Question 29
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.
Select the correct answer using the code given below.
AOptions
BSolution
'Core Banking Solutions' (CBS) refer to the networking of bank branches, enabling customers to operate their accounts from any branch of the bank, regardless of where they initially opened their account. This technology centralizes customer data and banking operations, allowing for 'anywhere, anytime, anyhow' banking. Statement 1 accurately describes this. Statement 2 is incorrect; while CBS involves computerization, its primary aim is not to increase RBI's control over commercial banks but to improve customer service and operational efficiency for the banks themselves. Statement 3 is incorrect; CBS is about integrating banking services across branches, not about procedures for bank takeovers due to non-performing assets.
CStrategy
When encountering terms from the economy or banking sector, focus on their precise definitions and practical implications. Eliminate options that present unrelated or fundamentally incorrect purposes. Understanding the 'why' behind the term (e.g., why banks adopted CBS) can help clarify its best description.
DSyllabus Analysis
This question belongs to the Indian Economy section, specifically under Banking and Financial System, covering contemporary terms and concepts in the sector.
EQuestion Analysis
Easy. 'Core Banking Solutions' is a widely known term in the banking sector, and its primary function is generally understood.