Role of Technology in Bank

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ROLE OF TECHNOLOGY IN BANKING

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1. What is the Core Banking System (CBS)?

A) A decentralized standalone system
B) A centralized, networked system connecting all branches
C) A mobile-only banking platform
D) A retail banking marketing tool
Answer: B role of tech in bank

2. What does CBS enable?

A) Branch banking only
B) Anywhere and anytime access to accounts
C) Only loan processing
D) Internet-only services
Answer: B

3. Which of the following is NOT a major function handled by CBS?

A) CRM
B) Accounting & General Ledger
C) Marketing & Advertisement
D) Loan & credit management
Answer: C

4. Banks are shifting CBS from on-premise to what model?

A) Manual data entry
B) Cloud-based systems
C) Offline branch systems
D) Customer desktop banking
Answer: B

5. What technology automates repetitive and rule-based back-office tasks?

A) UPI
B) RPA
C) RTGS
D) Blockchain
Answer: B

6. Which payment system provides real-time settlement of funds?

A) NEFT
B) RTGS
C) Cheques
D) DD
Answer: B

7. Which system revolutionized instant low-cost digital payments in India?

A) SWIFT
B) UPI
C) IMPS
D) BHIM Aadhaar Pay
Answer: B

8. What is the most visible technology impact for banking customers?

A) Accounting
B) Customer Experience (CX)
C) Audit monitoring
D) HR management
Answer: B

9. Which is the primary banking channel today?

A) Passbook printing kiosks
B) Mobile banking apps
C) Internet kiosks
D) Branch counters
Answer: B

10. AI-based chatbots are used for:

A) Accounts closing
B) Customer service & instant query handling
C) Locker issuance
D) Printing cheque books
Answer: B

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Financial Inclusion

11. Which technology helped open bank accounts remotely in minutes?

A) RPA
B) Aadhaar-based e-KYC
C) ATM switch
D) RTGS
Answer: B

12. Which service enables banking on feature phones?

A) UPI 123PAY & USSD (*99#)
B) NEFT
C) RTGS
D) AI bots
Answer: A

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Risk Management & Security

13. AI & ML help detect fraud by:

A) Eliminating branches
B) Analyzing transactions in real-time
C) Removing customer accounts
D) Slowing down payments
Answer: B

14. Multi-factor authentication (MFA) includes:

A) Password only
B) OTP + biometrics + face recognition
C) OTP only
D) Signature only
Answer: B

15. Blockchain is being explored mainly for:

A) ATM reconciliation
B) Trade finance and cross-border payment processes
C) Passbook printing
D) Customer complaints
Answer: B

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Analytics & AI

16. Predictive analytics helps:

A) Buying branch furniture
B) Predicting customer churn & loan defaults
C) Designing ATM rooms
D) Making chequebooks
Answer: B

17. RegTech helps in:

A) Manual regulatory filing
B) Automated compliance reporting to RBI/SEBI
C) Loan disbursement
D) ATM network planning
Answer: B

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Innovation Models

18. What is Open Banking?

A) Opening branches 24/7
B) Allowing FinTechs to access banking via APIs
C) ATM installations
D) Rural branch development
Answer: B

19. Which framework enables customers to securely share financial data?

A) RTGS
B) Account Aggregators
C) IMPS
D) ACH
Answer: B

20. What are Neo-banks?

A) Banks that offer only lockers
B) Fully digital banks without physical branches
C) NBFC subsidiaries
D) ATM manufacturers
Answer: B

21. Embedded finance means:

A) Financial products inside non-financial platforms
B) Gold loan only
C) Fixed deposit only
D) Only ATM withdrawals
Answer: A

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Challenges

22. Biggest risk connected with digital banking?

A) Salary hike
B) Cybersecurity threats
C) Parking problems
D) Overstaffing
Answer: B

23. Digital Personal Data Protection Act (DPDPA) 2023 deals with:

A) Fraud cheque detection
B) Customer data privacy and protection
C) Locker contracts
D) Branch relocation
Answer: B

24. A disadvantage of digital systems is:

A) Customer convenience
B) Technical outages & downtime
C) Paperless documents
D) Cost reduction
Answer: B

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General Understanding

25. Banking technology improves:

A) Time taken for manual cheques
B) Efficiency, speed, security, and personalization
C) Branch visits
D) Stapler usage
Answer: B

