Q 1. What is entailed in retail banking? Retail banking involves providing banking services to individual customers and small businesses. These services encompass everyday banking activities such as offering checking and savings accounts, debit and credit cards, personal loans, mortgages, and investment products. Retail banks are usually located in high streets or shopping centers, making them easily accessible to customers. They offer a range of services, including cash withdrawals and deposits, online banking, mobile banking, and ATM facilities. The primary focus of retail banking lies in establishing strong customer relationships by delivering personalized financial solutions and excellent customer service.
Q 2. What are the two types of ATMs available to retail customers as mentioned in the text?
Q 3. The movement of banking services to electronic delivery would bring about the following changes:
(i) Easing of geographic barriers
(ii) Alteration of competitive strategies used by banks
(iii) Potential rise in the cost of banking products
(iv) Possibility of non-financial products becoming more commoditized
Q 4. The acquiring bank in a credit card transaction serves the following purpose:
.(i) To issue a credit to the customer
(ii) To clear the transaction
(iii) To acquire new customers for the issuing bank
(iv) To provide customer service to the cardholder
Q 5. What is the main objective of a data warehouse?
Q 6. What does the term "leverage ratio" refer to in the context of banks?
Q 7. Which bank pioneered mobile banking on a global scale?
Q 8. A Marketing Information System (MIS) is a valuable tool utilized by businesses to collect, organize, analyze, and disseminate information that aids in making effective marketing decisions. In the banking context, an MIS plays a crucial role in helping banks understand their customers' needs and preferences, monitoring market trends, and making well-informed decisions regarding marketing strategies. Performing a longitudinal analysis involves studying data over an extended period, often spanning several years, to identify patterns and changes in behavior. Consequently, conducting a longitudinal analysis of an MIS in banking entails analyzing data collected over time to comprehend how the system has been utilized, the insights it has provided, and its impact on the bank's marketing decisions.
Among the given options, the one that is not a basic requirement of a good MKIS is:
(iii) Provide information irregularly and slowly
A good MKIS should provide information regularly and promptly to support decision-making processes effectively. Irregular and slow information delivery would hinder the system's usefulness in making timely and well-informed marketing decisions.
Q 9. Which option listed below is not categorized as a Centralized Payment System (CPC)?
Q 10. What environmental factor from the given options can have a detrimental impact on the design of management information systems?
Q 11. Which type of process model is universally adopted by foreign banks for all their products?
Q 12. As per Maslow's theory, what occurs when a need remains unfulfilled?
Q 13. What is the initial step in the securitization process?
Q 14. MIS (Management Information Systems) in banking provide managers with valuable insights to understand and address problems effectively. By utilizing technology and software to organize and manage crucial data, MIS enables managers to:
1. Access Relevant Information: MIS allows managers to quickly access important data related to banking operations, customer accounts, transactions, and financial analysis. This ready availability of information aids in identifying and understanding the issues at hand.
2. Analyze Performance: With MIS, managers can monitor the bank's performance in real-time, comparing current and historical data. This analysis helps them identify trends, patterns, and areas requiring improvement or attention.
3. Identify Potential Issues: By analyzing data through MIS, managers can proactively identify potential problems or risks. Early detection of issues allows for timely intervention and mitigation of risks.
4. Make Informed Decisions: MIS provides accurate and up-to-date information, enabling managers to make well-informed decisions. They can use the insights gained from MIS to devise strategies and action plans to tackle challenges effectively.
5. Enhance Efficiency: MIS streamlines banking operations, automating processes and reducing manual efforts. This improved efficiency allows managers to focus more on strategic decision-making rather than day-to-day tasks.
6. Improve Customer Service: By having comprehensive customer data at their disposal, managers can understand customer needs and preferences better. This knowledge helps in tailoring services and enhancing overall customer experience.
7. Track Progress: MIS enables managers to monitor the progress of initiatives and projects, ensuring they stay on track and align with the bank's objectives.
In conclusion, MIS plays a crucial role in empowering managers with the right information and tools to comprehend and solve problems efficiently, contributing to the overall success of the bank and maintaining competitiveness in the industry.
Q 15. Which of the following benefits is NOT provided by a RuPay card?
Q 16. Q.66 Which of the following statements about the benefits of CRM in retail banking is incorrect?
