Q 1. How does the loan size in retail banking compare to that in corporate banking?
Q 2. Which of the following statements regarding non-performing assets at banks is/are correct?
(i) Banks/FIs are prohibited from investing in security receipts, Pass-Through Certificates (PTC), or other bonds/debentures issued by Asset Reconstruction Companies (ARCs).
(ii) ARCs are obligated to issue security receipts through a trust established exclusively for this purpose, and these receipts can only be transferred/assigned to other Qualified Institutional Buyers (QIBs).
(iii) Banks/FIs are not required to maintain provisions on the assets if their investment in Security Receipts (SRs) backed by stressed assets sold by them exceeds 50 percent of the SRs backed by the assets they sold and issued under that particular securitization.
Q 3. Banks consider wealth management a crucial business segment, as it enables them to generate substantial revenue from high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) who usually have intricate financial requirements. Banks equipped with a comprehensive range of wealth management services are well-positioned to cater to their needs effectively. The primary services offered in the wealth management domain include investment management, estate planning, and various financial planning services like retirement planning, tax planning, philanthropic planning, and more. However, managing client relationships poses a challenge in the wealth management business, as HNWIs expect personalized attention and a high level of service. Banks capable of building strong, long-term relationships with their clients are more likely to retain their business and generate significant revenue.
What makes Real Estate Investment Trusts (REITs) a favorable investment option for small investors?
Q 4. What constitutes the primary hurdle in the adoption of technology in Indian banking?
Q 5. How do banks guarantee repayment of personal loans through tie-ups with various institutions?
Q 6. The main purpose of an MIS in a bank is to play an increasingly vital role by assisting in managing customer accounts, tracking transactions, detecting fraud, identifying market trends, managing risk, and aiding in strategic decisions about product development and marketing. With the advent of online banking and mobile apps, MIS has become even more crucial for banks to retain a competitive edge. Nevertheless, the implementation and maintenance of MIS necessitate substantial investment and expertise, making it imperative for banks to carefully assess their requirements and resources before investing in these systems.
Q 7. What measures can be taken to significantly enhance the productivity of frontline employees?
Q 8. Which one of the following is not considered a financial asset?
Q 9. The transformation brought about by the digitization of retail banking has completely changed the way consumers interact with their banks. The increasing usage of smartphones and the internet has led to a growing trend of customers opting for online and mobile banking to manage their finances. In response to this shift, banks have developed user-friendly digital platforms that offer customers the convenience of accessing their accounts, making transactions, and receiving customer support anytime and anywhere. Consequently, this has enabled banks to expand their customer base, reduce operational costs, and improve overall customer satisfaction. However, despite the numerous benefits, the digitization of retail banking also brings certain challenges, such as cybersecurity risks and the constant demand for banks to innovate in order to stay competitive.
Regarding wealth management solutions, how do they contribute to achieving higher operational efficiency?
Q 10. In terms of administering recovery management for retail loans, what are the distinctions between Public Sector Banks (PSBs) and Private and Foreign banks?
Q 11. Interacting with banks and utilizing financial products requires engaging with the bank through a delivery channel. Customer satisfaction is achieved through different delivery channels, and experiencing an optimal mix of channels enhances it. In recent years, technology has permeated every aspect of our lives, including the banking sector. Information technology has enabled banks to offer improved services to customers at reduced costs. This technological deployment has also transformed the channels through which customers interact with their banks. While bank branches have been the traditional channels for banking services, there has been a shift towards reducing reliance on branches and adopting technologies like ATMs, PoS, Mobile banking, etc.
Regarding Internet Banking services provided by "Fully Transactional Websites," what are the involved aspects?
Q 12. Among the options provided, which one is not considered a feature of retail banking?
Q 13. Which of the following statements accurately describes the Market Intelligence system as a component of MKIS?
Q 14. Q.44 To achieve success, banks understand their diverse customers, differentiate them based on specific characteristics, and offer various banking and financial products that best suit each segment. However, certain core products are universally offered to all segments. The competition among banks lies in delivering these products in the most effective manner. Additionally, banks introduce new products known as augmented products. Consequently, the overall products of banks can be classified into three types, one of which is Deposit products. These products provide various ways to deposit funds, and since customers' deposits form the bank's liability, they are also referred to as Liability products. Examples of such products include Savings Deposits, Current Deposits, Term Deposits, and more. Savings and Current Deposits are considered demand Deposits, whereas Term Deposits involve RDs, FDs, and Combination Term Deposits.
Now, in regard to the different types of customers, for whom do banks open a small account?
(Note: The original question has been transformed into a description of the context. For answering the question about the small account, additional information about the types of customers and the nature of the small account is needed.)
Q 15. Which two fundamental strengths characterize a bank's retail business model?
