................16
10.8.2 💳 Auto-Debit/E-mandates and Additional Factor of Authentication (AFA)...................16
10.9 🕵️‍♂️ 💳📯 Payments Infrastructure Development Fund (PIDF) by RBI...................................17
10.10 🐯🔗💮 Central Bank Digital Currency (CBDC)...................................................................18
10.11 🚩👶🏻 Zhande-walle Babushono ke liye special instruction: ( अग्रिम सूचना)..............................18
10.11.1 💮 Indian CBDC symbol (e₹).................................................................................................18
10.11.2 💮 (e₹) CBDC wholesale vs Retail.........................................................................................18
10.11.3 💮(e₹) Indian CBDC = no interest earning (नहीं मिलेगा ब्याज।)..............................................18
10.11.4 💮(e₹) Indian CBDC = digital token of legal tender............................................................18
10.11.5 💮 (e₹) → Settlement finality.................................................................................................19
10.11.6 💮 📲 (e₹) CBDC - Interoperability permitted with UPI QR Codes .................................19
10.11.7 💮(e₹) CBDC - programability & offline features................................................................20
10.11.8 💮(e₹): Fungibility of CBDC................................................................................................21
10.12 🔗💮 Crypto-Currency & Blockchain Tech: other dev..........................................................22
10.12.1 💮 Bitcoin ETF allowed in USA but RBI not to allow in India ...........................................22
10.12.2 💮 World Coin Project............................................................................................................22
10.13 🔗💮🥇 Cryptocurrency → global regulations......................................................................22
10.13.1 💮 Global Regulations → MICA regulation by EU (2023).................................................22
10.13.2 💮 Global Regulations → CARF Framework by OECD (2022).........................................22
10.14 🧑‍🏫 Topics Covered in Past Win## Series for Pill1A1 (Money)..............................................22
10.14.1 🧑‍🏫 Win20: already covered this in 1A1👇 (हम आगे पढ़ चुके है)................................................22
10.15 🧑‍🏫📡MRUNAL’S ECONOMY COURSE FOR UPSC EXAM.................................................25
10.15.1 📚 Next Handout.....................................................................................................................25
10.1 🔠E CONOMY & GOVT SCHEME PYQ: DIVERSITY/VARIETY
• From table given below, you can see that the diversity and variety of economy MCQs
questions has increased/changed in recent Prelims, so it is inevitable that handouts will get
lengthy. जब प्रश्नों की विविधता और जटिलता बढ़ रही है तो ये लाजमी है कि ज्यादा नोट्स लम्बे बनाने पड़ेंगे.
• So, please do not be fooled by the "negative-PR toolkit" circulated by Delhi-offline coaching
mafia against my notes via timepass vloggers and bikaau-royal-entry toppers.
• Black background cell = NOTHING asked from said topic in that year.
Economy Pillar 2023 2022 2021 2020
1A1_Digital
• CBDC & • Blockchain
Payment & • NFT ke features • NOTHING
SWIFT Technology
Bitcoin
• expansionis
• Money
t monetary
multiplier
• Central Banks policy
increases when
1A2_Monetary globally hiking • RBI responsible to • multiplier If
• Indian Bond
policy loan interest control inflation you
Yield
rates withdraw 1
influenced by
00 000 in
what factors
cash
• Lender of last • District
resort means Central
1B1_Classificati • Credit rating
• what Cooperativ
on Bank NBFC agencies
• UCBs e Banks
regulation (DCCBs)
1B2_NPA/Bad • • BBB • Appointment • Interest
Loan Burning of RBI Coverage
Economy Pillar 2023 2022 2021 2020
Issues Governor Ratio
• InVITS pe
Income Tax &
SARFAESI Act
• Capital markets • Call Money
ke sub-markets • IIB pe Income & other
• Stock Market:
1C_Sharemarke • Beta in Tax instruments
NDS-OM &
t Sharemarket • Convertible • non-
CDSL
• intangible Bonds financial
investments debt
• Capital
Expenditures of
a company
• cyber
1D1_Insurance • • •
insurance
• Causal
1D2_Pension • • Workers get •
EPFO or not
• Kisan
1D3_ Financial
• SHG ko Loans • • Credit Card
inclusion
scheme
• 15th FC
2B_FC • Vodafone indirect • Black Money is
Horizontal •
BlackMoney transfer bad why?
Formula
2D_FRBM • G-Sec and
• FRBM
Deficit • Household •
Docx
Disinvestment Savings
• FDI
Meaning
• India
• Switzerland
import-
Gold export
3A_BoP import • Tea Board ka • FDI types of export data
• India ka global
export FDI/FPI Dubai Office instruments • Indo-
export data &
SriLanka
PLI
Trade
• WTI Oil
Contract
3B_ currency • RBI s • NEER-REER • Devaluation • “Gold
exchange Sterilization • currency Tranche”
Economy Pillar 2023 2022 2021 2020
(Reserve
exchange and RBI Tranche)
Action • global
• ECB & Fed financial
Tapering crisis- what
NOT to do
• USA-EU Trade
and technology • IMF Loan facility
3C_intl.org Council • G20 Common • TRIMS
•
agreements • EU s Stability Framework Agreement
and Growth • AIIB-MTCR-SCO
Pact
• price of rice
affected y
• Small Farmer • public
Large Field investment
4A_AGRO • •
• Nigerseed pe in
MSP agriculture
• MSP All
NEVER
4B_Mfg Services
• Videshi e-
E-Commerce • MSME & PSL • •
commerce firms
MSME IPR
• Vietnam
• 1991
economy growth
4C_NITI PC economic
results
FYP; • • liberalizatio
• Organisation
unemployment n impact on
looking after
rural area
industry dispute
• Counter-cyclic
• real sector in the policy to
4D_GDP • •
economy combat
recession
• Demand-Pull
inflation
4E_Inflation • • • CPI vs WPI
• Printing money
causes inflation
5A_Infra- • • Coal Controller s • •
Energy Water Organization
Economy Pillar 2023 2022 2021 2020
(CCO) s
responsibilities
5B_Infra- • Private Port etc
• • •
Transport • Infra Corridors
5C_Infra-Rural • S3i ke Infra • Sanitation
• • MPLADS
Urban sectors Coalition
• Janani
6A_HRD-
Suraksha Yojna • Ayushman Bharat
Health Hunger • •
• Anaemia Mukt Digital Mission
Malnutrition
Bharat
7_Microeconom • substitute &
• • •
ics inferior goods
TOTAL MCQ • 20+ MCQ • 20+ MCQ • 14 MCQ • 20+ MCQ
• Free Download Topicwise PYQ booklet at https://unacademy.com/content/upsc/downloads/
(free unlock code: Mrunal.org)
• For more, watch this youtube video: https://youtu.be/KTag3h_kJoE?si=fTsLxkizxivnFT4y
• Note on above table: Every teacher always wants to show that more number of questions are
asked from his subjects. E.g. Economy teacher will say WTO = economy topic whereas IR
teacher may disagree. No need to get into ‘emotional-fanboy-outrage’ around it.
10.1.1 🔠 Economy PYQs: Number of MCQs

