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JAIIB Paper 2 • Banking Technology
Essentials of Bank Computerisation & Operational Aspects of CBS Environment
Core Banking Solution turned "your account at any branch" from a slogan into daily reality — but it runs on a strict daily rhythm of EOD/BOD batch cycles and layered access controls most customers never see. Covers networking basics, UPS, core banking functions, EOD/BOD, password/logical access control, and data warehousing/mining, with 50 exam-style MCQs with hidden answers.
Daily batch processes closing/opening the business day across all branches
Data Warehouse
Consolidated historical data store for analytics, separate from live transaction processing
1 Bank Computerisation — Basics
Bank computerisation evolved from standalone branch-level "Total Branch Automation" (TBA) — where each branch ran its own isolated database — to today's Core Banking Solution (CBS), where all branches connect to a single, centralised database hosted at a Data Centre. This shift enabled true "anywhere banking" — a customer can transact at any branch/channel, since their account data lives centrally, not at a "home branch" alone.
2 Networking Technologies & UPS
🌐
LAN / WAN
A Local Area Network connects devices within a branch; a Wide Area Network connects branches to the central Data Centre over leased lines/VSAT/broadband, forming the bank's core connectivity backbone.
🔌
Uninterrupted Power System (UPS)
Provides battery-backed power continuity during outages, preventing abrupt CBS/server shutdowns that could corrupt transaction data — a critical infrastructure safeguard at every branch/data centre.
🏢
Data Centre (DC) & Disaster Recovery (DR) Site
The primary Data Centre hosts the live CBS database; a geographically separate DR site maintains a synchronised/near-real-time replica, activated if the primary DC fails.
3 Core Banking — Functions & Transaction Flow
CBS in one line: Core Banking Solution centralises customer account data and transaction processing across all branches/channels (ATM, mobile, internet banking, branch counters) into one integrated system, enabling real-time balance updates visible instantly system-wide, regardless of which channel initiated the transaction.
A typical transaction flow: a teller/channel captures the transaction → the CBS validates it (balance/limit checks, authorisation) → the transaction posts to the customer's account and relevant ledgers in real time → an audit trail/log entry is created — all within the same centralised system, eliminating the reconciliation delays of the old branch-isolated model.
4 EOD and BOD Operations
🌙
End of Day (EOD)
A batch process run after business hours closes the day — applying interest accruals, generating reports/statements, updating account balances for standing instructions, and reconciling the day's transactions across all branches.
☀️
Beginning of Day (BOD)
A batch process run before business hours opens the next day — carrying forward closing balances, applying date-dependent changes (interest rate resets, maturity processing), and preparing the system for fresh transactions.
💡
Memory Trick: "EOD Closes, BOD Opens"
EOD and BOD are bank-wide batch jobs, not manual branch tasks — a single failed/delayed EOD/BOD run can hold up business hours system-wide, which is why banks treat these processes with high operational criticality.
5 Password Control & Parameter/Master File
🔑
Password Control
CBS enforces password complexity, periodic mandatory change, and lockout after repeated failed attempts — a first-line defence against unauthorised system access.
⚙️
Parameter/Master File
Centralised configuration data (interest rates, product codes, branch codes, charge structures) that drives CBS behaviour uniformly across all branches; any authorised change here immediately affects every transaction referencing that parameter.
Why parameter control matters: Because a single parameter file drives system-wide behaviour, unauthorised or erroneous parameter changes (e.g., an incorrect interest rate code) can silently corrupt transactions bank-wide — making maker-checker controls on parameter changes a critical CBS safeguard.
6 Logical Access Control & Security in CBS
🔒
Role-Based Access Control (RBAC)
User access rights (view, enter, authorise) are assigned per role/designation — a teller can enter transactions but typically cannot authorise their own, enforcing segregation of duties.
✅
Maker-Checker Principle
Every significant transaction/change requires two distinct users — one who "makes" (enters) it, another who "checks" (authorises) it — preventing a single individual from committing fraud unilaterally.
📋
Audit Trail
CBS logs every transaction/change with the user ID, timestamp, and action taken, enabling forensic review and accountability.
🏦
Bank's Roles & Responsibilities Under CBS
Ensuring adequate staff training, periodic access-rights review (removing dormant/ex-employee IDs), and Information System (IS) audit compliance are ongoing bank responsibilities under the CBS environment.
