Q 1. I. Buy-side is another term for investment banking, whereas sell-side is another term for portfolio management.
II. In investment banking, clients do not possess the funds that require management, while in portfolio management, clients already possess the funds that require management.
Q 2. What is the significance of the marketing mix in the context of retail banking?
Q 3. What defines Prepaid Payment Instruments (PPIs)?
Q 4. At what point does the repayment period commence in a term loan that includes a moratorium period?
Q 5. Which three services form the core of cloud computing?
Q 6. Based on what is the positioning platform of old-generation private banks established?
Q 7. To ensure equitable treatment for customers, banks must enhance the quality of banking services provided to individual consumers. To address concerns regarding the availability of banking services, the Reserve Bank of India (RBI) established the Banking Codes and Standards Board of India (BCSBI) in 2006. This independent and autonomous body develops and publishes comprehensive codes and standards for banks, with the aim of providing fair treatment to customers.
The BCSBI has established two codes, which are:
Q 8. What does the term "Para Banking" refer to?
Q 9. What recourse does a customer have if they are dissatisfied with a product or service?
Q 10. In the present fiercely competitive banking landscape, all banks strive to ensure efficiency in customer service and customer satisfaction.
Customer relationship management (CRM) encompasses practices, strategies, and technologies employed by companies to manage and analyze customer interactions and data throughout the customer lifecycle. It represents a management philosophy that asserts a company's goals are best achieved through identifying and fulfilling both the expressed and unexpressed needs and desires of customers.
Consider the following statements regarding Customer Relationship Management in banks:
I. Developing a strong customer relationship involves ensuring that the bank's service quality aligns with the total expectations of the customers.
II. The objectives of CRM are to cultivate robust ongoing relationships with customers by gaining a deeper understanding of their current requirements, providing optimal products, and realizing current value from customers.
Q 11. In retail banking, product development plays a critical role as it enables banks to address the ever-changing demands and expectations of their customers. To remain competitive and attract new clients, banks must continually innovate and introduce new products. This entails a process that includes identifying customer needs and preferences, conducting thorough market research, analyzing trends, and creating tailored products to meet specific customer requirements. Employing a process model is an effective tool for managing retail banking products and services, providing a step-by-step guide outlining the various stages of the product or service delivery process. The process model for retail banking products and services begins with identifying customer needs and preferences.
Regarding process time for different asset products, what general trend is observed in Public Sector Banks (PSBs)?
Q 12. What are the pressures on the tie-up model among manufacturers, dealers, and bankers concerning retail loans?
Q 13. What does the entire range of organizational activities aimed at marketing the final product to the customer encompass?
Q 14. What is the main catalyst for profitability and resilience in retail banking?
Q 15. The growing significance of Management Information Systems (MIS) in the banking industry has been evident in recent years. Within the banking sector, MIS plays a vital role in managing customer accounts, monitoring transactions, and detecting fraudulent activities. Additionally, it aids banks in recognizing market trends, handling risks, and making strategic decisions regarding product development and marketing. With the surge of online banking and mobile apps, the importance of MIS has escalated further, as it enables banks to maintain a competitive edge. Nonetheless, implementing and maintaining MIS necessitates substantial investment and expertise, prompting banks to carefully assess their requirements and resources before committing to these systems.
Why do decision-makers prefer utilizing MIS tools when faced with challenging business decisions?
Q 16. The Consumer Education and Protection Department (CEPD) fulfills the following roles:
(i) Overseeing the implementation of the Banking Ombudsman Scheme
(ii) Serving as the central department for the former BCSBI (Banking Codes and Standards Board of India)
(iii) Enhancing consumer protection by reinforcing the Ombudsman mechanism.
Q 17. Who bears the responsibility for ensuring the accuracy of the details provided in the NEFT payment instruction?
Q 18. The advancement of digital technology has significantly transformed the way customers engage with their banks, particularly in the retail banking sector. The widespread use of smartphones and the internet has led to a growing preference for online and mobile banking, as customers seek convenience in managing their finances. In response, banks have developed user-friendly digital platforms, enabling customers to access their accounts, conduct transactions, and receive support whenever and wherever they require. Consequently, this digital transformation has empowered banks to expand their customer base, reduce operational costs, and elevate overall customer satisfaction. Nonetheless, along with these advantages, the digitization of retail banking also introduces certain challenges, such as cybersecurity vulnerabilities and the necessity for continuous innovation to outpace competitors.