Q 16. Who qualifies for the Central Sector Interest Subsidy (CSIS) scheme?
Q 17. What does "re-scheduling of retail loans" mean?
Q 18. What is the most accurate definition of Private Banking among the options provided?
Q 19. How have private banks traditionally perceived their approach to Customer Relationship Management (CRM)?
Q 20. Q.10 Case study:
Retail banking refers to the services offered by banks to individual consumers. These services can encompass fundamental offerings such as savings and checking accounts, as well as personal loans for purposes like purchasing a car or a home. Retail banks also provide credit and debit cards, online and mobile banking facilities, and sometimes even investment services like mutual funds or retirement accounts. The primary focus of retail banking is to cater to the financial requirements of individuals and small businesses rather than large corporations or institutions.
Question: What is the latest trend in retail banking strategies for banks in India?
Q 21. Under Section 80CCD (2), who is qualified to claim a deduction?
Q 22. What does process improvement entail in the context of banks?
Q 23. What does the promotion component of the marketing mix involve in retail banking?
Q 24. What fee does the bank impose for depositing cash into a current account at a non-home branch?
Q 25. What is the initial step in the wealth management process?
Q 26. Delivery models in banking encompass the diverse channels through which banking services are offered to customers. These include physical branches, ATMs, online banking, mobile banking, and telephone banking. Technological advancements have enabled banks to introduce newer delivery models, like internet banking, mobile banking, and virtual banking, allowing customers to access services conveniently. Embracing these modern delivery models has not only assisted banks in lowering operational costs but also in providing enhanced customer service.
In the past decade, private banks have actively utilized agents to conduct marketing and acquire new customers.
Q 27. As per Deryk Vander Weyer, Bank Marketing refers to the strategic process of promoting banking products and services, targeting specific customer segments, and creating value to achieve the bank's business goals.
Q 28. The Integrated Ombudsman Scheme 2021 is a scheme introduced by the Reserve Bank of India (RBI) to provide a unified platform for handling customer complaints in the banking sector. It consolidates the existing banking ombudsman schemes into a single comprehensive framework to address grievances and disputes between customers and their banks efficiently and effectively.
Q 29. What is the objective of process improvement in banks?
Q 30. What is the criterion used by the originating bank to classify the entire MRR/individual loans representing MRR as NPA in its books?
Q 31. What distinguishes a PoS terminal from an ATM?
Q 32. Which of the following statements accurately describes the customer grievance handling mechanism in banks?
Q 33. Which of the following is an exception or NOT mandatory as a requirement from customers to maintain their accounts/relationship with their bank/s?
Q 34. The Co-Lending Model (CLM) enables banks to co-lend with all RBI-registered NBFCs, including Housing Finance Companies (HFC), based on a framework.
Q 35. Which of the following options does not represent an example of other products and services provided by banks?
Q 36. What kind of life insurance policy is intended to provide a lump sum payment after a specific term or in the event of death?
Q 37. The role of the Mergers & Acquisitions (M&A) group in investment banking is to _______.
Q 38. Apart from conventional banking services like savings and checking accounts, banks offer a diverse range of financial services. These encompass credit cards, various types of loans (personal, car, home loans), insurance products (life, health, property insurance), investment services (stocks, mutual funds, retirement accounts), and foreign exchange services. Additionally, some banks offer specialized services for businesses, including merchant services, cash management, and business loans. Overall, banks serve a vital role in granting access to a broad spectrum of financial services for both individuals and businesses.
Now, let's address the question:
What do fungible shares refer to?
Q 39. Some banks adopt a personalized service approach, wherein they assign a relationship manager and support team to each qualifying account. This approach emphasizes building strong relationships with customers, providing them with personalized attention and assistance.
Q 40. What is the primary goal or main objective of CRM in the banking industry?
Q 41. In January 2010, which services did the IDRBT transfer to the National Payments Corporation of India?
Q 42. What sets financial planning apart from an investment plan?
Q 43. Based on the information provided, which of the following statements are true regarding ABC Bank's Internet banking services?
Q 44. What led the RBI to make the decision to dissolve the Banking Codes and Standards Board of India (BCSBI)?
Q 45. Are banks allowed to incorporate stamp duty, registration, and other documentation charges in the cost of the housing property they finance?
Q 46. What is the objective of the credit scoring model?
Q 47. The Code of Bank’s Commitment endeavors to establish high standards in member banks’ interactions with customers.
Q 48. What are the two aspects of value that CRM solutions can enhance?
Q 49. To improve their credit scores, borrowers should consider the following actions:
(i) Maintain financial discipline and ensure timely repayment of dues.
(ii) Limit the number of credit lines sought frequently.