7 Data Warehousing & Data Mining
📊
From Live Transactions to Business Insight
A data warehouse consolidates historical data from the CBS (and other systems) into a separate, analytics-optimised repository, so heavy analytical queries don't slow down live transaction processing. Data mining then applies statistical/pattern-recognition techniques to this warehoused data — powering customer segmentation, cross-sell targeting, fraud pattern detection, and credit risk scoring.
✓ Key Takeaways
CBS centralises all branches onto one database, enabling "anywhere banking," replacing the earlier isolated Total Branch Automation model.
LAN/WAN and UPS form the essential connectivity and power-continuity infrastructure; a DR site backs up the primary Data Centre.
EOD/BOD are critical daily batch processes closing and opening the business day system-wide.
The Parameter/Master File drives system-wide CBS behaviour, requiring strict maker-checker control over changes.
Logical access control (RBAC, maker-checker, audit trails) enforces segregation of duties and accountability.
Data warehousing/mining extracts business intelligence from historical CBS data without burdening live transaction systems.
📝 Top 50 JAIIB-Style MCQs on Bank Computerisation & CBS Environment
Test your understanding with these 50 practice MCQs, closely modelled on the JAIIB (PPB) exam pattern. Each question has 5 options — the correct answer is hidden by default; tap "Show Answer" to reveal it along with a short explanation.
💻 Bank Computerisation Basics
1 Total Branch Automation (TBA), predating CBS, involved:
A. Each branch running its own isolated database
B. All branches sharing one centralised database
C. No computerisation of any kind
D. Only ATM networks, with no branch systems
E. A cloud-only model with no branch involvement
Answer: A. TBA involved isolated, branch-level databases.
2 CBS enables "anywhere banking" because:
A. All branches connect to a single, centralised database
B. Each branch still maintains a separate database
C. Customers can only transact at their home branch
D. CBS has no connection to database centralisation
E. Anywhere banking predates CBS entirely
Answer: A. A single centralised database enables anywhere banking.
🌐 Networking & UPS
3 A WAN connects:
A. Branches to the central Data Centre over a wide geographic area
B. Only devices within a single room
C. Only two computers on the same desk
D. Nothing; WAN has no networking function
E. Only ATMs, excluding branches
Answer: A. WAN connects branches to the Data Centre over wide areas.
4 A UPS primarily protects against:
A. Abrupt shutdowns during power outages that could corrupt data
B. Network hacking attempts
C. Cheque forgery
D. Currency counterfeiting
E. Foreign exchange fluctuations
Answer: A. UPS prevents power-outage-related shutdowns/data corruption.
5 A Disaster Recovery (DR) site is:
A. A geographically separate site maintaining a synchronised replica of the primary Data Centre
B. Located in the same building as the primary Data Centre
C. Never activated under any circumstance
D. A backup for ATM cash only
E. Unrelated to CBS operations
Answer: A. DR site is a geographically separate, synchronised backup.
🏦 Core Banking Functions
6 Under CBS, a transaction initiated via mobile banking updates:
A. The customer's account balance in real time, system-wide
B. Only the home branch's isolated ledger
C. No balance at all
D. Only after a 6-month delay
E. Only if manually re-entered at the branch
Answer: A. CBS updates balances in real time, system-wide.
7 A key advantage of CBS over the earlier branch-isolated model is:
A. Elimination of inter-branch reconciliation delays
B. Increased reconciliation delays
C. Loss of all transaction records
D. No advantage of any kind
E. Restriction of customers to a single branch
Answer: A. CBS eliminates inter-branch reconciliation delays.
🌙☀️ EOD/BOD
8 End of Day (EOD) processing includes:
A. Applying interest accruals and generating reports/statements
B. Opening new accounts exclusively
C. Nothing related to interest or reports
D. Only ATM cash replenishment
E. Customer KYC verification only
Answer: A. EOD applies interest accruals and generates reports.
9 Beginning of Day (BOD) processing includes:
A. Carrying forward closing balances and applying date-dependent changes
B. Closing the bank permanently
C. Deleting all customer records
D. Nothing related to balances
E. Only physical cash counting
Answer: A. BOD carries forward balances and applies date-dependent changes.
10 EOD/BOD are best described as:
A. Bank-wide batch processes, not manual branch tasks
B. Manual tasks performed by each branch individually with no automation
C. Irrelevant to CBS operations
D. Optional processes rarely run
E. Customer-initiated processes
Answer: A. EOD/BOD are bank-wide automated batch processes.
