Q 1. What constitutes a limitation in the realm of retail banking?
Q 2. What responsibilities do Dedicated Marketing Managers have in retail banking?
Q 3. What is the main purpose or primary role of banks?
Q 4. The prominence of Customer Relationship Management (CRM) in retail banking is crucial for achieving success, especially amidst escalating competition. To thrive, banks must prioritize building enduring relationships with their customers. CRM in retail banking encompasses the management and analysis of customer interactions and data throughout the customer lifecycle. By doing so, banks gain insights into customer needs, preferences, and behavior, enabling them to provide personalized services and products. Effective CRM strategies further contribute to enhancing customer retention and loyalty, leading to increased sales and profitability.
In today's digital age, CRM has become even more critical, given that customers expect seamless and personalized experiences across various touchpoints. Moreover, as Net Interest Margins decline, banks are compelled to concentrate on increasing their _____.
Q 5. In the context of securitization, what does the term "Sponsor" refer to?
Q 6. Q.56 Retail banking marketing encompasses the strategies and methods employed by banks to attract and retain customers for their financial products and services, including savings accounts, credit cards, loans, and other offerings. These marketing efforts span multiple channels, such as television, print media, online ads, and social media platforms. Retail banks often provide incentives like cashback or rewards programs to entice new customers and maintain existing ones. The primary objective of retail banking marketing is to enhance brand awareness, generate leads, and ultimately boost the bank's revenue.
Which stage of marketing concentrates on analyzing the market and competitors?
Q 7. What types of tasks have demonstrated notable reductions in the utilization of decision models?
Q 8. What potential adverse outcome could result from marketing managers prioritizing planning excessively and neglecting implementation and controls?
Q 9. Which of the following demonstrates a superior understanding of customers in public sector banks as compared to private sector banks?
Q 10. Is it possible for customers to initiate NEFT fund transfer requests through ATMs?
Q 11. What role does contact center automation play in CRM software?
Q 12. What does the term "buyer's market" refer to in the context of banking services?
Q 13. Which of the following risks are generally classified for banks?
Q 14. In the context of marketing effectiveness, what does the term "holistic approach" refer to?
Q 15. How can banks enhance customer care while simultaneously reducing operational expenses?
Q 16. What do you call a movable property received without any consideration as a gift?
Q 17. A Marketing Information System (MIS) serves as a business tool to gather, organize, analyze, and distribute valuable information for making effective marketing decisions. In the banking context, an MIS proves beneficial by aiding banks in comprehending their customers' needs and preferences, monitoring market trends, and making well-informed choices concerning marketing strategies. To conduct a longitudinal analysis, data is studied over an extended period, often spanning several years, to identify patterns and behavioral changes. Therefore, when applied to banking, a longitudinal analysis of an MIS involves scrutinizing data collected over time to gain insights into its usage, the valuable information it has provided, and its role in guiding marketing decisions.
In the early days, Marketing Information Systems (MKISs) primarily supported the operational level of management. They were focused on assisting with day-to-day activities, such as transaction processing, inventory management, sales tracking, and other operational tasks. MKISs helped streamline routine operations and provided timely data for operational decision-making. Over time, as technology advanced and businesses recognized the significance of data-driven decision-making across all levels of management, MKISs evolved to support strategic and tactical decision-making as well.
Q 18. Which individuals are eligible to participate in the Branch Level Customer Service Committee meetings?
Q 19. Which component of the marketing mix holds the utmost significance in determining the effectiveness of the product?
Q 20. Among the differentiating factors between Retail Banking and Corporate or Wholesale Banking, which of the following represents a major difference?
Q 21. The Fixed Obligation to Income Ratio (FOIR) is utilized by banks to ensure that borrowers maintain a minimum net take-home pay after loan repayment, thereby preventing them from overborrowing and encountering difficulties in their financial commitments.
Q 22. What does the term "Interval Fund" refer to?
Q 23. What is the mathematical expression that represents a bank's assets?
Q 24. What is the term used for the new banking approach that allows fintech companies and other third-party organizations to integrate with a bank's system using APIs?
Q 25. In the 1980s, what did the term "online" refer to?
Q 26. What is the appropriate approach for banks to handle genuine defaulters during the recovery process?
Q 27. During the initial months of EMI repayment, the principal component:
Q 28. Why is it important to assess the investment strategy of a Portfolio Management Service (PMS) before investing funds?
Evaluating the investment strategy of a PMS before committing funds is crucial to ensure that it aligns with the investor's financial goals, risk tolerance, and investment preferences. It allows investors to understand the PMS's approach to asset allocation, diversification, and risk management. By assessing the investment strategy, investors can determine if the PMS's objectives and past performance match their own expectations and risk appetite. This evaluation helps investors make informed decisions, avoid undue risks, and select a PMS that is suitable for their investment objectives, leading to a higher likelihood of achieving desired financial outcomes over time.
