JAIIB · PPB

DATA COMMUNICATION NETWORKS AND EFT SYSTEMS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

What is a Wide Area Network (WAN) in the context of banking?

A

A WAN connects banks and their branches across cities, states, or countries, enabling centralized data sharing and inter-branch transactions over large geographical distances.

Q

What is a Metropolitan Area Network (MAN) in the context of banking?

A

Network covering a city connecting multiple bank branches together.

Q

What does SWIFT stand for and what is its primary purpose?

A

SWIFT stands for Society for Worldwide Interbank Financial Telecommunication; it provides a secure messaging network for international financial transactions between banks globally.

Q

What is the full form of IDRBT and where is it located?

A

Institute for Development and Research in Banking Technology, Hyderabad.

Q

What is Electronic Funds Transfer (EFT) in Indian banking?

A

EFT is a system that enables electronic movement of funds from one bank account to another without physical exchange of money, using digital communication networks.

Q

What is a modem and what is its function in bank data communication?

A

Device converting digital signals to analog and back for transmission.

Q

What is the role of INFINET in Indian banking?

A

INFINET (Indian Financial Network) is the communication backbone of the Indian banking and financial sector, owned by RBI and IDRBT, providing a secure network for inter-bank data communication.

Q

What is the meaning of 'protocol' in the context of data communication networks?

A

Set of rules governing data transmission between network devices.

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