Budget & banking: General Awareness & Current Affairs Notes for ISRO Recruitment

Budget & Banking

Study notes for ISRO Recruitment – General Awareness & Current Affairs

You have ₹5,000.
You list:

Food: ₹2,000
Transport: ₹500
Entertainment: ₹1,000
‑ Total: ₹3,500
You will have ₹1,500 left for emergencies.

Purpose	Everyday Analogy
Shows priorities	Deciding whether to buy a new phone or save for a trip.
Controls spending	Limiting how much you spend on sweets each week.
Creates revenue	Setting a monthly allowance so you can pay for a toy.
Guides investments	Choosing a savings account or a small business idea.

Banks = money stores
Your savings are kept safe, and you can borrow when needed.
Types of banks in India
1. Public Sector Banks (e.g., State Bank of India)
2. Private Sector Banks (e.g., HDFC Bank)
3. Foreign Banks (e.g., Citibank)
4. Cooperative Banks (local credit groups)

You want to buy a laptop costing ₹30,000.

Term	Simple Explanation
Revenue	Money the government gets (taxes, fees).
Expenditure	Money the government spends (health, roads).
Surplus	Revenue > Expenditure (extra money).
Deficit	Expenditure > Revenue (needs borrowing).
RBI	The bank that runs all other banks (like a head coach).
Interest	Extra money you pay for borrowing, or get for saving.
Deposit	Money you put in a bank to keep safe.
Loan	Money you borrow from a bank and pay back later.

Year	Event	What it Means
2024	Digital Payments Push	RBI announced “Digital India 2.0” – more people can pay online, reducing cash use.
2025	Banking Reforms	RBI allowed fintech firms to open bank‑like accounts, making banking easier for small businesses.
2026	Green Finance Initiative	Banks are now required to lend a portion of money to eco‑friendly projects (solar, wind).
2025‑26	Budget 2025	Focus on “Future Economy” – tax cuts for tech startups, increased spending on smart cities.
2026	RBI’s “Interest Rate Cut”	Lowered rates to help people repay loans and encourage spending.

Why it matters for ISRO

Funding for research often comes from the government budget.
Banking reforms make it easier for scientists and engineers to get loans for equipment or travel.
Digital payments help in smooth procurement of parts from overseas suppliers.

You earn money (salary, allowance).
You keep some in a bank account (savings).
You use the rest for daily needs (food, transport).
If you need more money (buy a laptop), you borrow from the bank (take a loan).
You repay the loan with interest (extra money).
You plan next month’s spending (new budget).

Question	Options	Correct
1. What is the main purpose of a government budget?	a) To spend all money b) To plan how money will be used c) To avoid taxes	b
2. RBI stands for?	a) Royal Banking Institute b) Reserve Bank of India c) Random Bank of India	b
3. Which type of bank is owned by the government?	a) Public Sector Bank b) Private Bank c) Cooperative Bank	a
4. What is “interest” in simple terms?	a) Extra money you get for saving b) Money you pay to borrow c) Both a & b	c
5. What did the 2025 banking reform mainly aim to do?	a) Reduce digital payments b) Allow fintech to open bank‑like accounts c) Close small banks	b

Answers: 1‑b, 2‑b, 3‑a, 4‑c, 5‑b

Budget is a yearly money‑plan for the country, similar to a household grocery list.
Banking stores and lends money; banks come in public, private, and foreign varieties.
Key terms like revenue, expenditure, surplus, deficit, RBI, interest, deposit, loan are the building blocks of finance.
Recent reforms (digital payments, fintech access, green finance) make banking more inclusive and eco‑friendly.
Understanding these basics helps you read the national budget and grasp how government money flows