The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/describe this term?
- It is 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:
Detailed Explanation:
Answer: Option 1 — 1 only
✅ Statement 1 – Correct: Core Banking Solution (CBS) is a centralized banking system that networks all branches of a bank, enabling customers to operate their accounts and perform banking transactions from any branch on the network, regardless of where the account was originally opened. This provides 'anytime, anywhere' banking within the bank's network.
❌ Statement 2 – Incorrect: CBS is not designed to increase RBI's control over commercial banks. It is an internal banking software platform adopted by individual banks to enhance operational efficiency, streamline processes, and improve customer service delivery.
❌ Statement 3 – Incorrect: CBS refers to the centralized software infrastructure for managing daily banking operations such as deposits, withdrawals, and account management. It has no connection with procedures for bank takeovers or resolution of Non-Performing Assets (NPAs).
Question 12 of 15 Banking Structure in India
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