The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/describe this term?
1. It is networking of a bank’s branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.
2. It is an effort to increase RBI’s control over commercial banks through computerization.
3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.
Select the correct answer using the code given below:
A core banking solution is a centralized system that integrates various banking functions across a bank's branches. It allows for:
- Networked branches: Customers can access their accounts and conduct transactions from any branch within the bank's network, regardless of where they originally opened their account.
- Improved efficiency: CBS automates many manual processes, leading to faster transactions and better customer service.
- Centralized data management: All customer information and account data are stored in a central location, facilitating easier access and record keeping. Therefore, the correct answer is 1 only.