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Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA SEMESTER 3 EXAMINATION WINTER 2018
Subject Code:3539224 Date:12/12/2018
Subject Name: Banking and Insurance
Time: 10:30am To 01:30pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Marks
Q.1 Explain following terms
Reinsurance
Cash Reserve Ratio
Prime lending rate
RTGS
Indemnity
Disclosure Principle
NEFT
14
Q.2 Explain the role and function of IRDA 07
Compare life insurance, General Insurance and Health
Insurance
07
OR
"In the development of Indian Economy Insurance plays a
pivotal role". Discuss in detail
07
Q.3 Define Bank guarantee, highlight the precautions to be taken
for the issuance of Bank guarantee
07
Differentiate between Secured and Unsecured loan with
suitable examples
07
OR
Q.3 Discuss the monetary and non monetary functions of RBI 07
Explain briefly the recent trend in Indian Banking System 07
Q.4 What are marine losses? Explain various kinds of marine
losses in brief.
07
Explain in detail Lien, pledge and hypothecation with suitable
examples
07
OR
Q.4 What is a bill of exchange? How does it differ from a
promissory note?
07
What are the principle defects in Indian banking system? Give
suggestion to remove them
07
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Q.5
CASE STUDY:
ABN AMRO Bank started its India operations and like other foreign
multinational banks, focused primarily on wholesale banking, to service
top-tier corporate clients. This changed in the 1990s, when strategic
business imperatives and an increased level of competition both from
domestic and multinational banks in India led the bank to look at retail
banking as a key area for growth. In an effort to strengthen
its retail banking presence, ABN AMRO acquired Bank of America's
retail banking operations in India. As part of the acquisition, the bank
migrated to Bank of America's technology infrastructure, which was based
on ICBS solution from Fiserv, running on an IBM AS/400 platform.
However, the existing solution was not flexible enough to meet the
requirements of a competitive consumer banking environment, where
offering a range of products and services to customers across multiple
delivery channels is critical. With frequent maintenance requirements, the
platform was also proving to be a drain on the bank's resources. At the
same time, the focus at the bank was on reduction of TCO (Total Cost of
Ownership) and therefore, a mere upgrade to a newer version of the
existing, aging system would not have met the objective. As a result, the
bank decided to replace the legacy system with a new generation, robust
core banking solution.
The cornerstone of a successful consumer banking strategy is to have a
technology platform that can offer anytime, anywhere banking through
multiple delivery channels like the Internet, ATM, mobiles and call
centers. ABN AMRO Bank required a platform that could easily support
existing delivery channels and add new ones, while seamlessly integrating
them to provide a relationship view of customers' interactions across all
delivery channels.
Being a multinational bank, ABN AMRO Bank was also keen to adopt
best practices being followed in other countries, such as the ability to roll
out new products and services in line with domestic market requirements.
Equally important was the need to roll out these customizations rapidly so
as to gain critical time-to-market advantage. This could only be achieved
by deploying a platform that was flexible and easily extensible. After
intense discussions and evaluation, ABN AMRO chose Finacle, the newgeneration
universal banking solution from Infosys, to address its needs in
core banking and consumer ebanking
spaces.
Identify the problem faced by ABN Amro in India
07
How Finacle Software by Infosys has changed the Banking
sector working?
07
OR
Q.5 Explain the Role of IT in Banking Sector. 07

How takeover of Bank of America in India helped ABM
Amro?
07