(iii) Avoid continuously opening new accounts and instead focus on managing existing accounts responsibly.
By adopting these practices, borrowers can enhance their creditworthiness and potentially achieve better credit scores, leading to more favorable loan terms and lower interest rates.
Q 50. Which technologies are utilized in constructing the alerts solution?
Q 51. What does the term 'process' in retail banking refer to, according to the options provided?
Q 52. Delivery models in banking pertain to the methods through which financial services are offered to customers. In the traditional approach, banks used physical branches where customers could visit in person to conduct transactions. However, with the advancement of technology, banks have introduced diverse electronic delivery channels, including mobile banking apps, internet banking, and ATMs. These electronic channels empower customers to carry out transactions conveniently at any time and from any location, eliminating the need to visit a physical branch. Additionally, banks may also implement hybrid delivery models that integrate both physical and digital channels, ensuring a seamless banking experience for their customers.
What sets the main difference between physical and electronic channels in retail banking?
Q 53. Which one of the following options is NOT considered a retail liability product?
Q 54. As per the guidelines, how must the originating bank retain the amount representing MRR when transferring retail loans?
Q 55. In the event of the death of one or more locker hirers in a jointly rented locker with a survivorship clause, what is the outcome?
Q 56. What is the objective behind BCSBI's authorized representatives collecting information through structured questionnaires during branch visits?
Q 57. What is the term used to describe the process of aligning investments with the goal of retirement income?
Q 58. What is the standard rate of additional Health and Education cess that applies universally?
Q 59. What factors contributed to the development of retail banking in banks?
Q 60. Even if a company generates a profit, it does not automatically guarantee that the company is financially sound.
Q 61. What is the significance of firms obtaining information and data on various aspects that influence the market for their products or services?
Q 62. Which statement is accurate regarding Section 54F of the Income Tax Act?
Q 63. What is the importance of measuring the customer response to marketing strategies in terms of effectiveness in banking?
Measuring the customer response to marketing strategies is crucial in banking as it provides valuable insights into the success of these strategies. By analyzing customer responses, banks can assess the impact of advertising campaigns, promotional offers, loyalty programs, and digital marketing efforts such as email and social media campaigns. Understanding customer response helps banks to gauge the effectiveness of their marketing initiatives in achieving their ultimate goals, which include attracting new customers, retaining existing ones, and increasing revenue. It also allows banks to identify areas for improvement, refine their marketing approaches, and build stronger and lasting relationships with their clients.
Q 64. What is the establishment date of the Institute for Development and Research in Banking Technology (IDRBT)?
Q 65. In what ways do CRM applications indirectly influence customer satisfaction?
Q 66. In the standalone model for retail loan processing, the Branch Head plays a crucial role in overseeing the loan operations at the branch level. They are responsible for managing and supervising the entire loan process, from customer inquiries to loan disbursements. The Branch Head ensures that loan applications are processed efficiently and adhering to the bank's policies and guidelines. They also handle customer interactions, address queries, and ensure a smooth customer experience throughout the loan application and approval process. Additionally, the Branch Head may collaborate with the sales team to achieve loan targets and contribute to the overall growth of retail assets for the bank.
Q 67. Which Indian bank initiated a national hackathon named "Code for Bank" aimed at engaging developers, start-ups, and students to propose innovative ideas and solutions for the banking sector?
Q 68. What is the reason behind offering mandatory convertible bonds at a higher rate of interest?
Q 69. Which of the following options provides the best definition of the concept of 'promotion' in retail banking?
Q 70. Yes, credit cards offered by subsidiaries of member banks and companies promoted by member banks are covered under the 'Code of Bank's Commitment to Customers.'
Q 71. The primary objective of tie-ups between banks and builders/auto dealers/institutions is to offer attractive financing options to customers for purchasing homes, vehicles, or availing services from institutions. These collaborations facilitate easier access to loans and financial products, benefiting both the customers and the businesses involved.
Q 72. The goal of improving process costs in banks is to enhance profitability by optimizing operational efficiency and reducing expenses. By streamlining processes and minimizing costs, banks can increase their net income, leading to better financial performance, potential dividend payments to shareholders, investments in new technologies, and expansion of customer services.
Q 73. What aspects does the Marketing Research System address in MKIS?
Q 74. As per the latest SEBI regulations, what is the highest exit load permissible for PMS during the first year?
Q 75. In what way does the alerts solution reduce the volume of outgoing notifications?
Q 76. If a written complaint is hand-delivered, the bank will promptly acknowledge its receipt and initiate the necessary steps to address and investigate the complaint. They will adhere to their complaint resolution procedures and work towards resolving the issue in a fair and transparent manner. The bank will keep the customer informed about the progress of the complaint resolution and provide a suitable response within the specified timeframe.
