Diploma Examination in Banking and Finance (DBF

)

Rules and Syllabus 2003
THE INDIAN INSTITUTE OF BANKERS World Trade Centre, Cuffe Parade, Mumbai-400 005. Website: http://www.iib-online.org

THE INDIAN INSTITUTE OF BANKERS
Committed to Professional Excellence
MISSION The Mission of the Institute is to develop professionally qualified and competent bankers and finance professionals primarily through a process of education, training, examinations, consultancy/ counseling and continuing professional development programmes. OBJECTIVES ♦ To facilitate study of theory & practice of banking and finance. ♦ To test and certify attainment of competence in the profession of banking and finance. ♦ To collect, analyze and provide information needed by professionals in banking and finance. ♦ To promote Continuous Professional Development. ♦ To promote and undertake research relating to Operations, Products, Instruments, Processes, etc., in Banking and Finance and to encourage innovation and creativity among finance professionals so that they could face competition and succeed.

PREFACE
With the advent of market-oriented approach, globalization, reforms and competition in the banking and finance sector, the Banking / Finance sector face the challenge to continuously innovate and improve and market their products and services. The need for continuous improvement in the service provided calls for excellence in the performance. With a view to equipping the prospective banking /finance professionals to face the challenges ahead, the Institute has developed the Diploma in Banking and Finance exclusively for graduates who aspire to make a career in Banking / Finance. The Institute aims to fulfil the need of

uninterrupted supply of qualified personnel to take up various positions in the Financial Services Industry. The Institute has been offering a number of professional courses and conducting examinations to meet the requirement of the finance professionals in the country since 75 years and these examinations are widely recognised by the Banking Industry. Now the Institute has launched preentry level examinations (DBF) for the aspiring graduates who wish to build their career in Banking and Finance sector.

RULES AND SYLLABUS 2003 CONTENTS
1. About the Institute Genesis ........................................................................................... Diploma Examinations ..................................................................... Diplomas / Subjects .......................................................................... 2. Diploma in Banking and Finance Eligibility ......................................................................................... Periodicity of Examination ............................................................. . Registration ................................................................................. .. .. Benefit After Joining Banking / Finance Sector ............................... Pattern .......................................................................................... .. Examination Centres ....................................................................... Time Limit ....................................................................................... Examination Fees ............................................................................ Medium of Examination .................................................................. Procedure for Applying for the Examination .................................. Educational Support ....................................................................... Study Material ................................................................................ Photo Admit Card ........................................................................... Conduct and Discipline .................................................................. Duration of Examination ................................................................. Passing Criteria ............................................................................... Penalties for Unfair Practices .......................................................... Declaration of Results .................................................................... Facility for Verification of Marks .................................................... Issue of Certificates ........................................................................ Legal Proceedings .......................................................................... 3. Syllabus .................................................................................... 4. List of Offices of the Institute .................................................. 5. List of Examination Centres .....................................................

RULES AND SYLLABUS 2003

THE INDIAN INSTITUTE OF BANKERS
DIPLOMA EXAMINATION IN BANKING AND FINANCE (PRE-ENTRY)
ABOUT THE INSTITUTE

GENESIS:
The Indian Institute of Bankers which is professional body of banks and financial institutions in India, was established on 30th April 1928 as a Limited Company under the Indian Companies Act, 1913 at the initiative of few eminent bankers, businessmen and industrialists of India.

VARIOUS DIPLOMA EXAMINATIONS:
The Institute offers the following Diploma examinations to all the graduates of any stream: 1. 2. 3. 4. 5. 6. 7. Diploma in Banking and Finance Diploma in Treasury, Investment and Risk Management Diploma in Banking Technology Diploma in Advanced Rural Banking Diploma in International Banking and Finance Diploma in Capital Markets and Merchant Banking Diploma in Mutual Funds Management

Objectives/Benefits of the Diplomas: • • • • • • • • The candidate undertaking the course will have comprehensive and up-to-date knowledge in the subject The courses will offer a meaningful job role/opportunities for people in the organisation employing them The courses are so designed that most employers would value it for talent scouting The courses are cost effective and at the same time high in quality The diplomas offer practical insights into the subjects while at the same time emphasis robust theoretical foundation The diplomas carry professional recognition among the banking and finance community The certification is backed by a system of high standard of accreditation The diplomas offer career opportunities in the niche areas of Banking and Finance

