3 Marks Each

Question 13 Marks

Account holder is not the customer of a particular branch of the bank but of the bank - Discuss the statement.

Answer

Facility of $CORE$ banking is avail. $CORE$ means Centralized Online. Real-time Exchange.
Due to this system all branches of the same bank all over the world are linked with the server online.
The entry of each transaction of any account holder of the bank is registered in the centralized server. As a result account holder can do any transaction from any branch of the bank.
He can withdraw amount from his account and also deposit the amount. It is certainly said that account holder is not the account holder of the branch. He is an account holder of the entire bank. He does not need to go to the bank.
He can do any transaction from anywhere in the world provided he has an account in that bank.

Question 23 Marks

Write short note on M-Banking.

Answer

M-Banking means Mobile Banking. It is such service as requires connection with internet in their mobile through which people can perform any financial transaction any where in the world.
For mobile banking facility one has to request the bank.
Thereafter bank gives Log in $ID$ and password for mobile banking. This various financial transactions are carried out.
Through this service one can know the balance in the account, payment of light bill, telephone bill, payment of tax money transfer from one account to another account etc.
Due to this services one need not visit his original branch.
He can perform this from any branch of his bank all over the world. It is essential to care for safety.

Question 33 Marks

Write short note on $NEFT$

Answer

$NEFF$ means National Electronic Fund Transfer. Fund from the bank having membership of $NEFT$ is transferred to the bank holding the membership of $NEFT$.
The branch of the bank holding $NEFT$ membership is known by its $IFSC$ Code which is of eleven digits and in alpha numeric form. Maximum $2$ lacs of rupees are transferred under this system.
Process is carried out as per hour batch, through RBI. In one batch maximum $10$ transactions are carried out. Amount to be deposited takes maximum $48$ hours.
$NEFT$ of less than the amount $Rs. 50,000$ also can be done.
Its advantage is obtained by walk-in customer also. Beneficiary of $NEFT$ is not charged any commission.
Commission is charged from the sender of money.

Question 43 Marks

Write short note on $RTGS$. :

Answer

$RTGS$ means Real Time Gross Settlement. Member of $RTGS$ bank in India can transfer money in any bank in India.
This process is called $RTGS$. Member bank's branch of $RTGS$ is known by $IFSC$ Code (Indian Financial System Code). This code is of eleven digits and in Alfa numeric form.
Through $RTGS$ system real time means at the same time and gross settlement means to give effect of total transactions. Cash money is not transferred in this system.
It is necessary that customer and beneficiary both should have accounts in the bank.
$IFSC$ Code is a must for both of them. Through $RTGS$ system transfer of more than $2$ lacs of rupees is done.
No commission is charged from the receiver but it is charged from the sender.

Question 53 Marks

Write short note on Core Banking.

Answer

Core means Centralized Online Real-Time Exchange.
In this banking system all branches life the bank all over the world are linked with centralized server.
Any branch of the bank has the information of all the details of all accounts.
The changes occur during transactions in any account can be observed from any branch of the bank.
As a result the account holder of this bank can operate his account from any branch of the bank.
Means he can deposit and withdraw money from his account.

Question 63 Marks

Write short note on call money.

Answer

Sometimes banks need money for very short time, even for less than $24$ hours.
They feel short of money in this situation.
RBI appointed agency takes money from the bank which surplus money and gives it to the needy bank.
Money receiver bank does not come in contact with money supplier bank and its financial problem is solved.
The amount demanded k obtained within time. This is called 'Call Money'.
The rate of interest of call money is determined on the basis of demand. Supply of money in the market.

Question 73 Marks

Main Functions of bank are related to bank and subsidiary functions are customer oriented - Discuss.

Answer

Main functions of bank are $(1)$ to accept deposit $(2)$ to lend money $(3)$ to invest money $(4)$ inter-banking transactions. Logically we ask our selves why do banks accept deposit? Bank makes profit by lending money at higher rate than accepting deposit at lower rate of interest.
Inter- banking transactions are carried out to solve their own financial crisis.
It is very clear that main functions of the bank are bank- printed means for their purpose only. Subsidiary functions of bank are : $(1)$ to give facility of draft $(2)$ safe deposit vault, $(3)$ to issue letter of credit, $(4)$ to give information regarding customers $(5)$ to pay and recover the money of cheque on behalf of customers, $(6)$ to issue debit and credit card, $(7)$ to give facility of mobile banking, $(8)$ to issue cheque book and bank statement.
In all these functions banks do not make any profit. Account holders and customers are benefited by all these functions of the bank. Their time is saved and financial security increases. It is certainly said that subsidiary functions of bank are benevolent, they are customer- oriented.

OCM 3 Marks Each