Module: | Priority Sector, Consumer Protection & Digital Lending
Q91: For the purpose of disclosure under Accounting Standard 17 (AS-17), the 'Digital Banking Segment' is classified as a sub-segment of which existing segment?
✅ Correct Answer: D
The correct answer is D. As per the RBI's directive on the establishment of Digital Banking Units (DBUs) and subsequent reporting norms, banks are required to report their 'Digital Banking Segment' exclusively as a sub-segment under the existing 'Retail Banking' Segment for the purpose of disclosure under Accounting Standard 17 (AS-17) - Segment Reporting.
This means the overall Retail Banking segment is legally sub-divided into (i) Digital Banking and (ii) Other Retail Banking.
Option A (Corporate Banking), Option B (Treasury), and Option C (Priority Sector Lending) are incorrect because digital banking initiatives targeting retail customers, savings accounts, and personal loans naturally fall under the Retail umbrella, and regulatory instructions strictly mandate this specific accounting hierarchy to track digital adoption metrics accurately.
This means the overall Retail Banking segment is legally sub-divided into (i) Digital Banking and (ii) Other Retail Banking.
Option A (Corporate Banking), Option B (Treasury), and Option C (Priority Sector Lending) are incorrect because digital banking initiatives targeting retail customers, savings accounts, and personal loans naturally fall under the Retail umbrella, and regulatory instructions strictly mandate this specific accounting hierarchy to track digital adoption metrics accurately.