DIPLOMAS / SUBJECTS:

1. Diploma in Banking and Finance
§ Indian Financial System & Commercial Banking § Business Communication and Customer Relations § Basic Accountancy § Introduction to Computers

2. Diploma in Treasury, Investment and Risk Management
§ Financial Markets - An Overview § Treasury Management § Risk Management

3. Diploma in Banking Technology
§ Information Technology, Data Communications & Electronic Banking § Design, Development and Implementation of Information Systems § Security in the Electronic Banking

4. Diploma in Advanced Rural Banking
§ Rural Economic Environment § Financing Rural Development § Rural Financial Institutions

5. Diploma in International Banking and Finance
§ International Banking Operations § International Banking, Legal and Regulatory Aspects § International Corporate Finance

6. Diploma in Capital Markets and Merchant Banking
§ Structure of Capital Markets § Operations and Regulation of Capital Markets § Merchant Banking

7. Diploma in Mutual Funds Management
§ Capital Market – Role and Structure § Investment Management § Mutual Fund Operations

In addition to the above, the Institute has also introduced a new “Certificate Examination in Bancassurance” for Life and Non- Life segments for bankers and “Certificate Examination in Life and General Insurance” for prospective Agents / Advisors of the Life and General Insurance companies in India.

DIPLOMA IN BANKING AND FINANCE
ELIGIBILITY:
• Graduates from any discipline from a recognised university are eligible to write this examination. Prospective graduates from any discipline who are awaiting their results to be announced may also apply for this examination. They should, however, submit to the Institute their proof of passing the graduation immediately after getting provisional/ final certificate (duly attested).

PERIODICITY OF EXAMINATION:
• The examination will be held normally twice a year in July and January on Sundays (two papers on first Sunday and the remaining two on the next Sunday in the morning and afternoon sessions). For dates of the Examinations, visit the web-site of the Institute at http://www.iibonline.org or write to the Corporate Office or zonal offices.

REGISTRATION FOR EXAMINATION:
• Applications for Registering for the Examination to be held in July will be accepted up-to 31st March. Applications for Registering for the Examination to be held in January will be accepted up-to 30th September. In no case applications received after the above dates shall be considered for the particular examination. Such late applications shall be considered for the subsequent examination and the said shall be advised to the candidate. Registration / Examination form can be downloaded from this website. ( available elsewhere in the website)

BENEFIT AFTER JOINING BANKING / FINANCE SECTOR:
• The successful candidates of this diploma examination, after joining the banking / financial sector at a later date and becoming the member of the Institute, may be required to appear only for the subject “Special and Preferred Sector Finance” for awarding the JAIIB qualification which has immense value in the banking/finance sector.

PATTERN:
• The Syllabus of the examination is given in Annexure “A”. • Questions will be put to test. a) Conceptual grasp b) Problem solving and decision making ability c) Analytical / logical development / application of theoretical foundations

The pattern of the question paper is given elsewhere in this website EXAMINATION CENTRES:

• Examination for the Diploma in Banking and Finance will be conducted at all the major places across the country provided there are at least twenty-five candidates to appear at that centre. The candidates should choose three examination centres from the list of centres (given in this booklet in Annexure “B”) in the order of his/ her choice where he / she wishes to appear. The Institute shall communicate to the candidate the examination centre/ venue details well in advance before the commencement of the examination after ascertaining the number of candidates opting for a particular centre. The decision of the Institute shall be final and binding upon the candidates in the matter.

TIME LIMIT: (to be revised: retained as it is)
• The candidates appearing for Diploma Examination will be allowed a time limit of three years or six attempts to complete the related examination. If a candidate fails to clear the examination within the stipulated time limit as mentioned above, he/she may have to register afresh for the examination. • Compartmental passing of subjects is allowed within the time limit.

