Test: Retail Banking & Wealth Management - 1 - Bank Exams MCQ

The retail banking sector is often described as typical mass-market banking, offering services such as savings and operative accounts, and personal loans, including auto loans and student loans.

The efforts are made to ensure that ATMs are loaded with either newly minted or ATM fit notes which are sorted and processed on hi-tech note.

Online monitoring of ATMs having high numbers of dispenser problems, follow-up with manufacturers for periodical preventive maintenance, and training of custodians to ensure proper cash loading are some of the steps taken to address discrepancies in cash dispensation.

The Code applies to all the products and services listed, including banking services related to Government transactions.

The more the number of customers, the more will be the profitability and strength of the retail banking models.

In the context of deposit products, 'Price' refers to the interest rate offered by the bank to the customer. In asset products, 'Price' refers to the interest rate charged by the bank to the borrower. In other services, 'Price' refers to the fees/charges the bank levies on the customer.

According to the Indian Contract Act, of 1872, a minor is not capable of entering into a valid contract, and a contract entered into by a minor is void. A contract for the supply of necessities of life to a minor is, however, a valid contract.

A balanced approach that enables a bank to improve operating efficiency and upgrade its capabilities to respond to market needs and prepare for the future is imperative to the success of a bank’s operations and profitability.

An endowment policy is designed to pay a lump sum after a specific term or on death.

Non-transparent dealings and service charges is not a requirement of customers from their bank/s for maintaining their accounts/relationship. Customers expect transparent dealings and service charges from their bank/s. 

The scope for cross-selling can be determined by the percentage of total asset accounts to the total deposit accounts.

The different approaches adopted by banks for their retail banking activities are the Strategic Business Unit (SBU) approach, Departmental approach, and Integrated approach (part of the overall business plan).

Asset management in finance parlance is also known as buy-side, while investment banking is termed as sell-side.

According to Forbes, Blockchain brings the following benefits: it records and validates every transaction, it does not require third-party authorization, and it is decentralized.

Open-ended funds allow you to invest money and redeem it anytime as per your needs and your strategies, regardless of any time circumstances.

AI uses additional behavioural indicators to detect suspicious activity and offers suggestions for mitigating risk.

E-commerce witnessed the fastest adoption of Artificial Intelligence among Indian start-ups in 2018.

Passbook updation kiosks are automatic kiosks that enable customers to print their passbooks. SBI has installed Swayam (passbook printing kiosk) which uses barcode technology and allows customers to update their passbooks hassle-free.

The inability of the legacy architecture of banks to serve diverse needs. The emergence of specialized and sophisticated products in banks can be attributed to the limitations of traditional legacy systems and architectures. Legacy systems were designed to cater to more traditional banking functions and were not equipped to handle the evolving needs and demands of customers. As customer expectations changed and technology advanced, banks faced challenges in meeting these demands with their existing infrastructure.

- Not providing a mobile number to the bank can significantly impact the customer's ability to engage in various electronic transactions beyond ATM cash withdrawals.
- Mobile numbers are crucial for receiving OTPs (One-Time Passwords) for authentication, which are necessary for secure online transactions.
- Without a mobile number, banks cannot send transaction alerts, potentially increasing the risk of unauthorized transactions going unnoticed.
- Therefore, not providing a mobile number limits transaction capabilities and security measures, as described in option A.

A proactive marketer should particularly watch the product life cycle of the product and the present stage of the product. This will enable the organization to survive and achieve its business objectives by developing new products and proactively seizing emerging, changing customer needs.

The Co-Lending Model (CLM) allows banks to co-lend with all RBI-registered NBFCs including Housing Finance Companies (HFC) based on a prior agreement.

Income tax slabs are designed to ensure that the tax system is fair and progressive, meaning that those who earn more pay a higher percentage of their income in taxes. This helps to reduce income inequality and ensure that those with higher incomes contribute more to the government's revenue.

Diversification reduces the risk of investing in individual securities by spreading the risk and reward of those securities across a range of assets, sectors, and geographic regions.

New-generation private sector banks had a great advantage as they were late entrants and hence could start with the technology advantage and source the same from external vendors. By developing their proprietary models and software, these banks could have greater control over their technology implementation and adapt it to their unique business strategies and customer needs.

CRM is not just an option for banks, but a compulsion to achieve business synergies and optimization of resources.

Marketing control in retail banking involves regulating the goals by auditing, measuring, evaluating, and acting upon the defined parameters of control. This stage can be done in two ways - reactive methodology and proactive methodology, and corrective action is taken at the operational level or the strategic level depending upon the relevance of the control aspect of the parameters.

Any allowance for traveling for employment or on transfer is allowed under the new tax regime.

The Indian economy has been witnessing an upswing due to the liberalization policy adopted by the planners. This has led to increased income and saving levels, resulting in increased demand on the financial markets and more particularly on banks.

Retail bonds are typically listed and can thus be bought and sold during regular market hours, allowing investors more flexibility.