Test: Financial Literacy- 6 - Class 6 MCQ

PAN number is required for deposits Rs.50,000/- & above. This is because the Income Tax Department of India has made it mandatory for taxpayers to furnish their Permanent Account Number (PAN) for transactions above Rs. 50,000 to prevent tax evasion and money laundering activities.

Mutilated notes can be exchanged at a bank. Banks are authorized to accept and exchange damaged currency notes, as per the guidelines of the Reserve Bank of India (RBI). This service helps maintain the quality of notes in circulation and ensures that people do not suffer a loss due to damaged currency.

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accidental insurance cover. It is a government-backed insurance scheme that provides affordable accidental insurance coverage to Indian citizens, especially for those living in rural areas. The scheme offers a sum insured of Rs. 2 lakhs in case of accidental death or permanent total disability.

Overdraft facility of Rs.5,000/- in PMJDY Account is available to account holders after six months of satisfactory conduct, one account per household, and for customers in the age group of 18-60 years. This facility is provided to encourage savings and financial inclusion among the economically weaker sections of society.

TDS means Tax Deducted at Source. It is a method of collecting income tax from individuals and businesses at the source of income generation. The payer or employer deducts the tax before making a payment to the payee, and the deducted amount is deposited with the government as advance tax.

ATM can be used for cash withdrawal, account enquiry, and statement of account. ATMs provide a convenient and secure way for customers to access their bank accounts, withdraw cash, check account balances, and obtain account statements.

Direct Benefit Transfer is the transfer of social benefits or subsidies directly into the bank accounts of beneficiaries. This system aims to eliminate intermediaries, reduce corruption, and ensure that the benefits reach the intended recipients in a timely and efficient manner.

Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY) covers life insurance up to Rs. 2 lakhs. It is a government-sponsored life insurance scheme that provides affordable life insurance coverage to Indian citizens, especially those living in rural areas. The scheme offers a sum insured of Rs. 2 lakhs in case of the policyholder's death due to any cause.

There is no maximum amount of a cheque. A cheque can be issued for any amount, as long as the account holder has sufficient funds in their account to cover the cheque amount. However, banks may have certain limits on the maximum amount that can be withdrawn through a single cheque for security reasons.

Upon detection of a counterfeit note at the counter, the bank will impound the note and issue a receipt. Banks are required to follow RBI guidelines for dealing with counterfeit notes, which include impounding the note, providing a receipt to the customer, and reporting the incident to the appropriate authorities.