BNK · S01Introduction to ‘Banking’, Modern Banking System, Key Financial terms, Types of Banks & Financial InstitutionsAsked in 7 of 7 papers (Jun ’22, Dec ’22, Jun ’23, Dec ’23, Jun ’24, Jan ’25, Jun ’25)
Nimbus Finance calls its mobile product a ‘bank’. It only supplies account-management software to licensed banks, never receives customer money, and cannot honour withdrawal instructions. On the section 5(b) definition alone, what is the best conclusion?
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ANimbus necessarily conducts banking because its product is delivered through a mobile application
BNimbus conducts banking because any service sold to a licensed bank inherits the bank’s legal character
CNimbus conducts banking if its software can display balances, even without receiving money
DNimbus does not satisfy the definition on these facts because it accepts no public deposits and provides no repayment or withdrawal facility in its own capacity
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