NCERT Textbook: Security & Modes of Digital Payments | Financial Literacy for Class 6 PDF Download

 Page 1


Central Board of Secondary Education
Unit 4
Security and Modes of Digital Payments
The objective of this unit is to make students aware of the role played by RBI, the 
concept of digital banking, benefits of PoS and ATM machines, and the various types 
of banking cards.
This unit focuses on:
• Role and importance of Reserve Bank of India (RBI)
• Introduction to digital banking and the Digital India Initiative
• Description of various types of banking cards
• Definition and benefits of PoS
• Purpose and benefits of ATM machines
• Various forms of digital payments including internet banking and mobile banking 
• Digital Platforms: UPI and mobile wallets
Learning Outcomes:
Location Learning Outcome Knowledge 
Evaluation
Performance 
Evaluation
Teaching and 
Training Method
Classroom Understand the 
role and impor-
tance of RBI
Describe the im-
portance of RBI 
as a core bank-
ing institution
Enumerate the 
functions per-
formed by RBI
Interactive 
Lecture: Role 
and impor-
tance of RBI
Activity: Visit the 
RBI website and 
go to the ‘About 
Us’ section and 
read about the 
‘Main Func-
tions’ of RBI
Appreciate the bene-
fits of digital banking
Describe the con-
cept and benefits 
of digital banking
Enlist the benefits 
of digital banking 
to consumers
Interactive Lec-
ture: Concept 
and benefits of 
digital banking
Activity: Watch 
videos about 
digital banking 
on YouTube 
(Recommend-
ed Channel: 
CNBC Awaaz)
Page 2


Central Board of Secondary Education
Unit 4
Security and Modes of Digital Payments
The objective of this unit is to make students aware of the role played by RBI, the 
concept of digital banking, benefits of PoS and ATM machines, and the various types 
of banking cards.
This unit focuses on:
• Role and importance of Reserve Bank of India (RBI)
• Introduction to digital banking and the Digital India Initiative
• Description of various types of banking cards
• Definition and benefits of PoS
• Purpose and benefits of ATM machines
• Various forms of digital payments including internet banking and mobile banking 
• Digital Platforms: UPI and mobile wallets
Learning Outcomes:
Location Learning Outcome Knowledge 
Evaluation
Performance 
Evaluation
Teaching and 
Training Method
Classroom Understand the 
role and impor-
tance of RBI
Describe the im-
portance of RBI 
as a core bank-
ing institution
Enumerate the 
functions per-
formed by RBI
Interactive 
Lecture: Role 
and impor-
tance of RBI
Activity: Visit the 
RBI website and 
go to the ‘About 
Us’ section and 
read about the 
‘Main Func-
tions’ of RBI
Appreciate the bene-
fits of digital banking
Describe the con-
cept and benefits 
of digital banking
Enlist the benefits 
of digital banking 
to consumers
Interactive Lec-
ture: Concept 
and benefits of 
digital banking
Activity: Watch 
videos about 
digital banking 
on YouTube 
(Recommend-
ed Channel: 
CNBC Awaaz)
Central Board of Secondary Education
Location Learning Outcome Knowledge 
Evaluation
Performance 
Evaluation
Teaching and 
Training Method
Classroom Describe mo-
bile banking
Explain the 
concept of 
mobile banking
Appreciate the 
role of mobile 
banking in 
making transac-
tions simpler
Interactive 
Lecture: Mo-
bile banking
Activity: Request 
your parent to 
demonstrate 
any mobile 
banking app
Identify the various 
kinds of banking 
cards: Debit, Cred-
it and Prepaid
Describe the 
benefits of using 
Debit, Credit and 
Prepaid Cards
Enlist the pur-
poses and 
benefits of using 
banking cards
Interactive Lec-
ture: Purposes 
and benefits 
of using bank-
ing cards
Activity: Have a 
discussion with 
your parents on 
how the use of 
banking cards 
and how they 
have made life 
convenient
Define PoS and 
its benefits 
Explain the 
definition of PoS 
and its benefits
Enumerate the 
benefits of-
fered by PoS
Interactive Lec-
ture: Purposes 
and benefits PoS
Activity: Search 
PoS related 
information on 
the internet
Describe the ATM 
and the bene-
fits it offers 
Explain the 
function of ATM 
and its benefits 
Appreciate the 
role played by 
ATM in to-
day’s world
Interactive Lec-
ture: Function 
and benefits ATM
Activity: Ask your 
grand-parent or 
another elderly 
relative on what 
was the process 
of withdrawing 
cash before 
the prevalence 
of ATMs
Page 3


Central Board of Secondary Education
Unit 4
Security and Modes of Digital Payments
The objective of this unit is to make students aware of the role played by RBI, the 
concept of digital banking, benefits of PoS and ATM machines, and the various types 
of banking cards.
