Q 1. While both ABC Company and XYZ Company have a profit of Rs. 1,00,000, ABC Company achieves this profit with a revenue of Rs. 10,00,000, whereas XYZ Company generates the same profit with a higher revenue of Rs. 50,00,000. Thus, XYZ Company has higher profitability compared to ABC Company.
Q 2. Among the products listed in the Other Products/Services category, which one is not provided by banks?
Q 3. In the approval process for retail loans, what is the initial step?
Q 4. What are the benefits of direct communication between bank staff and customers at a branch?
Q 5. The purpose of forming an MIS council or MIS directing committee is to oversee and manage the implementation, utilization, and effectiveness of Management Information Systems (MIS) within a banking institution. This council or committee plays a crucial role in ensuring that MIS is aligned with the bank's strategic goals and objectives. It also ensures that MIS is effectively utilized to improve decision-making, enhance operational efficiency, and enhance customer service.
The key functions of an MIS council or MIS directing committee may include:
1. Strategic Alignment: Ensuring that the MIS strategy aligns with the overall strategic direction of the bank.
2. Policy Formulation: Formulating policies and guidelines related to the use of MIS, data security, and data management.
3. Resource Allocation: Allocating resources, including budget and personnel, to support the implementation and maintenance of MIS systems.
4. Performance Monitoring: Monitoring the performance of MIS systems and evaluating their impact on the bank's operations and objectives.
5. Risk Management: Assessing and managing risks associated with MIS implementation, including data security and system reliability.
6. Training and Development: Overseeing training programs to ensure that bank employees are well-equipped to use MIS effectively.
7. Feedback and Improvement: Collecting feedback from users and stakeholders to identify areas for improvement and making necessary enhancements to the MIS systems.
8. Compliance and Regulatory Matters: Ensuring that the MIS systems comply with relevant regulations and industry standards.
By establishing an MIS council or MIS directing committee, banks can optimize the benefits of their management information systems, enabling them to stay competitive, make informed decisions, and meet the evolving needs of their customers and the industry.
Q 6. What is the importance of savings in an economy?
Q 7. To achieve success in their CRM goals, banks need to implement effective strategies, processes, and technologies that facilitate managing customer interactions throughout the customer journey. This involves activities such as collecting and analyzing customer data to gain insights into their needs and preferences. By utilizing this information, banks can personalize the customer experience and offer tailored products and services to enhance customer satisfaction, loyalty, and retention. Moreover, banks should proactively anticipate customer needs and address them, leading to a more sustainable and profitable business.
Q 8. How do foreign banks typically approach their business objectives in retail banking?
Q 9. Which of the following outcomes was not a result of the banking sector reforms in India during the 1990s?
Q 10. Q.100 What is the primary objective of professional investment management?
The main goal of professional investment management is to help individuals and businesses achieve their financial objectives by effectively managing their investment portfolios. This involves making informed decisions on asset allocation, selecting suitable investment options, and continually monitoring and adjusting the portfolio to optimize returns while managing risks according to the client's goals and risk tolerance. The aim is to build wealth over time and assist clients in achieving their financial aspirations.
Q 11. In what ways do fintech companies offer services that are comparable to those provided by retail banks?
Q 12. What factors does wealth management advisory consider when offering a flexible investment approach?
Q 13. The procedure for registering and availing Internet banking for retail customers in PSBs (Public Sector Banks) involves the following steps:
1. Visit the bank's official website: Retail customers need to visit the official website of the PSB where they hold an account.
2. Locate the Internet banking section: On the bank's website, find and access the Internet banking section.
3. Click on "Register" or "New User" option: Select the "Register" or "New User" option to begin the registration process.
4. Provide necessary details: Fill in the required details, such as account number, customer ID, date of birth, and registered mobile number. Some banks may also require an OTP (One-Time Password) verification sent to the registered mobile number.
5. Set up login credentials: Choose a username and password for Internet banking access. Some banks may ask for additional security measures, such as setting up security questions or providing a transaction password.
6. Accept terms and conditions: Review and agree to the terms and conditions for Internet banking usage.
7. Complete the registration: Once all the required information is provided and verified, the customer's Internet banking registration is complete.
8. Activate Internet banking: Some banks may require customers to activate their Internet banking by logging in for the first time using the newly created credentials.