Q 29. What is the primary goal of every investment?
Q 30. How has the Covid-19 pandemic affected the way consumers conduct their financial transactions?
Q 31. Merchants are enrolled on e-Gateway through a registration process where they provide necessary information and documentation to the e-Gateway service provider. This may involve submitting business details, financial information, and compliance-related documents. Once the enrollment process is completed and approved, the merchants can start using the e-Gateway to accept online payments and manage their transactions securely and efficiently.
Q 32. In the EMI (Equated Monthly Instalment) model of loan repayment, the succeeding instalments:
Q 33. Which is the most commonly employed measure of quick service in banking?
Q 34. If the sole locker hirer nominates a person and subsequently passes away, the safe deposit locker will be accessible to the nominee. The nominee will have the right to access the contents of the locker and carry out relevant transactions related to it.
Q 35. Almost all Public Sector Banks (PSBs) offer Savings Bank Account as a banking product.
Q 36. The originator plays a crucial role in securitization as they are the entity that originates the pool of assets, such as loans or receivables, which will be securitized. They bundle these assets into a pool and transfer them to a special purpose vehicle (SPV) for the purpose of issuing securities backed by those assets. The originator typically benefits from securitization by obtaining liquidity, reducing risk exposure, and potentially improving their balance sheet.
Q 37. What is the objective of establishing Board-approved policies for engaging in the CLM (Contract Lifecycle Management)?
Q 38. Q.8: 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 is the primary reason for policymakers in the government to pay attention to AI development in India?
The main reason policymakers in the government need to take notice of AI development in India is its potential to drive transformative changes across various sectors, including banking. AI has the capability to revolutionize industries, improve service delivery, enhance productivity, and boost economic growth, making it crucial for policymakers to understand and regulate its impact effectively.
Q 39. What does APR stand for, and what is the method used to calculate it?
Q 40. How can cash recycling machines contribute to customer acquisition or the retention of customer services?
Q 41. What is the launch date of RuPay On-the-Go?
Q 42. What does a significant deviation in an otherwise consistent payment history suggest?
Q 43. What percentage of the total receivable market is presently encompassed by a formal bill discounting mechanism in the Indian financial system?
Q 44. Which product do customers usually invest in for the sake of convenience and safety?
Q 45. What factors contribute to the younger population being more at ease with acquiring personal debt compared to previous generations?
Q 46. What is the primary factor that drives profitability in retail banking?
Q 47. Income inequality exists in all countries, prompting governments to address and reduce this disparity through the establishment of a taxation and subsidy system. Taxation refers to the government's imposition of financial charges on individuals and companies. A tax regime encompasses a set of laws that govern the imposition and calculation of taxes. Taxpayers have the option to choose between the old tax regime and the new tax regime for tax payment. The Finance Minister introduced the new tax regime in the Union budget of 2020.
A, the HR manager of XYZ Ltd. in Mumbai, was transferred to the Delhi branch for official purposes from 10th December 2022 until 31st March 2023. During this period, he traveled by air in the economy class and incurred an expenditure of Rs 5000. XYZ Ltd. later reimbursed him for this expense as a transport allowance. If A pays taxes under the new tax regime, the question is: How much of the transport allowance is taxable under the Income Tax Act? (2 marks)
Q 48. Which bank was responsible for establishing the first ATM in India?
Q 49. 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 Prepaid Cards?
Q 50. Which bank was later named the SBI?
Q 51. What does the marketing process entail in its second stage?
Q 52. What is the maximum number of withdrawals permitted per month, including ATM withdrawals, for a 'Basic Savings Bank Deposit Account'?
Q 53. What implementation model do certain foreign banks adopt for front and back-end operations?
Q 54. From where do Credit Information Companies (CICs) obtain credit information?
Q 55. In the context of retail banking delivery, which personnel are essential contributors to the entire delivery process?
Q 56. What is the definition of gross profit, and what is the formula used to calculate the gross profit margin?
Q 57. How does the impact of non-performing assets (NPAs) differ between corporate banking and retail banking?
Q 58. What are the two sets of eligibility criteria for banks to access electronic payment systems in India?
Q 59. Marketing Information System (MkIS) holds significant importance in the banking industry. Due to the high level of competitiveness in this sector, a well-designed MkIS plays a crucial role in enabling banks to maintain a competitive edge. As competition intensifies and customer expectations rise, the utilization of MkIS has become increasingly vital in the banking industry. By implementing a well-designed and efficient MkIS, banks can gain a competitive advantage through data-driven decision-making. MkIS in banking involves the use of various tools and techniques, such as research, data mining, customer relationship management (CRM) systems, and more.