This unit focuses on:
• Role and importance of Reserve Bank of India (RBI)
• Introduction to digital banking and the Digital India Initiative
• Description of various types of banking cards
• Definition and benefits of PoS
• Purpose and benefits of ATM machines
• Various forms of digital payments including internet banking and mobile banking 
• Digital Platforms: UPI and mobile wallets
Learning Outcomes:
Location Learning Outcome Knowledge 
Evaluation
Performance 
Evaluation
Teaching and 
Training Method
Classroom Understand the 
role and impor-
tance of RBI
Describe the im-
portance of RBI 
as a core bank-
ing institution
Enumerate the 
functions per-
formed by RBI
Interactive 
Lecture: Role 
and impor-
tance of RBI
Activity: Visit the 
RBI website and 
go to the ‘About 
Us’ section and 
read about the 
‘Main Func-
tions’ of RBI
Appreciate the bene-
fits of digital banking
Describe the con-
cept and benefits 
of digital banking
Enlist the benefits 
of digital banking 
to consumers
Interactive Lec-
ture: Concept 
and benefits of 
digital banking
Activity: Watch 
videos about 
digital banking 
on YouTube 
(Recommend-
ed Channel: 
CNBC Awaaz)
Central Board of Secondary Education
Location Learning Outcome Knowledge 
Evaluation
Performance 
Evaluation
Teaching and 
Training Method
Classroom Describe mo-
bile banking
Explain the 
concept of 
mobile banking
Appreciate the 
role of mobile 
banking in 
making transac-
tions simpler
Interactive 
Lecture: Mo-
bile banking
Activity: Request 
your parent to 
demonstrate 
any mobile 
banking app
Identify the various 
kinds of banking 
cards: Debit, Cred-
it and Prepaid
Describe the 
benefits of using 
Debit, Credit and 
Prepaid Cards
Enlist the pur-
poses and 
benefits of using 
banking cards
Interactive Lec-
ture: Purposes 
and benefits 
of using bank-
ing cards
Activity: Have a 
discussion with 
your parents on 
how the use of 
banking cards 
and how they 
have made life 
convenient
Define PoS and 
its benefits 
Explain the 
definition of PoS 
and its benefits
Enumerate the 
benefits of-
fered by PoS
Interactive Lec-
ture: Purposes 
and benefits PoS
Activity: Search 
PoS related 
information on 
the internet
Describe the ATM 
and the bene-
fits it offers 
Explain the 
function of ATM 
and its benefits 
Appreciate the 
role played by 
ATM in to-
day’s world
Interactive Lec-
ture: Function 
and benefits ATM
Activity: Ask your 
grand-parent or 
another elderly 
relative on what 
was the process 
of withdrawing 
cash before 
the prevalence 
of ATMs
Central Board of Secondary Education
4.1 Reserve Bank of India ? Role and Importance
The Reserve Bank of India (RBI) plays a prominent role as the Central Bank of India 
and has the power to control the monetary situation of the entire country. Apart from 
the issuance of currency, RBI performs various other important functions that impact 
the Indian economy in a significant way:
• Implements monetary policies
• Manages foreign exchange reserves
• Acts as banker to the government
• Financial regulation and supervision
• Governs the policies for other banks to follow
4.2 About National Payments Corporation of India (NPCI)
Page 4


Central Board of Secondary Education
Unit 4
Security and Modes of Digital Payments
The objective of this unit is to make students aware of the role played by RBI, the 
concept of digital banking, benefits of PoS and ATM machines, and the various types 
of banking cards.
