RETAIL BANKING : QUIZ - 3

1. The objective of the NEFT system are_______.

• a) To establish an electronic fund transfer system to facilitate an efficient, secure, economical, reliable and expeditious system of funds transfer and clearing in the banking sector throughout India.
• b) To relive the stress on the existing paper based fund transfer and clearing system.
• c) Both (a) and (b)
• d) None of the above.

2.1. The characteristics of the RTGS are____.

• a) Remittance and fund transfer are transmitted through a series of process inputs and travel from the customer end to beneficiary end.
• b) Remittance is communicated through a structured messaging process.
• c) Settlement for the message is made on a gross basis from the liquidity maintained by the sender bank with the settlement bank.
• d) Remittances are credited on a dynamic basis and settlement also made on a dynamic basis.
• e) All the above

3. Advantages of ECS payments are________.

• a) No need for issuing any cheque to the beneficiary
• b) Payment defaults will not happen if there is sufficient balance in the account.
• c) No follow up needed by the beneficiary as payment will be received automatically based on the mandate obtained.
• d) Hassle free for the mandate issuer, as it saves him time of issuing cheques for each payment.
• e) All the above

4. A settlement system in which the processing and final payments of fund transfer instructions takes place continuously, is called____.

• a) Debit clearing system
• b) Credit clearing system
• c) National clearing system
• d) Real Time Gross Settlement

5. Which of the following statement is correct about India’s payment system;

• a) India is categorized as a ‘leader’ or ‘strong’ in more than 50% indicators of the benchmark report.
• b) India is in leadership position in large payment systems and fast payment systems.
• c) India is weak on certain indicators such as people per ATM/POS terminal
• d) All the above

6. Process model in retail banking are structured as:

• a) Horizontally organized model where individual process platform supports one product only.
• b) Vertically organized model where functionality is provided across all products.
• c) Predominantly horizontally organized model with some modularization within a product oriented feedback.
• d) Predominantly vertically organized model is a hybrid model that offers common information for most of the related services.
• e) Any one of the above.

7. The technology models adopted by banks are:

• a) Fully outsourced model
• b) Partially outsourced model
• c) In house model
• d) Anyone of the above

8. AB Bank has collected data with respect to the needs of its customers. It developed a product based on the information collected. What type of information has the bank collected and analyzed?

• a) Strategic
• b) Tactical
• c) Operational
• d) Managerial

9. Technology and retail banking are _______.

• a) Inseparable
• b) Separable
• c) Complementary
• d) Supplementary

10. The Indian Financial Technology and Allied Services (IFTAS) has been acquired by:

• a) Institute for Development and Research in Banking Technology(IDRBT)
• b) Indian Institute of Banking and Finance(IIBF)
• c) Reserve Bank of India
• d) Ministry of finance, Govt. Of India.