🔑 Password & Parameter Control
11 CBS password controls typically include:
A. Complexity requirements, periodic mandatory change, and lockout after failed attempts
B. No password requirements at all
C. A single, permanent password never changed
D. Sharing passwords freely among staff
E. Displaying passwords publicly
Answer: A. Complexity, periodic change, and lockout are standard password controls.
12 The Parameter/Master File in CBS contains:
A. Centralised configuration data like interest rates and product codes
B. Only customer photographs
C. Nothing of operational significance
D. Only ATM PIN numbers
E. Only branch holiday lists
Answer: A. The Parameter/Master File holds centralised config data.
13 An erroneous parameter file change can:
A. Silently corrupt transactions bank-wide
B. Have no effect on any transaction
C. Affect only a single, isolated branch
D. Only affect ATM hardware
E. Improve system performance automatically
Answer: A. A bad parameter change can silently corrupt bank-wide transactions.
🔒 Logical Access Control
14 The maker-checker principle requires:
A. Two distinct users — one to enter and another to authorise a transaction/change
B. A single user to both enter and authorise every transaction
C. No authorisation of any kind
D. Only the branch manager can ever enter transactions
E. Customer authorisation for every internal bank change
Answer: A. Maker-checker requires two distinct users for entry and authorisation.
15 Role-Based Access Control (RBAC) assigns access rights based on:
A. The user's role/designation
B. Random selection with no criteria
C. The customer's own preference
D. The time of day only, with no role consideration
E. No access differentiation exists
Answer: A. RBAC assigns access per role/designation.
16 An audit trail in CBS logs:
A. The user ID, timestamp, and action for every transaction/change
B. Nothing at all
C. Only the bank's annual profit figures
D. Only customer complaints
E. Only ATM cash levels
Answer: A. Audit trails log user ID, timestamp, and action.
17 Banks should periodically review CBS access rights to:
A. Remove dormant/ex-employee IDs
B. Add unnecessary access to every employee
C. Ignore any inactive accounts
D. Eliminate all password requirements
E. Grant customers direct database access
Answer: A. Periodic review removes dormant/ex-employee access.
📊 Data Warehousing & Mining
18 A data warehouse is used primarily for:
A. Analytics on consolidated historical data, separate from live transaction processing
B. Live, real-time transaction processing exclusively
C. Storing only ATM cash inventories
D. Replacing the CBS entirely
E. No analytical purpose whatsoever
Answer: A. A data warehouse supports analytics separate from live processing.
19 Data mining on warehoused data supports:
A. Customer segmentation, cross-sell targeting, and fraud pattern detection
B. No business use whatsoever
C. Only physical cash counting
D. Only branch cleaning schedules
E. Only ATM hardware maintenance
Answer: A. Data mining supports segmentation, cross-sell, and fraud detection.
20 Data warehousing separates analytical queries from live transaction processing primarily to:
A. Prevent heavy analytical queries from slowing down live CBS operations
B. Slow down customer transactions deliberately
C. Eliminate the need for any CBS system
D. Increase transaction processing time
E. Have no performance-related purpose
Answer: A. Separation prevents analytics from slowing live operations.
🧩 Mixed / Comprehensive
21 Which of the following best explains why CBS is considered a prerequisite for modern digital banking channels (UPI, mobile banking)?
A. Digital channels need real-time access to a centralised, always-current account database, which only CBS provides
B. Digital channels have no dependency on any centralised database
C. CBS was developed after digital banking channels, with no prerequisite relationship
D. Isolated branch databases work equally well for digital channels
E. CBS has no connection to mobile or UPI banking
Answer: A. Digital channels require CBS's real-time, centralised database access.
22 Which of the following would be an appropriate consequence of a delayed/failed EOD batch run at a bank?
A. Business hours the next day could be delayed system-wide until EOD/BOD processing completes
B. No consequence would follow regardless of delay
C. Only a single ATM would be affected
D. Customer accounts would be permanently deleted
E. The bank's physical branches would need to close permanently
Answer: A. A delayed EOD/BOD run can hold up system-wide business hours.
23 Which of the following would be an appropriate reason a bank enforces maker-checker even for routine, low-value transactions in some cases?
A. It creates a consistent control culture, reducing the risk of unauthorised or erroneous entries across all transaction types
B. Maker-checker applies only to the largest transactions, never routine ones
C. Low-value transactions carry no fraud/error risk at all
D. Maker-checker has no relevance to routine transaction processing
E. Consistent controls increase operational risk
Answer: A. Consistent maker-checker culture reduces error/fraud risk broadly.
