Q 1. Why are human resource upgrades crucial for banking operations?
Q 2. A benefit of remote check deposit capture is that it allows customers to conveniently deposit checks from remote locations, eliminating the need to visit a physical bank branch.
Q 3. Which of the fundamental requirements is the most crucial for maintaining a sustainable good relationship?
Q 4. What are the most recent security standards required by Visa/MasterCard/RuPay Card for payments made through e-Gateway?
Q 5. As per the Indian Contract Act of 1872, which of the following statements is true concerning a minor entering into a contract?
Q 6. To develop new products successfully, what aspects should a proactive marketer monitor?
Q 7. The primary purpose of processing data in Marketing Information Systems (MIS) is to enable the banking industry to gather, analyze, and interpret information about customers, products and services, and market trends. This empowers banks to understand the evolving needs of their customers and to develop tailored products and services that cater to those requirements. Additionally, MIS helps banks monitor their competitors' activities and adapt to market changes effectively. By utilizing MIS, banks can identify the most efficient marketing channels and promotional strategies to reach their target audience. Furthermore, it allows banks to make well-informed decisions, reduce expenses, and enhance profitability, making it a critical tool for staying competitive and meeting customer demands in the banking sector.
Q 8. Which of the following statements about demat accounts are accurate?
(i) A minor is ineligible to be a joint holder in a demat account.
(ii) Demat accounts eliminate the risk of bad delivery, fake securities, delays, thefts, etc.
(iii) A demat account allows holding investments in equity and debt instruments in a single account.
(iv) A bank offering depository services as a Depository Participant does not need a certificate of registration from SEBI.
Q 9. What is the finance term used to describe asset management?
Q 10. What are the distinctions in asset ownership between PMS (Portfolio Management Services) and MFs (Mutual Funds)?
Q 11. What sets apart Equity Mutual Funds from Debt Mutual Funds as their main difference?
Q 12. Among the given options, which instrument would enable Raj, a 35-year-old Indian citizen, to save on taxes while also providing benefits for his 8-year-old daughter and his retirement planning?
Q 13. Which of the following statements is accurate regarding CRM systems?
Q 14. Why is a multi-channel experience significant for banks?
Q 15. What kind of relationship exists between a bank and a depositor in a savings bank deposit account?
Q 16. What are the guidelines that banks must adhere to when formulating their policies for providing housing finance?
Q 17. Which of the following was not an advantage of the first ATM?
Q 18. What serves as the foundation for banks' retail banking models?
Q 19. What is the remuneration or compensation structure for DSAs (Direct Selling Agents)?
Q 20. In investment banking, which division serves as agents for clients and can also engage in trading the firm's capital?
Q 21. What similarities do Interval Funds share with Fixed Maturity Plans (FMPs)?
Q 22. PMS provides a higher level of customization that is specifically tailored to the investor's goals. On the contrary, mutual funds offer customization to a certain extent, limited to the fund's classification and diversification.
Q 23. How do leading banks approach strategic planning?
Q 24. What is the primary factor that leads customers to favor brick-and-mortar branches for retail banking services?
Q 25. The main goal of delivering financial services to customers is to provide convenient, accessible, and seamless methods for them to conduct transactions, manage their accounts, and access banking services, ensuring a positive and satisfactory banking experience.
Q 26. A Marketing Information System (MIS) serves as a valuable tool for businesses to collect, arrange, assess, and disseminate information crucial for making effective marketing decisions. In the banking context, an MIS plays a vital role in enabling banks to comprehend their customers' needs and preferences, monitor market trends, and make well-informed choices regarding marketing strategies. Conducting a longitudinal analysis involves the examination of data over an extended period, often spanning several years, to identify patterns and changes in behavior. Consequently, when applied to banking, a longitudinal analysis of an MIS entails scrutinizing data collected over time to gain insights into its usage, the valuable information it has provided, and its role in guiding marketing decisions.