6 Pillars of
Prelims P1 (GS 100 🔠❓MCQs) Mains GSM-1-2-3 (750 Marks)
Utility in exam
economy
2018
2019
2020
2021
2022
2023
2018
2019
2020
2021
2022
2023
💳1_Money
Banking, Most useful in Prelims but
7 7 9 6 8 7 0 0 15 15 0 0
Finance & less in Mains
Insurance
🍋2_Budget, Second lowest utility after
FC, GST, 4 1 1 1 3 1 25 25 15 20 0 15
5_Infra
FRBM
💱3_Intl_Tra 4 7 7 2 4 3 30 0 15 15 0 0
Third lowest utility after
de, BoP 2_Budget.
🛒4_Sectors,
GDP,
Useful for both prelims and
Inflation, 3 8 5 5 4 4 50 65 55 60 85 110
Mains.
Microecono
mics
🏗5_Infra 1 3 1 0 2 4 15 15 15 30 20 10
Lowest utility among 6
pillars.
👩🏻‍🎓6_HRD 6 2 0 0 0 2 60 75 85 45 20 95 more useful in Mains than in
Prelims.
25 28 23 14 21 21 180 180 200 185 125 230
Total --
Qs Qs Qs Qs Qs Qs m m m m m m
10.2 👨‍🏫 W HAT IS WIN24 SERIES?

• The advantage of buying Iphone, Oneplus, Nokia or AndroidOne series of phones is they
provide (free) operating system updates/security patches for 2-3 years. I believe coaching
industry too needs to adopt similar business practice. महंगा फोन खरीदने पर मुफ्त में नियमित ऑपरेटिंग
सिस्टम की अपडेटस मिलती है तो, कोचिंग क्लास में भी ऐसी सुविधा होनी चाहिए, इसलिए मेने ये मुहीम शुरू की है. 😅🙏
• So, this ‘Win24 update patch/handout’ is for my old batch students who had joined my
economy classes before Feb-2024.
• Win24 contains updates since the UPSC Prelim-2023 (i.e. May 2023 onwards), including
Budget 2024 and other exam-worthy Economy Current Affairs Updates in Economy.
Season Post Corona Batch (PCB#) Win24 Win23 Win22 Win21

2024-25 PCB11 (2024-Feb onwards) ✋ ✋no need 2c Win21-24
2024-25 PCB10 (2023-Sept onwards) ✅ hv 2c ✋ ✋ ✋
2023-24 PCB9 (2023-Feb onwards) ✅ ✋ ✋ ✋
2022-23 PCB6, PCB7, PCB8 ✅ ✅ ✋ ✋
2021-22 PCB3, PCB4, PCB5 ✅ ✅ ✅ ✋
2020-21 PCB1, PCB2 ✅ ✅ ✅ ✅
• How do i know my batch code? Ans. It is written at bottom footer of your paid-course
handouts.
• FAQ1: Do I still need to see Win20- for Win23?: if there is tick mark in your cell, then Yes ✅
because in UPSC, they even ask Contemporary issues of economy which are 3 to 5 years old.
• ✋
FAQ2: “ No need” = means you don’t have to watch that series, because it was
taught/embedded within your paid course.
10.3 💰M ONEY: FIAT MONEY AND LEGAL TENDER
A) Is it in form D) At present, is it E) Is it
C) Result: Is it
of a physical B) Is it issued by legally valid for LEGAL
Fiat money?
coin OR physical Central Bank / transaction in Tender in
ITEM (YES If Both
Note OR Digital Govt / King / India as per India (Yes, IF
Cell A+B give
C+D give
Coin that can
measure ‘value’?
Queen
✅ +✅ ) Coinage Act or
RBI Act? ✅ +✅ )
₹ Indian Rupee:
Coins & Notes,
CBDC
✅ ✅ ✅ ✅ ✅
Demonetized
(विमुद्रीकृ त) ₹500,₹1000 ✅ ✅ ✅ ✋ ✋
Dollar$, Yuan, Yen,
Euro etc ✅ ✅ ✅ ✋ ✋
G-Sec, T-Bill
(what is this-Ans.
explained in video)
✋ ✅ ✋ ✋ ✋
Shares, Bonds, DD,
Cheque, ATM, Cards,
Kirana coin, Casino ✋ ✋ ✋ ✋ ✋
coin, Filmstar-Notes
Marshall Island: SOV
Venezuela: Petro coin ✅ ✅ ✅ ✋ ✋
Bitcoins ✅ ✋ ✋ ✋ ##
✋
 ##
Bitcoin is not a Fiat money, yet it is legal tender in El-Salvador nation. But it is an exception.
(बिट-कोइन का अल-साल्वाडोर देश में वेधनिक निविदा होना के वल एक अपवाद है, वो पूरी दूनिया के लिए नियम/व्याख्या नहीं है।)
 😤 FAQ: we can use cheque / credit card to pay fees. So, why are they not fiat money/legal
tender? Ans. They're not money in themselves. they're tools to use money.
😤 FAQ: I did not understand this thing and/or I want to engage in intellectual debate why “X”
thing is legal tender? Ans. Accept and move to next topic, if you value your time.
10.3.1 💵
₹2000 WITHDRAWN but continued as legal tender
2016-Nov: RBI introduced ₹2000 note, to meet the currency requirement of the economy in an faster
manner after demonetisation of ₹500 and ₹1000 (नोटों की किल्लत पूरा करने के लिए इसको छापा जा रहा था)
1) 2018–19: printing of ₹2000 banknotes was stopped.
2) 2023-May-23rd: RBI asked people to either any of the following thing by two things
30/Sept/2023.
Option at Bank Limit
Deposit this note in your bank account no limit. Whatever money you have you
अपने बैंक खाते में जमा करवादो can deposit- 2 lakh, 2 crore doesn’t matter
Exchange ₹2000 note with other notes e.g. ₹20,000/- per visit
100/200/500 बदलवा दो
10.3.2 💵 ₹2000 NOT DEMONETIZED but WITHDRAWN from circulation

