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NEO Banking - A Future Digital Banking, Development Scope, Threat and Challenges

What is Neo Banking? NEO banks are the banks which has no physical branches. NEO Banks are digital only financial institutions that operate exclusively online through websites and mobile apps.  The financial services industry has undergone massive transformations from manual to Core Banking and now digital without any physical branch. the evolution of banking has been marked by innovations aimed at making financial services more accessible, convenient, and efficient.   NEO Banks offers services like below: Account Management: Account Opening, Checking, Savings, and Money Transfers Loan Services: Quick and seamless loan approvals Low Fees: Minimal or no fees due to lower operational costs Tech Features: Budget tools, instant payments, and real-time alerts Why Are Neo Banks becoming popular now? Convenience : 24/7 mobile banking—no waiting in lines. Lower Fees : No hidden charges, free international transfers, and zero maintenance fees. User-Friendly Apps : Seamless, f...

Sample Questions for CAIIB - Advanced Bank Management - Sample Questions Set 2



1. As per Abraham Maslow's motivation theory, the people have needs:
a) 2
b) 3
c) 4
d) 5

Answer - 5

2. Credit risk can be defined as
a) Possible willful default by borrowers in meeting their loan repayment obligations
b) possible genuine inability of the borrowers in meeting their
loan repayment commitments
c) Possibility of loan account becoming NPA
d) All the above

Answer - All the above

3. Macroeconomics deals with
a) Gross Domestic Product
b) Unemployment Rate
c) Price Indices
d) All the above

Answer - All the above

4. Which of the following is not a situation of credit risk
a) Willful default by the borrower in repayment of the loan
b) Inability of the borrower in repayment of the loan due to losses in the business
c) Invocation of guarantee by the beneficiary due to non- compliance by the borrower, on whose behalf the guarantee was issued
d) Fraud committed by a
borrower in connivance with the bank staff, not relating to the loan accounts

Answer - Fraud committed by a
borrower in connivance with the bank staff, not relating to the loan accounts

5. The rate at which the banks park their short term excess liquidity is called
a) Repo Rate
b) Reverse Repo Rate
c) Bank Rate
d) Base Rate

Answer - Reverse Repo Rate

6. Sale of security under SARFAESI Act is possible when the possession of security is taken. Before Taking possession, a notice is to be given
a) One Week
b) 30
c) 60
d) At Discretion of Bank

Answer - 60

7. Laissez-faire economy is
a) The extreme case of a market economy
b) The extreme case of Command Economy
c) The extreme case of mixed economy
d) None of these

Answer - The extreme case of a market economy

8. The due date for repayment of a term loan installment expires on feb 10, 2009 but borrower fails to make payment. The account becomes sub
standard wef
a) 13-May-09
b) 12-May-09
c) 11-May-09
d) 10-May-09

Answer - 12-May-09

9. Consumer Price Index measures prices at
a) Wholesale Level
b) Retail Level
c) Producer Level
d) Consumer Level

Answer - Retail Level

10. Business Cycle is also Known as
a) Entrepreneur Cycle
b) Economic Cycle
c) Vicious Circle
d) None of these

Answer - Economic Circle

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