Banking and Insurance

St. Joseph’s College of Commerce B.B.M. 2014 II Sem Banking And Insurance Question Paper PDF Download

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  1. JOSEPH COLLEGE OF COMMERCE (Autonomous)

END SEMESTER EXAMINATION – APRIL 2014

BBM – IV Semester

BANKING AND INSURANCE

Duration : 3 hrs                                                                                           Max. Marks: 100

 

Section – A

  1. Answer ALL the Each carries 2 marks.                             (10×2=20)

 

  1. What is a Scheduled bank?
  2. Explain any four monetary tools of RBI.
  3. What do you mean by holder in due course?
  4. What is Re-insurance?
  5. Elucidate on any two risk handling techniques.
  6. Differentiate between an underwriter and an actuary.
  7. Name any four areas where actuaries work.
  8. What is the eligibility to register as an agent?
  9. Explain any two forms of general relationship shared between a banker and customer.
  10. What do you mean by management of deposits?

 

Section – B

 

  1. II) Answer any FOUR Each carries 5 marks. (4×5=20)

 

  1. Explain the types of banks based on organization structure.
  2. What are the factors to be considered while advancing a loan?
  3. Bring out the special relationship between the banker and the customer.
  4. Differentiate between Reinsurance and Double insurance.
  5. Write a short note on RMIS.
  6. Analyse the rights and duties of an insurance agent.

Section – C

 

III) Answer any THREE   questions. Each carries 15 marks.                         (3×15=45)

 

  1. What are the different types of risks and what are the steps taken to control risk?
  2. Throw light upon the principles of Insurance.
  3. Ganesh sells a truck to Chandru.

In lieu of this Chandru draws a cheque for Rs10,00,000 and gives it to Ganesh. Ganesh loses the Cheque.A day after the loss of the cheque, the money had left Chandru’s account.

What should Chandru do in future in order to protect his cheques? What are the different kinds of instructions a drawer can give the banker on the face of a cheque?

 

  1. “ Reserve Bank of India is the apex bank of the country.” Elucidate on the functions of RBI.
  2. Explain the different types of Insurance.

 

Section – D

 

  1. IV) Compulsory question – Case study.    (1×15=15)

22.

The environment within which financial institutions operate has changed

in recent years. It is now one of:

◗ increased competition,

◗growing product commoditisation, and

◗ diminishing margins.

Banking customers have also changed in recent years. Customers are more knowledgeable, sophisticated, and assertive. They demand higher levels of customer service, are less loyal, and more inclined to switch to a competitor. Modern customers require flexibility in hours of operation, greater convenience, customisation, transparency, accessibility, and control.Competition to attract new customers is fierce. With so many different financial institutions to choose from, consumers can now demand better quality services and more customised products from their banks. Within AIB, this has led to a shift in business focus from transactional to relationship marketing. At AIB the customer is at the centre of all business activities and the bank has organised to position staff to meet the needs of customers in a highly customised and responsive manner.

AIB Group is Ireland’s leading banking and financial services organisation. It employs approximately 25,000 people worldwide in more than 800offices. AIB has approximately 1.5m active customers.AIB has access to information about its customers’ financial history andtheir dealings with the bank, as well as demographic information. Thisinformation is updated regularly.  Analysing this data can help the bankidentify the customers’ present and future financial needs. This deeperunderstanding of customers helps the bank provide solutions to meet

individual customer needs. A successful CRM ( Customer relationship management) system involves all people,processes, and information technology associated with marketing, sales,and customer service.

 

AIB’S CRM STRATEGY:

AIB recognises that customers are the lifeblood of thebusiness and that the way to protect and grow itscustomer base – and ultimately its profitability – is to build

strong customer relationships through delivery of superiorquality service and to meet customer needs better than thecompetition.The CRM approach adopted by AIB focuses on maximizing value for the customer and the bank.

Research has shown that the key drivers ofcustomer loyalty are positive staff attitude; honesty, integrity, and reliability;proactive advice and delivery of promise; consistent delivery of superior qualityservice; simplicity and ease of doing business; good after-sales service; and a fair and efficient complaints resolution policy.AIB has approximately 1500 Relationship Managers, eachdesignated as the prime contact for an assigned group ofcustomers. Relationship managers proactively contact customers and offer customised products and services in a timely manner. Understanding thecustomers growing needs for choice, convenience, and an anytime/anywhere banking service, AIBprovides access for customers to products andservices through a number of other deliverychannels such as the 24-hour call centre, internet, and ATM network. The relationship managers, branch service staff, and call-centre staff have participated in CRM training andhave developed their relationship and service skills, toenhance their customer interactions, employees have more time to serve customers and fulfil orders,have higher satisfaction ratings.

 

CONCLUSION

By developing and utilising an effective CRM system, AIB has positioneditself as a leading provider of superior quality financial products andservices. AIB observed the changing financial services industry and itscustomers and adapted accordingly. It has been successful because AIB wasflexible enough to change its overall business strategy. Staying abreast ofcurrent industry and market trends while focusing on your most valuableasset, your customers, is proving a smart way to stay ahead in business.

