Banking · Bank Operations and Compliance
In the architectural framework of a modern commercial bank operating within the Indian financial ecosystem, considering diverse functions ranging from clearing operations to the maintenance of the General Ledger, which of the following describes the most accurate sequence and responsibility of the back office regarding the Straight Through Processing (STP) mechanism for cross-border remittances via SWIFT?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The back office initiates the message generation, conducts the primary KYC of the beneficiary, and manually updates the Nostro mirror account before the end of day.
- 2The back office performs post-transaction validation, reconciles the Nostro accounts, ensures compliance with FEMA guidelines, and manages the reporting of Suspicious Transaction Reports to FIU-IND.✓
- 3The back office is solely responsible for the physical delivery of instruments to the National Clearing Cell and has no role in the digital validation of international wire transfers.
- 4The back office acts as the front-end interface for customer grievance redressal specifically for failed ATM transactions while the treasury department handles all back office settlement functions.
Correct answer
The back office performs post-transaction validation, reconciles the Nostro accounts, ensures compliance with FEMA guidelines, and manages the reporting of Suspicious Transaction Reports to FIU-IND.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Bank Operations and Compliance MCQs →Want more practice questions on Bank Operations and Compliance?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Bank Operations and Compliance