1. INFINET (Indian Financial Network) is a Closed User Group (CUG) network mainly used for:
Stock market trading.
Inter-bank communication and RBI payment systems (RTGS/NEFT).
ATM connectivity for general public.
Linking rural branches to Head Office.
Explanation:
INFINET is the communication backbone for the Indian Banking and Financial Sector, managed by IDRBT. It secures critical inter-bank applications like RTGS, NEFT, and NDS.
2. Which protocol is standard for secure communication over a computer network (like internet banking)?
Explanation:
Hypertext Transfer Protocol Secure (HTTPS) uses TLS/SSL encryption to secure the data transferred between the user's browser and the bank's server, preventing eavesdropping.
3. What is the primary purpose of a "Firewall" in a banking network?
To prevent physical fire damage.
To store backup data.
To speed up internet connection.
To monitor and control incoming/outgoing network traffic based on security rules.
Explanation:
A firewall acts as a barrier between a trusted internal network and untrusted external networks (internet), blocking unauthorized access while permitting legitimate traffic.
4. The global financial messaging standard "ISO 20022", which SWIFT and RTGS systems are migrating to, primarily enables:
Richer, structured data exchange (XML format) to improve compliance and automation.
Sending physical cheques internationally.
Lower bandwidth usage.
Voice messages between banks.
Explanation:
ISO 20022 uses the MX message format (based on XML), which carries much more data than the older MT format. This "rich data" allows banks to transmit detailed remittance information, improve anti-money laundering (AML) screening, and automate reconciliation processes, significantly reducing errors in cross-border payments.
5. In a "Star Topology" network, if the central hub fails:
The network switches to Ring topology.
Data travels to the next node automatically.
The entire network fails.
Only one computer is affected.
Explanation:
In Star Topology, all nodes connect directly to a central device (hub/switch). It is a single point of failure; if the hub goes down, communication between all connected nodes stops.
6. A Virtual Private Network (VPN) allows bank employees to:
Bypass all firewalls.
Access the internet faster.
Browse anonymously on the dark web.
Securely access the bank's internal network over a public network (internet).
Explanation:
VPN creates an encrypted "tunnel" over the internet. It is essential for Work From Home scenarios or connecting remote branches securely to the CBS without a dedicated leased line.
7. A network that connects computers across a city is typically called a:
MAN (Metropolitan Area Network)
LAN (Local Area Network)
WAN (Wide Area Network)
PAN (Personal Area Network)
Explanation:
LAN covers a building; WAN covers countries; MAN covers a city (like a cable TV network or city-wide bank branch connectivity).
8. Why do most banks prefer Multi-Protocol Label Switching (MPLS) networks for connecting branches to the Data Center?
It allows data to be public.
It offers prioritized data traffic (QoS), security (VPN), and high speed suitable for real-time CBS.
It is the cheapest option available.
It requires no hardware at the branch.
Explanation:
MPLS is a routing technique that directs data based on short path labels rather than long network addresses. It is highly reliable, secure (acts like a private network), and supports Quality of Service (QoS), ensuring that critical banking transactions get priority over other traffic like emails.
9. In the SWIFT messaging system, which message type (MT) is used for a "Single Customer Credit Transfer"?
Explanation:
MT 103 is the standard format for cross-border customer wire transfers. MT 202 is for bank-to-bank transfers. MT 700 is for Letter of Credit issuance.
10. What is the difference between a MAC Address and an IP Address?
MAC is used for routing; IP is used for local identification.
MAC is a temporary address; IP is permanent.
MAC is a physical address assigned to the NIC card; IP is a logical address assigned to the connection.
MAC is software-based; IP is hardware-based.
Explanation:
Media Access Control (MAC) address is a unique hardware identifier burned into the network card (Layer 2). Internet Protocol (IP) address is a software-assigned address that can change depending on the network location (Layer 3).
11. VSAT technology uses satellites for communication. It is particularly useful for banking connectivity in:
Metro cities with fiber optics.
Inside the Data Center.
Remote, hilly, and rural areas where terrestrial lines (cables) are difficult to lay.
Between two adjacent buildings.
Explanation:
Very Small Aperture Terminal (VSAT) allows data transmission via satellite, bypassing the need for physical cables, making it ideal for connecting ATMs and branches in difficult terrains.
12. What is the main benefit of "SWIFT gpi" (Global Payments Innovation)?
It makes payments free.
It allows domestic transfers only.
It eliminates the need for banks.
It offers speed, transparency, and end-to-end tracking of cross-border payments.
Explanation:
SWIFT gpi transformed cross-border payments by providing a unique tracking reference (UETR) that allows banks to track the status of the payment in real-time across the correspondent banking network.