JAIIB · PPB · Chapter 6

Impact of Technology Adoption and Trends in Banking Technology

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 the primary regulatory body in India that governs technology adoption in banking?

A

The Reserve Bank of India (RBI) is the primary regulatory body governing technology adoption in banks through circulars, guidelines, and master directions on IT governance and cybersecurity.

Q

What are the four main characteristics of data warehouse data as described in the JAIIB syllabus?

A

Subject oriented, non-volatile, integrated, and time variant

Q

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

A

CBS stands for Core Banking Solution, a centralised platform that enables customers to access their accounts and perform transactions from any branch of the bank.

Q

What does 'non-volatile' mean in the context of a data warehouse?

A

Data once loaded is not overwritten or altered; it is retained as-is for long periods

Q

What is the significance of RTGS in the Indian payment ecosystem?

A

RTGS (Real Time Gross Settlement) enables high-value interbank fund transfers settled individually and instantaneously, with a minimum transaction limit of ₹2 lakh, and operates on a 24×7 basis since December 2020.

Q

What technique automatically discovers hidden patterns and relations in large databases to enable predictions of customer behaviour?

A

Data mining

Q

How does NEFT differ from RTGS in terms of settlement mechanism?

A

NEFT (National Electronic Funds Transfer) settles transactions in batches at half-hourly intervals on a net basis, whereas RTGS settles each transaction individually and in real time on a gross basis.

Q

What is Electronic Data Interchange (EDI) in banking?

A

The inter-organisational exchange of business documentation that can be processed by computers with minimal manual intervention

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