The Term ‘Core Banking Solutions’ is sometimes seen in the news. Which of the following statements best describes/ describe this term?

The Term ‘Core Banking Solutions’ 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 enable 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.

1. 1 only
2. 2 and 3 only
3. 1 and 3 only
4. 1,2 and 3

Ans. A
Explanation:
Core banking is a banking service provided by a group of networked bank branches where customers may access their bank account and perform basictransactions from any of the member branch offices.The core banking services rely heavily on computer and network technology to allow a bank to centralise its record keeping and allow access from any location. It has been the development of banking software that has allowed core banking solutions to be developed.
Why the question Came:
Was in news in March. Department of Posts has decided to provide CBS to its customers. Banking as we told is a hot topic, so UPSC needs to find questions, but not from same old areas!
Sources:
The Hindu, RBI
https://en.wikipedia.org/wiki/Core_banking

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