24 Which of the following best explains why the shift from TBA to CBS is considered a major banking technology milestone?
A. It fundamentally changed the customer experience (anywhere banking) and enabled real-time, integrated risk/operational management across the bank
B. TBA and CBS are functionally identical with no meaningful difference
C. The shift had no impact on customer experience or bank operations
D. CBS made banking slower and less integrated than TBA
E. Anywhere banking was already possible under TBA
Answer: A. CBS transformed customer experience and enabled real-time, integrated operations.
25 Which of the following would be an appropriate IS audit finding related to logical access control?
A. Several ex-employees' CBS login IDs remain active months after their exit
B. All access IDs are promptly deactivated on employee exit
C. Maker-checker is consistently enforced with no exceptions
D. Password policies are strictly followed
E. Audit trails are comprehensive and regularly reviewed
Answer: A. Active ex-employee IDs are a classic access-control audit finding.
26 Which of the following would be an appropriate reason a bank's DR site is tested periodically through drills?
A. To verify the DR site can actually take over operations smoothly if the primary Data Centre fails, not just in theory
B. DR drills serve no operational verification purpose
C. DR sites never need any testing once established
D. Drills are conducted only for marketing purposes
E. DR sites are purely decorative infrastructure
Answer: A. DR drills verify actual failover capability, not just theoretical readiness.
27 Which of the following would be an appropriate reason to restrict direct database write-access to only a small set of authorised CBS administrators?
A. Uncontrolled direct database access bypasses application-level controls (like maker-checker), creating significant fraud/error risk
B. Direct database access carries no additional risk compared to normal application use
C. Every bank employee should have unrestricted direct database access
D. Application-level controls are irrelevant once CBS is implemented
E. Restricting access has no security rationale
Answer: A. Unrestricted direct database access bypasses key application controls.
28 Which of the following would be an appropriate application of data mining for credit risk management?
A. Analysing historical loan performance data to build predictive credit scoring models
B. Data mining has no application to credit risk
C. Only live transaction data, never historical data, is used for credit scoring
D. Credit risk scoring is unrelated to any data analysis
E. Data mining is used exclusively for marketing, never risk management
Answer: A. Historical performance data mining supports predictive credit scoring.
29 Which of the following would be an appropriate reason banks maintain redundant network connectivity (e.g., primary + backup link) to branches?
A. To ensure continued CBS connectivity if the primary link fails, avoiding branch-level service disruption
B. Redundant connectivity serves no operational continuity purpose
C. A single, non-redundant link is always sufficient with no risk
D. Network redundancy applies only to ATMs, never branches
E. Backup links are purely cosmetic infrastructure
Answer: A. Redundant connectivity avoids branch disruption if the primary link fails.
30 Which of the following would be an appropriate reason a bank's password policy mandates periodic change rather than a permanent, one-time password?
A. Periodic change limits the window during which a compromised password remains exploitable
B. Permanent passwords are always more secure than periodically changed ones
C. Password change has no security benefit
D. Periodic change policies are banned under RBI's cyber security framework
E. Password change increases the risk of compromise
Answer: A. Periodic change limits a compromised password's exploitation window.
31 Which of the following would be an appropriate reason a bank's staff training programme includes CBS-specific modules?
A. Staff must understand correct data entry, access protocols, and escalation procedures to avoid operational errors in a centralised system
B. CBS training has no relevance to staff operational competence
C. Staff need no training on any banking technology system
D. Centralised systems require less staff competence than isolated systems
E. CBS-specific training is required only for IT department staff
Answer: A. Staff need CBS-specific training to avoid operational errors in a centralised system.
32 Which of the following would be an appropriate description of "segregation of duties" as applied in a CBS environment?
A. No single individual should have both the ability to initiate and fully approve a critical transaction or system change
B. A single employee should handle every step of every transaction alone
C. Segregation of duties has no relevance to CBS security
D. Only IT staff need any segregation of responsibilities
E. Segregation of duties applies only to physical cash handling, never digital systems
Answer: A. No single person should both initiate and approve a critical action — core segregation of duties.
33 Which of the following would be an appropriate reason a bank encrypts data transmitted over its WAN between branches and the Data Centre?
A. To protect sensitive customer/transaction data from interception during transmission
B. Encryption has no security purpose for network transmission
C. Data transmitted over a WAN carries no interception risk
D. Encryption is required only for data at rest, never data in transit
E. WAN transmission is inherently secure with no need for encryption
Answer: A. Encryption protects data from interception during network transmission.
