Q 1. Which one of the factors listed below does NOT influence the models and processes chosen by banks for their retail banking operations?
Q 2. Which investment instrument permits exemptions of up to Rs. 1 lakh per annum under Section 80C?
Q 3. What is the primary objective of decision models in marketing?
Q 4. What role do the output subsystems serve in the MKIS model?
Q 5. What is the reason behind banks imposing a higher minimum balance requirement in a current account as compared to a savings account?
Q 6. How does the elimination of entry loads affect mutual fund mobilizations?
Q 7. Analyzing the existing information processes is vital in implementing CRM for the following reasons:
1. **Insight into Customer Needs:** By analyzing existing information processes, banks can gain valuable insights into customer needs, preferences, and behavior. This understanding is crucial in tailoring products and services to meet individual requirements.
2. **Data Integration:** Analyzing existing information processes allows banks to consolidate customer data from various touchpoints into a centralized system. This integrated data view enables a comprehensive understanding of each customer's interactions with the bank.
3. **Effective Decision Making:** With a clear understanding of customer data, banks can make informed decisions regarding customer profiling, segmentation, and personalized marketing strategies. This helps in enhancing the effectiveness of CRM efforts.
4. **Anticipating Customer Issues:** By analyzing existing information, banks can identify patterns and trends that may indicate potential customer problems or concerns. This enables proactive measures to address and resolve issues before they escalate.
5. **Opportunities for Cross-Selling and Up-Selling:** Analyzing customer data helps banks identify opportunities for cross-selling and up-selling products or services. By understanding customer preferences and behavior, banks can offer relevant recommendations to increase sales.
6. **Enhancing Customer Retention:** A thorough analysis of customer data allows banks to implement targeted retention strategies. By addressing customer needs and concerns, banks can improve customer satisfaction, leading to increased loyalty and retention.
7. **Maximizing Profitability:** With a well-implemented CRM system backed by accurate data analysis, banks can optimize their marketing efforts and operational processes. This can lead to improved customer relationships, increased customer retention, and ultimately, higher profitability.
In summary, analyzing existing information processes is crucial in implementing CRM as it provides valuable insights, enables data integration, supports effective decision-making, and helps banks cater to customer needs more effectively, leading to improved customer satisfaction and overall profitability.
Q 8. Understanding the customer is of utmost importance in retail banking delivery for the following reasons:
1. **Tailored Services:** Customer insights enable banks to offer personalized products and services that align with individual preferences and needs, enhancing customer satisfaction and loyalty.
2. **Effective Communication:** Understanding customer preferences and behavior helps banks to communicate relevant information and promotions more effectively, leading to higher engagement and response rates.
3. **Customer Experience:** By comprehending customer expectations, banks can improve the overall customer experience, leading to positive word-of-mouth, referrals, and customer retention.
4. **Anticipating Needs:** Understanding customer behavior allows banks to anticipate customer needs, enabling proactive problem-solving and addressing potential issues before they arise.
5. **Market Segmentation:** Customer understanding helps banks segment their market effectively, targeting specific customer groups with tailored marketing strategies.
6. **Innovation:** Knowing customer preferences encourages banks to innovate and introduce new services that cater to changing demands, staying ahead in a competitive market.
7. **Customer Retention:** Satisfied customers are more likely to remain loyal to the bank, reducing churn rates and increasing customer lifetime value.
8. **Building Trust:** Customer understanding fosters trust and credibility, as customers feel that the bank genuinely cares about their needs and concerns.
In summary, comprehending the customer in retail banking delivery is essential for delivering personalized, customer-centric services, building strong relationships, and ultimately achieving long-term business success.
Q 9. Which of the following statements accurately reflects the difference in the ticket size of loans between retail and corporate banking?
Q 10. What comprises the marketing mix in the context of retail banking?
Q 11. What are the three types of management services offered by wealth management?
Q 12. What are the various approaches employed by banks in their retail banking operations?
Q 13. To address discrepancies in cash dispensation, banks take the following steps:
(i) Online monitoring of ATMs with a high number of dispenser problems.
(ii) Follow up with manufacturers for periodical preventive maintenance.
(iii) Training of custodians to ensure proper cash loading.
Q 14. What makes credit assessment sophistication essential for banks?
Q 15. Which of the following statements accurately describes the quantum of the loan?
Q 16. The Marketing Information Systems (MIS) play a crucial role in the banking industry by collecting, analyzing, and interpreting data about customers, products, services, and market trends. MIS helps banks understand customers' evolving needs and enables the design of products and services that cater to those needs. It also allows banks to monitor competitors' activities and adapt to market changes. Through MIS, banks can identify the most effective marketing channels and promotional strategies to target their audience successfully. This system empowers banks to make well-informed decisions, reduce costs, and enhance profitability, thereby ensuring their competitiveness and ability to meet customer demands.