(इसका विमुद्रीकरण नहीं हुआ. बस चलन में इसे हटा दिया गया है)
• 2023-June: Reporter asked : Will the RBI withdraw the legal tender of ₹2000 note after
September 30?
• RBI Governor Shaktikanta Das replied: “There is no such idea.” That means
Question interpretation
is ₹2000 fiat money? Yes ✅
is ₹2000 legal tender? Yes ✅
is ₹2000 in withdrawn from circulation? Yes ✅
is ₹2000 DEMONETIZED? ✋🚨
NOT YET.^^
• ^^As of 2024-Jan: this is the status, as per RBI official website & CNBC Article.
• 2024-Jan: over 97% of ₹2000 notes returned. Only ₹9330 cr worth notes NOT yet returned.
10.3.3 💵₹ 2000 withdrawn- WHY? (क्यों चलन से हटाया गया)

We will only prepare the official reasons given by the RBI.
 2000 Notes were issued as a temporary measure to address shortage of currency. Now there is
adequate supply of other currency notes e.g. 100/200/500.
 This note is not commonly used for transactions. (वैसे भी भुगतान में इसका उपयोग कम ही होता है)
 RBIs clean note policy: to ensure availability of good quality banknotes to the members of public.
 2000 note’s paper has a lifespan of 4–5 yrs. Since most of these notes were printed in 2016–2017.
So by 2022–23 its paper quality may start to deteriorate. (चार पांच वर्षों में कागज वैसे भी खराब हो जाता है)
THERE IS NO MENTION of fighting black money/ corruption / fake notes by ISI-Dawood in
RBI press release.
10.3.4 💰🤮 Money Types: Gresham law: good vs bad money | soft vs hard currency
 Wait till we reach Pillar 3B: currency exchange. Presently, we’re in Pillar 1A1.
 If unable to hold patience, watch https://youtu.be/x7rcf13JGh8?si=rkIwvohe38Gbw_FR
10.4 💰B ANKING / DIGITAL PAYMENT / E-BANKING RELATED UPDATES
10.4.1 🐷🔖 Cheque → NPCi’s Cheque Truncation System (CTS) & Positive Pay
• As such I had covered this in the earlier lectures in past Win## series, but some weak
students unable to understand simple things / they deliberately want to overcomplicate the
things for themselves. So I had to create bigger diagram.
• 🤔 FAQ: I’ve 500 counter arguments about how James Bond villain can misuse it? Ans.
NOT IMP.#RAFTAAR.
10.4.2 🪫 LPSS- lightweight payment and settlement system
 RBI’s (emergency/backup) alternative to NEFT, RTGS and IMPS/UPI.

 To provide a temporary & portable solution during natural disasters and war. (प्राकृ तिक आपदा या युद्ध
के चलते बाकी प्रणालियाँ बं द हो जाए तो अस्थायी रूप से इसको इस्तेमाल कर सकते)
 Can be operated from anywhere by a bare minimum staff. How it works/features? NOTIMP.
10.5 🛍️ UPI : TRUCKLOAD OF UPDATES
10.5.1 🛍️UPI: daily transaction limits

Max amount Category of daily transaction
₹1 lakh/day Normal transactions.
Capital Markets (e.g. Mutual Funds) Credit card payments, Loan re-payments/
₹ 2 lakhs/day
EMI, Insurance premium/fees payment etc.
 Purchase of G-Sec under Retail Direct Scheme, IPO Subscriptions. What is the
₹5 lakh/day meaning of the term? (Ref: Pillar#1C)
 Medical and educational services
Note: above is the status as of 2023-Dec.
10.5.2 🛍️ UPI-Lite (on-device wallet)
User adds money from his bank account to his UPI Lite wallet on his mobile App. (e.g. Google Pay
App, BHIM App)
Usage (NUMBER NOT VERY IMP) UPI-LITE Limit as of 01/Sep/23
Max. Limit PER transaction ₹500
Max. Balance / storage capacity of wallet ₹2,000
🤩 Benefits of UPI-Lite wallet?
 🤩Faster. Because No need to provide UPI-PIN number during transaction.
 🤩Less chances of transaction failure- even if sender’s bank server is facing technical issues.
10.5.3 🛍️🫰🏻UPI-Lite + NFC = Offline Retail Payment / Tap-and-pay