This unit focuses on:
• Role and importance of Reserve Bank of India (RBI)
• Introduction to digital banking and the Digital India Initiative
• Description of various types of banking cards
• Definition and benefits of PoS
• Purpose and benefits of ATM machines
• Various forms of digital payments including internet banking and mobile banking 
• Digital Platforms: UPI and mobile wallets
Learning Outcomes:
Location Learning Outcome Knowledge 
Evaluation
Performance 
Evaluation
Teaching and 
Training Method
Classroom Understand the 
role and impor-
tance of RBI
Describe the im-
portance of RBI 
as a core bank-
ing institution
Enumerate the 
functions per-
formed by RBI
Interactive 
Lecture: Role 
and impor-
tance of RBI
Activity: Visit the 
RBI website and 
go to the ‘About 
Us’ section and 
read about the 
‘Main Func-
tions’ of RBI
Appreciate the bene-
fits of digital banking
Describe the con-
cept and benefits 
of digital banking
Enlist the benefits 
of digital banking 
to consumers
Interactive Lec-
ture: Concept 
and benefits of 
digital banking
Activity: Watch 
videos about 
digital banking 
on YouTube 
(Recommend-
ed Channel: 
CNBC Awaaz)
Central Board of Secondary Education
Location Learning Outcome Knowledge 
Evaluation
Performance 
Evaluation
Teaching and 
Training Method
Classroom Describe mo-
bile banking
Explain the 
concept of 
mobile banking
Appreciate the 
role of mobile 
banking in 
making transac-
tions simpler
Interactive 
Lecture: Mo-
bile banking
Activity: Request 
your parent to 
demonstrate 
any mobile 
banking app
Identify the various 
kinds of banking 
cards: Debit, Cred-
it and Prepaid
Describe the 
benefits of using 
Debit, Credit and 
Prepaid Cards
Enlist the pur-
poses and 
benefits of using 
banking cards
Interactive Lec-
ture: Purposes 
and benefits 
of using bank-
ing cards
Activity: Have a 
discussion with 
your parents on 
how the use of 
banking cards 
and how they 
have made life 
convenient
Define PoS and 
its benefits 
Explain the 
definition of PoS 
and its benefits
Enumerate the 
benefits of-
fered by PoS
Interactive Lec-
ture: Purposes 
and benefits PoS
Activity: Search 
PoS related 
information on 
the internet
Describe the ATM 
and the bene-
fits it offers 
Explain the 
function of ATM 
and its benefits 
Appreciate the 
role played by 
ATM in to-
day’s world
Interactive Lec-
ture: Function 
and benefits ATM
Activity: Ask your 
grand-parent or 
another elderly 
relative on what 
was the process 
of withdrawing 
cash before 
the prevalence 
of ATMs
Central Board of Secondary Education
4.1 Reserve Bank of India ? Role and Importance
The Reserve Bank of India (RBI) plays a prominent role as the Central Bank of India 
and has the power to control the monetary situation of the entire country. Apart from 
the issuance of currency, RBI performs various other important functions that impact 
the Indian economy in a significant way:
• Implements monetary policies
• Manages foreign exchange reserves
• Acts as banker to the government
• Financial regulation and supervision
• Governs the policies for other banks to follow
4.2 About National Payments Corporation of India (NPCI)
Central Board of Secondary Education
National Payments Corporation of India (NPCI) is an umbrella organization for all retail 
payments in India. Incorporated in the year 2008, NPCI was set up under the guidance 
and support of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).
NPCI provides infrastructure to the entire banking system of India for both physical 
and electronic payment and settlement systems.
.
4.3 Introduction to Digital Banking
Digital banking allows bank customers to avail banking services using the bank’s web-
site on a laptop or through a mobile app on a smartphone/tablet. 
These services include:
• Checking account balance
• Transferring funds to another account
• Ordering a cheque book
• Changing passcodes
Digital Banking - Do’s & Don’ts
Let us learn about some do’s & don’ts to be observed while performing digital banking:
Do’s Don’ts
• Keep your user ID and password confidential 
and do not reveal to anyone
• Memorise your user ID and password instead 
of noting down anywhere
• Log off completely and clear your system 
cache after every session
• Register for SMS alerts to keep track of trans-
actions on your account
• Do not use an email message to log in to your 
banking account; Always use the official web-
site
• Do not reveal personal information to anyone 
over email/SMS/phone call
• Do not use the ‘Remember Password’ feature 
provided by browsers to save your banking 
password
Page 5


Central Board of Secondary Education
Unit 4
Security and Modes of Digital Payments
The objective of this unit is to make students aware of the role played by RBI, the 
concept of digital banking, benefits of PoS and ATM machines, and the various types 
of banking cards.