After completing these steps, retail customers can log in to their Internet banking accounts using the provided username and password. They can then access a range of banking services and products, such as account balance check, fund transfers, bill payments, and more, through the online platform from anywhere and at any time.
Q 14. The 'growth stage' in the product life cycle refers to the phase where a newly introduced financial product or service in retail banking experiences a rapid increase in demand and adoption. During this stage, customer awareness grows, and sales volume surges as the product gains popularity in the market. Banks focus on expanding market share, enhancing product features, and fine-tuning marketing strategies to capitalize on the product's success and maximize its potential.
Q 15. What does the capital structure of securitization consist of?
Q 16. Under which section of the Income Tax Act can a specific private trust declared by a Will be exempted from the maximum marginal rate of tax if it exclusively benefits a dependent relative?
Q 17. The health insurance sector has become the fastest-growing segment in the non-life insurance industry due to several reasons, including increasing awareness about health risks, growing healthcare costs, changing demographics, and the introduction of innovative health insurance products to meet the evolving needs of customers.
Q 18. Which of the following statements is not true concerning liability products in retail banking?
Q 19. The emergence of an MKIS can be traced back to ___.
Q 20. Q.10: 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 concerns do economists and sociologists have regarding the impact of AI on jobs?
Economists and sociologists fear that AI's increasing adoption may lead to job displacement and potential loss of employment opportunities, especially in industries heavily reliant on repetitive tasks. The automation and efficiency brought about by AI may pose challenges to certain job sectors, potentially causing a shift in the job market dynamics and workforce distribution.
Q 21. What is the primary drawback of investing in PMS (Portfolio Management Services)?
Q 22. What is the objective behind analyzing the retail banking models adopted by banks?
Q 23. Retail banking refers to banking services aimed at individuals and small businesses, rather than large corporations or institutions. Some common concepts in retail banking include savings and checking accounts, loans, credit cards, and mortgages. One example of retail banking is when an individual opens a savings account at a bank. The bank pays the account holder a small amount of interest on their deposited funds, encouraging people to save money. The bank can then utilize those deposits to provide loans to other customers, who may use the funds to purchase a car or start a small business.
Why are consumer loans considered to be less risky?
Q 24. What does the term "credit scoring model" refer to?
Q 25. What is the goal of the TReDS platform?
Q 26. As banking technology continues to evolve, multiple delivery models have emerged to meet customer demands. These models offer convenient and accessible banking services through channels like mobile banking, online banking, ATMs, and branch banking. By leveraging these delivery models, banks aim to differentiate themselves in the market and provide personalized experiences that cater to their customers' diverse needs. Additionally, these models have helped banks enhance operational efficiency, cut costs, and boost revenue.
Could you please clarify your question about the "loyalty factor of public sector bank customers"? It seems disconnected from the previous context. If you can provide more information or context, I'd be happy to help with your inquiry.
Q 27. The primary objective of a wealth manager in offering a flexible investment approach is to cater to the specific needs and preferences of individual clients and achieve their financial goals effectively.
Q 28. Firms that are unable to outperform their competitors in satisfying customers face certain consequences.
Q 29. Income inequality exists in all countries, prompting governments to take measures to reduce the wealth gap. To accomplish this, each economy must establish a system of taxation and subsidies. Taxation refers to the imposition of financial charges by the government on individuals and companies. A tax regime consists of 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 when paying their taxes. The Finance Minister introduced the new tax regime in the Union budget of 2020.
Under the new tax regime, individuals with a net taxable income up to a certain threshold will qualify for a tax rebate under Section 87A.
Q 30. What distinguishes Standalone and Centralized models in retail loan processing?
Q 31. What does the term "SBUs" refer to?
Q 32. What advantages do wealth management solutions offer to businesses?
Q 33. In the event of a person's death without a written will, who becomes the recipient of their wealth?
Q 34. Which one of the following is excluded from the Wealth management process?
Q 35. Prior to the 1960s, what was the primary emphasis of banking in India from a historical perspective?
Q 36. Which category of banks adopts the Strategic Business Units (SBU) approach?
Q 37. In the current highly competitive banking landscape, all banks make efforts to ensure efficient 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 objectives are most effectively achieved by identifying and fulfilling both the expressed and unexpressed needs and desires of customers.
