(1-15): Read the following passage carefully and answer these questions given
below it. Certain words/phrases have been printed in BOLD to help you locate
them while answering some of the questions.
As increasing dependence on information systems develops, the need for such
systems to be reliable and secure also becomes more essential. As growing
numbers of ordinary citizens use computer networks for banking, shopping, etc.,
network security is potentially a massive problem. Over the last few
years the need for computer and information system security has become
increasingly evident, as web sites are being defaced with greater frequency,
more and more denial-of-service attacks are being reported, credit card
information is being stolen, there is increased sophistication of hacking tools
that are openly available to the public on the Internet, and there is
increasing damage being caused by viruses and worms to critical information
organizational level, institutional mechanisms have to be designed in order to
review policies, practices, measures, and procedures to review e-security
regularly and assess whether these are appropriate to their environment. It
would be helpful if organizations share information about threats and
vulnerabilities, and implement procedures for rapid and effective cooperation
to prevent, detect and respond to security incidents. As new threat and
vulnerabilities are continuously discovered there is a strong need for
cooperation among organizations and, if necessary, we could also consider
cross-border information sharing. We need to understand threats and dangers
that could be vulnerable to and the steps that need to be taken to mitigate
these vulnerabilities. We need to understand success control systems and
methodology, telecommunication and network security, and security management
practice. We should be well versed in the area of application and systems
development security, cryptography, operations security and physical security.
sector is poised for more challenges in the near future. Customers of
banks can now look forward to a large array of new offerings by banks. From an era
of mere competition, banks are now cooperation among themselves so that the
synergistic benefits are share among all the players. This would result in the
formation of shared payment networks (a few shared ATM networks have already
been commissioned by banks), offering payment services beyond the existing time
zones. The Reserve Bank is also facilitating new projects such as the Multi
Application Smart Card project which, when implemented, would facilitate
transfer of funds using electronic means and in a safe and secure manner across
the length and breadth of the country, with reduced dependence on paper
currency. The opportunities of e-banking or e-power in general need to be
harnessed so that banking is available to all customers in such a manner that
they would feel most convenient, and if required, without having to visit a
branch of a bank. All these will have to be accompanied with a high level of
comfort, which again boils down to the issue of e-security.
biggest advantages accruing to banks in the future would be the benefits that
arise from the introduction of Real Time Gross Settlement (RTGS). Funds
management by treasuries of banks would be helped greatly by RTGS. With almost
70 banks having joined the RTGS system, more large value funds transfers are
taking place through this system. The implementation of Core Banking solutions
by banks is closely related to RTGS too. Core Banking will make anywhere
banking a reality for customers of each bank, while RTGS bridges the need for
inter-bank funds movement. Thus, the days of depositing a cheque for collection
and a long wait for its realization would soon be a thing of the past for those
customers who would opt for electronic movement of funds, using the RTGS
system, where the settlement would be on an almost instantaneous basis.
Core Banking is already in vogue in many private sector and foreign banks;
while its implementation is at different stages amongst the public sector
also facilitate better and more scientific decision making within banks.
Information systems now provide decision makers in banks with a great deal of
information which, along with historical data and trend analysis, help in the
building up of efficient Management Information Systems, This, in turn, would
help in better Asset Liability Management (ALM) which, in today’s would of
hairline margins, is a key requirement for the success of banks in their
operational activities. Another benefit which e-banking could provide for,
relates to Customer Relationship Management (CRM). CRM helps in stratification
of customers and evaluating customer need on a holistic basis which could be
paving the way for competitive edge for banks and complete customer care for
customers of banks.
threat of competition among banks providing tele-banking services
scientific advancements that have facilitated quicker and scientific banking
to on-line banking and remedies to guard against them
e-banking and its impact on global economy
according to the passage, is the prerequisite to lessen the threats of hacking?
Effective measures to combat vulnerability
gadgets to remedy damages
and timely prevention of the threat
mechanism to evaluate the e-security
way does IT catalyse better decision-making?
providing updated data and trend analysis.
providing increasing opportunities of personal contacts.
ensuring better asset-liability management.
Q4. What is the advantage of RTGS to the customers?
realization of cheque
withdrawal of cash
depositing of cash-loads
Availability of transaction facilities at any other bank
according to the author, should be the ultimate goal(s) of e-banking?
Avoidance of heavy footfall of customers in bank branches.
Protection of customers’ interests.
it obligatory that a system should be perfectly dependable?
justify escalating dependence on system
ensure security for the system
disallow any pilferage whatsoever
ascertain proper logistic support
the following is/are recommended by the author to ensure security of banking
Continuous re-examination of policies and procedures.
appropriateness of the security measures.
Cooperation among various users to identify and prevent threat.
the following statements definitely False in the context of the passage?
of funds to any part of the country through electronic media is under active
Cooperation among various competing banks is helpful to all of them in sharing
Assessment of customer needs and their clustering in homogeneous groups
provides competitive edge to banks.
citizens are also shared to transact on-line due to the following except
smuggling of vital information regarding credit cards
of hacking tools on the internet
by viruses to critical information
sophisticated, well-guarded on-line transaction devices
denial-of-service attacks that put valid customers to inconvenience
(10-12): Choose the word which MOST OPPOSITE in meaning to the word printed in
BOLD as used in, the passage.
(13-15): Choose the word which is most nearly the SAME in meaning as the word
printed in BOLD as used in the passage.
have facilitated quicker and scientific banking procedures
facilities at any other bank
on-line transaction devices
of being attacked or harmed, either physically or emotionally.
is a subdivision of an aeon and is itself subdivided into periods.
subdivided into ages, corresponding to a series in chronostratigraphy.
serious, or painful.