CRM (Customer Relationship Management) in retail banking encompasses the strategies, processes, and technologies utilized by banks to manage their interactions with customers throughout the customer journey. It involves activities such as collecting and analyzing customer data, understanding their needs and preferences, and using this information to personalize the customer experience. CRM enables banks to enhance customer satisfaction, loyalty, and retention by offering personalized and relevant products and services. Moreover, it empowers banks to anticipate customer needs and proactively address them, leading to a more profitable and sustainable business.
Q 17. What are the responsibilities of the central and state governments in setting taxes in India?
Q 18. What does the term "premium" refer to in an insurance policy?
Q 19. Hassle-Free Operation of PMS entails the company handling all the _____ aspects of the client's portfolio, with periodic reporting on the overall status and performance.
Hassle-Free Operation of PMS entails the company handling all the administrative and operational aspects of the client's portfolio, with periodic reporting on the overall status and performance.
Q 20. In the context of MIS, what is meant by information?
Q 21. What role does SWOT analysis play in marketing analysis?
Q 22. The mobile number and MMID (Mobile Money Identifier) option for IMPS (Immediate Payment Service) transfer require a unique ID known as the MMID. Both the sender and receiver must have their respective MMID to utilize this option for seamless fund transfer using mobile numbers.
Q 23. What is the main goal of banks in the current competitive environment?
Q 24. What is the objective behind implementing aggressive pricing strategies in the housing loan segment?
Q 25. What advantage does using MKIS (Marketing Information Systems) offer in customer relations?
Q 26. The modular model is a structured approach that utilizes various process models tailored to different products, providing end-to-end solutions specific to each product.
Q 27. The methodology of marketing control that involves taking corrective action after the evaluation of parameters is called "post-control" or "post-audit control."
Q 28. What are the responsibilities of Dedicated Marketing Managers in retail banking?
Q 29. Q.9: 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.
Which countries provide funding models for AI research that India should contemplate?
India should consider funding models for AI research implemented by countries like the United States, Canada, and China, which have shown significant progress in AI development and research. These countries have established robust funding mechanisms that encourage innovation and support the growth of AI technologies. By studying their funding approaches, India can gain insights to foster its own AI research ecosystem effectively.
Q 30. How do banks leverage the substantial customer information stored in their electronic databases?
Q 31. What is the average relationship value set by certain private banks?
Q 32. What are the objectives of CRM systems?
Q 33. What factors influence the models adopted by banks for their retail banking operations?
Q 34. Why do banks involve themselves in para-banking activities?
Q 35. As per Income Tax Laws, what tax liability does a resident individual (also known as ROR) have?
Q 36. What funds transfer services are currently being facilitated through INFINET?
Q 37. What occurs when a customer requests an early withdrawal of a fixed deposit before its maturity date?
Q 38. Income inequality exists in all countries, necessitating government actions to reduce the disparity. To accomplish 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 comprises laws that dictate 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.
Section 80JJAA of the Income Tax Act pertains to - (½ Mark)
Q 39. Which of the following is most strongly linked to the "Evaluation of securities"?
Q 40. A credit card and a debit card are two distinct forms of payment cards utilized for making transactions. With a credit card, you can obtain money from a bank or financial institution up to a specific limit, which must be repaid with interest. The credit limit on the card is determined based on the borrower's creditworthiness. Conversely, a debit card is connected to your bank account and allows you to make purchases using the available funds in your account. It deducts the purchase amount directly from your account without involving any borrowing. Debit cards are widely accepted and can be used to withdraw cash from ATMs. It is crucial to use both types of cards responsibly and monitor your expenses to avoid overspending or accumulating excessive debts with high interest rates.
What is the role of the microprocessor in a smart card?
Q 41. What is the objective of a Marketing Information System (MKIS)?
Q 42. What is the motivation behind banks actively expanding their retail asset portfolios?
Q 43. What does the term "opti-channel" experience refer to?
Q 44. What role does 'promotion' play in the marketing mix within the retail banking industry?
Q 45. Consider the following statements:
I. Due to leverage, banks generate a lower return on equity (ROE) compared to return on assets (ROA).
II. Leverage indicates the degree to which banks finance their assets using equity instead of borrowings.
Q 46. In the present fiercely competitive banking landscape, all banks endeavor to achieve efficiency in customer service and meet the satisfaction of their customers.
Customer relationship management (CRM) encompasses practices, strategies, and technologies employed by companies to manage and analyze customer interactions and data across the customer lifecycle. It embodies a management philosophy centered around the identification and fulfillment of both expressed and unexpressed needs and desires of customers as a means to accomplish a company's goals.