The primary goal of CRM is to _______.
Q 38. What distinguishes the centralized and regional processing models for bank liability products?
Q 39. When it comes to lending money, how does a lender perceive the level of risk involved?
Q 40. What is the primary cause behind the development of retail banking in India?
Q 41. Analyzing data in a Marketing Information System (MkIS) serves what purpose in the banking industry?
Q 42. What sets investment banks apart from merchant banks?
Q 43. What role does BCSBI play in overseeing banks' compliance with voluntary codes and standards?
Q 44. What is the minimum tenure for a term deposit in banks for amounts less than ₹15/- lacs?
Q 45. Consider the following statements:
(i) The Banking Companies Act, 1949 was initially enacted as the Banking Regulations Act 1949 and later renamed as the Banking Companies Act, 1949 on 1st March 1966.
(ii) In the nineties, the "All India Banking Committee" was established to oversee significant reforms in the banking sector.
Q 46. What is the reason behind customers' preference for the brick-and-mortar format in retail banking?
Q 47. If a complaint remains unresolved at the branch level, what course of action will the bank take?
Q 48. Which of the following options represents the accurate set of Core products in the banking sector?
Q 49. Q.29 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 is the significance of efficiency for banks?
Q 50. Which of the following statements about the functions performed by Management Information Systems in an organization are inaccurate?
I. Management Information Systems aid businesses in increasing their productivity and profitability.
II. Management Information Systems can provide real-time updates and information.
III. Management Information Systems help maintain business equilibrium by facilitating untried decisions.
IV. Management Information Systems support the planning and controlling functions in an organization.
Q 51. Consider this scenario where Client A enlists the services of Bank B to assist with the allocation of their funds across various areas and assets. Client A provides all the necessary documentation and information, entrusting Bank B to handle their financial affairs and invest in opportunities that offer optimal returns while minimizing risk.
The given situation exemplifies:
Q 52. Which of the following statements accurately explains the distinction between Portfolio Management Services and Mutual Funds?
Q 53. Which two fundamental strengths characterize a bank's retail business model?
Q 54. Which of the following statements best aligns with the customer expectation for banks to be "Reliable"?
Q 55. Q.9Apart from the core banking products like Current Accounts, Savings Deposits, etc., banks provide various para-banking activities either departmentally or through subsidiaries. These activities include insurance, mutual funds, credit/debit cards, social security schemes, and more. However, due to certain restrictions, these services cannot be directly offered from the bank's products. Instead, banks act as corporate agents and offer them through relevant service providers. This approach not only extends the reach and customer base of banks but also positions them as a comprehensive financial hub catering to the diverse financial demands of different customers. Moreover, it 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.
Which of the following securities can be dematerialized using the services of the depository?
Q 56. Q.6 Case study:
Retail banking pertains 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: What is FedNow?
Q 57. As per the Code of Commitments, what will member banks NOT display on their website and branch notice board regarding their policies?
Q 58. Q.28 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.
Can banks provide housing loans to bodies other than individuals?
Q 59. What impact would the shift of banking services to electronic delivery have on the commoditization of banking products?
Q 60. Investment management in banking involves managing clients' funds by investing them in various financial instruments like stocks, bonds, and other securities. The primary objective of investment management is to maximize investment returns while minimizing associated risks. Banks provide investment management services to assist clients in achieving their financial goals through the creation of diversified portfolios tailored to their specific needs and risk tolerance. Investment management is a vital aspect of banking that demands expertise and knowledge in various financial instruments and markets.
Question: Which of the following statements best describes the role of investment managers?
Q 61. What is the recommended approach to establish MIS support in critical administrative organizations?
Q 62. As per IRDA guidelines, what is the stipulated requirement for group insurance policies purchased by banks?
Q 63. In retail banking, the following types of loans are offered:
(i) Personal loans
(ii) Auto loans
(iii) Home loans
(iv) Business loans
Q 64. In the banking industry, achieving success hinges on understanding and meeting customer requirements. Customers have diverse needs and expectations, spanning from fundamental banking services to intricate financial products and guidance. To satisfy customers, banks must deliver personalized experiences that encompass convenient and secure account access, efficient and reliable services, competitive interest rates, and excellent customer service. Furthermore, strict adherence to regulatory and compliance requirements is essential to instill customer protection and trust.
