The term 'Core Banking Solutions' is sometimes seen in the news. Which of the following statements best describes/describe this term? 1. It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts. 2. It is an effort to increase RBI's control over commercial banks through computerization. 3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank. Select the correct answer using the code given below.

Statement 1 is correct because Core Banking Solutions (CBS) is a centralized networking system that enables customers to access their accounts and perform transactions from any branch of the bank, effectively making them a "customer of the bank" rather than a specific branch. Statement 2 is the most tempting distractor but is incorrect because CBS is a technological tool for operational efficiency and customer service, not a regulatory mechanism designed to increase the RBI's direct administrative control. The core concept being tested is the application of Information Technology in the banking sector to integrate front-end and back-end operations.