Q 77. Which events from the following list can be classified as taxable income under the capital gains category for the previous year?
Q 78. The approach of retail banking and corporate banking differs significantly.
(Note: The original context implies that the question is about the differences between retail banking and corporate banking approaches.)
Q 79. The Reserve Bank of India has made it compulsory for all Credit Information Companies to comply with what requirement?
Q 80. What is the primary factor in establishing a competitive advantage for a company?
Q 81. How long does the Assessment Year last?
Q 82. What are the latest directives issued by RBI concerning the securitization of standard assets?
Q 83. Which specific bank account is necessary for conducting AePS transactions?
Q 84. Why do old private-sector banks opt for an outsourced technology model?
Q 85. What is the minimum threshold for the issuance of securitization notes?
Q 86. What is the upper limit for e-mandates?
Q 87. What are the benefits of retail banking?
Q 88. Who do Direct Selling Agents (DSAs) refer to?
Q 89. Among the following options, which one is not an objective of the Code of Banks' Commitment?
In order to ensure fair treatment for customers, banks must enhance the quality of banking services provided to individual consumers. To address concerns related to the availability of banking services, the RBI established minimum codes and standards to be followed by banks when dealing with their customers. This led to the creation of the Banking Codes and Standards Board of India (BCSBI) in 2006 as an independent and autonomous body responsible for developing and publishing comprehensive codes and standards for banks, aiming to provide fair treatment to customers.
Q 90. When calculating a credit score, which additional factors are taken into account in India?
Q 91. What is the process for enrolling merchants on the e-Gateway platform?
Q 92. What is the underlying management philosophy that guides customer relationship management (CRM) in the banking sector?
Q 93. What is the certification process that all Business Correspondents (BCs) must complete before they are authorized to operate?
Q 94. Wealth management stands as a crucial business area for banks, as it allows them to generate substantial revenue from high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). These individuals generally possess intricate financial needs, and banks equipped with a comprehensive range of wealth management services are well-positioned to serve their requirements. The key services offered by banks in the wealth management domain include investment management, estate planning, and various financial planning services such as retirement planning, tax planning, philanthropic planning, and more. However, managing client relationships proves to be a challenge in the wealth management business, as HNWIs expect personalized attention and a high level of service. Banks that can establish strong, long-term relationships with their clients are more likely to retain their business and generate significant revenue.
What is the typical fee structure employed for comprehensive wealth management services?
Q 95. In what ways can CRM solutions be leveraged to tailor bank products and services for diverse customer segments?
Q 96. What is the yearly charge for a credit card?
Q 97. In recent years, Management Information Systems (MIS) have gained increasing importance within the banking industry. MIS in banking serves various functions, including managing customer accounts, tracking transactions, and detecting fraud. Additionally, it aids banks in identifying market trends, managing risk, and making strategic decisions regarding product development and marketing. The rise of online banking and mobile apps has further accentuated the significance of MIS, as it enables banks to maintain a competitive edge. However, implementing and maintaining MIS necessitate substantial investment and expertise, prompting banks to thoroughly assess their needs and resources before committing to these systems.
Consider the following questions concerning the role of Management Information Systems (MIS) in banks:
(i) How does MIS support managers in decision-making by providing them with relevant information?
(ii) Is it possible for MIS to replace the role of managers in decision-making?
Q 98. Among the following options, which approach is not among the primary methods adopted by banks for their retail banking operations?
Q 99. Which of the following statements is not accurate concerning Retail banking scenarios in India?
(i) Citibank was the first bank to introduce credit card products in India.
(ii) The conventional banking business by Public Sector Banks (PSBs) was conducted using a more generalized approach without specific demarcation between retail and non-retail activities.
(iii) Public Sector Banks (PSBs) did not offer any retail products before the entry of foreign banks.
Q 100. The way consumers interact with banks has been revolutionized by the digitization of retail banking products. As the use of smartphones and the internet continues to rise, an increasing number of customers are adopting online and mobile banking to manage their finances. In response to this trend, banks have developed user-friendly digital platforms that allow customers to access their accounts, conduct transactions, and receive customer support at their convenience, from anywhere. This shift has resulted in several benefits for banks, including reaching a broader customer base, reducing operational costs, and improving overall customer satisfaction. However, the digitization of retail banking also poses challenges such as cybersecurity risks and the constant need for banks to innovate to maintain a competitive edge.
Please review the following statements about the STRUCTURED FINANCIAL MESSAGING SYSTEM (SFMS) and identify the one that is incorrect:
(i) SFMS is an international messaging system used for financial messaging globally, similar to SWIFT.
(ii) The major advantage of SFMS is that it can be used practically for all purposes of communication within the bank and between banks.
(iii) SFMS is a secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications.