Customer segmentation holds significant importance in retail banking. It involves categorizing customers into distinct groups based on shared characteristics, behaviors, and preferences. The benefits of customer segmentation include:
1. Personalization: By understanding specific customer segments, banks can tailor their products and services to match individual preferences and requirements. This fosters a more personalized and relevant experience for customers.
2. Targeted Marketing: With customer segmentation, banks can direct their marketing efforts more precisely, focusing on the specific needs and preferences of each segment. This targeted approach enhances the effectiveness of marketing campaigns and increases the likelihood of attracting and retaining customers.
3. Resource Allocation: By identifying high-value customer segments, banks can allocate their resources more efficiently. They can concentrate on serving the most profitable segments, optimizing their efforts and maximizing returns.
4. Customer Retention: Understanding customer segments allows banks to anticipate and address the unique needs of different groups. This proactive approach can lead to improved customer satisfaction and loyalty, reducing churn and enhancing customer retention rates.
5. Product Development: Customer segmentation provides valuable insights into the demands of different segments, aiding banks in designing and developing new products and services that cater to specific market niches.
6. Risk Management: Segmenting customers based on their creditworthiness and risk profiles enables banks to better manage credit risk, ensuring responsible lending practices.
In conclusion, customer segmentation in retail banking plays a pivotal role in enhancing customer satisfaction, optimizing resource allocation, and driving growth. It empowers banks to provide tailored experiences, target their marketing efforts effectively, and make informed decisions to meet the diverse needs of their customers.
Q 65. What regulatory act governs the banking system in India?
Q 66. The function of Amelia, the humanoid robot developed by IPsoft, is to serve as an AI-powered virtual assistant that interacts with customers in retail banking. Amelia provides 24/7 support, reduces wait times, and enhances customer satisfaction through personalized recommendations and offers based on transaction history and behavior. Additionally, Amelia aids in real-time fraud detection, contributing to the security of customer transactions.
Q 67. What is the primary reason most commonly attributed to default on home loans?
Q 68. What penalty can be imposed if the number of withdrawals from an SB account surpasses the specified limit?
Q 69. In the context of retail banking, what is a value proposition that is generally not provided for term deposit accounts?
Q 70. What is the primary goal of implementing a CRM program in retail banking?
Q 71. What fundamental change is required for banks and financial institutions to cater to digitally empowered consumers?
Q 72. In the context of tax planning in banking, which of the following allowances for employment or transfer are permitted under the new tax regime?
(Note: The specific details about the allowances for employment or transfer under the new tax regime were not mentioned in the provided text. Please provide more information about the allowances to answer the question accurately.)
Q 73. Q.9Remittance 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 responsibility of the user institution in ECS Credit?
Q 74. What is one characteristic of the horizontally organized model?
Q 75. BCSBI stands for the Banking Codes and Standards Board of India.
Q 76. What is the primary issue or main concern related to the retail banking MIS?
Q 77. Which process model is predominantly embraced by foreign banks?
Q 78. Is it possible for banks to transfer a portfolio of assets through direct assignment in the securitization process?
Q 79. Q.59 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 definition of bank marketing, according to Sir Frederick Seebohm?
Sir Frederick Seebohm defined bank marketing as follows:
"Bank marketing is the aggregate of functions, directed at providing services to satisfy customers' financial needs and wants, more effectively and efficiently than the competition, in such a way that the bank's objectives are achieved."
Q 80. Q.70 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.
A bank approved a term loan of Rs. 10 lakhs on 1st January 2021. The first due date of the loan was 1st April 2021. The borrower did not pay the due amount. What would be the classification of the asset as of 1st April 2022?
As of 1st April 2022, the asset would be classified as a non-performing asset (NPA) since the borrower failed to make the required payment by the first due date, and the default period has extended beyond the stipulated time frame.
Q 81. Which of the following statements is accurate concerning the previous year for a continuing business?
Q 82. What are the benefits of co-branding for a bank?
Q 83. What is the most crucial requirement for the success of retail banking?
The most important prerequisite for retail banking to succeed is its ability to build strong relationships with customers by offering personalized financial solutions and excellent customer service.