The question seeks information about the data-gathering subsystems of MKIS. However, the original passage does not explicitly mention the specific data-gathering subsystems of MKIS. Therefore, I cannot provide a direct answer based on the provided text. For information on data-gathering subsystems of MKIS, additional context or specific details about the MKIS being referred to would be required.
Q 17. What makes the 'People' concept significant in retail banking marketing?
Q 18. What makes diversification crucial in portfolio management?
Q 19. What primary function does a bond market serve?
Q 20. 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 are the eligibility criteria for enrolling in Atal Pension Yojana (APY)?
Q 21. What is the main role of the capital raising and underwriting groups in a Full-Service Investment Bank?
Q 22. What is the objective of sales force automation in CRM software?
Q 23. What does the concept of 'pre-registered beneficiaries' entail in the context of PPIs?
Q 24. Maintaining products in the maturity stage for as long as possible is essential for banks due to the following reasons:
(i) It is the stage with the highest sales volume.
(ii) It is the stage where the product generates the most profit.
(iii) It is the stage with a wide customer base.
Q 25. What serves as the foundation for banks' retail banking models?
Q 26. Which part of the Marketing Information System supplies information from external sources concerning market developments and changing consumption patterns in the marketing environment?
Q 27. For whom is PMS (Portfolio Management Services) tailored?
(i) Retail clients
(ii) Institutional clients
(iii) Government clients
(iv) High Net-worth Individuals (HNI) clients
Q 28. Before closing a current account, the bank should ensure that any outstanding liabilities of the customer are settled or addressed appropriately.
Q 29. Which of the statements below is true regarding health insurance?
Q 30. What are the criteria that can be employed for market segmentation in retail banking?
Q 31. What is the order of payment to secured creditors in the event of debt recovery?
Q 32. What is the reason behind banks collaborating with dealers to conduct special and seasonal campaigns for vehicle loans?
Q 33. Which of the following statements accurately describes the relationship between profit and profitability?
Q 34. The objective of RBI's guidelines on the Co-Lending Model is to promote co-lending arrangements between banks and Non-Banking Financial Companies (NBFCs) for providing loans to priority sectors of the economy, thereby increasing the flow of credit to underserved segments. This model aims to leverage the strengths of both banks and NBFCs to enhance the reach and efficiency of lending to key sectors, fostering financial inclusion and economic growth.
Q 35. Which one of the following customer groups is the target of retail banking?
(i) Corporate customers
(ii) Government organizations
(iii) Micro Small and Medium Enterprises (SMEs)
(iv) Non-profit organizations
Q 36. By whom are ECS Credit payments initiated?
Q 37. What is the most suitable description of the relationship between the seven Ps in marketing effectiveness?
Q 38. In the context of Axis Bank, what does IRA refer to?
Q 39. The fees levied by a wealth management advisor are generally determined based on the client's __.
Q 40. What is the importance of the Branch Level Customer Service Committee meetings?
Q 41. What is the suggested approach for banks to enhance customer loyalty?
Q 42. What does the term "Indian Gold Coin" refer to?
Q 43. A Systematic Withdrawal Plan (SWP) permits investors to withdraw a predetermined amount at regular intervals.
Q 44. Which type of branch in public sector banks is more likely to have loyal retail customers?
Q 45. According to Sir Frederick Seebohmn, how is bank marketing defined?
According to Sir Frederick Seebohmn, bank marketing can be described as the various strategies and activities employed by banks to promote their products and services to customers. This includes advertising campaigns, promotional offers, loyalty programs, and digital marketing efforts such as email and social media campaigns. The primary objective of bank marketing is to attract new customers, retain existing ones, and increase the bank's revenue. Effective communication of the benefits of their products and services to customers enables banks to establish a strong brand identity and cultivate lasting relationships with their clients.
Q 46. Q.96 What role does the M&A (Mergers and Acquisitions) group play in full-service investment banks?
The M&A group in full-service investment banks plays a critical role in facilitating mergers, acquisitions, and other strategic transactions for clients. They provide advisory services to businesses and individuals seeking to buy, sell, merge, or restructure their companies. The M&A group assists in identifying potential targets or suitable buyers, conducting valuations, negotiating deals, and managing the entire transaction process. They play a crucial part in helping clients achieve their strategic objectives, enhance market position, and maximize value from such transactions.
Q 47. According to RBI guidelines, which non-individual entities are permitted to open a savings account?
Q 48. Banks introduce different and need-oriented products for the following reasons:
(i) To satisfy their customer needs.
(ii) To bring in new customers into their fold.
(iii) To generate more profits.
Q 49. In comparison to retail transactions, how does the APR (Annual Percentage Rate) differ when charged for cash transactions?
