The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/describe this term? 1. It is 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:
Explanation
Statement 1 is Correct: Core Banking Solution (CBS) is a networking of a bank's branches that allows customers to manage their accounts and perform transactions from any branch on the network, regardless of where the account was originally opened. Statement 2 is Incorrect: CBS is a back-end system used by individual banks to improve internal efficiency and customer service; it is not a tool designed for the RBI to increase its regulatory control over commercial banks. Statement 3 is Incorrect: CBS refers to the centralized software platform used for day-to-day banking operations; it is not a procedure for the takeover of banks or the resolution of Non-Performing Assets (NPAs).