Prelims 2016 · Economy · Question 54
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.
Answer
1 only
1. Correct. Core Banking Solution (CBS) means bank branches are networked and centralized, so a customer can access the account from any branch of that bank.
2. Incorrect. CBS is mainly a banking technology platform for centralized operations and customer convenience; it is not a measure to increase RBI's control over commercial banks.
3. Incorrect. This describes bank restructuring/merger or resolution of stressed banks, not Core Banking Solutions.
Therefore, only statement 1 is correct.