UPSC Previous Year Question | Prelims GS | 2016

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 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.

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer

Correct Answer

1 only

Explanation

Core Banking Solutions networks all branches of a bank so customers can access their accounts from any branch, regardless of where the account was opened; it is unrelated to RBI control over banks or NPA-driven takeovers.

Topics: banking, banking technology, core banking solutions, indian economy