EXAMINATION FEES: (revised)
• Examination fee for Diploma in Banking and Finance for one year/ two attempts is Rs.3,000/-. (The fee includes cost of study material, which shall be sent to the candidate on receipt of his examination form and examination fee of Rs. 3,000/-.) If a candidate fails to clear the examination within the stipulated time limit of one year as mentioned above, he/she will be given additional attempts beyond the first two attempts to pass the examination. A fee of Rs. 500/- per subject attempt will be charged for the same. This will be, however subject to a maximum of three years/ six attempts. This includes the period of one year mentioned above. The Examination Fees shall be paid by way of a demand draft favouring ‘The Indian Institute of Bankers’ made payable at Mumbai.

MEDIUM OF EXAMINATION:
• The Examination will be conducted through the medium of English and Hindi.

PROCEDURE FOR APPLYING FOR THE EXAMINATION:
The candidates have two options for submission of Examination form as under:

ONLINE MODE:
• The candidates should, to the extent possible, submit the examination form on-line at the Institute’s web site by following the procedure mentioned in the web site. • For the purpose of using this mode of submission, the candidates should have at least one e-mail id.

• The candidates should log on to the Institute’s web site http://www.iib-online.org and click on “Apply online DBF Examination ” button. • The candidates should read carefully the instructions before submitting the Examination Application Form on line. • After submitting the Examination form on line, the candidate will receive an e-mail conveying to him his/her eight digit Registration number along-with Examination Fee Remittance form cum Photo-signature form. • The candidates should download / print the said remittance form cum photo-signature form and send the same along-with a demand draft of Rs.3,000/- favouring ‘The Indian Institute of Bankers’ payable at Mumbai, to the Institute’s office at Mumbai at - The Indian Institute of Bankers, Maker Towers, “F” Wing, 19th floor, Cuffe Parade, Mumbai 400 005. The candidate should mention his Registration number on the back of the Demand Draft / Pay Order. • The Institute shall send the Photo Admit Card to the candidate twenty-five days before the examination.

MANUAL MODE:
• Examination Application Form together with Rules / Syllabus Booklet will be available at the Corporate and Zonal Offices of the Institute for Rs.25/- payable by way of cash / demand draft favouring “The Indian Institute of Bankers” made payable at Mumbai or at the place of Zonal Offices from where examination form and Rules / Syllabus booklet is purchased (if purchased from IIB’s Corporate office and four zonal offices). • The Examination form and Rules / Syllabus booklet will also be made available at “Accredited Training Centres” of the Institute spread across the country. The list of Accredited Training Centres is given elsewhere. The prospective candidates are requested to contact these training centres for purchasing a copy of the same and send the examination form along-with the demand draft of the required amount and photographs/ signatures to the Institute’s office at the address given in the examination form. Names and addresses of such training centers will be available at the web-site. • The photograph and signature of the candidate on the Examination Application Form should be attested by the Branch Manager of the Bank where the candidate is having his / her bank account / Head Master / Principal of the School / College where the candidate has completed his / her education. • The Institute shall send the Photo Admit Card to the candidate twenty-five days before the examination.

EDUCATIONAL SUPPORT:
• The Institute will endeavor to impart classroom learning through its “Accredited Training Centres” spread across the country. These centres will conduct coaching classes on behalf of the Institute by charging separate fees. For more information about the Training centres, please contact the Corporate Office, Zonal Offices or log on to the Institute’s web-site.

• Besides above arrangements, the Institute will make available self-study kits free of cost to all the examination applicants who have sent required amount of examination fee which is Rs. 3,000/- and provide on-line tutorials / learning through its portal against payment of the stipulated prices / fees.

STUDY MATERIAL:
• The Institute will provide self study material to all the applicants of DBF examination

who have paid examination fee of Rs. 3,000/- along-with their examination form.
• Since all the subjects of Diploma in Banking and Finance are similar to those of JAIIB Examination conducted by the Institute, the DBF candidates are requested to purchase the JAIIB books from the above offices/Macmillan outlets.

PHOTO ADMIT CARD:
• The Institute will issue Examination Admit Card at least 25 days before the examinations. This card will be valid for the period as mentioned on the card and the same should be produced to the examination authority each time in the examination hall for identification. In the absence of the card, the candidate is liable to be denied permission in the examination hall.