Now, let's address how an MKIS (Marketing Knowledge Information System) helps improve the data capture process:
An MKIS enhances the data capture process in several ways:
1. **Efficiency**: The MKIS streamlines the data capture process by automating data collection from various sources, such as customer interactions, market research, and sales data. This automation reduces manual efforts and ensures a more efficient and accurate data capture.
2. **Integration**: MKIS facilitates the integration of data from multiple channels and touchpoints, ensuring a comprehensive view of customer behavior and market trends. This integration helps in capturing a more holistic picture of the marketing landscape.
3. **Real-time Updates**: MKIS often provides real-time data updates, enabling banks to capture and analyze the latest information promptly. This timeliness is crucial for making agile and data-driven marketing decisions.
4. **Data Accuracy**: By minimizing manual data entry, an MKIS reduces the risk of human errors and ensures higher data accuracy. This accurate data is essential for generating reliable marketing insights.
5. **Data Security**: MKIS typically incorporates data security measures to protect sensitive customer information, ensuring compliance with data privacy regulations and building customer trust.
6. **Customization**: An MKIS can be tailored to capture specific data points relevant to the banking industry, allowing banks to focus on the metrics that matter most for their marketing strategies.
In summary, an MKIS significantly enhances the data capture process in banking by improving efficiency, integrating data from various sources, providing real-time updates, ensuring data accuracy, maintaining data security, and offering customization options. These improvements lead to better-informed marketing decisions and a more competitive position in the market.
Q 27. What are some of the favorable factors that make retail banking an appealing business model for banks in India?
Q 28. What benefits do group health policies offer over the regular policies provided by banks?
Q 29. In retail banking, banking services are provided to individual customers, and it involves tasks like managing savings and checking accounts, offering loans and credit cards, and providing financial advice and investment products. On the other hand, wholesale banking caters to large businesses, governments, and financial institutions, focusing on services such as corporate loans, trade finance, investment banking, treasury services, and underwriting.
Regarding the impact of Non-Performing Assets (NPA) in both retail banking and corporate banking, the following statement is true: NPAs have a more significant impact on retail banking compared to corporate banking. This is primarily because retail banking involves dealing with individual customers who may have lower creditworthiness and a higher risk of default compared to large businesses and financial institutions in the corporate banking sector. The delinquency rates for retail loans tend to be higher, leading to a potentially higher number of NPAs and greater adverse effects on the financial health of retail banks.
Q 30. What is the objective of implementing a Minimum Holding Period (MHP) for assets prior to securitization?
Q 31. What is the initial stage of the marketing process in retail banking?
Q 32. If proper KYC documents are not submitted for a Small Account within the designated timeframe of 24 months, the account will be treated as "inoperative." This means that certain transactions may be restricted, and the account holder might face limitations on deposit and withdrawal activities until the KYC requirements are fulfilled.
Q 33. What role do White Label ATM Operators (WLAO) play?
Q 34. What is the primary objective of decision models in marketing management?
Q 35. Banks sought the assistance of credit information companies for what purpose?
Q 36. What factors are contributing to the rapid expansion of a hyper-connected customer base in the financial industry?
Q 37. What is the maximum annual operational fees that can be charged for Portfolio Management Services (PMS) according to the new SEBI regulations?
Q 38. Which foreign bank is an example of quitting the retail banking segment due to a lack of profitability?
Q 39. Lenders may be willing to approve home loans for individuals who already own multiple houses, but the decision will depend on various factors such as the borrower's financial profile, creditworthiness, income, and the specific lending policies of the bank or financial institution.
Q 40. In what ways can Artificial Intelligence (AI) be utilized for risk management in banks?
Q 41. Which of the following options represents a conventional method utilized by banks for making remittances?
Q 42. What are the traditional reasons behind investors choosing to invest in real estate?
Q 43. As per the new SEBI regulations for PMS (Portfolio Management Services), the requirement for client onboarding includes conducting in-person meetings with the client, obtaining a written agreement or contract, and ensuring that the client's risk profile is assessed before offering PMS services. Additionally, the client's consent is mandatory for any investment approach, and the portfolio manager must maintain proper records of the onboarding process.