Q 84. What recent regulatory change did SEBI implement for Portfolio Management Services (PMSs)?
Q 85. What advantages do customers gain from credit scoring?
Credit scoring provides several benefits for customers, including:
1. Fair assessment: Credit scoring allows a more objective and fair evaluation of the borrower's creditworthiness, based on various factors, rather than relying solely on subjective judgments.
2. Access to credit: It enables customers to access loans and credit facilities by providing lenders with a standardized method to assess their credit risk.
3. Better loan terms: Customers with higher credit scores are often eligible for more favorable loan terms, such as lower interest rates and higher credit limits, which can save them money over time.
4. Faster loan approvals: With credit scoring, loan approval processes can be expedited, leading to quicker decisions and faster access to funds when needed.
5. Improved financial planning: Customers can use credit scores as a gauge of their financial health, helping them understand where they stand in terms of creditworthiness and identify areas for improvement.
6. Building credit history: For individuals with limited credit history, responsible borrowing and repayment behavior can lead to the establishment of a positive credit history, increasing their creditworthiness in the long run.
Overall, credit scoring empowers customers by providing transparency and fostering a more efficient and fair credit market.
Q 86. What sets the RuPay Select card apart with its unique feature?
Q 87. What does the relationship-based approach entail when used by wealth managers?
Q 88. The rationale behind the rise in the principal component and the decline in the interest component in the EMI model of loan repayment is:
Q 89. What is the reason behind old private-sector banks opting for an outsourced model for technology?
Q 90. The primary purpose of a Marketing Information System (MKIS) is to serve as a tool for businesses to gather, organize, analyze, and distribute information that is valuable for making marketing decisions. In the context of banking, an MKIS aids banks in understanding their customers' needs and preferences, monitoring market trends, and making well-informed decisions regarding marketing strategies. It provides crucial insights based on data analysis, enabling the bank to optimize their marketing efforts and cater to their customers' requirements effectively. A longitudinal analysis of an MKIS involves studying data collected over an extended period to gain a deeper understanding of its usage, the insights it has provided, and its impact on shaping the bank's marketing decisions over time.
Q 91. The establishment of PayPal allowed consumers to accomplish what?
Q 92. What requirements must an individual fulfill to qualify as RNOR (Resident but Not Ordinarily Resident)?
Q 93. Based on the given text, which of the following statements is/are correct?
(i) The four broadly defined process models in retail banking are based on the technology and customer interface capabilities of the banks studied.
(ii) Horizontally organized model provides functionality across products with customer database orientation and a centralized customer database is used across products.
(iii) Predominantly vertically organized model is mostly product-oriented with common customer information for some products.
(iv) In most of the PSBs (Public Sector Banks), the predominantly vertically organized model is the standard norm.
Note: PSBs refer to Public Sector Banks.
Q 94. What approach is recommended for banks to enhance customer service?
Q 95. What is the primary benefit of implementing the SBU (Strategic Business Unit) approach?
Q 96. The role of MIS as an organizational information source is to serve as a comprehensive and efficient tool for managing and organizing critical data and information related to banking operations. It enables banks to make well-informed decisions, enhance operational efficiency, and elevate customer service. MIS functions as a versatile resource, facilitating various tasks such as managing customer accounts, monitoring transactions, and analyzing financial data.
By leveraging MIS, banks can swiftly access essential information, monitor their performance, and promptly identify potential issues. Overall, management information systems act as indispensable tools for modern banking institutions, enabling them to effectively manage their operations and maintain competitiveness within the industry.
Q 97. What does the term "regular convertible bond" refer to?
Q 98. Q.68 What is a crucial requirement for implementing CRM systems in a bank?
To effectively implement CRM systems in a bank, it is essential to have well-defined strategies, processes, and technologies to manage customer interactions throughout the customer journey. This includes activities like collecting and analyzing customer data, understanding their needs and preferences, and utilizing this information to personalize the customer experience. By having these elements in place, banks can improve customer satisfaction, loyalty, and retention by offering personalized and relevant products and services. Additionally, CRM enables banks to proactively anticipate customer needs, leading to a more sustainable and profitable business.
Q 99. The first ATM in India was set up by which bank, and in which year?
Q 100. What do NEFT and RTGS refer to?