Regarding digital lending loans, what is the role and significance of a Key Fact Statement (KFS)?
Q 19. Which banks are at the forefront in providing home loans and credit cards, respectively?
Q 20. 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.
Among the options provided, which one is not a component of the branch layout?
Q 21. What role do decision models serve in marketing management?
Q 22. Which of the following business model approaches is predominantly adopted by public sector banks in India?
Q 23. Q.43 For achieving 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, identify which among the following is not a Combination deposit scheme of banks?
(Note: The original question has been transformed into a description of the context. For answering the question about the not a Combination deposit scheme, the provided options are needed.)
Q 24. The 7.75% GOI Savings Bond is issued with a minimum amount of _ and can be availed in multiples of _.
Q 25. The three existing Ombudsman schemes, namely the Banking Ombudsman Scheme 2006, Ombudsman Scheme for NBFCs 2018, and Ombudsman Scheme for Digital Transactions 2019, have been consolidated into a single scheme known as-
Q 26. What sets Retail banking apart from corporate banking?
Q 27. What prompted RBI to introduce new payment products during the mid-eighties and early nineties?
Q 28. Which product development strategy is executed without conducting any background research?
Q 29. Q.9 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: Which banks were the pioneers in introducing hybrid liability and asset products targeted at the personal segment in India?
Q 30. What is the definition of information?
Q 31. What is the primary goal of marketing initiatives in retail banking?
Q 32. In what way does MKIS function as a data bank?
Q 33. What strategies can a bank implement to boost its net interest income?
Q 34. What makes effective regulatory control and regular supervision crucial for banks?
Q 35. In the business model of foreign banks, how do they delineate or define the Strategic Business Units (SBU)?
Q 36. What does the term "retail banking" mean?
Q 37. Banks prioritize retail loans in their customer expansion strategy because they offer a significant revenue opportunity, constituting a substantial portion of the total asset base, and enable banks to tap into a broader customer base.
Q 38. Which services are commonly provided by retail banks?
Q 39. What does profitability refer to?
Q 40. Which of the following statements is correct concerning obtaining a home loan from a bank?
Q 41. What is the objective of conducting meetings for the Branch Level Customer Service Committee?
Q 42. A.52 Retail banking concepts primarily revolve around offering banking services to individual customers and can be implemented in countries with a significant population of individuals. In contrast, corporate or wholesale banking centers on providing services to businesses, institutions, and large corporations. Retail banking services encompass savings accounts, loans, credit cards, and mortgages, while corporate banking encompasses services like cash management, financing, and investment banking. It is crucial to distinguish between these two types of banking, as it assists banks in determining which services to prioritize and which customer segments to focus on.
Which banking segment requires more extensive monitoring and recovery processes?
Q 43. Which of the following statements is not accurate concerning Direct Selling Agents (DSAs)?
Q 44. Which of the following definitions best describes a bank product?
Q 45. What is the accurate statement regarding Open-Ended Funds?
Q 46. Which wealth management product or service specializes in overseeing a client's investments in a diversified portfolio of securities?
Q 47. 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 does "bancassurance" mean?
Q 48. Branch profitability is a vital aspect for banks as it determines the financial success of each branch. Banks scrutinize various factors, including operating expenses, income generated, customer base, and product mix, to assess the profitability of a branch. Identifying the factors that contribute to branch profitability enables banks to implement measures to increase revenue and minimize expenses. Additionally, branch profitability aids banks in making informed decisions about expanding or closing branches, allocating resources, and optimizing their operations. In summary, branch profitability serves as a key metric for banks to ensure their financial stability and growth.
Why do bank owners prefer using liabilities instead of capital to purchase more assets?
Q 49. How does CRM assist firms in enhancing their management of customer relationships more effectively?
Q 50. What are the accurate statements concerning the influence of NPA in both retail banking and corporate/wholesale banking?
Q 51. What is encompassed within investment management in corporate finance?
Q 52. Do inherited assets incur capital gains tax?
