Chapter 18: Delivery Channels in Retail Banking (JAIIB – Paper 4)
1. What does the term 'channel experience' in retail banking primarily refer to?
A. Profitability of the branch
B. Number of products offered by the bank
C. Customer’s interaction and satisfaction with banking channels
D. Technology used in back-office operations
Channel experience focuses on how customers perceive and interact with the bank’s various delivery channels, ensuring convenience, speed, and satisfaction.
2. Which of the following is considered a physical/direct banking channel?
A. Mobile banking app
B. Bank branch
C. Internet banking
D. WhatsApp banking
Physical/direct channels include traditional branch banking where customers interact face-to-face with bank staff.
3. What is one key advantage of physical branch channels over digital channels?
A. Personal interaction and advisory support
B. 24x7 availability without staff
C. Lower operational costs
D. Instant digital transfers
Branches provide face-to-face interaction, allowing personalized service, advisory, and assistance that digital channels may lack.
4. A bank wants to improve the customer channel experience in its branches. Which of the following is most effective?
A. Reducing interest rates on deposits
B. Launching a new mobile banking app
C. Advertising on TV channels
D. Shortening waiting times and providing personalized assistance
Improving channel experience involves making the customer journey smoother in the branch, including faster service and personalized attention.
5. Which of the following statements is true regarding direct/physical channels in retail banking?
A. They are completely independent of staff availability
B. They cannot provide personalized services
C. They require face-to-face interaction and are staff-dependent
D. They are always cheaper than digital channels
Direct channels like branches require staff presence for operations and allow personalized services through face-to-face interaction.
6. What is the primary function of an Automated Teller Machine (ATM)?
A. Only to deposit cash
B. To allow customers to withdraw cash, deposit, check balance, and perform other banking transactions
C. Only to transfer funds online
D. Only to issue cheques
ATMs provide round-the-clock access for cash withdrawal, balance inquiry, fund transfers, and sometimes deposits, enhancing customer convenience.
7. Point of Sale (POS) terminals are primarily used for:
A. Cash withdrawal from bank accounts
B. Internet banking login
C. Electronic payment for goods and services using cards
D. Printing bank statements
POS terminals allow cardholders to make payments directly at merchant outlets electronically, reducing the need for cash transactions.
8. Which of the following is a major advantage of mobile banking for customers?
A. 24x7 access to banking services from anywhere
B. Requires visiting the branch every time
C. Only allows cash deposits
D. Cannot be used for fund transfers
Mobile banking provides convenient, round-the-clock access to account information, fund transfers, bill payments, and other banking services without visiting a branch.
9. Which of the following is NOT a function of an ATM?
A. Cash withdrawal
B. Balance inquiry
C. Fund transfer between own accounts
D. Issuing demand drafts
ATMs cannot issue demand drafts; they are mainly for cash withdrawal, deposits, balance inquiry, and fund transfers.
10. In the context of retail banking, which channel is considered the most convenient for instant card payments at a store?
A. Branch visit
B. Internet banking
C. POS terminal
D. Cheque payment
POS terminals are used for real-time card payments at merchant outlets, providing convenience and reducing cash usage.
11. Which of the following is a primary feature of Internet Banking?
A. Only cash withdrawals at ATM
B. Accessing bank account and performing transactions online 24x7
C. Visiting the branch for every transaction
D. Printing physical cheques only
Internet Banking allows customers to access their accounts and perform transactions like fund transfer, bill payment, and account management online anytime, without visiting the branch.
12. What is the main security measure that banks use to authenticate Internet Banking users?
A. ATM swipe
B. Cheque signature
C. Two-factor authentication using passwords and OTP
D. Physical branch visit
Banks use two-factor authentication (password + OTP) to secure Internet Banking and protect customer accounts from unauthorized access.
13. If a customer’s account is debited due to an unauthorized electronic transaction, who is primarily liable according to RBI guidelines?
A. The customer is generally not liable if the transaction is reported promptly
B. The customer is always liable
C. The merchant
D. The Internet service provider
As per RBI guidelines, if the customer reports unauthorized transactions promptly, the bank bears the liability. Delays or negligence may affect customer liability.
14. Which of the following actions can a customer take to minimize liability on unauthorized electronic transactions?
A. Sharing OTP with family members
B. Writing password on a notepad
C. Using weak and repeated passwords
D. Immediately reporting lost cards or unauthorized access and maintaining confidentiality of credentials
Prompt reporting of lost credentials or unauthorized transactions and maintaining confidentiality of PIN/OTP minimizes customer liability as per banking regulations.
15. Internet Banking users are advised to regularly check their account statements because:
A. It increases bank profits
B. It helps detect unauthorized transactions early
