Economy2016
The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/ describe this term?
- It is a network of a bank’s branches which enables
- It is an effort to increase RBI’s control over commercial
- 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.
Explanation
The correct option is "1 only" because Core Banking Solutions (CBS) fundamentally facilitate the integration of a bank’s branches into a unified network, allowing customers to access and manage their accounts seamlessly regardless of the branch they visit. This technology enhances banking operations by providing real-time access to account information and enables services such as fund transfers and loan applications at any branch. Statements 2 and 3 misrepresent the core concept of CBS, as they either imply regulatory control rather than operational efficiency or describe a takeover process which is unrelated to the essence of core banking.