JAIIB · AFM

CORE BANKING SYSTEMS AND ACCOUNTING IN COMPUTERISED ENVIRONMENT

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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Q

What is Core Banking Solution (CBS) in the context of Indian banking?

A

CBS is a centralised banking software that enables customers to access their accounts and perform banking transactions from any branch, anytime, as all branches are connected to a central server.

Q

What is the primary advantage of centralised database architecture in CBS?

A

All branches access a single shared database in real time.

Q

Which regulatory body mandates the adoption of CBS for banks in India?

A

The Reserve Bank of India (RBI) mandates CBS adoption and has made it a prerequisite for banks to offer various digital and real-time banking services.

Q

What is a Chart of Accounts in computerised banking?

A

A structured list of all GL account codes used by the bank.

Q

What does the term 'anywhere banking' signify under CBS?

A

Anywhere banking means a customer of one branch can conduct transactions at any other branch of the same bank, since all branches share a common centralised database.

Q

What does SOX compliance mean for banks using CBS?

A

Ensuring financial reporting accuracy and internal control integrity.

Q

What is a General Ledger (GL) in a computerised banking environment?

A

The General Ledger is the master set of accounts that summarises all financial transactions of a bank and forms the basis for preparing financial statements in CBS.

Q

What is a bank reconciliation statement in a computerised environment?

A

A statement matching bank ledger balances with external records.

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