Money ✓ Structure of the banks.

• What is Money Government

Money is whatever is generally acceptable in exchange for goods and

Ministry of Finance
services.
• Characteristics of Money Central Bank
1. Acceptability - All people should accept money, when
exchanging goods and services.
2. Durability – Money should be able to use again and again for Government Bank Private Bank
long time. So, when printing money it is necessary to use quality • People’s Bank • Sampath Bank
material. • Bank of Ceylon • Commercial Bank
• National Savings Bank • HNB
3. Divisibility – Money is easily divisible into small different
• Sanasa Bank • Seylan bank
values. So that any amount can be paid. • Nations Trust Bank
Eg:- Rs. 100 divided into two Rs. 50 • NDB
Rs. 1000 divided into ten Rs. 100
4. Portability – It can be carried out easily from place to place. So
❖ Different types of banks
that people can do shopping.
1. Commercial Banks
5. Uniformity – Every note or coin of the same value should be
2. Savings Banks
exactly the same. Same value of money should be equal in
3. Mortgage Banks
appearance
6. Limited Supply – Money most be available only in limited
1. Commercial Banks
quantities.
These are financial institutes which maintain current banking services
Banking to their customers.
❖ People and Businesses need the assistance of bank to manage their Eg:- BOC, People’s Bank, HNB, Seylan Bank
money.
❖ Banks are institutions that have been established to accept ** Services provided by these banks
deposits, Lend Money (Loans) and many more. ✓ Deposits services – Current Account, Saving Account
✓ Lending Services – Housing, Personal, Educational loans
✓ E-cash Services – Credit cards, Debit cards, Mobile apps
✓ Services related to foreign currency – NRFC & RFC accounts.
✓ Pawning & Safety Lockers.
✓ Deposits services – Keep people’s money and issue them ▪ Debit Cards – Plastic card which facilitates the account
whenever they need. There are 2 types of accounts holders with,
 Current Accounts,  Deposit Money. Withdraw money,
 Savings Accounts  Transfer money Online Purchase.
 Purchase goods and Services.
Differences of Current Accounts & Savings Accounts.
Advantages of Debit Cards Limitation of Cards
Current Accounts Savings Accounts ✓ 24hour service ✓ All shops don’t accept debit
 Use for Business people  Use for saving money. ✓ Low risk of holding money cards.
 Everyone can’t open  Anyone can open ✓ No additional charge. ✓ Limited amount of my can be
 Gets a Cheque Book  Gets a Debit card ✓ Easy for shopping and online withdrawn.
 Do not get an interest.  Interest will be added to the shopping. ✓ It can be misused.
 Bank take a service charge available balance.
from the account holder. ▪ Credit Cards – It is issued from a commercial bank.
 Goods and services can be bought up to a certain limit.
✓ Lending Services – Bank lend (give) money fo various people  No need to have a n account to obtain a credit card.
such as.  Certain amount of time to pay the credit bill without and
▪ Housing Loans (to build a house) extra charge.
▪ Personal Loans (to start a business)  If the card holder unable to pay the amount they charge
▪ Educational Loans (for children’s education) higher interest.

These lending can be divided into two

 Short Term lending – these loans should settle in short period **Difference between Debit cards and Credit cards.
of time
 Long Term lending - these loans should settle in long period Credit cards Debit cards
of time ▪ Take money from the account. ▪ Spend only up to credit limit.
▪ Paying with your own money. ▪ Paying with borrowed money.
✓ E-cash Services (Electronic Cash) – it is a digital product that ▪ No annual fee ▪ Annual fee
helps to pay for products and services without using notes and ▪ No repayment. ▪ Repayment of used money
coins. within the time period.
▪ Debit Cards
▪ Credit Cards
▪ Mobile apps
❖ Steps for withdrawing money from an ATM (Automated Teller
Machine).
Insert the ATM card

Select the Language

Enter the Pin number

Select options like

(Withdraw, Balance Inquiries, Deposit)

In Withdrawal select the account type.

Type amount correctly and press enter.

Collect the cash

For additional – select Yes or No

If you want to print a receipt press Yes or No

Collect the ATM card from the Machine