Q 53. Q.73 Recovery of retail loans refers to the process of reclaiming the money lent to individual borrowers. This process is usually initiated when the borrower fails to repay the loan on time or defaults on the loan. Banks utilize various methods to recover the loans, such as sending reminders and notices to the borrower, initiating legal action, and appointing recovery agents to collect the outstanding amount. The recovery process can be time-consuming, necessitating patience and persistence on the part of the bank. Banks must establish a well-defined recovery process to minimize the risk of loan defaults and ensure the financial stability of the bank.
Which type of loan is typically paid through bullet payment?
Bullet payment is typically associated with a type of loan where the borrower makes periodic interest payments during the loan tenure, but the principal amount is paid in a lump sum or "bullet" at the end of the loan term.
Q 54. In what way do certain real estate funds function without direct ownership of property?
Q 55. In the beginning, which level of management did MKISs primarily support?
Q 56. What distinguishes the New Tax Regime from the Old Tax Regime?
Q 57. What is the definition of a portfolio manager?
Q 58. If there are errors or inaccuracies in the credit report, the individual or business should promptly notify the credit bureau or Credit Information Company (CIC) responsible for generating the report. They can raise a dispute or file a complaint with the credit bureau, providing relevant supporting documents to rectify the discrepancies. The credit bureau is then obligated to investigate the matter and correct any errors found in the credit report. It is essential to rectify inaccuracies promptly, as a correct credit report plays a crucial role in determining creditworthiness and obtaining favorable loan terms.
Q 59. Can you explain the distinction between the financial year and the assessment year?
Q 60. Which of the following statements about Wealth Management is accurate?
Q 61. The main factor that determines delivery effectiveness in physical channels in retail banking is the efficiency of customer service and transaction processing at the physical branches.
Q 62. What role does Management Information Systems (MIS) play in the process of decision-making?
Q 63. What sets single-stage processing apart from multi-stage processing?
Q 64. The payment of the balance in the deposit account to the survivor(s)/nominee of a deceased account holder is deemed a valid discharge of the bank's liability under what circumstances?
Q 65. As per the Boston Consulting Group Study, which process model offers shared information for most correlated services in retail banking?
Q 66. What does RuPay refer to?
Q 67. What is the implication when the survivor(s)/nominee is explicitly informed that they will receive the payment from the bank in their capacity as a trustee representing the legal heirs of the deceased depositor?
Q 68. In what ways do cash recycling machines help financial institutions in reducing costs?
Q 69. According to the Bank's code of commitment, which of the following products are optional or mandatory for Member banks to offer?
Q 70. How do foreign banks typically approach retail banking?
Q 71. Which individuals are eligible to avail of the benefits of the CSIS scheme?
Q 72. What is the significance of customer response in measuring marketing effectiveness in banking?
Customer response plays a crucial role in measuring marketing effectiveness in banking. It provides valuable insights into how well the marketing strategies and activities are resonating with customers. By analyzing customer responses, banks can gauge the success of their advertising campaigns, promotional offers, loyalty programs, and digital marketing efforts. Understanding customer responses helps banks to assess whether their marketing initiatives are attracting new customers, retaining existing ones, and driving revenue growth. Additionally, customer response data enables banks to refine their marketing approaches, improve customer communication, and build stronger relationships with clients.
Q 73. Who is responsible for representing the Regulated Entity and providing information regarding customer complaints filed against the Entity?
Q 74. Who is eligible to work as a portfolio manager?
Q 75. Retail asset products of banks encompass financial products and services tailored for individual customers, including personal loans, home loans, car loans, credit cards, and various other forms of financing. These products are designed to cater to the requirements of everyday consumers and are typically provided with competitive interest rates and flexible repayment terms. Retail asset products aid customers in achieving their financial objectives, whether it involves acquiring a new vehicle, buying a home, or managing daily expenses.
With regard to home loans, individuals can finance various types of properties, such as:
1. Residential properties: These include apartments, flats, houses, townhouses, or villas meant for personal use or investment purposes.
2. Plots of land: Home loans may also be available for purchasing residential plots or land parcels with the intent of constructing a house in the future.
3. Construction or renovation: Banks may offer home loans for the construction of a new house or renovating an existing property.