 

Questions:

 

  1. Write a short note on the relationship between banker and customer.

 

  1. Do you think CRM enhances the relationship shared between the banker and customer? How?

 

  1. What are the benefits of CRM for the customers, employees of AIB and for the company as a whole?

 

 

 

St. Joseph’s College of Commerce IV Sem Banking And Insurance Question Paper PDF Download

by
  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAM – MARCH / APRIL 2015

BBM –IV SEMESTER

M1 11 405: BANKING AND INSURANCE

Duration: 3 hrs.                                                                                        Max. Marks: 100

 

SECTION – A

 

  1. Answer ALL the questions. Each carries 2 marks. (10×2=20)

 

  1. Define Banking.
  2. Give the meaning of Currency Chest.
  3. Expand the following terms:
  • CRR (b) SFC        (c) CIBIL     (d) SLR
  1. What is meant by nomination?
  2. Who is a holder of value?
  3. Define risk management.
  4. State any two reasons for terminating an agent.
  5. Who is an insurer?
  6. Write a note on Actuary Society of India.
  7. Draft any four specimen of crossing of cheques.

 

SECTION – B

 

  1. Answer any FOUR the questions. Each carries 5 mark (4×5=20)

 

  1. What are the various types of loans and advances provided by a commercial bank?
  2. Bring out the advantages of branch banking.
  3. Enlist any ten circumstances in which a banker would refuse the payment of cheque.
  4. Briefly explain the types of insurance agents.
  5. Explain the functions of insurance.
  6. What are the advantages of reinsurance?

 

SECTION – C

  • Answer any THREE Each carries 15 marks. (3×15=45)

 

  1. Describe the functions of RBI.
  2. Bring out the features of a banker’s right of general lien. Also state any five circumstances under which a banker cannot exercise the right of general lien.
  3. Explain the different kinds of endorsements.
  4. Discuss the fundamental principles of life insurance.
  5. “Insurance plays a vital role in managing risk” – critically evaluate.

 

 

 

 

 

 

 

SECTION – D

 

  1. Case study          (1×15=15)

 

Online banking has become an accepted norm of monetary transactions for millions in India over the past decade. The ease with which a customer can check his account, make payments online and transfer money between accounts has made this mode of banking hugely popular among Indians who are perpetually short of time to visit the bank physically. Online banking also provides a host of non transactional features which are quite handy to the customer. However along with the world of conveniences this method of banking has a few inherent pitfalls which need to be understood in order to protect your money and avoid complications subsequently.       There are plenty of perks offered by banks to customers who adopt internet banking over the traditional visit physically to the nearest branch office.

Convenience is the single most important benefits that outweigh any shortcoming of internet banking. Making transactions and payments right from the comfort of home or office at the click of a button without even having to step out is a facility none would like to forego. Keeping a track of accounts through the internet is much faster and convenient as compared to going to the bank for the same. Even non transactional facilities like ordering check books online, updating accounts, enquiring about interest rates of various financial products etc become much simpler on the internet. The banks stand to gain significantly by the use of internet banking as it implies lesser physical effort from their end. The need to acquire larger spaces for offices and employ more staff to deal with the customers is significantly reduced making it financially beneficial to the banks. This means that a portion of savings accrued can be passed on to the customers in terms of higher rates on deposits and lower rates on loans. To encourage internet banking most banks offer minimum or no deposit accounts for online banking and lower penalties on early withdrawal of Fixed Deposits.

Technology has made it extremely convenient for the bank as well as the customer to access to a host of wonderful services by simply logging in. These services include financial planning capabilities, functional budgeting and forecasting tools, loan calculators, investment analysis tools and equity trading platforms which are available as simple applications on the bank’s website. Additionally most banks also provide the facility of online tax forms and tax preparation. Internet banking has a step further in the last few years in the form of mobile internet banking which accords unlimited mobility to the customer who can now handle financial transactions even while on the move. Another important benefit of the concept of internet banking is that it is good for the environment as it cuts down the usage of paper, reduces pollution as people do not have to travel physically and also does not add emissions. However the current trend of exclusively using the online mode to make all kinds of transactions has a few pitfalls which may prove costly in the long run unless guarded against from the beginning. Online transactions take a toll on the relationship with the banker which the traditional visit to the branch office used to foster. Personal relationship with the staff at the banks comes handy when requesting for faster loan approval or a special service which may not be available to the public. The manager has many discretionary powers such as waiving of penal interest or service fees which were often taken advantage of by better acquaintance with the staff.

Additionally personal contact also meant that the banker would provide essential financial advice and insights which are beneficial to the customer. There are many complex transactions which cannot be sorted out unless there is a face to face discussion with the manager that is not possible through internet banking. Solving specific issues and complaints requires physical visit to the bank and cannot be achieved through the internet. Online communication is neither clear nor pin pointed to help resolve many complex service issues. Certain services such as the notarization and bank signature guarantee cannot be accomplished online. Security is the biggest pitfall of the internet banking scheme which needs to be guarded against by the common customer. Despite the host of sophisticated encryption software is designed to protect your account there is always a scope of hacking by smart elements in the cyber world. Hacker attacks, phishing, malware and other unauthorized activity are not uncommon on the net. Identity theft is yet another area of grave concern for those who rely exclusively on internet banking. Most banks have made it mandatory to display scanned copies of cleared cheques online to prevent identity theft. It is essential to check bank’s security policies and protections while opening an account and commencing the usage of online banking facilities. Online banking is definitely a significant move in the right direction as far as the convenience of the customer as well as the banker are concerned but it must be applied with adequate precaution to avoid falling prey to unscrupulous elements poaching the internet.

     Questions:

  1. What is online banking? Bring out its importance to the banking sector.
  2. Enumerate the merits and demerits of online banking.
  3. Online Banking has to go a long way to reach Rural India as internet is generally inaccessible – Comment.

 

 

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