JAIIB · PPB · Chapter 2

Operational Aspects of CBS Environment

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Q

What does CBS stand for in the context of modern banking technology?

A

CBS stands for Core Banking System, a platform that integrates branch operations with centralised data to enable seamless banking services.

Q

Which two technology streams converge to form a Core Banking Solutions (CBS) platform?

A

Communication Technology and Information Technology

Q

Which two technologies converge to form a CBS platform?

A

A CBS platform is the convergence of core banking operations and centralised data management technology, linking all branches to a single central database.

Q

What is the specific CBS control called when one person inputs a transaction and a different person authorises it?

A

Four-Eye Principle / Maker-Checker

Q

How does CBS differ from the traditional branch-based banking model?

A

In traditional banking, accounts were maintained branch-wise; CBS shifts the account to a central server, allowing customers to transact from any branch regardless of where the account was opened.

Q

In CBS, can Begin of Day (BOD) be started if the previous day's End of Day (EOD) was not completed?

A

No; BOD depends on EOD of the previous working day being fully completed

Q

What is the primary operational benefit of a centralised database in CBS?

A

A centralised database means all branches access the same real-time data, eliminating end-of-day batch reconciliation between branches and enabling anytime-anywhere banking.

Q

How many types of transactions are recognised in the CBS environment?

A

Three — Cash, Clearing and Transfer

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