Commercial Studies [3 marks Question-Answer]

1.IMPS. Immediate (Mobile) Payment Service, initiated by National Payment Corporation of India offers an instant 24*7 interbank electronic fund transfer through mobile phones, internet and ATMs which is not only safe but also economical. IMPS transactions are highly secure and encrypted to protect the sensitive financial information of the users. It was started as a pilot project in August 2010 but had its public launch in November 22, 2010. Though it had started with State Bank of India. ICICI Bank, of India, ICICI Bank, Bank of India later private banks like Axis Bank and HDFC Bank also joined. Now the whole list of banks is available with the NPCI website.
2. Mobile Wallets: Users can transfer money using a smartphone through e-wallet transfers as long as the transaction takes place with the same e-wallet service provider. Wallet transfers are restricted to an upper limit of ₹1,00,000. To transfer the funds the user needs to open the app, add the beneficiary's credential like mobile number and put in the amount to be transferred. Once the transaction is authenticated by the remitter the money gets added to the wallet of the beneficiary in real time.

A bank account is very useful to businessmen as well as to people in general. The advantages of opening. a bank account are as follows:
(a) A person can keep his savings safe and risk-free through a bank account.
(b) A bank account encourages thrift and the habit of savings.
(c) The account holder can make payments by means of cheques. The payments can be made easily, cheaply and safely.
(d) Payments of cheques, drafts and bills can be collected easily.
(e) The account holder can easily collect dividends and interest on his securities by giving standing instructions to the bank.
(f) The account holder can easily make payments on account of interest, insurance premiums, subscription, fees, etc. by making prior instructions to his bank.
(g) Businessmen can obtain funds in the forms of loans, overdrafts, cash credit and bills discounting from the bank.
(h) The account holder can buy and sell shares, debentures and Government securities through his bank.
(i) The account of bank transactions can be used as a legal evidence, wherever necessary.