Which hardware is most beneficial for MkIS?
Q 60. Which of the following statements highlights the risk factor associated with investments?
Q 61. What objective does channel optimization aim to achieve in the banking sector?
Q 62. What is the maximum percentage of the fixed deposit value that can be obtained as a loan against it?
Q 63. How has technology transformed the approach to service delivery in banking?
(i) Through the implementation of core banking solutions
(ii) By substituting counters with desks
(iii) By establishing a personalized, one-to-one connection between customers and service personnel.
Q 64. Which of the subsequent statements is accurate concerning deductions available under the Income Tax Act of 1961?
Q 65. What does the term "Credit Information Company (CIC)" refer to?
Q 66. Among the following mobile payment technologies, which one was the first to be introduced?
Q 67. Q.27 While every organization, including banks, must be cautious about spending, certain circumstances like changes in customer preferences and technological innovations are currently pressuring banks to enhance their operational efficiency. Achieving efficiency in operations involves managing expenses in specific areas, investing in technology, marketing, automation, etc., and optimizing 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 crucial.
Among the following questions, which one exemplifies a proactive approach to identifying new prospect opportunities?
Q 68. How do RTGS and NEFT differ as electronic methods of remitting funds in the banking industry?
Q 69. What is the maximum permissible size of a house for the Economically Weaker Section (EWS) under PMAY(U)?
Q 70. Q.60 Which of the following statements most accurately describes a bank product?
Q 71. What does information systems analysis primarily focus on during CRM implementation in banks?
Q 72. Which of the following bonds earns tax exemption on the interest rate earned?
Q 73. Q.9Banks, apart from their core banking products like Current Accounts, Savings Deposits, etc., also provide certain para-banking activities either departmentally or through subsidiaries. These activities include insurance, mutual funds, credit/debit cards, social security schemes, etc. However, due to specific restrictions, these services cannot be offered directly from the bank's products. Instead, banks act as corporate agents and offer them through relevant service providers. By doing so, these services enhance the banks' reach and customer base, making them a comprehensive financial hub catering to various customers' financial needs. Furthermore, it boosts the fee-based income of banks. For instance, the concept of Mutual banking has emerged to provide mutual funds products through banks.
Among the following types of Life insurance products, which one is the most affordable?
Q 74. Who is the suitable target audience for wealth management services?
Q 75. Which government transaction-related banking services fall under the purview of BCSBI (Banking Codes and Standards Board of India)?
Q 76. Q.26 Case study:
Retail asset products of banks refer to financial products that are offered to individual customers or retail clients, rather than corporate or institutional clients. Examples of retail asset products include personal loans, credit cards, mortgages, car loans, and home equity lines of credit. These products are designed to meet the financial needs of individuals, such as buying a house or car, financing education, or consolidating debt. Retail asset products can be secured, where the borrower pledges collateral, such as a home or car, or unsecured, where no collateral is required. Banks earn revenue from retail asset products through interest charges, and these products can be an important source of income for banks.
Question: In a standalone model, when are proposals referred to the Regional/Circle/Zonal Office?
(Note: The provided case study does not include specific information about the standalone model to answer the question accurately.)
Q 77. What was the key feature of the Deposit Cum Credit Linked product developed by the public sector bank for working women?
Q 78. Q.48 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 primary role of investment banking?
Q 79. Profitability measures:
(i) A company's revenue
(ii) A company's expenses
(iii) A company's capacity to generate profit
(iv) A company's market share
Q 80. Read the following statements about Customer Relationship Management.
Which of the following statements is incorrect?
(i) The purpose of CRM systems is to collect information on the bank's internal operations.
(ii) CRM software consolidates customer information and documents into a single database.
(iii) SBI has introduced a physical robot SBI Intelligent Assistant (SIA) that can handle customer inquiries.
(iv) CRM implementation should focus on replacing the existing information infrastructure of the bank and introducing modern infrastructure.
(v) The implementation process of CRM in banks can be challenging due to various factors.
Q 81. HDFC Bank has developed an AI-based chatbot to address customer queries, known as "EVA" (Electronic Virtual Assistant).
Q 82. In the banking industry, meeting customer requirements and expectations is crucial for success. Customers have diverse needs, ranging from basic banking services to more intricate financial products and advice. Banks must offer personalized experiences that align with customer expectations, ensuring convenient and secure account access, efficient and reliable services, competitive interest rates, and excellent customer service. Additionally, banks must comply with strict regulatory measures to ensure customer protection and trust.