Q 44. The initial step for implementing mutual fund distribution is to identify and select potential distributors or intermediaries for promoting and selling mutual fund products.
Q 45. Para-banking activities are financial services and activities offered by non-banking entities that are not licensed or regulated as full-fledged banks. These activities include services like mutual funds, insurance products, stock brokerage, money market funds, and other financial products and services typically provided by banks but offered by non-banking institutions or entities.
Q 46. What is the primary worry of customers regarding CRM systems?
Q 47. Q.7: Technology has significantly influenced the banking industry, enhancing efficiency and convenience for customers. Online and mobile banking enable people to check account balances, transfer funds, and pay bills using smartphones or computers, regardless of time or location. Banks have also implemented advanced security measures like two-factor authentication and biometric authentication to protect customer information. Furthermore, the adoption of artificial intelligence and machine learning allows banks to analyze data more effectively and offer personalized financial advice to customers.
What does automation replace?
Automation replaces manual and repetitive tasks in the banking industry, streamlining processes and reducing the need for human intervention.
Q 48. What is the typical method of calculating interest rates for loans?
Q 49. Over time, how has the distribution of MKIS (Management Knowledge and Information Systems) support evolved among different management levels?
Q 50. Which technology enables banks to gain a more detailed understanding of their clients and swiftly deliver tailored personalized offers?
Q 51. What role does a user-machine interface serve in MIS (Management Information Systems)?
Q 52. Regarding Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which of the following statements is true?
Q 53. Which statement among the following is accurate concerning the marketing mix in retail banking?
Q 54. Which of the following statements accurately describes cross-lob data sharing and the construction of a 360-degree customer view?
Q 55. What does private banking primarily focus on?
Q 56. Income inequality exists in all countries, necessitating government efforts to reduce it. To achieve this, each economy must establish a taxation and subsidy system. Taxation refers to the financial charges imposed by the government on individuals and companies. A tax regime consists of laws that govern the imposition and calculation of taxes. Taxpayers have the option to choose between the old and new tax regimes for tax payment. The Finance Minister introduced the new tax regime in the Union budget of 2020.
Which of the following investment options are eligible for deductions under the new tax regime?
Q 57. Among the following products, which ones do not necessitate a significant marketing orientation?
Q 58. Credit cards and debit cards serve as two distinct payment methods for making purchases. A credit card enables you to borrow money from a bank or financial institution, up to a specific limit, which must be repaid along with interest. The assigned credit limit is determined by the borrower's creditworthiness. Conversely, a debit card is directly linked to your bank account, allowing you to make purchases using the available funds in your account. The purchase amount is deducted directly from your account, eliminating the need for borrowing. Debit cards are widely accepted and can also be utilized to withdraw cash from ATMs. It is crucial to use both types of cards responsibly, diligently tracking your expenses to avoid excessive spending or accumulating debts with high interest rates.
What are the guidelines established by the Reserve Bank of India (RBI) regarding the issuance of debit cards?
Q 59. What effect did the IT revolution have on the banking sector in India?
Q 60. Prior to the 1960s, the traditional form of banking in India involved banks providing generalized services to all customer segments, without distinguishing between retail and non-retail activities. The primary functions of banks included accepting deposits and mobilizing them into profitable ventures through loans and advances. The focus was primarily on satisfying the financial needs of individual customers, known as retail banking. However, with the introduction of the 1991 reforms, customer needs became more diverse and complex, leading banks to introduce specialized products and redesign their product and service paradigm, thereby driving economic growth. Over time, various channels for the delivery of retail banking services have been established.
Q 61. Despite the popularity of digital banking, what is the reason for the continued existence of physical bank branches?
Q 62. What is the approach to product development in Public Sector Banks (PSBs)?
Q 63. What does the term "identity theft" refer to, and why is it a significant contributor to errors in credit scoring?