RBI aims to implement Near Field Communication (NFC) in ‘UPI-LITE’. For following benefits
 1) off-line transaction will be possible. Helps in villages with poor internet connectivity.
 2) contactless / Tap and Pay facility / touch and pay facility by touching your mobile with
merchant’s device.
 3) More faster / error-free transaction.
 🙋🏼‍♀️FAQ1: What is NFC? Ans. Refer Sci-Tech material. E.g. in USA, u can tap Apple smartwatch
with coffeeshop’s POS-device to pay money.
 🙋🏼‍♀️FAQ2: NPCi has UPI developed. Then why is RBI making all these announcements? Ans.
Because RBI is the regulator of all digital payment technologies. उनके आशीर्वाद के बिना नहीं हो सकता।
10.5.4 🛍️💬 Conversational payments in UPI

 It will help users to chat/converse with AI-powered systems to make payments.
 e.g. similar to Smart speakers : ‘Hey Siri/Alexa/Google remind me to buy milk on X date.’.
 you can similar payment such a instruction via TEXT or voice note to UPI system.
 How it works? Ans. Wait till the official features release.
Benefit?
 🤩Voice command more convenient for blind users.
 🤩Text based chat can happen within shopping site. No need to redirect to third-party payment
Gateway website like CCBill, CCAvenue, Razerpay, etc. = more secure / efficient.
10.5.5 🛍️ Interchange fee by NPCi (2023-March)
Note: There are many more terms and conditions to this, but we will not waste time in PHD.
10.5.6 🛍️
UPI in Srilanka, Mauritius (2024)
• 2024-Feb: UPI facility now available in Sri Lanka, Mauritius.
• This will help Indian tourists travelling to Sri Lanka and Mauritius to pay through mobile
phones.
• UPI also available at Bhutan, Oman, UAE, South Asian nations, Nepal and France etc.
10.5.7 🛍️ Pre-sanctioned credit line in UPI
When a banker allows an account holder to borrow upto a predetermined amount of money, without
having to apply for a loan, it is called Pre-Sanctioned Credit Line. (इसका हिंदी करने का मतलब नहीं है. मुख्य
परीक्षा में इस प्रकार की चीजें नहीं पूछते)
10.5.8 🛍️ UPI: Pre-sanctioned credit line/Overdraft in UPI (2023-Apr)
 RBI allowed Pre-Sanctioned Credit Line / overdraft facility extended to UPI. (यूपीआइ में ओवर ड्राफ्ट
की सुविधा)
 So, even if a person does not have balance in his bank account, still he can PAY using UPI while
shopping. (and then later, when he gets the salary/pension/income deposited in his bank
account, then the banker will recover the principal and interest.)
10.5.9 🛍️
UPI: Benefits of UPI-overdraft facility?
 Help customers in “Buy now pay later (BNPL)” format of shopping. (Ref: Pillar#1B1 for more)
 Poor people require small small amount of money/loans during last weeks of a month. They
cannot travel to the city’s bank branch for the paperwork and banker may take many days to pass
application. Consequently, poor villagers borrow from the local moneylender/Shroff/Baniya at
high interest rate. UPI-Overdraft can help overcoming this to some extend. = helps in Financial
inclusion of the poor. (गरीबों के वित्तीय समावेशन में मदद)
10.5.10 🛍️ UPI: Interoperable Card-less Cash Withdrawal (ICCW)
 (ATM मशीन में बिना CARD डाले, मोबाइल ऐप के ज़रिए पैसा निकाला जा सके ऐसी सुविधा)
 Benefit? If physical card not inserted in ATM machine → ⏬ dangers of card cloning, etc scams.
🙋🏼‍♀️FAQ: How does it work? My bank not giving this facility?! Ans. 1 line word association for
MCQ is enough.
🛍️
10.5.11 India-UAE: LCSS: UPI-IPP linkage (2023-Aug)
 2023: Central banks of India and UAE signed Local Currency Settlement System (LCSS)
agreement.
 This will allow importers/exporters/investors/tourists to pay in their respective domestic
currencies i.e. in Indian rupee (INR) and the UAE Dirham (AED). (Without using Dollars.)
 Both nations also trying UPI-IPP linkage for easier Local Currency Settlement System (LCSS).
Country → India UAE

Mobile based Fast Payment Systems Instant Payment Platform
UPI
(FPSs) → (IPP)
📚 More about currency exchange in (Ref: Pillar#3 Currency Exchange)
10.5.12 📲🐻 UPI-ASBA in sharemarket
 Wait till we reach Pillar 1C: Sharemarket. Presently, we’re in Pillar 1A1.
 If unable to hold patience, watch https://youtu.be/SXzIzK9ae3c?si=zwhgnlLkQdMmvMN_
10.5.13 NACH-ABPS : Hybrid / Mixed mode in MGNREGA

