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

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Submitted by examrobotsa on

Q: 4 (IAS/2016)
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.
Select the correct answer using the code given below.

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,216,70,216,21,23,26

keywords: 

{'core banking solutions': [0, 0, 0, 1], 'bank': [0, 1, 0, 1], 'commercial banks': [0, 0, 1, 1], 'branches': [3, 0, 2, 1], 'branch': [3, 2, 0, 3], 'accounts': [2, 0, 5, 9], 'rbi': [1, 4, 2, 23], 'customers': [0, 0, 1, 2], 'networking': [0, 0, 0, 1], 'assets': [0, 1, 1, 9], 'network': [0, 0, 1, 0], 'best describes': [0, 0, 0, 1], 'computerization': [0, 0, 0, 1]}

The correct answer is Option 1: 1 only.

Core Banking Solutions (CBS) refer to the networking of a bank`s branches using computerized systems and software, which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts. This allows customers to access their accounts, make transactions, and avail various banking services from any branch of the bank, providing convenience and flexibility.

Option 1 is correct because it accurately describes CBS as a solution that connects a bank`s branches and enables customers to access their accounts from any branch within the bank`s network. This is achieved through computerization and networking of the bank`s branches, allowing for centralized management of customer accounts and transactions.

Option 2 is incorrect because it states that CBS is an effort to increase the Reserve Bank of India`s (RBI) control over commercial banks through computerization. However, there is no evidence to suggest that CBS is designed to increase RBI`s control over banks. CBS is a technology-driven solution implemented by banks to enhance customer service and streamline banking operations, and it is not directly related to increasing RBI`s control over banks.

Option 3 is incorrect because it states that CBS is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank. However, this statement is not accurate as CBS is not a procedure for taking over banks with non-performing assets. CBS is a technological solution used by banks to improve their operational efficiency and customer service, and it does not directly relate to the process of bank takeover.

In conclusion, Option 1 is the correct answer as it accurately describes CBS as a solution that enables customers to operate their accounts from any branch within a bank`s network, regardless of where they open their accounts. CBS is a technology-driven solution that enhances customer convenience and operational efficiency in banking, and it is not related to increasing RBI`s control over banks or the process of bank takeovers.