The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/describe this term?1. It is a network 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.
✓ Correct answer: a) 1 only
ExplanationStatement 1 is correct : Core Banking Solution (CBS) is a centralized platform that connects all branches of a bank, allowing customers to access and manage their ac- counts from any branch, ATM, or online.It’s a software appli- cation that integrates various banking operations and provides a unified view of customer information.Statements 2 and 3 are incorrect :The implementation of Core Banking Solutions is primarily driven by individual banks aiming to improve operational efficiency and customer service.Core Banking Solutions are unrelated to the processes of bank mergers or acquisitions.They are technological systems that enable centralized operations and do not pertain to the takeover procedures of banks with significant non- performing assets.Core Banking Solutions (CBS) is a centralized banking sys- tem that enables banks to handle their daily operations, such as deposit accounts, loan processing, fund transfers, and cus- tomer transactions, through one unified platform.With CBS, all bank branches are connected to a central database, allow- ing customers to access b
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