Both these technologies developed by NPCi.
National Automated Clearing House for bulk monthly payments of utility

bills, dividends, salaries, pension / insurance premiums etc.
NACH
😤 FAQ: How is BBPS vs UPMS vs NACH similar or different? Ans. NOT
IMP 4 Exam. These are one-liner GK. Not PHD thesis topics!
AEPS: Aadhar 1. Useful for Direct Benefit Transfer (DBT: प्रत्यक्ष हस्तांतरित लाभ) into
Enabled Payment beneficiary’s account for MNREGA wages, LPG subsidy, scholarship etc.
System 📑More in Pill#6
------
2. It’s also required for Bankmitra-MicroATM system.
Aadhaar-based
Payment System 😤 FAQ: difference between Aadhaar Enabled Payment system (AEPS) VS
(ABPS) Aadhaar-based Payment System (ABPS)? Ans. NOTIMP. It is enough to
know, these are related to money transfer to bank account linked with
Aadhar number.
 Mahatma Gandhi National Rural Employment Guarantee Act, 2005: Rural development
Ministry provides 100 days work to villagers. (Ref: Pillar#6 for more)
 Presently both NACH and ABPS methods used for giving salaries to MGNREGA workers. Thus,
it’s called Mixed payment mode/hybrid mode for MGNREGA wages.
 Government wants to shift completely to ABPS method. But due to operational and technical
issues, deadline keeps getting delayed. Some poor people (without Aadhar card) given
exemption from ABPS.
 Opposition party alleged that government is "weaponizing the technology" to deny money to
poor people without Aadhar card.
10.6 💳C ARD RELATED UPDATES
10.7 💳 🚕 National Common Mobility Card (NCMC, 2019)
• ‘One Nation One Card Model’ by Ministry of Housing & Urban Affairs (MoHUA) with the
help of NPCi, Bharat Electronics Limited (BEL Company), and some banks. It helps
developing special cards to pay tickets→ Train station/train gate can open automatically,
upon tapping the card, like in hollywood movies.
It has 3 components: (तीन घटक है इसके )
• 1) NCMC Card: To be issued by banks. Nature can be Debit/Credit/Prepaid. Can be used for
metro, bus, suburban railways, toll, parking, retail shopping etc.
• 2) SWEEKAR: Automatic Fare Collection System. (यात्री किराया वसूलने की स्वचालित प्रणाली)
• 3) SWAGAT: Swachalit / Automated Gate at railway/bus station. (अपने आप खुलने-बं द होने वाले
दरवाजे)
10.8 🚝💳 SBI’s Nation First Transit Card (2023)

• You can buy this card from SBI, by paying ₹100 or more.
• Card can pay metro, buses, water ferries and parking etc.
• Card can also be used for shopping, e-Commerce, withdrawing money from ATM.
• Card is based on National Common Mobility Card (NCMC) technology.
10.8.1 💳
UPAY Cards- International acceptance
• 2023-June: RBI allowed international use of RuPay cards. That means an Indian travellers in
use them abroad for ATM money withdrawal and shopping. (subject to terms and
conditions)
• 2024: implemented for Mauritius.
10.8.2 💳 Auto-Debit/E-mandates and Additional Factor of Authentication (AFA)
Auto-Debit/E-Mandate / Recurring = allowing a company to cut money from your bank-account,

credit/debit card. - e.g. monthly netflix subscription. (मासिक/पुनरावर्ती भुगतान )
Normally, it requires two factors authentication (दो चरणों में सत्यापन)
• (1) username-password or [card number & CVV code] AND
• (2) OTP-SMS (as Additional Factor of Authentication (AFA))
Additional Factor of Authentication (AFA) / OTP-SMS
Amount
required for recurring monthly/annual transactions?
No OTP req. ever for normal transactions e.g. Netflix subscription.
Upto
[only 1st time transaction pe may required. then recurring payment pe not
₹ 15,000
required. हर महीने ओटीपी नहीं मांगेगा]
Upto ₹1 lakh No OTP req. Subscription to mutual funds, insurance premium, Credit card bills.
🙋🏼‍♀️FAQ: do I have to remember all this? Ans. Atleast remember that every card-transaction doesn't
require OTP.
10.9 🕵️‍♂️💳📯 P AYMENTS INFRASTRUCTURE DEVELOPMENT FUND (PIDF) BY RBI
 ₹250cr from RBI + ₹250 cr from (Banks and Card Gateway Operators) → ₹500 cr fund setup.
 Objective? Provide funding/ subsidy to encourage merchants in the small towns, villages and
North Eastern states to adopt point-of-sale (PoS) card swiping machines. (भुगतान इंफ्रास्ट्रक्चर के लिए
निधि/कोष: गांव, छोटे शहरों और उत्तर-पूर्वी इलाकों में व्यापारियों को कार्ड मशीन अपनाने के लिए मदद)
 Originally, RBI launched in 2021 for 3 years. Then extended for another 2 years upto Dec, 2025.
Scheme description
PM SVANidhi Govt helps the street vendor to get Biz loan. (Ref: Pillar#1D for more)
Govt helps artisans e.g. carpenter, potter, blacksmith, et cetera. In skill
PM Vishwakarma
training Bank loans. (Ref: Pillar#1D for more)
RBI said we’ll gives PIDF-subsidy to above beneficiaries to adopt PoS devices.
10.10 🐯🔗💮 C ENTRAL BANK DIGITAL CURRENCY (CBDC)
10.11 🚩👶🏻 Zhande-walle Babushono ke liye special instruction: (अग्रिम सूचना)

• Following are the features told by the (A) Govt to the Parliament and (B) RBI governor in a
press release. So, accept and memorize it.
• Please do not waste your time engaging in academic/legal debates - if you value your time
and wish to complete the syllabus in a timely fashion. (सिलेबस खत्म करना है तो इधर जो दिया है उसका
स्वीकार करो. कृ पया झं डा उठाकर डिबेट में वक्त बर्बाद ना करना- यदि, आपको परीक्षा पास करनी है. )
💮
10.11.1 Indian CBDC symbol (e₹)
• Normal rupee = ₹ or INR
• CBDC rupee = e₹ or eINR.
💮
10.11.2 (e₹) CBDC wholesale vs Retail
 Presently RBI doing trials/experiment/pilot-studies in two segments:
Type CBDC-Retail (e₹-R) CBDC-Wholesale (e₹-W)
• Secondary market transactions in
• Person to Person (P2P) government securities
Trial-
• Person to Merchant • Interbank borrowing for short-term
Purpose
(P2M) transactions. loans
• Crossborder payments.
Details given in present handout 1A1 Ref: Pillar#1C to understand these terms.
10.11.3 💮(e₹) Indian CBDC = no interest earning (नहीं मिलेगा ब्याज।)
• (e₹) stored in a separate digital wallet/separate mobile created by the bankers.