34 Which of the following would be an appropriate reason a Recovery Time Objective (RTO) and Recovery Point Objective (RPO) are defined for a bank's DR strategy?
A. They set measurable targets for how quickly systems must be restored (RTO) and how much data loss is tolerable (RPO) in a disaster scenario
B. RTO and RPO have no relevance to disaster recovery planning
C. RTO measures data loss while RPO measures downtime, reversed from their actual definitions
D. These metrics apply only to marketing campaigns, not IT systems
E. RTO and RPO are identical, redundant metrics with no distinction
Answer: A. RTO/RPO set measurable recovery-time and data-loss-tolerance targets.
35 Which of the following would be an appropriate reason a bank restricts parameter file changes to a small, specially authorised team?
A. Given the system-wide impact of parameter changes, tight control minimises the risk of erroneous or unauthorised bank-wide disruption
B. Parameter changes have no system-wide impact requiring control
C. Every branch employee should be able to freely modify parameters
D. Restricting parameter access increases operational risk
E. Parameter files are unrelated to any operational risk
Answer: A. Tight parameter-change control minimises system-wide disruption risk.
36 Which of the following would be an appropriate description of why CBS made "any branch banking" possible where TBA could not?
A. Under TBA, a customer's data existed only at their home branch's isolated database, so other branches had no way to access it
B. TBA already allowed full any-branch access, identical to CBS
C. Any-branch banking has no dependency on database architecture
D. TBA used a centralised database, same as CBS
E. Home branch restrictions were unrelated to TBA's architecture
Answer: A. TBA's isolated, home-branch-only data prevented any-branch access.
37 Which of the following would be an appropriate reason a bank's Board reviews IT/CBS-related risk as part of its overall risk management framework?
A. CBS failures or security lapses can have bank-wide financial, operational, and reputational consequences requiring senior oversight
B. IT risk has no bearing on a bank's overall risk profile
C. Board-level oversight is required only for credit risk, never IT risk
D. CBS-related risks are always negligible and require no senior attention
E. IT risk management is solely the IT department's concern, with no Board involvement
Answer: A. CBS risks carry bank-wide consequences warranting Board-level oversight.
38 Which of the following would be an appropriate way EOD reports support a bank's regulatory reporting obligations?
A. EOD-generated data (balances, transaction summaries) feeds into periodic regulatory returns submitted to RBI
B. EOD reports have no connection to regulatory reporting
C. Regulatory returns are compiled entirely without any CBS-generated data
D. EOD processing is unrelated to any external reporting requirement
E. Regulatory reporting occurs only once a decade, unrelated to daily processing
Answer: A. EOD-generated data feeds into regulatory reporting to RBI.
39 Which of the following would be an appropriate reason a bank implements "least privilege" access as part of its logical access control policy?
A. Users should have only the minimum access necessary for their role, limiting potential damage from compromised credentials or insider misuse
B. Every user should have full, unrestricted access regardless of role
C. Least privilege has no bearing on security risk
D. Access should be granted randomly with no role-based logic
E. Least privilege applies only to customers, never bank staff
Answer: A. Least privilege limits potential damage from compromised/misused credentials.
40 Which of the following would be an appropriate reason data warehousing supports better decision-making for bank management compared to querying the live CBS directly?
A. The warehouse consolidates and structures historical data specifically for complex trend/pattern analysis without risking live-system performance
B. Querying the live CBS directly is always faster and safer for analytics
C. Data warehouses contain no historical data, only live transactions
D. Warehousing has no advantage over direct live-system queries
E. Management decisions never rely on any data analysis
Answer: A. A warehouse structures data for analysis without risking live-system performance.
41 Which of the following would be an appropriate example of "IS Audit" scope within the CBS environment (covered further in the Security Considerations topic)?
A. Reviewing access controls, change management processes, and system configurations for compliance and risk
B. IS Audit has no scope related to CBS at all
C. IS Audit reviews only physical branch cleanliness
D. IS Audit is performed exclusively by external customers
E. IS Audit reviews only marketing materials
Answer: A. IS Audit reviews access controls, change management, and configurations.
42 Which of the following would be an appropriate reason a bank tests its EOD/BOD batch jobs in a staging/test environment before deploying changes to production?
A. To catch errors before they affect the live, bank-wide production system, given EOD/BOD's critical operational role
B. Testing in staging serves no risk-mitigation purpose
C. Changes should always be deployed directly to production without testing
D. EOD/BOD batch jobs never require any testing
E. Staging environments are used only for marketing website changes
Answer: A. Staging tests catch errors before they hit the critical live production system.
