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 computerisation.
- 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.
1 only
2 and 3 only
1 and 3 only
1, 2 and 3
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC IAS – 2016
– This enables customers to operate their accounts from any branch of the bank that is on the CBS network, regardless of where the account was originally opened (Statement 1). Services like cash withdrawal/deposit, fund transfers, account balance checks, etc., become available across the network.
– While computerization inherent in CBS provides banks with better data and operations management that *can* be used for regulatory compliance, its main purpose is not to increase RBI’s control (Statement 2 is incorrect).
– Statement 3 describes a banking merger or resolution process related to non-performing assets (NPAs), which is unrelated to the technical term CBS (Statement 3 is incorrect).