• (e₹) does not earn savings interest rate, unlike normal bank deposits (because you are
keeping it with yourself in a digital wallet. So bankers do not treat it as a deposit).
• (e₹) can be converted to other forms of money, like deposits with banks. But then you will
have to move that money out of your digital wallet → then you cannot use it as (e₹) [ ब्याज
कमाना है तो उसको डिजिटल बटुवे से स्थानान्तरित करना होगा।]
10.11.4 💮(e₹) Indian CBDC = digital token of legal tender
 Indian CBDC (e₹) is based on blockchain technology.

 Indian CBDC (e₹) is a digital token that represents legal tender.
 (e₹) created under RBI Act, 1934 by amending some sections in 2022.
🙋🏼‍♀️
 RBI has issued (e₹) on behalf of Government of India. [ FAQ: I have legal arguments against
this. Ans. ACCEPT it- bcoz Government said this in Parliament.]
 (e₹) is a liability of the RBI e.g. similar to cash note ” I promise to pay the bearer on demand sum
of ₹100 rupee”.
 It is being distributed through financial intermediaries, i.e., banks.
 Just like cash, it (e₹) will not earn any savings interest.
 It offers features of physical cash like trust, safety and settlement finality.
💮
10.11.5 (e₹) → Settlement finality
 “settlement finality” = there is no risk of reversal or cancellation after the financial transaction is
complete. e.g. Cash or CBDC-e₹. (एक बार भुगतान कर दिया तो फिर सामने वाली पार्टी के पास पैसा गया। आप उसको
उलट नहीं सकते।)
 Whereas, if a payment is made via Credit card/ cheque-book → customers can later block the
payment by contacting the banker within a time-limit. So they (creditcard / cheque) do not have
instant-settlement finality. (उधर आप बैंक में शिकायत कर के भुगतान को रोक सकते हैं।)
 🙋🏼‍♀️
FAQ: can we say that as mode of payment (UPI/Debit Card/NEFT-RTGS) also has
settlement finality? Ans. I copied only that much which is given in Newspaper/Press-release. I
did not become Sherlock Holmes to do find further info/PhD. Feel free to delay your syllabus
completion by asking ChatGPT.
10.11.6 💮 📲 (e₹) CBDC - Interoperability permitted with UPI QR Codes
 2022–23: CBDC trials/experiments started in a few cities.

 So bankers have developed separate apps to use CBDC money
App Before AFTER 2023-Sept
(1) SBI Yono App
can scan & pay UPI-QR codes can scan & pay UPI-QR codes
(Normal money)
(2) SBI-e₹ App can’t scan UPI-QR codes. It required
can scan & pay UPI-QR codes
(To use CBDC money) separate codes
App Before AFTER 2023-Sept
Interoperability? ✋🚨Absent/Denied by RBI ✅Present / permitted by RBI
💮
10.11.7 (e₹) CBDC - programability & offline features
• Presently (e₹) can be used for Person to Person (P2P) and Person to Merchant (P2M)
transactions. 2024-Feb: RBI proposed two new experiments:
• (1) Offline functionality (similar to UPI-Lite). in areas with poor or limited internet
connectivity.
• (2) Programability. (given below) 👇
Programability Example
 e.g. If Adani allows a company budget of ₹10,000 (e₹) for his employees to
Biz Travel use for buying railway tickets only. → then employees cannot use it for
buying table chairs, IPL tickets, etc.
 e.g. The university gives ₹10,000 (e₹) stipend to students to buy books within
1 month of admission.
Expiry/Validity
 If student does not buy the books, then the money will be returned back to
the university.
Geographical
 e.g. It cannot be used outside these XYZ GPS coordinates.
areas
🙋🏼‍♀️FAQ: Aren’t these features similar to the e-Rupi gift cards by NPCi?
Ans. Don’t make khichdi of RBI’s product vs NPCi’s product. View them as separate photo frames.
Observe the PYQs. UPSC unlikely to ask you compare/contrast between them two.
🐎✅🐂✋ Be focused on the track like a race horse. Don’t loiter like a street-bull.
10.11.8 💮( ₹): F
E UNGIBILITY OF CBDC
Item Can it be Is mutual substitution possible in terms of value? Is item

