UPSC CSE Prelims
Question 47
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.
View correct answer and explanation
Correct answer: A
Correct Option: A
Explanation: Core Banking Solutions connect bank branches to a centralised database, enabling customers to access and transact on accounts from multiple branches instead of only the home branch.
Statement/Pair-wise Analysis:
Statement/Item 1: Correct - A networked core allows anywhere-banking access across the bank’s branches/channels.
Statement/Item 2: Incorrect - The concept is customer-centric integrated banking software, not a special RBI takeover/control tool.
Statement/Item 3: Incorrect - Resolving distressed bank assets or bank mergers is unrelated to the term CBS.
Option-wise Analysis:
A: Correct - includes all and only the true statements/items.
B: Incorrect - includes incorrect statement/items 2, 3; omits correct statement/item 1.
C: Incorrect - includes incorrect statement/item 3.
D: Incorrect - includes incorrect statement/items 2, 3.