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Exit Guide

What are the various forms of money?

Click on the link above to know ‘All about Money’ and it’s evolution.

Various forms of money

There are different forms of money today, not just coins and notes.

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    Paper or cash money

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    Plastic money

Paper or Cash Money

Paper or Cash Money

Includes banknotes and coins.

Benefits

  • Can be used immediately if you have it with you.

 

  • The price is stable and fixed i.e. the value of a ₹10 note will remain 10 rupees everywhere in India for everyone.

Limitations

  • Available only in limited denominations as decided by the government: 5, 10, 20, 50, 100, 200, 500, 2000. Looking for change can be difficult.

 

  • Carrying cash is risky because it can get stolen or lost.

Do you know?

  • Torn or damaged notes can be exchanged for fresh proper notes in any bank branch or RBI office.

 

  • The Indian currency symbol ₹ is combination of the English letter ‘R’ and the Hindi letter ‘र’. The line in the ₹ symbolises the national flag.

 

  • Indian currency notes are made up of cotton.

Plastic Money

Plastic Money

Includes debit / credit / dinner cards etc.

Benefits

  • Eliminates the need to carry huge amounts of cash 

 

  • Reduced chances of theft/ loss 

 

  • Receiving, transferring and withdrawing money is a click away

 

  • Get incentives like cash backs, and discount coupons for using these cards

Limitations

  • Prone to cyber theft so it is important to keep the PIN number secret and unique

 

  • Small shops may not accept card payments 

 

  • With credit cards, we can make a purchase today and pay for it later. But if we don’t pay the credit card bill on time, we will have to pay a high interest.

Want to know more about different forms of money and how to use them?

Want to know more about different forms of money and how to use them?

Click here for Debit Card

 

Points to Remember

Points to Remember

Let us recall what we have learned so far.

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    Money is a medium of exchange

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    We need money for a healthy, comfortable and dignified life

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    Currency notes and coins are types of Cash Money

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    Debit and Credit cards are types of Plastic Money

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    Using Plastic Money reduces the risks of theft and loss of money but beware of cyber theft

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