Among the following options, which one best distinguishes successful banks from unsuccessful ones?
Q 47. Product development holds significant importance in the realm of retail banking as it enables banks to cater to the ever-evolving needs and expectations of their customers. To remain competitive and attract new clientele, banks must continuously innovate and create new products. This entails identifying customer needs and preferences, conducting thorough market research, analyzing trends, and crafting new offerings customized to address specific customer requirements. An effective tool for managing retail banking products and services is the process model, which provides a step-by-step guide outlining the various stages of product or service delivery. The process model for retail banking products and services initiates with identifying customer needs and preferences.
How do Public Sector Banks (PSBs) carry out market surveys for product development?
Q 48. According to estate planning, who is considered an executor?
Q 49. What makes the notion of "previous year" significant in Income Tax?
(i) To evenly distribute income or source of income throughout the entire financial year.
(ii) To encompass income or source of income arising after the start of the financial year.
(iii) To encompass income or source of income ceasing before the conclusion of the financial year.
Q 50. The Marketing Information System (MkIS) holds significant importance in the banking industry. Given the high level of competitiveness in this sector, a well-designed MkIS plays a crucial role in helping banks 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 effective 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.
What is the current status of Marketing Information Systems?
Q 51. What institutional gap did the committee identify concerning the measurement of banks' performance?
Q 52. What does the idea of mutual banking entail?
Q 53. The conditions for the payment of the balance in a deposit account to the survivor(s)/nominee of a deceased account holder are as follows:
(i) The bank is required to exercise due care and caution to establish the identity of the survivor(s)/nominee and confirm the account holder's demise.
(ii) There should be no court order restricting the bank from making the payment from the deceased account.
(iii) The survivor(s)/nominee should be informed that they will receive the payment from the bank as a trustee for the legal heirs of the deceased depositor.
Q 54. In what ways can CRM (Customer Relationship Management) assist banks in obtaining greater value from their employees?
Q 55. What advantages does analyzing real-time customer data offer?
Q 56. Consider the following statements:
I. The Integrated approach of Business models involves amalgamating various socio-economic aspects related to a business into a cohesive unit.
II. The Integrated approach represents a Management by Objectives process, emphasizing the attainment of focused business objectives.
Q 57. What is the rationale behind appointing dedicated Marketing Managers in retail banking?
Q 58. Q.28 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.
What constitutes the formula for the long-term success of banks?
Q 59. Why is delivery effectiveness significant in retail banking?
Q 60. What are the risks linked to the DSA model?
Q 61. Q.61 What is the primary key to augmented marketing of retail products?
Q 62. What is the meaning of "Transfer of Accounts" in the context of banking?
Q 63. What does the abbreviation "MKIS" stand for?
Q 64. Q.9In addition to their core banking products like Current Accounts, Savings Deposits, etc., banks offer various para-banking activities either departmentally or through subsidiaries. These activities include insurance, mutual funds, credit/debit cards, social security schemes, etc. However, due to certain restrictions, these services cannot be provided directly by the bank's products. Instead, banks act as corporate agents and offer them through relevant service providers. These services not only expand the banks' reach and customer base but also establish them as a one-stop financial hub catering to the diverse financial needs of customers. Additionally, this approach enhances the fee-based income of the banks. For instance, the concept of Mutual banking has emerged to facilitate the availability of mutual funds products through banks.
Among the options provided, what is an eligibility criterion for banks to undertake insurance business with risk participation through a subsidiary/joint venture?
Q 65. What is the role of the Mandate registration feature in BHIM?
Q 66. According to Rosser Reeves, how does he define product positioning?
Q 67. Q.27 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: Which of the following is an example of a secured loan?
Q 68. How should the recovery process be managed for genuine defaulters, and how does it differ for willful defaulters?
Q 69. Q.49 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: In best efforts underwriting, the underwriter _____.
Q 70. If an individual earns a total income before deductions of up to Rs. 12 lakhs and has investments less than Rs. 1.91 lakhs, which tax regime would be more advantageous for them?
Q 71. What initiative is part of RBI's Payment Vision 2025 that focuses on ensuring trust and reliability in digital transactions?
Q 72. Consider the following statements about Cross-selling by banks:
(i) The effectiveness of cross-selling relies on providing the customer with a wide range of products.