Q 64. What are the services that customers can access through mobile banking?
Q 65. How does the Code of Bank's Commitment relate to the regulatory or supervisory instructions issued by the Reserve Bank of India (RBI)?
Q 66. How does the inseparability principle of bank products elevate the significance of the people aspect?
Q 67. Banks consider wealth management a crucial business area, providing them with a significant revenue stream from high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). These individuals generally have intricate financial needs, and banks that can offer a comprehensive array of wealth management services are in an advantageous position to serve them effectively. The key services offered by banks in the wealth management domain encompass investment management, estate planning, and various financial planning services like retirement planning, tax planning, philanthropic planning, and more. Nevertheless, one of the challenges in the wealth management business lies in managing client relationships, 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 significant role does the bond market play?
Q 68. The establishment of Marketing Information System (MkIS) is a crucial aspect in the banking industry. Due to the high level of competitiveness in this sector, a well-designed MkIS plays a vital role in enabling banks to stay ahead of their competitors. With increasing competition and rising customer expectations, the utilization of MkIS has become even more essential in the banking industry. By employing a well-designed and implemented MkIS, banks can gain a competitive edge through data-driven decision-making. In the banking context, MkIS involves the utilization of various tools and techniques such as research, data mining, customer relationship management (CRM) systems, and more.
What prompted businesses to initiate the establishment of MkIS?
Q 69. What is the overarching concept that runs through product development, structuring, and delivery stages?
Q 70. Up until now, AI-based applications in India have predominantly focused on _, and the implications of AI on employment in the country are _.
Q 71. What role do banks play in relation to Form 15G/15H?
Q 72. What is the main factor behind the ascent of Big Tech in the banking sector?
Q 73. Why is new product development crucial for bank marketers?
Q 74. SIP stands for Systematic Investment Plan.
Q 75. Which statement among the following best defines Customer delight concerning the services offered by banks?
Q 76. Q.26 While every organization, including banks, must be cautious about spending, certain factors like changes in customer preferences and technological advancements are currently exerting pressure on banks to enhance their operational efficiency. To achieve efficiency in operations, banks can control expenses in certain areas, invest in technology, marketing, and automation, and optimize legacy investments in branches and traditional systems. The potential for improving operational efficiency varies among different banks and even different branches of the same bank. According to a survey, two out of three bankers acknowledged that they primarily rely on retaining current customers for business development, but a more proactive approach is essential.
Which of the following strategies is the most effective in increasing a bank branch's profitability?
Q 77. What are the qualifications of the dedicated Marketing Managers appointed in retail banking?
Q 78. Which of the following options provides a description of RuPay Classic?
Q 79. Q.59 In the marketing mix for deposit products, what does the term 'price' pertain to?
Q 80. IDRBT stands for what?
Q 81. What does the term 'Siphoning' of borrowed funds refer to?
Q 82. Among the following types of underwriting, which one involves the underwriter taking complete financial responsibility for any unsold shares?
Q 83. Who are the key stakeholders in the Indian credit card industry?
Q 84. Which government-related banking services are encompassed under BCSBI (Banking Codes and Standards Board of India)?
Q 85. A retail bank provides online banking services, but customers frequently encounter technical issues while using the platform. Which of the following Ps should the bank focus on to enhance the customer experience?
Q 86. Which banking model encompasses a larger customer base and involves more extensive risks?
Q 87. Q.47 Case study (Q47-51):
Investment management in banking refers to the process of managing the funds of clients by investing them in different financial instruments like stocks, bonds, and other securities. The main objective of investment management is to maximize the returns on investments while minimizing the risks associated with them. Banks offer investment management services to their clients to help them achieve their financial goals by creating a diversified portfolio tailored to their specific needs and risk tolerance. Investment management is a crucial aspect of banking and requires expertise and knowledge in various financial instruments and markets.
Question: What is the purpose of fundamental and technical analysis in investment management?