26. What is the future direction of banking?

A) Fully manual banking
B) Invisible banking (AI + Blockchain + Cloud)
C) Only rural banking
D) Currency-based transactions
Answer: B

27. UPI has significantly reduced dependency on which traditional payment methods?

A) Internet banking
B) Cash & cheque-based transactions
C) Credit card payments
D) ATM withdrawals
Answer: B

28. Which of the following is normally NOT a function available in mobile banking apps?

A) Fund transfers and bill payments
B) Loan applications
C) Investment services
D) Cash deposit at counter
Answer: D

29. Which chatbot example is mentioned in the context of AI usage in banks?

A) Google Assistant
B) Siri
C) Alexa
D) EVA / iPal
Answer: D

30. Microservices architecture helps in providing which type of financial offerings?

A) Only corporate loans
B) Small modular products like nano-credit & micro-insurance
C) Only car loans
D) Fixed Deposits only
Answer: B

31. Centralized customer data management allows banks to achieve what?

A) Higher ATM fees
B) Minimum balance charges
C) Improved cross-selling and customer service
D) Manual reconciliation
Answer: C

32. RTGS is primarily used for which type of transactions?

A) Low-value digital payments
B) Real-time high-value payments
C) Offline settlement
D) Card-to-card payments
Answer: B

33. Which payment system processes transactions in hourly batches?

A) UPI
B) RTGS
C) NEFT
D) Visa
Answer: C

34. Machine Learning helps banks by identifying what?

A) New branch locations
B) Suspicious transaction patterns and anomalies
C) Passbook design
D) Locker requirements
Answer: B

35. Blockchain technology is useful in trade finance primarily for:

A) Increasing paperwork
B) Slowing processing time
C) Eliminating ATMs
D) Reducing fraud & document-related delays
Answer: D

36. AI is used by banks to provide what to customers?

A) Real estate advice
B) Personalized product recommendations based on behavior
C) Locker facility monitoring
D) Branch staff hiring
Answer: B

37. Real-time fraud flagging works by:

A) Comparing signatures on cheques
B) Monitoring ATM withdrawals manually
C) Analyzing real-time digital transaction behavior
D) Long manual audit process
Answer: C

38. Technology has helped increase financial inclusion by:

A) Reducing bank branches
B) Providing digital tools to unbanked and remote customers
C) Increasing service cost
D) Limiting mobile access
Answer: B

39. Data analytics assists banks mainly in:

A) Creating advertisements only
B) Better decision-making with insights
C) Printing cheque books
D) ATM repairs
Answer: B

40. The primary device used for digital/mobile banking today is:

A) Desktop computer
B) Smartphone
C) Smart TV
D) Landline telephone
Answer: B

41. Which code allows banking through feature phones?

A) 123
B) #227#
C) ##00##
D) *99#
Answer: D

42. Cloud-based banking systems mainly improve:

A) Branch population
B) Manual filing
C) Scalability and flexibility
D) Cheque clearance delays
Answer: C

43. Cybersecurity systems in banks include which tools?

A) Air conditioning & CCTV
B) Stamp paper security
C) Firewalls, encryption & intrusion detection
D) Cheque scanning machines
Answer: C

44. API stands for:

A) Automated Payment Interface
B) Application Programming Interface
C) Advanced Processing Integration
D) Authorized Pay Instruction
Answer: B

45. The future direction of banking is expected to move toward:

A) Fully manual teller-based banking
B) Cash-only operations
C) Limited digital services
D) Invisible banking integrated seamlessly into daily life
Answer: D

46. RPA reduces:

A) System automation
B) ATM network size
C) Human error in repetitive tasks
D) Customer care centers
Answer: C

47. AI-based credit scoring is useful especially for:

A) Customers with long credit history only
B) Individuals or MSMEs with little or no traditional credit history
C) Only high-net-worth customers
D) Corporate firms only
Answer: B

48. Operational efficiency in banking increases mainly due to:

A) Printing more paper documents
B) Automation and technology usage
C) More staffing
D) Extra branch counters
Answer: B

49. One of the biggest risks associated with increasing digital banking is:

A) Staff promotions
B) Gold loan defaults
C) Data privacy and security threats
D) Branch infrastructure issues
Answer: C

50. What is the primary driver of digital transformation in banking?

A) Interest rates
B) Branch expansion
C) Technology innovation
D) Customers’ signatures
Answer: C

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