Core Banking Solutions
Question
The term 'Core Banking Solutions' is sometimes seen in the news. Which of the following statements best describes/describe this term?
- 1.
It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.
- 2.
It is an effort to increase RBI's control over commercial banks through computerization.
- 3.
It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.
Options
1 only
2 and 3 only
1 and 3 only
1, 2 and 3
Explanation
Core Banking Solutions (CBS) refer to an IT infrastructure that connects the various branches of a bank and enables them to operate as a single entity with a shared database. Statement 1 is correct: CBS allows customers to access their accounts and conduct transactions from any branch of the bank, regardless of where the account was opened, providing seamless banking services across the network. Statement 2 is incorrect: CBS is not a mechanism for RBI to increase control over banks; it is a technology platform used by banks for their operations. Statement 3 is incorrect: CBS is not related to the takeover of banks with non-performing assets; that is a regulatory or financial procedure separate from core banking technology. > Key insight: Core Banking Solutions = Branch networking technology enabling any-branch banking for customers. Answer: (a).
Question details
Year
2016
Paper
GS Paper 1
Question
Q29
Subject
Economy
Sub-topic
Banking Technology
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
Banking and Finance; Current Affairs 2015-2016
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