UBI MANAGER CREDIT/RISK/LAW/TECHNOLOGY --UPDATE OF RBI INFO

ARTIFICIAL INTELLIGENCE IN BANKING AND INSURANCE

 INDIA ARTIFICIAL INTELLIGENCE IN INSURANCE AND BANKING

Artificial Intelligence (AI) is transforming various sectors globally, and India's insurance and banking industries are no exception. Here's a look at how AI is reshaping these sectors in India:

1. Customer Service and Engagement: AI-powered chatbots and virtual assistants are being increasingly deployed by insurance and banking companies to enhance customer service. These AI systems can handle routine queries, provide 24/7 support, and even assist in complex transactions, improving overall customer satisfaction.

2. Risk Assessment and Underwriting: In insurance, AI algorithms analyze vast amounts of data to assess risks accurately and streamline the underwriting process. This helps insurers offer personalized policies based on individual risk profiles, leading to better pricing and reduced fraud.

3. Claims Processing: AI streamlines claims processing in both insurance and banking. By automating manual tasks such as document verification and fraud detection, AI accelerates the claims settlement process, resulting in faster payouts for customers.

4. Fraud Detection and Prevention: AI-powered systems employ advanced analytics to detect fraudulent activities in insurance and banking transactions. These systems can identify unusual patterns or anomalies in real-time, flagging potentially fraudulent transactions for further investigation.

5. Personalized Recommendations: AI algorithms analyze customer data to offer personalized product recommendations in insurance and banking. By understanding customer preferences and behaviors, companies can tailor their offerings to individual needs, leading to higher customer engagement and loyalty.

6. Risk Management: AI models are utilized for risk management purposes in both insurance and banking sectors. These models can predict market trends, assess credit risks, and optimize investment portfolios, enabling companies to make informed decisions and mitigate potential losses.

7. Regulatory Compliance: AI assists insurance and banking companies in ensuring compliance with regulatory requirements. AI-powered systems can analyze vast amounts of regulatory data, identify compliance risks, and generate reports to demonstrate adherence to relevant laws and regulations.

8. Automation of Back-Office Operations: AI automates repetitive and labor-intensive tasks in the back-office operations of insurance and banking companies. This includes data entry, reconciliation, and report generation, leading to increased efficiency and cost savings.

9. Predictive Analytics: AI enables predictive analytics in insurance and banking, helping companies anticipate customer needs, market trends, and potential risks. By leveraging historical data and machine learning algorithms, companies can make data-driven decisions to optimize their operations and stay ahead of the competition.

Overall, AI is revolutionizing the insurance and banking industries in India, driving innovation, improving efficiency, and enhancing the overall customer experience. However, it's essential for companies to address challenges such as data privacy, ethical concerns, and workforce reskilling to fully realize the benefits of AI adoption.

BANKING AWARENESS 35 POINTS

Banking Awareness Capsule

1. MICR code consists of how many digits?

Ans: 9 digits.

(First three digits denotes city, next three digits representing the bank and
the last three digits representing the bank branch)

2. What is the minimum limit in RTGS system?

Ans: 2 lakhs (there is no upper limit in RTGS)

3. What is full form of CTS?

Ans: Cheque Truncation System

4. Under which service, customers may access their bank account and perform
basic transactions from any of the member branch offices.

Ans: Core Banking Solution (CBS)

5. Exchange of cash flow in different currency is known as:

Ans: Currency Swap

6. Assets or loans which stop performing after 90 days is known as:

Ans: Non Performing Asset (NPA)

7. Who controls the Monetary Policy in India?

Ans: RBI (Reserve Bank of India)

8.
Which card is issued by NPCI (National Payments Corporation of India)?

Ans: RuPay Card

9. Definition of Current Account deficit:

Ans: A measurement of a country's trade in which the value of goods and
services it imports exceeds the value of goods and services it exports.

10. Full form IFSC –

Ans: Indian Financial System Code

11. Commercial paper can be issued for a maximum period of:

Ans: 365 days or 1 year.

12. The Mutual funds in India follow accounting standards laid by:

Ans: SEBI (Securities and Exchange Board of India)

13. Minimum amount for Certificate of Deposit has been fixed at:

Ans: Rs. 1 Lakh

14. AML is a term mainly used in the financial and legal industries. Expand the
term AML:

Ans: Anti Money Laundering

15. PIN is a number allocated to an individual and used to validate electronic
transactions. Expand PIN:

Ans: Personal Identification Number

16. What is Repo rate?

Ans: It is the rate is the rate at which RBI lends money to the commercial
banks.

17. What is Stale Cheque?

Ans: A cheque which is presented to a bank after 3 months from date of issue is
considered as stale cheque and will often not be honored for cash or deposit at
a bank.

18. What is Bancassurance?

Ans: The selling of life assurance and other insurance products and services by
banking institutions.

19. The objective of KYC guidelines is to prevent banks from being used,
intentionally or unintentionally, by criminal elements for money laundering or
terrorist financing activities. What is the full form of KYC?

Ans: Know Your Customer (KYC)

20. Know Your Customer (KYC) guidelines are issued under:

Ans: Section 35A of the Banking Regulation Act, 1949

21. In BSBDA (Basic Savings Bank Deposit Account) the credits in a financial
year does not exceed rupees:

Ans: Rs. 1 lakh

22. In BSBDA (Basic Savings Bank Deposit Account) the balance at any point of
time does not exceed rupees:

Ans: Rs. 50,000

23. In BSBDA (Basic Savings Bank Deposit Account) the withdrawals and transfers
in a month does not exceed rupees:

Ans: Rs. 10,000

24. At which rate RBI give loans to commercial banks?

Ans: Repo rate

25. Full form of CASA:

Ans: Current Account Saving Account

26. In what denominations Commercial Paper (CP) can be issued?

Ans: Rs. 5 lakh

27. What is the minimum denomination of Treasury bills to issue in India?

Ans: Rs. 25,000

28. Who cannot issue Certificate of Deposit (CD)?

Ans: Regional Rural Banks (RRBs) and Local Area Banks (LABs)

29. Expand ASBA:

Ans: Application Supported by Blocked Amount

30. Depositor Education and Awareness Fund (DEAF) is maintained with:

Ans: RBI

31. Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep
with:

Ans: Central Bank (RBI)

32. What is the maximum amount per transaction NEFT limit for cash-based
remittances to Nepal?

Ans: Rs. 50,000

33. What does CAR stands for?

Ans: Capital Adequacy Ratio

34. IFSC code consists of ___ alpha numeric code.

Ans: 11 digits

(The IFSC is an 11 digit alpha numeric code, with the first four digits
identifying the bank, fifth is numeric (kept 0) and the last six digits
represent the bank branch.)

35. When money is lent or borrowed for one day or on overnight basis it is
known as:

Ans: Call Money