JAIIB · AFM

Accounting in Computerized 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 a Core Banking Solution (CBS) in the context of Indian banking?

A

CBS is a centralised banking platform where all branches of a bank are connected to a central server, enabling customers to access their accounts and perform transactions from any branch across the network.

Q

What is meant by 'fintech integration' in a computerised banking accounting system?

A

Linking financial technology tools with core banking for automated processing

Q

Which RBI guideline mandates banks to maintain books of accounts in electronic form?

A

The Information Technology Act, 2000, read with RBI guidelines on IT governance, permits and effectively mandates banks to maintain electronic books of accounts, provided they are auditable and tamper-proof.

Q

What is a 'chart of accounts' in computerised bank accounting?

A

Structured list of all ledger accounts used to record transactions

Q

What is the significance of the 'maker-checker' concept in computerised banking?

A

The maker-checker (or four-eye) principle ensures that a transaction entered by one user (maker) must be verified and authorised by another user (checker) before it is posted, thereby reducing errors and fraud.

Q

What is 'TCS' (Tax Collected at Source) handling in CBS accounting?

A

Automatic deduction and reporting of TCS on applicable banking transactions

Q

What does the term 'RDBMS' stand for and how is it used in banking?

A

RDBMS stands for Relational Database Management System; banks use it to store structured financial data in tables with defined relationships, enabling fast retrieval, reporting, and audit trails for all transactions.

Q

What does 'SOD' (Start of Day) processing mean in bank CBS?

A

Opening procedures that initialise system for the new business day

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