top of page
< Back

Question

The term ‘Core Banking Solutions' is sometimes seen in the newsWhich 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.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer:

A

To suggest corrections, send feedback using feedback button in top menu.

To suggest corrections, use feedback icon on top menu.

Explanation:

The term "Core Banking Solutions" refers to a networking system that enables customers to operate their bank accounts from any branch of the bank on its network, regardless of where they opened their accounts. It allows for centralized banking operations and provides customers with the convenience of accessing their accounts and conducting transactions from any branch within the network.

Option 1 accurately describes the concept of Core Banking Solutions, which focuses on the interconnectivity of a bank's branches to provide seamless banking services to customers.

Option 2, which suggests that Core Banking Solutions aim to increase the Reserve Bank of India's control over commercial banks through computerization, is incorrect. Core Banking Solutions primarily focus on enhancing customer service and convenience rather than being a tool for central bank control.

Option 3, which relates Core Banking Solutions to the procedure of one bank taking over another bank with non-performing assets, is also incorrect. The term does not specifically pertain to the takeover of banks with bad loans.

1

How was this explanation?

bottom of page