43 Which of the following would be an appropriate reason a customer's transaction history is retained in the data warehouse even after the underlying account is closed?
A. Historical data retention supports regulatory record-keeping requirements and long-term analytical/audit needs
B. Closed account data is always deleted immediately with no retention
C. Data retention has no regulatory or analytical purpose
D. Warehouses retain only currently active account data
E. Retention rules apply only to loan accounts, never deposit accounts
Answer: A. Retention supports regulatory record-keeping and long-term analysis.
44 Which of the following would be an appropriate description of why CBS vendors and banks conduct periodic patching/version upgrades?
A. To fix security vulnerabilities, improve performance, and add regulatory-required features over time
B. Patching has no security or functional benefit
C. CBS software, once installed, never requires any update
D. Version upgrades are purely cosmetic with no functional change
E. Patching is performed only once, at initial installation
Answer: A. Patching fixes vulnerabilities and adds needed features/performance improvements.
45 Which of the following would be an appropriate reason a bank's network architecture separates the customer-facing internet banking servers from the core CBS database via a DMZ (demilitarised zone)?
A. It adds a security buffer, reducing the risk of direct external attacks reaching the core banking database
B. DMZ architecture increases direct exposure of the core database to the internet
C. Network segmentation has no security benefit
D. Internet banking servers should connect directly to the CBS database with no intermediary layer
E. DMZ is unrelated to banking network security
Answer: A. A DMZ buffers the core database from direct external attack exposure.
46 Which of the following would be an appropriate summary of the relationship between logical access control and the bank's overall fraud-prevention strategy?
A. Strong logical access control (RBAC, maker-checker, audit trails) forms a foundational layer of internal fraud prevention within the CBS environment
B. Logical access control has no connection to fraud prevention
C. Fraud prevention relies solely on external, customer-facing measures, never internal controls
D. Access control and fraud prevention are entirely separate, unrelated bank functions
E. Only physical security measures contribute to fraud prevention
Answer: A. Access controls form a foundational internal fraud-prevention layer.
47 Which of the following would be an appropriate reason bank management reviews EOD exception reports daily?
A. To promptly identify and address unusual transactions, failed postings, or reconciliation breaks flagged during the EOD process
B. Exception reports are never reviewed by management
C. EOD processing generates no exception data of any kind
D. Exception review is performed only once a year
E. Exception reports are relevant only to marketing decisions
Answer: A. Daily exception review promptly flags unusual transactions/reconciliation issues.
48 Which of the following would be an appropriate way to distinguish "physical security" from "logical access control" in banking technology?
A. Physical security protects hardware/premises (data centres, servers); logical access control governs who can access data/systems electronically
B. Both terms refer to the exact same set of controls with no distinction
C. Physical security governs electronic access, while logical access control protects hardware
D. Only one of the two categories is relevant to banking technology
E. Physical security has no relevance to a Data Centre
Answer: A. Physical security protects premises/hardware; logical access controls electronic system access.
49 Which of the following best summarises why "Essentials of Bank Computerisation" and "Operational Aspects of CBS" are combined as one JAIIB topic?
A. Understanding the underlying infrastructure (networking, UPS, DC/DR) is foundational to understanding how CBS actually operates day-to-day (EOD/BOD, access control, parameters)
B. These two areas have no logical connection to each other
C. CBS operations have no dependency on underlying infrastructure
D. Infrastructure topics belong only to a hardware engineering course, unrelated to banking
E. Combining these topics serves no pedagogical purpose
Answer: A. Infrastructure understanding is foundational to grasping day-to-day CBS operations.
50 Overall, which statement best summarises this topic?
A. Bank computerisation evolved from isolated TBA to centralised CBS (enabling anywhere banking) built on networking/UPS/DR infrastructure, running daily EOD/BOD batch cycles, governed by password/parameter controls and logical access control (RBAC, maker-checker, audit trails), with data warehousing/mining extracting business intelligence from historical data
B. CBS and TBA are functionally identical systems
C. EOD/BOD processes have no operational significance
D. Logical access control has no role in a CBS environment
E. Data warehousing replaces the need for any CBS transaction processing
Answer: A. This correctly captures the full bank computerisation/CBS operations framework.
Disclaimer: This article is prepared for educational and exam-preparation purposes only, summarising bank computerisation and CBS practices as of September 2026. Candidates should cross-check the latest official IIBF syllabus before the exam.