NCERT Class 10 Economics Chapter 3: Money and Credit (CRR, SLR & Repo Rate) | English | CBSE

Dr. Manishika Jain in this lecture NCERT Class 10 Economics Chapter 3: Money and credit discusses Money versus Barter
Barter System – Double coincidence of wants
Money – eliminates double coincidence of wants; Medium of EXCHANGE

Forms of Money
Currency: Paper notes and coins – authorized by Govt. (India – RBI)
Deposit with Banks – to earn interest for extra money; demand deposit (withdrawn on demand) – Cheque rather than Cash
Depositor vs. Borrower
Bank hold 15% of total deposit as cash
B/w surplus & those who need
Extend loans
Higher interest rate on loan
Diff. = INCOME for bank
Credit (Loan) Situation
Lender supplies the borrower in return for promise of future payment
For industry, housing, crop production
Can push borrower in further credit (crop failure)
Terms of Credit
Interest + Principal = Repayment
Collateral: asset that the borrower owns and uses this as a guarantee to a lender until the loan is repaid
Interest rate + collateral + documentation + mode of repayment = Terms of Credit
Formal Sector Credit
Formal sector loan – bank & cooperative – 90% rich household
Informal sector loan - moneylenders, traders, employers, relatives and friends – not supervised & charge any amount (usually higher) – 85% poor households
Formal – Supervised by RBI – Looks into
Cash maintained by banks
Loan not only to profit making businesses but others
High borrowing cost implies most money goes in loan repayment
Need for cheap & affordable credit
50% rural credit needs by formal sector
Self-Help Groups
Organize rural poor in groups and collect money
Members take loan from group
Group charges interest
If group is regular in saving – can take bank loans
Loan given in name of group – self employment opportunities
Overcome problem of collaterals
Grameen bank (Bangladesh) – 1970s – 6 million borrowers in 40,000 villages

Concepts discussed are:
Repo rate
reverse repo rate
CRR
SLR
Bank Rate

Money versus Barter @0:14
Barter System @1:06
Money @1:58
Forms of Money @2:48
Currency @3:37
Deposit with Banks @4:40
Depositor vs. Borrower @5:55
Credit (Loan) Situation @9:02
Terms of Credit @11:53
Collateral @12:18
Formal Sector Credit @16:43
Self – Help Groups @18:32
Cash Reserve Ratio (CRR) @22:51
Statutory Liquidity Ratio (SLR) @23:42
#Promise #Lender #Collateral #Borrower #Surplus #Authorized #Currency #Coincidence #Eliminates #Barter #Manishika #Examrace

[vijayganesh]

Thanks madam. Ur video was very useful. Thanks for teaching in English... u helped me a lot 👍

[abhilashjangra]

ND = Net Demand
TL= Time liabilities
NDTL = net demand and time liabilities

[RamaKrishna-fjtq]

Very nice and simple words used
Excellent explanation
Over all good teaching
Madam 🙏🙏

[archanamane]

Your lectures are too good..they are detail

[sheejasaraswati]

Really helpful..Need history chapters too

[parthasaha]

thanks mam for making all the chapters soo easy

[anshitabarnwal]

It's a very good channel for those who want a quick REVISION of a chapter...🙂✨️

[nancyparihar]

Very helpful video ma'am. Thanks a lot..I have a question.
Why there are brokers in between the borrowers and bank.? What are the benefits of having them?

[shivaditya]

Thank you so much madam for your efforts🙏

[meghams]

Could you please write in bold writing. Thank you 😊

[jeyshivanims]

Thank you mam. I really was struggling to study this chapter. Now I can understand mam.

[bennyvythiri]

Mam this is very nice this helpfull for my examination tnx

[jayanthikrishnasamy]

Thank u wonderful n useful class ever... Since I am following u for a long time, I noticed u offen using the word 'however'. 😁😁

[secretgirl]

Thank u mam....u r teaching like my tution teacher

[srinivasmudunuru]

mam can u tell me what do u mean by liquidity cash

[rajputdaulat]

Ma'am you teach very Gud. Thanks for teaching

[gsfam]

mam actually this lesson was given in (TN) content. ?Pls anyone can answer to my question

[somnathpanda]

Dear Ma'am,
In the last slide of yours, you said that decrease in SLR/CRR/Repo rate could lead to decrease in deposit rate, lending rates and loan rates... Could you please make it more clear for me?
Thank you

[anithajeevamani]

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[mech]

Mam can u upload science sub all lectures of 10th class