4. Second homes or vacation homes: Home loans can be availed for purchasing second homes or holiday homes, often in different locations.
5. Under-construction properties: Individuals can finance properties that are still under construction and make payments in stages, as per the builder's milestones.
It's essential to check with the specific bank or lending institution for their specific home loan offerings and eligibility criteria for each type of property.
Q 76. What types of businesses typically embrace the Integrated Approach in retail banking models?
Q 77. What is the primary reason behind the dissatisfaction of many marketing managers with their MKISs (Marketing Information Systems)?
Q 78. The "expected product" in marketing refers to the basic and essential features and benefits that customers anticipate from a particular product or service. It represents the minimum level of attributes that customers expect a product to possess to fulfill its primary function.
Q 79. Which of the following is not applicable to member banks that have adopted the 'Code of Bank's Commitment to Customers' by BCSBI (Banking Codes and Standards Board of India)?
Q 80. What has replaced all forms of indirect taxes in India is the Goods and Services Tax (GST).
Q 81. The positive relationship between deposits and the profitability of banks in India is that banks use the deposits they receive from customers to generate income through various channels such as lending, investments, and other financial activities, contributing to their overall profitability. Higher levels of deposits generally enable banks to have more funds available for lending and investment, potentially leading to increased profitability.
Q 82. What are the repercussions identified by banks in case of a company engaging in fund siphoning/diversion, misrepresentation, falsification of accounts, and fraudulent transactions?
Q 83. Why does the expansion of Internet banking in Public Sector Banks (PSBs) not align with their customer base growth?
Q 84. Why is it significant to study the specific spending habits of customers in Customer Relationship Management (CRM)?
Q 85. Q.2The banking industry has established numerous service standards to offer top-quality service to customers, encompassing timely handling of inquiries and complaints, secure and efficient transaction processing, and transparent fee disclosure. Additionally, banks endeavor to maintain accurate records and statements, provide personalized financial advice, and uphold customer information confidentiality.
If a customer wants to make a complaint, what will the bank do?
If a customer wants to make a complaint, the bank will promptly address the issue and handle the complaint in accordance with the complaint resolution procedures set by the bank. They will ensure that the customer's concerns are acknowledged, thoroughly investigated, and resolved in a fair and transparent manner.
Q 86. Which of the following represents an instance of an alternative asset?
Q 87. In retail banking, loans typically have a smaller ticket size compared to loans in corporate banking.
(Note: "Ticket size" refers to the loan amount or size of the financial transaction.)
Q 88. What is the main role of the capital raising and underwriting divisions in full-service investment banks?
Q 89. In what ways can CRM contribute to enhancing operational efficiencies in retail banking?
Q 90. The continuous advancement in banking technology has given rise to various delivery models to meet the evolving needs of customers. These models are specifically designed to offer convenient and accessible banking services through a variety of channels, including mobile banking, online banking, ATMs, and branch banking. Banks utilize these delivery models not only to distinguish themselves in the competitive market but also to provide personalized banking experiences that cater to the diverse preferences of their customers. Moreover, these models have facilitated improvements in operational efficiency, cost reduction, and revenue increase for banks.
Regarding the need for banks and financial institutions to respond to changing customer behavior in retail banking, could you please clarify your question or provide more context? Understanding the specific aspects of customer behavior and how it impacts retail banking will help me give you a more relevant response.
Q 91. In securitization, who assumes the role of the obligor?
Q 92. What distinguishes retail lending from lending to corporations?
Q 93. What is the methodology for calculating the nominal value of sovereign gold bonds?
Q 94. What does profitability refer to?
Q 95. In India, who has the authority to establish White Label ATMs?
Q 96. What distinguishes mass retail banking from class retail banking?
Q 97. Why is the presence of efficient banking systems crucial for economic development?
Q 98. Which commitment of banks is exemplified by the following statement: "Offer the products that are based on an assessment of the customers' situations and circumstances and understanding and appropriate to their needs."
In the context of ensuring fair treatment to customers, this statement reflects the commitment of banks to provide products that are tailored to the specific needs of customers after thoroughly assessing their situations and circumstances.
Q 99. Which of the following services are excluded from the offerings of an investment banking division within a bank?
Q 100. From the perspective of a finance manager, investment is regarded as ________.