(ii) Cross-selling is predominantly relationship-oriented rather than transaction-oriented.
(iii) Strategies for cross-selling should be fine-tuned and re-evaluated by higher-level corporate executives.
(iv) Cross-selling extends to both fee-based and non-fee-based products.
Q 73. In the banking industry, understanding and meeting customer requirements is crucial for success. Customers have diverse needs and expectations, ranging from basic banking services to more complex financial products and advice. To meet these demands, banks must offer personalized experiences that align with customer expectations, providing convenient and secure account access, efficient services, competitive interest rates, and excellent customer service. Compliance with strict regulatory measures is also essential to ensure customer protection and trust.
When it comes to handling exceptions in the approval process for retail loans, banks need to implement a well-defined and systematic approach. While automated loan approval processes work for standard cases, there are instances where certain loan applications might require special consideration. Here are some guidelines on how banks should handle exceptions in the loan approval process:
1. Establish clear criteria for exception handling: Banks should define specific criteria that trigger the need for exception handling. These criteria should be well-documented and communicated to the relevant staff involved in the loan approval process.
2. Empower designated personnel for decision-making: Designate experienced and knowledgeable personnel who can assess exceptional cases. These individuals should have the authority to make informed decisions beyond the standard approval process.
3. Conduct thorough risk assessment: For exceptional cases, conduct a comprehensive risk assessment to evaluate the creditworthiness and repayment capacity of the borrower. This analysis should take into account factors that may not fit the standard criteria but are relevant to the borrower's ability to repay the loan.
4. Maintain proper documentation: Keep detailed records of the rationale behind the exception decision. This documentation is essential for audit purposes and ensuring transparency in the decision-making process.
5. Escalate exceptional cases if necessary: For complex or high-risk cases, have a clear escalation process in place. This ensures that important decisions are reviewed and approved by higher-level authorities within the bank.
6. Monitor and review exception cases: Regularly review the performance of exception cases to assess the effectiveness of the decisions made. Use this data to refine the exception handling process over time.
By following these guidelines, banks can handle exceptions in the loan approval process effectively and responsibly. This approach ensures that exceptional cases are treated with care and that the overall loan portfolio maintains a healthy balance between risk and reward.
Q 74. What makes efficiency crucial for bank operations?
Q 75. Passbook updation kiosks are self-service machines or automated stations provided by banks that allow customers to update their passbooks with the latest transaction details, such as deposits, withdrawals, and account balances, without the need for visiting a bank branch.
Q 76. According to Forbes, what advantages does Blockchain offer?
Q 77. What makes a contactless card more secure?
Q 78. What do sweep-in and sweep-out facilities in savings accounts aim to achieve?
Q 79. Why is the implementation of a CRM program mandatory for banks in the retail banking sector?
Q 80. In the marketing mix, what does the term 'Price' signify?
Q 81. Tax planning in banking involves creating strategies to minimize tax liabilities while maximizing returns on investments. It includes analyzing various investment options and choosing those that offer the most tax benefits. For instance, investing in tax-saving fixed deposits, mutual funds, or insurance policies can reduce tax liabilities. Banks also provide tax-saving investment products like National Savings Certificates (NSC), Public Provident Funds (PPF), and Equity-Linked Savings Schemes (ELSS), offering tax deductions under various sections of the Income Tax Act. Additionally, banks may offer tax planning advice to help customers optimize their tax savings while complying with tax laws.
Regarding the surcharge on the income tax liability of an individual:
(i) The surcharge becomes applicable when the total income exceeds ₹1 crore.
(ii) The surcharge becomes applicable when the total income exceeds ₹5 crore.
(iii) The surcharge becomes applicable when the total income exceeds ₹22 crore.
Q 82. Q.92: Remittance products in the banking industry pertain to services enabling individuals to send money to recipients located in different geographical locations. These products are designed to facilitate secure and convenient fund transfers among individuals, businesses, or institutions. Remittance products can take various forms, such as wire transfers, online transfers, mobile payments, or other electronic means. Banks offer a variety of remittance products tailored to meet the specific needs of their customers, with some products incurring fees while others are free. Overall, remittance products have significantly improved the ease and speed of money transfers across borders.
Question: Which of the following statements is true regarding the process flow of remittances and fund transfers through RTGS?
Q 83. According to Maslow's hierarchy of needs, human motivation is characterized by the following:
(i) Human motivation is not a fixed and unchanging phenomenon.