This unit focuses on:
• Role and importance of Reserve Bank of India (RBI)
• Introduction to digital banking and the Digital India Initiative
• Description of various types of banking cards
• Definition and benefits of PoS
• Purpose and benefits of ATM machines
• Various forms of digital payments including internet banking and mobile banking 
• Digital Platforms: UPI and mobile wallets
Learning Outcomes:
Location Learning Outcome Knowledge 
Evaluation
Performance 
Evaluation
Teaching and 
Training Method
Classroom Understand the 
role and impor-
tance of RBI
Describe the im-
portance of RBI 
as a core bank-
ing institution
Enumerate the 
functions per-
formed by RBI
Interactive 
Lecture: Role 
and impor-
tance of RBI
Activity: Visit the 
RBI website and 
go to the ‘About 
Us’ section and 
read about the 
‘Main Func-
tions’ of RBI
Appreciate the bene-
fits of digital banking
Describe the con-
cept and benefits 
of digital banking
Enlist the benefits 
of digital banking 
to consumers
Interactive Lec-
ture: Concept 
and benefits of 
digital banking
Activity: Watch 
videos about 
digital banking 
on YouTube 
(Recommend-
ed Channel: 
CNBC Awaaz)
Central Board of Secondary Education
Location Learning Outcome Knowledge 
Evaluation
Performance 
Evaluation
Teaching and 
Training Method
Classroom Describe mo-
bile banking
Explain the 
concept of 
mobile banking
Appreciate the 
role of mobile 
banking in 
making transac-
tions simpler
Interactive 
Lecture: Mo-
bile banking
Activity: Request 
your parent to 
demonstrate 
any mobile 
banking app
Identify the various 
kinds of banking 
cards: Debit, Cred-
it and Prepaid
Describe the 
benefits of using 
Debit, Credit and 
Prepaid Cards
Enlist the pur-
poses and 
benefits of using 
banking cards
Interactive Lec-
ture: Purposes 
and benefits 
of using bank-
ing cards
Activity: Have a 
discussion with 
your parents on 
how the use of 
banking cards 
and how they 
have made life 
convenient
Define PoS and 
its benefits 
Explain the 
definition of PoS 
and its benefits
Enumerate the 
benefits of-
fered by PoS
Interactive Lec-
ture: Purposes 
and benefits PoS
Activity: Search 
PoS related 
information on 
the internet
Describe the ATM 
and the bene-
fits it offers 
Explain the 
function of ATM 
and its benefits 
Appreciate the 
role played by 
ATM in to-
day’s world
Interactive Lec-
ture: Function 
and benefits ATM
Activity: Ask your 
grand-parent or 
another elderly 
relative on what 
was the process 
of withdrawing 
cash before 
the prevalence 
of ATMs
Central Board of Secondary Education
4.1 Reserve Bank of India ? Role and Importance
The Reserve Bank of India (RBI) plays a prominent role as the Central Bank of India 
and has the power to control the monetary situation of the entire country. Apart from 
the issuance of currency, RBI performs various other important functions that impact 
the Indian economy in a significant way:
• Implements monetary policies
• Manages foreign exchange reserves
• Acts as banker to the government
• Financial regulation and supervision
• Governs the policies for other banks to follow
4.2 About National Payments Corporation of India (NPCI)
Central Board of Secondary Education
National Payments Corporation of India (NPCI) is an umbrella organization for all retail 
payments in India. Incorporated in the year 2008, NPCI was set up under the guidance 
and support of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).
NPCI provides infrastructure to the entire banking system of India for both physical 
and electronic payment and settlement systems.
.
4.3 Introduction to Digital Banking
Digital banking allows bank customers to avail banking services using the bank’s web-
site on a laptop or through a mobile app on a smartphone/tablet. 
These services include:
• Checking account balance
• Transferring funds to another account
• Ordering a cheque book
• Changing passcodes
Digital Banking - Do’s & Don’ts
Let us learn about some do’s & don’ts to be observed while performing digital banking:
Do’s Don’ts
• Keep your user ID and password confidential 
and do not reveal to anyone
• Memorise your user ID and password instead 
of noting down anywhere
• Log off completely and clear your system 
cache after every session
• Register for SMS alerts to keep track of trans-
actions on your account
• Do not use an email message to log in to your 
banking account; Always use the official web-
site
• Do not reveal personal information to anyone 
over email/SMS/phone call
• Do not use the ‘Remember Password’ feature 
provided by browsers to save your banking 
password
Central Board of Secondary Education
4.4 Understanding Digital Payments
Digital Payments refers to transferring an amount of money to another individual, busi-
ness or organisation through the internet without the requirement to handle physical 
cash.
4.4.1 Benefits of Digital Payments
The trend of digital payments has revolutionised the world of business and lives of 
people. It has brought in a new era of flexibility of convenience. Let us discuss the 
many benefits of digital payments.