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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...
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Sample Questions for CAIIB - Bank Financial Management - Sample Questions Set 3


1. The Value of derivative is determined by
a) The Value of underlying
b) National Principle Amount
c) FIMMDA
d) FEDAI

Answer - The Value of underlying

2. Security of a Bank migrates from A+ to A. Which risk is associated with bank
a) Market Risk
b) Operational Risk
c) Market Liquidation Risk
d) Credit Risk

Answer - Credit Risk

3. Nostro Account means
a) Account meant for Reconciliation
b) Accounts of foreign bank with Indian Bank
c) Current Account denominated in foreign currency maintained by bank with their correspondent bank in the home country of the currency
d) Short term investment with High security rated foreign bank

Answer - Current Account denominated in foreign currency maintained by bank with their correspondent bank in the home country of the currency

4. An NRE term deposit account can be opened for a minimum period of:
a) 1 Year
b) 5 Year
c) 6 Months
d) 2 Years

Answer - 1 Year

5. Which of the following types of Bill of Lading is not acceptable by a bank under LC?
a) On Board
b) Clean
c) Charter Party
d) All of the above

Answer - Charter Party

6. To be eligible for packing credit advances the customer
a) should not be in the caution list of RBI or specific approval list of ECGC
b) must be holding importer/exporter code number allotted by DGFT
c) should be recognized export house
d) a and b

Answer - a and b

7. When a bank sanctions a loan to a large borrower, which of the following risks it may not face
a) Liquidity
b) Market
c) Credit
d) Operation

Answer - Market

8. Change in interest rates will affect
a) Net interest income
b) Other income
c) Staff Expenses
d) All of the above

Answer - Net Interest Income

9. Promissory notes issued by Central Government to meet its
a) short term Certificate of Deposits
b) Commercial Papers
c) Capital Indexed Bonds
d) Treasury Bills

Answer - Treasury Bills

10. Supervisory Review under Basel-II framework refers to
a) Operational risk
b) Market Risk
c) Credit Risk
d) None of These

Answer - None of These

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