The importance of structured process time for banks in fulfilling customers' requirements lies in its ability to streamline operations and improve efficiency. By implementing structured processes, banks can ensure that customer requests and inquiries are handled promptly and accurately. This helps in providing timely solutions and better customer experiences. Additionally, structured process time enables banks to maintain consistency in service delivery, reducing errors and enhancing customer satisfaction.
Furthermore, structured process time aids banks in adhering to regulatory and compliance requirements. It ensures that customer data is handled securely and confidentially, reducing the risk of data breaches and ensuring customer trust. By following standardized processes, banks can also mitigate operational risks and maintain a strong reputation in the market.
In summary, structured process time is vital for banks as it enables them to efficiently fulfill customers' requirements, adhere to regulatory guidelines, and maintain high levels of customer satisfaction and trust.
Q 83. What is the objective of conducting a portfolio appraisal?
Q 84. The role of AI in fraud detection is to enable real-time monitoring and analysis of customer transactions, helping banks identify and prevent fraudulent activities swiftly and effectively.
Q 85. What factors contributed to the development of specialized and sophisticated products in banks?
Q 86. As lenders extend their services to lower income groups, they need sophistication to precisely evaluate borrowers' ability to repay and service the loan.
Q 87. Retail banking concepts, primarily catering to individual customers, are relevant in any country with a substantial population of individual customers. Unlike corporate or wholesale banking, which caters to businesses, institutions, and large corporations, retail banking focuses on services like savings accounts, loans, credit cards, and mortgages. Corporate banking, on the other hand, involves services such as cash management, financing, and investment banking. This distinction is crucial for banks to determine their service priorities and target customer segments.
What are the three fundamental characteristics of the present-day retail banking sector?
Q 88. Which of the following banking services fall within the scope of the Code of the Bank's Commitment to MSEs?
Q 89. The primary purpose of a Marketing Information System (MKIS) is to play a vital role in the banking industry by gathering, analyzing, and interpreting data related to customers, products and services, and market trends. MKIS helps banks comprehend the evolving needs of their customers, leading to the design of products and services that cater to those specific requirements. Moreover, MKIS facilitates banks in monitoring competitors' activities and adapting to market changes effectively. With the aid of MKIS, banks can pinpoint the most effective marketing channels and promotional strategies to efficiently reach their target audience. Additionally, MKIS empowers banks to make well-informed decisions, reduce costs, and enhance profitability, making it an indispensable tool for remaining competitive and meeting customer demands in the banking sector.
Q 90. Based on the provided information, which of the following statements is true regarding Section 80CCC?
(Note: The specific details about Section 80CCC were not mentioned in the provided text. Please provide more information about Section 80CCC to answer the question accurately.)
Q 91. Q.91: Remittance products in the banking sector are services that enable individuals to send money to recipients in different geographical locations. These products are designed to facilitate secure and convenient funds transfer between individuals, businesses, or institutions. Remittance products can take various forms such as wire transfers, online transfers, mobile payments, or other electronic methods. Banks provide a range of remittance products tailored to meet the specific needs of their customers, with some products incurring fees and others being free. In general, remittance products have significantly improved the speed and ease of transferring money across borders.
Question: What is the settlement process for NEFT transactions between originating and receiving banks?
Q 92. Which elements do Credit Information Companies (CICs) take into account while calculating credit scores in India?
Q 93. Among the options provided, which instrument allows for a tax exemption of up to Rs. 1 lakh per year under section 80C and also offers tax-exempt maturity earnings?
Q 94. What led banks to introduce new payment products, leveraging technological advancements?
Q 95. What is the primary aim or initial objective of UPI (Unified Payments Interface)?
Q 96. How does securitization assist in obtaining funds at reduced costs?
Q 97. Q.57 Marketing in retail banking involves employing strategies and tactics to attract and retain customers for financial products and services, encompassing savings accounts, credit cards, loans, and other offerings through diverse channels like television, print media, online ads, and social media platforms. Retail banks may provide incentives such as cashback or rewards programs to allure new customers and retain existing ones. The primary objective of retail banking marketing is to boost brand awareness, generate leads, and ultimately drive revenue for the bank.
What is the purpose of marketing planning?
Q 98. Q.68 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.
What happens to loan repayment when there is a steep increase in interest rates?
In the case of a steep increase in interest rates, loan repayment can become more challenging for borrowers. The higher interest rates lead to increased borrowing costs, making it harder for borrowers to manage their loan repayments. As a result, some borrowers may face difficulties in meeting their repayment obligations, leading to an elevated risk of loan defaults.
Q 99. Which of the following statements best characterizes the Departmental Approach in an organization?
Q 100. The primary reason private sector banks depend on Direct Selling Agents (DSAs) to sell their retail products is to expand their market reach and enhance sales capabilities.