(ii) Human motivation is not entirely driven by social needs.
(iii) People are motivated to fulfill specific needs that are organized in a hierarchical order.
(iv) The need for self-actualization is considered the highest and most fundamental human need.
Q 84. What is the objective or intent behind the Code of Bank's commitment to customers - January 2018?
Q 85. What does ELSS stand for?
Q 86. What is the credit risk advantage associated with retail banking?
Q 87. Which of the following assets are eligible for securitization by originators?
(i) Revolving credit facilities
(ii) Loans with a bullet repayment of both principal and interest
(iii) Assets purchased from other entities
(iv) Mortgage-backed securities
Q 88. Q.58 Marketing in retail banking encompasses the strategies and tactics employed by banks to attract and retain customers for their financial products and services, which includes promoting savings accounts, credit cards, loans, and other banking offerings through various channels like television, print media, online ads, and social media platforms. Retail banks may also provide incentives such as cashback or rewards programs to attract new customers and retain existing ones. The primary goal of retail banking marketing is to enhance brand awareness, generate leads, and ultimately drive revenue for the bank.
What is the ultimate objective of marketing initiatives in retail banking?
Q 89. Q.69 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.
When should an asset be classified as a loss asset?
An asset should be classified as a loss asset when it is considered to be irrecoverable, and there is little or no chance of the borrower repaying the loan. This classification is typically made after all reasonable efforts to recover the outstanding amount have been exhausted, and it is evident that the loan cannot be recovered.
Q 90. What function do branches serve on the liabilities side of banking?
Q 91. Which of the following is NOT one of the dimensions involved in processing products and services in retail banking?
Q 92. Which of the following best characterizes retail banking?
Retail banking is a type of banking service targeted towards individual customers or small businesses. It encompasses everyday banking services like checking and savings accounts, debit and credit cards, personal loans, mortgages, and investment products. These banks are commonly located on high streets or in shopping centers, ensuring convenient accessibility for customers. They provide a range of services, including cash withdrawals and deposits, online banking, mobile banking, and ATM facilities. The core focus of retail banking lies in cultivating customer relationships through personalized financial solutions and excellent customer service.
Q 93. What is the reason behind banks being prohibited from providing certain services like insurance and mutual funds schemes on their own?
Q 94. What role does BCSBI play in addressing the individual complaints of bank customers?
Q 95. The purpose of the Minimum Amount Due (MAD) in credit card dues repayment is to allow the cardholder to make a minimum payment to the credit card company each month. This amount is usually a small percentage of the total outstanding balance. By paying the MAD, the cardholder fulfills the minimum obligation required by the credit card company for that billing cycle. However, it is important to note that only paying the MAD will result in the remaining outstanding balance carrying forward to the next billing cycle and accumulating interest charges. It is advisable to pay more than the MAD to reduce the overall debt and avoid higher interest costs.
Q 96. Private Wealth Management is a specialized financial service that caters to high-net-worth individuals and families. These clients typically have substantial financial assets and require personalized wealth management strategies to manage and grow their wealth effectively.
Q 97. What is the full form of TDS?
Q 98. What advantages did online banking offer?
Q 99. The primary functions of a Marketing Information System (MKIS) are as follows:
1. **Data Gathering**: MKIS serves as a tool for businesses to collect relevant data from various sources, such as customer interactions, market research, sales records, and other marketing-related activities.
2. **Data Organization**: The system organizes the gathered data in a structured and meaningful manner, making it easier to access and analyze.
3. **Data Analysis**: MKIS helps in analyzing the collected data to identify patterns, trends, and insights related to customer behavior, market dynamics, and other marketing aspects.
4. **Data Distribution**: The system facilitates the dissemination of valuable information to relevant stakeholders within the organization who need it for making marketing decisions.
5. **Supporting Marketing Decisions**: MKIS provides decision-makers with actionable information, enabling them to make informed and effective marketing strategies and decisions.
In the context of banking, an MIS plays a crucial role in understanding customers' needs and preferences, tracking market trends, and guiding marketing strategies based on data-driven insights. Conducting a longitudinal analysis of an MIS involves studying data over an extended period to gain a deeper understanding of how the system has been utilized, what valuable insights it has provided, and how it has contributed to the bank's marketing decisions.
Q 100. What makes a dip-card reader a superior choice for enhancing the security of ATM transactions?
