ENROLLMENT NUMBER

Amity University Haryana

BBA (B&F)
Fifth Semester End Term Examinations – November-December, 2018
Course Title – Retail Banking
Course Code: MBF2504
Exam Dept. Ref.: lq664f
Time: 3 Hours Maximum Marks: 70
Note: This question paper has three sections : Section A, Section B and Section C.
Attempt (i) Any FIVE from Sec.-A.
(ii) Any TWO from Sec.-B.
(iii) Section-C is compulsory.

Section –A (Attempt any five questions) 30 Marks

(Each question carries 6 marks)

1. Retailing is a high tech industry. Justify in favor or against as you choose.

2. Compare and contrast corporate vs. Retail banking.

3. List facilities offered for current account. What more can be added as services?

4. List documents required for housing loan origination.

5. Give your vision on future of retail banking.

6. What products available in bancassurance?

Section – B (Attempt any two questions) 20 Marks

(Each question carries 10 marks)

7. With suitable illustration describe the cycle of operative account from origination to
closure.

8. In the B2B, the bank role is to provide a reliable payment infrastructure that adds value
to corporate business. Explain the role internet banking and electronic banking for
anytime, anywhere banking.

9. Issues in retailing include :

a) Best serve customers while earning a fair profit.
b) Stand out in a highly competitive environment where consumers have too many
choices.
c) Grow business, while retaining a core of loyal customers.
Using the example of housing loan give your inputs how these goals are met.

Section C (Compulsory) 20 Marks

10. The Unique Identification Authority of India has withdrawn electronic know-your-
customer facilities for multiple Indian banks and authentication agencies for failing to
meet targets on enrolment and updating citizen information for its Aadhaar biometric
database.

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The authority suspended electronic customer verification services for 13 banks and
Aadhaar authentication agencies (AUA) after it found them performing dismally on
their targets. UIDAI has since restored the facility after they assured the authority that
they would undertake corrective measures and meet their targets.

For banks, the suspension affected several financial services they offer linked to the
authentication facility. Overall, 30-35 million Aadhaar enrolment and updating
services are undertaken every day at banks and authentication agencies. A UIDAI
official confirmed that the authority had restored the verification facility for five
banks/AUAs. For the other eight banks/AUAs, restoration is subject to compliance, he
said. “These 13 AUAs/banks were much short of the enrolment/update targets despite
repeated requests,” the official said.

“They were turning back people from their premises and were causing hardship and
inconvenience to the people. Therefore, UIDAI, as per the Aadhaar Act and its
regulations, kept on hold the e-KYC facilities of these banks/AUAs due to non-
compliance of its directions.” the offical added. He did not disclose the names of the
banks and Aadhaar authentication agencies UIDAI pulled up, citing contractual
obligations.

UIDAI last year decided to locate enrolment centers within banks and government
offices owning to increased instance of frauds and data hacks at private centers.
Section 12A of Aadhaar (Enrolment and Update) Regulations mandates banks to set up
Aadhaar enrolment facilities in at least one out of every 10 branches.

Banks can digitally authenticate customers for multiple financial services by using the
e-KYC facilities provided by UIDAI. The National Payments Corp of India, too, offers
Aadhaar-enabled payments where banks need to identify customers through their
biometrics for payments. In many instances, borrowers are on-boarded directly through
e-KYC.

“Banks are also doing multiple activities from promoting financial inclusion to digital
payments, and the regulatory pressure caused a few of them to fall behind their targets.
Now, they will have to install additional support at their branches for Aadhaar
enrolment,” said another person mentioned above.

Questions
a) Why is know-your-customer important for bank?

b) Why did bank turn back people from their premises? What is the solution for
future?

c) What are activities for promoting financial inclusion to digital payments that banks
can do?

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