MONEY (BARTER BITCOIN CBDC) COMPLETE TREE

MONEY
│
├── 1️⃣ BARTER SYSTEM
│ ├─ Double coincidence problem
│ ├─ No common measure of value
│ ├─ No store of value
│ ├─ Perishable goods problem
│ ├─ No specialization/division of labour
│ └─ High transaction cost
│
├── 2️⃣ FUNCTIONS OF MONEY
│ ├─ Primary
│ │ ├─ Measure of value
│ │ └─ Medium of exchange
│ │
│ ├─ Secondary (S-T-D)
│ │ ├─ Store of value
│ │ ├─ Transfer of value
│ │ └─ Deferred payments (EMI concept)
│ │
│ └─ Contingent
│ ├─ Basis of credit system
│ ├─ Factor payments (Land, Labour, Capital)
│ └─ Redistribution via taxation
│
├── 3️⃣ EVOLUTION OF MONEY
│ ├─ Commodity money (Intrinsic YES)
│ ├─ Metallic money (Intrinsic YES)
│ │ ├─ Full bodied (Intrinsic ≥ Face)
│ │ ├─ Token coin (Intrinsic < Face)
│ │ └─ Debasement (metal reduced)
│ │
│ ├─ Paper / Fiat money (Intrinsic NO)
│ ├─ Bank/Deposit money
│ └─ Digital/Crypto money
│
├── 4️⃣ INTRINSIC VALUE
│ ├─ Metallic coins → YES
│ └─ Paper notes → NO
│
├── 5️⃣ FIAT MONEY
│ ├─ Must measure value
│ ├─ Must be issued by Govt/Central Bank
│ ├─ Coins → Govt (Coinage Act 2011)
│ ├─ ₹1 note → Finance Secretary signs
│ └─ Other notes → RBI (RBI Act 1934)
│
├── 6️⃣ LEGAL TENDER
│ ├─ Fiat + legally valid
│ │
│ ├─ Limited Legal Tender
│ │ ├─ Coins
│ │ ├─ ₹1 note
│ │ ├─ 50 paisa valid
│ │ └─ Below 50 paisa invalid
│ │
│ └─ Unlimited Legal Tender
│ └─ All RBI banknotes
│
│ ⚠ Finance Act 2017:
│ Cash transaction limit ₹2 lakh
│
├── 7️⃣ “I PROMISE TO PAY BEARER”
│ ├─ Earlier → Gold convertibility
│ ├─ Now → Equal denomination exchange
│ └─ Not gold linked / not inflation adjusted
│
├── 8️⃣ DEMONETIZATION
│ ├─ Meaning → Removal of legal tender
│ ├─ 1946
│ ├─ 1978
│ └─ 2016 (₹500 & ₹1000)
│
├── 9️⃣ ₹2000 NOTE
│ ├─ Introduced → 2016
│ ├─ Withdrawn → 2023
│ ├─ Still legal tender
│ ├─ Not demonetized
│ └─ Clean Note Policy reason
│
├── 🔟 BANK MONEY
│ ├─ Negotiable Instruments Act 1881
│ ├─ Cheque (Drawer, Drawee, Payee)
│ ├─ Stale cheque (3 months)
│ ├─ Demand Draft
│ ├─ Overdraft (Short term)
│ ├─ IFSC (11 digit)
│ └─ MICR (9 digit)
│
├── 1️⃣1️⃣ CHEQUE SAFETY
│ ├─ CTS (Cheque Truncation System)
│ └─ Positive Pay Mechanism
│
├── 1️⃣2️⃣ DIGITAL PAYMENT LAW
│ └─ Payment & Settlement Act 2007
│
├── 1️⃣3️⃣ CBS (Core Banking Solution)
│ └─ Branchless centralized banking
│
├── 1️⃣4️⃣ RBI PAYMENT SYSTEMS
│ ├─ RTGS (Large value, instant)
│ ├─ NEFT (Retail, batch → now 24/7)
│ └─ LPSS (Disaster backup system)
│
├── 1️⃣5️⃣ NPCI (2008)
│ ├─ Not-for-profit company
│ ├─ Founded by banks
│ ├─ Promoted by banks
│ └─ Provides retail payment infra
│
├── 1️⃣6️⃣ NPCI PRODUCTS
│ ├─ IMPS
│ ├─ UPI
│ ├─ BHIM
│ ├─ RuPay
│ ├─ NACH
│ └─ AEPS
│
├── 1️⃣7️⃣ UPI
│ ├─ Built on IMPS
│ ├─ QR based payment
│ ├─ Push & Pull
│ ├─ Daily limit
│ ├─ UPI Lite
│ ├─ UPI 123Pay
│ ├─ UPI Overdraft
│ ├─ ICCW (Cardless withdrawal)
│ ├─ Coin vending machine QR
│ └─ Global expansion (Sri Lanka, UAE etc.)
│
├── 1️⃣8️⃣ CARDS
│ ├─ RuPay (2012)
│ ├─ Tokenization (2022)
│ ├─ MDR (Merchant Discount Rate)
│ ├─ Interchange fee
│ ├─ NCMC (Transport)
│ └─ FASTag
│
├── 1️⃣9️⃣ DIRECT BENEFIT TRANSFER
│ ├─ DBT
│ └─ e-RUPI (Voucher based, purpose specific)
│
├── 2️⃣0️⃣ INTERNATIONAL PAYMENTS
│ ├─ Nostro / Vostro accounts
│ ├─ Rupee trade settlement
│ ├─ SWIFT
│ ├─ UPI linkage with other nations
│ └─ RuPay international acceptance
│
├── 2️⃣1️⃣ CRYPTOCURRENCY
│ ├─ Bitcoin (Not fiat)
│ ├─ Legal tender only in El Salvador (exception)
│ ├─ 30% tax on profit
│ ├─ 1% TDS
│ ├─ Hot vs Cold wallet
│ ├─ Stablecoins
│ ├─ Crypto winter
│ └─ Global regulation
│ ├─ EU → MICA
│ └─ OECD → CARF
│
├── 2️⃣2️⃣ CBDC (e₹)
│ ├─ Digital legal tender
│ ├─ Issued by RBI
│ ├─ Retail & Wholesale
│ ├─ Token based
│ ├─ No interest
│ ├─ Settlement finality
│ ├─ Programmability
│ ├─ Offline capability
│ ├─ Interoperable with UPI QR
│ └─ Different from e-RUPI
│
├── 2️⃣3️⃣ FUNGIBILITY
│ ├─ Money → Fungible
│ └─ NFT → Non-fungible
│
└── 2️⃣4️⃣ IMPORTANT LAWS (EXAM TRAP)
├─ Coinage Act 2011
├─ RBI Act 1934
├─ Negotiable Instruments Act 1881
├─ Payment & Settlement Act 2007
└─ Specified Bank Notes Act 2017