Q 50. What is the commonly accepted industry standard for the fee levied for managing a PMS (Portfolio Management Service)?
Q 51. Which of the following steps is crucial in managing one's credit score?
Q 52. Which of the following options is NOT a fundamental component of the marketing mix in retail banking?
Q 53. NFS (National Financial Switch) offers a range of value-added services on ATMs/CDMs (Cash Deposit Machines), which include additional services beyond basic cash withdrawal, such as balance inquiry, fund transfer, mini-statements, bill payments, mobile recharge, and other financial transactions.
Q 54. The operating profit of Company A can be calculated by subtracting the operating expenses from the gross profit:
Operating Profit = Gross Profit - Operating Expenses
Operating Profit = Rs. 40,00,000 - Rs. 20,00,000
Operating Profit = Rs. 20,00,000
So, the operating profit of Company A is Rs. 20,00,000.
Q 55. What is the reason behind lending banks factoring in a risk premium?
Q 56. Q.Technology has had a significant impact on the banking industry, enhancing efficiency and convenience for customers. Online and mobile banking enable people to monitor account balances, transfer funds, and pay bills using their smartphones or computers, regardless of time or location. Banks have also implemented advanced security measures like two-factor authentication and biometric authentication to safeguard customer information. Furthermore, artificial intelligence and machine learning are leveraged by banks to analyze data more efficiently and offer personalized financial advice.
New Convenience of the First Commercially Available Computer Tablet in Retail Banking:
The first commercially available computer tablet brought the convenience of portable and touchscreen banking to retail customers. It allowed users to access their accounts, perform various banking transactions, and manage finances on the go, providing greater flexibility and ease of use compared to traditional banking methods.
Q 57. What are the benefits of retail banking?
Q 58. What is the upper limit of investment in specific bonds allowed under Section 54EC?
Q 59. What potential effects can mobile wallets have on the payment landscape?
Q 60. Which of the following individuals need to contemplate portfolio management?
Q 61. The advantage of using banks as a distribution channel for mutual funds is that banks provide a convenient and accessible platform for customers to invest their money in mutual funds along with other financial products and services. This makes it more convenient for customers to manage their investments and financial needs in one place, fostering a seamless and integrated experience.
Q 62. What does the term "net profit margin" refer to?
Q 63. What is the rationale behind adopting a proactive approach for managing willfully defaulting borrower units?
Q 64. What steps should banks take to attract a diverse range of buyers for the sale of financial assets?
Q 65. Income inequality exists in every country, necessitating government action to reduce it. This can be accomplished by implementing a taxation and subsidy system in each economy. Taxation refers to the government's imposition of financial charges on individuals and businesses. A tax regime comprises the laws that dictate how taxes are imposed and calculated. Individuals or companies can choose between the old or new tax regime for paying their taxes. The Finance Minister introduced the new tax regime in the Union budget of 2020.
Q 66. What kind of reports should the Management Information System (MIS) provide to the management concerning account holders?
Q 67. Credit cards and debit cards are distinct payment cards utilized for making purchases. A credit card permits you to borrow money from a bank or financial institution up to a predetermined limit, which must be repaid along with interest. The credit limit is determined based on your creditworthiness. Conversely, a debit card is linked to your bank account, enabling you to make purchases using the available funds in your account. The purchase amount is directly deducted from your account, and there is no borrowing involved. Debit cards are widely accepted and can also be used to withdraw cash from ATMs. It is crucial to use both types of cards responsibly and keep track of your expenses to avoid overspending or accumulating debts with high interest rates.
What is the daily maximum cash withdrawal limit for debit cards?
Q 68. Is it permissible for individuals below the age of 18 to invest in SGBs?
Q 69. What is the definition of a bank run?
Q 70. When is the optimal timing for purchasing Floating rate bonds?
Q 71. What does the concept of investment safety indicate?
Q 72. What is the procedure for an individual to seek clarification regarding their low credit score?
Q 73. What role does data processing serve in an MKIS (Marketing Information System)?
Q 74. In the pilot study conducted by NPCI in August 2010, which banks were involved?
Q 75. What pricing structure is typically adopted by the majority of Public Sector Banks (PSBs)?
Q 76. Wealth management is a crucial business area for banks, presenting an opportunity to generate substantial revenue from high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). These individuals typically possess intricate financial needs, and banks equipped with a comprehensive range of wealth management services are well-equipped to cater to them effectively. The key services offered in the wealth management space include investment management, estate planning, and various financial planning services like retirement planning, tax planning, philanthropic planning, and more. However, a challenge in the wealth management business lies in effectively managing client relationships, as HNWIs expect personalized attention and a high level of service. Banks that can build strong, long-term relationships with their clients are more likely to retain their business and generate significant revenue.