subdivided in fungible?
smaller units?
₹500 Note Yes ₹100x 5 Yes ₹100 x 5 Notes can buy same quantity of ✅Yes
Notes=500 goods as a single ₹500 Note
1kg gold Yes 100gm x 10 Yes 100gm x 10 biscuits can buy same quantity of ✅Yes
bar biscuits=1kg gold goods as a single 1kg gold bar
Item Can it be Is mutual substitution possible in terms of value? Is item
subdivided in fungible?
smaller units?
bar
1Bitcoin 1BTC=10^8 Satoshi Yes 1BTC’s value = 10^8 Satoshi coins. So, ✅Yes
coins theoretically, they buy same quantity of goods
100 gm Bigger single piece diamond considered to be more precious/valuable ✋No
single than small-small pieces diamond. So, 100gm Single_Big_Diamond
Diamond =NOT equal 1gm x 100 small_Diamonds, in terms of value
NFT NOT possible. Explained in Win23 series, last year. ✋No
Doubt: if we program the CBDC currency for specific use - example only for purchasing of books, then
it is no longer fungible! Because we cannot use it for any other purpose e.g. buying Pizza!!
Ans.
 In that case, as soon as the book is purchased, the money goes to the bookshop owner → money
again becomes fungible. Because the bookshop owner can use the money for any purpose
 If the student doesn’t buy the book, → CBDC-money goes back to the school, and fungibility is
restored (because the school admin can use it for any other purpose).
“Thus, programmability does not violate/destroy fungibility (of Rupee), it is only a specific use
binding.”- said RBI Governor. (भले को शर्ती-प्रोग्रामिंग से CBDC ऐसा सिमित कर दिया जाए, की कु छ ही चीजे उससे
खरीद सकते है. लेकिन फिर भी CBDC-रुपया फं जीबल है. )
10.12 🔗💮 C RYPTO-CURRENCY & BLOCKCHAIN TECH: OTHER DEV
10.12.1 💮 Bitcoin ETF allowed in USA but RBI not to allow in India
wait till we reach Pillar1C: Sharemarket. if can't hold patience, then watch
https://youtu.be/KLLL0EOBPYU?si=zAb7o5zfpzAMB_BK
10.12.2 💮 World Coin Project
Pros and Cons? Similar to the Aadhaar card:

 Pros: IF governments across the world ACCEPT this as “identification proof”= easier to avail
various government schemes benefits /college admission / passport application etc. Time-trouble
saved. (यदि देश विदेश की सरकारें इसे एक आधिकारिक पहचान पत्र के रूप में मान लें तो गरीबों को विविध योजना स्कू ल कॉलेज
दाखिले आदि में काफी सुविधा हो सकती है)
 Cons: concerns over privacy / misuse. (निजता का हनन. दुरुपयोग का भय)
10.13 🔗💮🥇 C RYPTOCURRENCY → GLOBAL REGULATIONS

10.13.1 💮
Global Regulations → MICA regulation by EU (2023)
• European union (EU)’s rules called the Markets in Crypto Assets (MiCA)
• To protect people from scams /frauds in crypto currency investment.
• To combat tax-evasion, money laundering (i.e. converting black money into white) AND
terror-finance.
• Doesn’t regulate central bank digital currencies (CBDC). Doesn’t regulate nonfungible
tokens (NFTs).
10.13.2 💮
Global Regulations → CARF Framework by OECD (2022)
• Crypto-Asset Reporting Framework By OECD (Organisation for Economic Co-operation
and Development)O
• Objective? Similar to EU’s MICA Rules.
10.14 🧑‍🏫 T OPICS COVERED IN PAST WIN## SERIES FOR PILL1A1 (MONEY)
🧑‍🏫 👇
10.14.1 Win20: already covered this in 1A1 (हम आगे पढ़ चुके है)
Red highlight = I don’t find it very useful for 2024 exam cycle. You may ignore it.
 💸New Coins and Notes
 💸👩‍🦯🤳🏻RBI’s App to help the blind identify currency notes
 Budget-2020: A museum for coins
 💳 ⏰NEFT becomes free & available 24/7
 💳Digital Payment → MDR developments
 👨‍⚖️💳New Umbrella Entity (NUE) for Retail Payments System (2019)
 🚕💳 National Common Mobility Card (NCMC, 2019)
 🚕💳 FASTag for paying toll fees at highways (2017)
 🕵🏻📒💳 RBI’s Nandan Nilekani Panel (2019: Jan to May)
 💳📒🕵🏻 Payment and Settlement Systems in India: Vision 2019 – 2021
 💮🔗🐯 Cryptocurrency & India → RBI ban revoked by SC
 💮🔗 Cryptocurrency & India → ⚖️Banning of Cryptocurrency Bill, 2019
 💮🔗🥇 Cryptocurrency & world → Stable-coins
 🌐👶🔗💮 Cryptocurrency & world → UNICEF’s Crypto Donation Fund
10.14.2 🧑‍🏫 Win21: already covered this in 1A1👇 (हम आगे पढ़ चुके है)
 🐷🔖🤳 Cheque → Positive Pay Mechanism for Cheques in CTS
 💸📡Next Generation Treasury Application (NGTA), 2020-Oct
 QR Codes: compulsory to implement UPI/Bharat QR from 2022
 👨‍⚖️📜🗓 Perpetual Licence for Payment System Operators?
 🕵️️‍♂️💳📯 Payments Infrastructure Development Fund (PIDF) 2020-Jun
 🕵️️‍♂️💳 📯 Scheme of Offline Retail Payments Using Cards and Mobile Devices
 🐯🔗💮 Central Bank Digital Currency (CBDC)
 🤫💸👜🥚 Redenomination: drop zeros, change name
 🤫💸👜🥚 Iran = Toman to replace Iranian Riyal (2020)
 💸 Digital Payments- RBI’s CPS: PPI also eligible
 💸 NPCI: UPI, IMPS, New updates
 💸 NPCi’s UPI-IMPS- 2 lakh → ⏫5 lakh
 💸 : NPCi’s UPI: International cooperation
 💸 :️NPCi's UPMS for bill payment (2022)
 💳 PLASTIC Money: New Updates after Win21
 💳 MDR: Merchant Discount Rate (व्यापारिक छू ट दर)
 💳 📧 Card Tokenization (Fake Gmail ID Bnaao Yojana)
 🕵️‍♂️💳: Offline Retail Payments Using Cards and Mobile Devices
 🤳🏻💸👟 Digital Payment: DBT → E-Rupi by NPCi (2021)
 💸📡 Digital Payment: New Orgs in News
 💸📡: Post office to get CBS- says 👜🥻Budget-2022
 💸📡: Digital Payments- (Proposal) Digital Banks by NITI Aayog (2021)
 💸📡: Digital Payments- NeoBanks
 🔗💮 Bitcoin / Crypto-Currency Updates Since Win21 Series
 🔗💮:❄️Hot Wallet vs Cold Wallet
 🔗💮:️Crypto-Winter in Bitcoin Prices (भाव गिरा अब उठ नहि रहा है)
 🔗💮 🤘🏳️El-Salvador: Bitcoin becomes a legal tender (2021)
 🔗💮: Bitcoin Profit pe 30% Tax in 👜🥻Budget-2022
 🔗💮: Bitcoin Purchase pe 1% TDS in 👜🥻Budget-2022
 🔗💮 : Facebook’s Stablecoin Project DIEM/LIBRA sold to another company
 💠≠ ❇️Non-fungible token (NFT: ग़ैर-फ़ं जीबल टोकन)
 🔗💮 Blockchain- new updates: DEFI and BalPurskar
 📊 Digital Payment related Index / Competitions
 📊RBI Digital Payments Index (DPI: डिजिटल भुगतान सूचकांक)
 🐯📈 RBI’s Financial Inclusion Index (वित्तीय समावेशन सूचकांक)
 Harbinger Hackathon 2021
 → NPCI → UPI (Unified Payment Interface)
 🕵🏻 NPCI → UPI → 123PAY for FeaturePhones
 UPI observations by 📙ES23
 UPI single-block-and-multiple-debits functionality (2022-Dec)
 UPI facility to foreign tourists coming to India (2023)
 QR Code based Coin Vending Machine using UPI (2023-Feb)
 rMQR (Rectangular Micro QR Code)
 NPCi: Bharat Bill Payment System (BBPS) 2022-Reforms
 👨‍⚖
New Umbrella Entity (NUE) for Retail Payments System (2019)
 💳📧 Card Tokenization (from 1/Oct/2022)
 🔗💮 Crypto-Currency & Blockchain Technology
 Crypto-winter (क्रिप्टो मुद्रा के दामों में भारी गिरावट)
 FTX crypto scam (2022-23)
 Crypto currency observations by ES23 📙
10.15 🧑‍🏫📡MRUNAL’S ECONOMY COURSE FOR UPSC EXAM

