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
Explanation:
Core Banking Solutions (CBS)
Core Banking Solutions (CBS) is a bank computerisation model where bank branches are connected to a central host.
A centralised system serves as the foundational infrastructure for multiple branches within the same banking institution. This system facilitates customers’ ability to conduct and access their account transactions seamlessly within a unified and secure framework. By providing a cohesive back-end connection, core banking enhances operational efficiency and customer convenience, allowing for a consistent banking experience across various locations.
In Core Banking, there is a central database for the bank and transactions are done online, connecting to the central database.
The modern banking facilities like ATM, debit card, Mobile banking, Internet banking are integrated with CBS. CBS offers integrated products and services 24 x 7 to the customers.
Hence, only 1 is correct