What does asset allocation management entail in the context of wealth management?
Q 77. What occurs to the pension wealth in the event of the demise of both the subscriber and the spouse under APY?
Q 78. Is it possible to create a Will to transfer property to daughters-in-law and other relatives for the purpose of saving income tax?
Q 79. The most critical resource of MIS is expertise, and the purpose of MIS is to enhance the banking industry's operations. In banking, MIS plays a vital role in managing customer accounts, tracking transactions, detecting fraud, identifying market trends, managing risk, and enabling strategic decisions about product development and marketing. As online banking and mobile apps continue to rise, the significance of MIS becomes even more crucial for banks to maintain a competitive edge. Nevertheless, implementing and maintaining MIS requires substantial investment and expertise, making it essential for banks to carefully assess their needs and resources before investing in these systems.
Q 80. The mode of operation for a 2 in 1 account is as follows:
Q 81. Can you explain what a co-branded debit card is?
Q 82. What is the full form of SBU, and what is the rationale behind establishing SBUs in new-generation private sector banks?
Q 83. Among these gifts, which one is exempt from taxation under the Income Tax Act of 1961?
Q 84. What is the primary objective behind designing an MIS (Management Information System) for a bank?
Q 85. Q.25 While all organizations, including banks, must be cautious about their expenditure, they are facing increasing pressures to enhance their operational efficiency due to factors such as shifting customer preferences and technological advancements. Achieving efficiency in banking operations involves strategic allocation of funds, investing in technology, marketing, and automation, as well as optimizing legacy investments in branches and traditional systems. The potential for improving operational efficiency can vary between different banks and even among branches of the same bank. A survey revealed that two out of three bankers primarily focus on retaining current customers for business development, but a more proactive approach is necessary.
Regarding NPAs, how do they impact the profitability of banks?
(Note: The provided context doesn't directly connect to the impact of NPAs on bank profitability. If you could provide more information about NPAs in this context, I can offer a more accurate rephrasing.)
Q 86. Which financial product experienced the initial significant technological development in the financial industry, and who was responsible for introducing it?
Q 87. What function does CRISIL serve in BCSBI's rating process?
Q 88. Q.58 The given definition of marketing in banking, "The creation and delivery of customer-satisfying services at a profit to the bank," is attributed to whom?
Q 89. Which of the following is considered a fundamental requirement for an individual to meet the residential status criteria?
Q 90. Which of the following best describes the condition of Genuine Defaults?
Q 91. What is the primary objective behind BCSBI's branch visits and surveys?
Q 92. What is the objective of providing BCSBI training to bank employees regarding the Banking Codes?
Q 93. What is the procedure for handling unsuccessful debits in ECS Debit?
Q 94. Providing third-party products through agency arrangements not only caters to the entire required range of customers but also enhances the ____ of banks.
Q 95. What is the role of insurance in financial planning?
Q 96. What are the benefits of providing fixed deposits with integrated overdraft facilities?
Q 97. Which type of municipal bond is specifically designed to raise funds for designated projects?
Q 98. The role of the CRM group in the data mining process is to utilize customer data effectively to extract valuable insights and patterns. By analyzing the data through data mining techniques, the CRM group can better understand customer needs, preferences, and behavior. This information is crucial in developing personalized strategies, such as offering tailored products and services, anticipating and resolving customer issues, and identifying cross-selling and up-selling opportunities.
The CRM group plays a vital role in applying data mining tools and methodologies to uncover hidden patterns and trends within the data. By doing so, they can enhance the bank's understanding of its customers, leading to improved customer satisfaction and loyalty. Additionally, the CRM group's expertise in data mining enables them to make data-driven decisions, optimize marketing efforts, and implement targeted retention strategies, ultimately contributing to increased profitability for the bank.
Q 99. Delivery models in banking pertain to the various channels through which banking services are offered to customers, encompassing physical branches, ATMs, online banking, mobile banking, and telephone banking. Technological advancements have enabled banks to introduce more modern delivery models, such as internet banking, mobile banking, and virtual banking, providing customers with convenient access to banking services. Embracing these newer delivery models has not only allowed banks to streamline operational costs but also enhance customer service.
The primary role of Direct Selling Agents (DSAs) in the marketing process is to act as intermediaries between banks and customers. DSAs play a crucial role in promoting banking products and services, acquiring new customers, and facilitating the sales process. They are responsible for engaging potential customers, explaining the features and benefits of various financial products, and assisting them in completing the necessary documentation for availing the services. By leveraging their expertise and network, DSAs contribute significantly to the expansion of the customer base and the overall marketing efforts of banks.
Q 100. What is the minimum percentage of Security Receipts that each Asset Reconstruction Company (ARC) is obligated to hold under each scheme on a continuous basis?