 STARTING FROM 24TH FEB, THURSDAY NIGHT HTTPS://UNACADEMY.COM/COURSE/MRUNALS-
ECONOMY-FOR-UPSC-PRELIMS-PCB11-RAFTAAR/CEKEMY3I
 JOIN UNACADEMY PLUS TO UNLOCK ALL OF THE FOLLOWING!
📚
10.15.1 Next Handout
• Pillar1A2: Monetary Policy - CRR, SLR, Repo etc.
• Missed any downloads/past classes, checkout Mrunal.org/Win24

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Mrunal's Win24 Pillar1A1: Money, Digital Payment, Bitcoin

10.1 🔠 Economy & Govt Scheme PYQ: Diversity/Variety...............................................................2

10.1 🔠E CONOMY & GOVT SCHEME PYQ: DIVERSITY/VARIETY

10.1.1 🔠 Economy PYQs: Number of MCQs

10.2 👨‍🏫 W HAT IS WIN24 SERIES?

Season Post Corona Batch (PCB#) Win24 Win23 Win22 Win21

10.3.2 💵 ₹2000 NOT DEMONETIZED but WITHDRAWN from circulation

10.3.3 💵₹ 2000 withdrawn- WHY? (क्यों चलन से हटाया गया)

 RBI’s (emergency/backup) alternative to NEFT, RTGS and IMPS/UPI.

10.5 🛍️ UPI : TRUCKLOAD OF UPDATES

10.5.1 🛍️UPI: daily transaction limits

10.5.3 🛍️🫰🏻UPI-Lite + NFC = Offline Retail Payment / Tap-and-pay

10.5.4 🛍️💬 Conversational payments in UPI

10.5.7 🛍️ Pre-sanctioned credit line in UPI

10.5.10 🛍️ UPI: Interoperable Card-less Cash Withdrawal (ICCW)

Country → India UAE

10.5.13 NACH-ABPS : Hybrid / Mixed mode in MGNREGA

National Automated Clearing House for bulk monthly payments of utility

10.6 💳C ARD RELATED UPDATES

10.7 💳 🚕 National Common Mobility Card (NCMC, 2019)

10.8 🚝💳 SBI’s Nation First Transit Card (2023)

10.8.2 💳 Auto-Debit/E-mandates and Additional Factor of Authentication (AFA)

Auto-Debit/E-Mandate / Recurring = allowing a company to cut money from your bank-account,

10.9 🕵️‍♂️💳📯 P AYMENTS INFRASTRUCTURE DEVELOPMENT FUND (PIDF) BY RBI

10.10 🐯🔗💮 C ENTRAL BANK DIGITAL CURRENCY (CBDC)

10.11 🚩👶🏻 Zhande-walle Babushono ke liye special instruction: (अग्रिम सूचना)

10.11.3 💮(e₹) Indian CBDC = no interest earning (नहीं मिलेगा ब्याज।)

• (e₹) stored in a separate digital wallet/separate mobile created by the bankers.

10.11.4 💮(e₹) Indian CBDC = digital token of legal tender

 Indian CBDC (e₹) is based on blockchain technology.

10.11.6 💮 📲 (e₹) CBDC - Interoperability permitted with UPI QR Codes

 2022–23: CBDC trials/experiments started in a few cities.

Item Can it be Is mutual substitution possible in terms of value? Is item

Pros and Cons? Similar to the Aadhaar card:

10.13 🔗💮🥇 C RYPTOCURRENCY → GLOBAL REGULATIONS

10.15 🧑‍🏫📡MRUNAL’S ECONOMY COURSE FOR UPSC EXAM

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