Q 88. What is the primary objective of incorporating functional elements within a marketing organization?
Q 89. Banks are seeking to boost their fee-based income for the following reasons:
1. **Diversification of Revenue Streams:** Relying solely on interest income from loans can expose banks to fluctuations in interest rates and economic conditions. Fee-based income provides an additional revenue stream, reducing dependency on interest-based earnings and improving overall financial stability.
2. **Higher Profit Margins:** Fee-based services often come with higher profit margins compared to traditional lending activities. By offering various fee-based services, banks can increase their profitability and enhance their bottom line.
3. **Mitigating Credit Risks:** Fee-based income is typically less susceptible to credit risks compared to interest-based income, which relies on loan repayments. By increasing fee-based income, banks can reduce their exposure to potential credit losses.
4. **Expanding Customer Services:** Offering a diverse range of fee-based services allows banks to cater to various customer needs. This enhances customer satisfaction and loyalty, leading to increased customer retention.
5. **Competition and Market Dynamics:** In an increasingly competitive banking landscape, fee-based income presents opportunities for banks to differentiate themselves and attract more customers. By providing valuable fee-based services, banks can stand out from competitors.
6. **Regulatory Considerations:** Regulatory changes may impact interest-based income, making it prudent for banks to explore alternative sources of revenue, such as fee-based services.
7. **Investment Opportunities:** Fee-based income can provide banks with additional funds for investment in technology, infrastructure, and other growth initiatives, leading to enhanced operational efficiency and innovation.
Overall, increasing fee-based income offers banks a strategic advantage by diversifying revenue sources, improving profitability, and better serving customer needs in a rapidly evolving banking landscape.
Q 90. Today's consumers demand convenience, accessibility, and flexibility in terms of financial services delivery. They expect banking services to be available through multiple channels, including physical branches, ATMs, online banking, mobile banking, and telephone banking. The advancement of technology has further fueled their expectations, leading to the introduction of newer delivery models such as internet banking, mobile banking, and virtual banking, which enable customers to access banking services at their convenience, anytime and anywhere.
Modern consumers also seek seamless integration between various channels, allowing them to transition between different modes of banking effortlessly. They value personalized and tailored services that cater to their individual needs and preferences. Additionally, customers demand fast and efficient service delivery, with quick response times to queries and requests.
Moreover, consumers expect enhanced security measures to protect their financial information and transactions. They prioritize transparency in fees and charges, as well as easy-to-understand terms and conditions.
Overall, today's consumers expect banking services to align with their busy and digitally-driven lifestyles, providing a seamless and user-friendly experience. Banks that successfully meet these demands can gain a competitive edge and build stronger customer relationships.
Q 91. Which of the following is not an advantage of utilizing a Credit Information Report?
Q 92. Why is a balanced approach to enhancing bank operations significant?
Q 93. In 2018, among Indian start-ups, the retail banking industry sector experienced the fastest adoption of Artificial Intelligence.
Q 94. What factors have led to the surge in demand in the financial markets, particularly in banks?
Q 95. What is the outcome of not providing mobile numbers to the bank?
Q 96. What role does BCSBI play in monitoring the banking Codes and Standards implemented by banks?
Q 97. What is the initial step in the implementation of CRM in a bank?
Q 98. In the 1960s, the primary purpose of Marketing Information Systems (MKIS) was to serve as a vital tool for the banking industry to gather, analyze, and interpret data related to customers, products and services, and market trends. This enabled banks to understand the evolving needs of their customers and design products and services that catered to those requirements. Additionally, MKIS aided banks in monitoring their competitors' activities and adapting to changes in the market. By leveraging MKIS, banks could identify the most effective marketing channels and promotional strategies to effectively reach their target audience. Moreover, it facilitated making well-informed decisions, reducing costs, and improving overall profitability, allowing banks to stay competitive and meet the demands of their customers.
Q 99. Which of the following statements accurately describes cross-selling programs?
Q 100. Are Gold Bonds eligible for premature redemption?
