Question 2 of 11intermediate⚖️ EvaluateLong Answer5 marks

How does having a bank account help people? Should everyone be required to have a bank account?

Correct Answer

Having a bank account helps people in multiple ways. It provides a safe place to deposit and store money and earns interest on savings.

Bank accounts enable easy withdrawal of funds through ATMs and withdrawal slips. They also allow borrowing through loans for various purposes like buying houses, vehicles, or funding education.

Modern banking facilitates digital payments through debit cards, internet banking, and UPI. These features make transactions convenient and reduce dependence on cash.

Bank accounts also enable direct transfers of wages, scholarships, and government benefits. This reduces middlemen and ensures timely disbursement of funds to beneficiaries.

Regarding whether everyone should be required to have a bank account, banking access promotes financial inclusion and economic participation. However, mandatory requirements should consider factors like digital literacy, accessibility in remote areas, and the needs of marginalized communities.

The Pradhan Mantri Jan Dhan Yojana demonstrates how expanding banking access benefits people from all walks of life.

Exercise: Questions and activities | Q: 2 | (Page Page 19)
For More Understanding

Explanation

The chapter explains various banking services including holding deposits safely, paying interest on savings, providing loans, and enabling withdrawals through multiple methods. It highlights the Pradhan Mantri Jan Dhan Yojana which gave every Indian access to bank accounts, especially benefiting low-income earners, farmers, workers, and students. The chapter mentions that over 50 crore accounts have been opened, mainly by women, and banking services are now used by people from all walks of life.

Solution Steps

  1. Bank accounts provide a safe place to deposit and store money while earning interest on savings

  2. They enable easy withdrawal through ATMs and allow borrowing through loans for houses, vehicles, and education

  3. Bank accounts facilitate digital payments through debit cards, internet banking, and UPI

  4. They enable direct transfers of wages, scholarships, and government benefits, reducing middlemen

  5. Banking access promotes financial inclusion and economic participation

  6. Mandatory requirements should consider digital literacy, accessibility in remote areas, and needs of marginalized communities

  7. Pradhan Mantri Jan Dhan Yojana demonstrates the benefits of expanding banking access to all people

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