Economy
2016
Banking in India
The term ‘Core Banking Solutions’ is sometimes seen in the news. Which of the following statements best describes/describe this term?
- 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.
- It is an effort to increase RBI’s control over commercial banks through computerization.
- 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.
D.1, 2 and 3
B.2 and 3 only
A.1 only
C.1 and 3 only
Correct Answer: Option A
Core Banking Solution (CBS) refers to the networking of a bank's branches.
This system allows customers to access their accounts and banking services from any branch within the CBS network, irrespective of where the account was originally opened.
Statement 1 is correct.
Statements 2 and 3 are incorrect as CBS is not directly related to RBI's control over commercial banks or the takeover of banks with Non-Performing Assets (NPAs).
Hence, only statement 1 is correct.
Sources:
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