CONDUCT AND DISCIPLINE IN THE EXAMINATION HALL:
a) No candidate shall be permitted to enter the examination hall after the expiry of 15 minutes from the commencement of the examination and no candidate shall be permitted to leave the hall before the expiry of one hour from the commencement of the examination. The candidates shall be at the examination venue at least 15 minutes before the commencement of the examination. b) Candidates should ensure that he/she signs the Attendance Sheet. c) Candidates should not possess and/or use books, notes, periodicals etc. in the examination hall at the time of the examination /or use mathematical tables, slide rules, stencils etc. during the examination except for the subject for which such use is expressly permitted. A candidate found in possession of such unauthorised material during the examination is liable to be proceeded against for adoption of unfair means in the examination. They should hand them over to the Hall Superintendent before the commencement of the examination. Mobile / Cell-phones are strictly prohibited in the examination hall. d) Communication of any sort between candidates or with outsiders is not permitted and complete silence should be maintained during the examination. e) Copying the answers from the answer books of other candidates or permitting others to copy from one’s answer book will attract the rules relating to unfair practices in the examination. f) No candidate should leave the examination hall without handing over the answer books to the Hall Supervisor / Invigilator. Once the answer book is handed over to the Supervisor / Invigilator the same cannot be taken back by the candidate.

g) No candidate shall impersonate others or allow others to impersonate himself/herself at the examination. h) Candidates will be permitted to use calculators for Basic Accountancy / Introduction to Computers subject to the following. The calculator should: i. ii. iii. iv. v. vi. vii. be pocket size and fully portable be silent while in operation be battery operated not be capable of being programmed by the insertion of tapes or otherwise not have print out facilities be of the type up-to 6 functions and 12 digits not be capable of retaining/storing data in memory when the calculator is switched off

Calculators, which do not comply with the above conditions and found in possession of the candidates during the examination will be confiscated by the Examination Supervisors and returned to the candidates at the end of the examination. In addition to the above, candidates are required to follow rules printed on the cover of answer book given to them for writing the examination. If any candidate violates any of the above rules, it will be considered to be an act of misconduct and he/she will be liable for punishment mentioned hereunder.

DURATION OF EXAMINATION:
• Examination for each subject will be for 3 hours and will carry 100 marks.

PASSING CRITERIA:
(a) Pass: Minimum 50% or more marks in each subjects (b) First Class: 60% or more marks in aggregate and pass in all the subjects in the first attempt. (c) First Class with Distinction: 75% or more marks in any individual subject and 60% or more marks in the aggregate and pass in all subjects in the first attempt. (d) Candidates will be allowed to retain credits for the subject he/ she has passed till the expiry of the time limit.

PENALTIES FOR MISCONDUCT / UNFAIR PRACTICES:
The Institute shall have the right to impose penalties on any candidate for committing an act of misconduct / unfair practice in respect of any matter affecting the Institute or at or in respect of any examination conducted by the Institute or disqualifying any candidate who, they have reason to believe, has received or given unfair assistance at the examination and a) to cancel the result of such candidate in all or any of the subjects of the examination at which he/she may have appeared. b) to exclude him/her from future examinations either permanently or for a specified number of examinations.

c) to take such other action against him/her as the Institute shall in their sole discretion deem fit and the decision of the Institute shall be final and binding on the candidates concerned. The Institute shall also have a right to cancel the results of any subsequent examination at which the candidate may have appeared if such examination falls within the exclusion period in the penalty, as by reason of imposition of such a penalty of exclusion from the future examinations, the candidates would not have been eligible to appear at such subsequent examinations.

DECLARATION OF RESULTS:
• The results of the examination will be intimated to the candidates individually after two months from the last date of the examination along with the marks secured for each subject of the examination. The results will also be available through the web site of the Institute.

FACILITY FOR VERIFICATION OF MARKS:
• The decision of the examiners with regard to marks shall, in every case, be final and no request for re-valuation of the candidate’s paper will be entertained. If, however, any candidate requires his/her marks to be verified, he/she may request the Chief Executive Officer accordingly. Such verification will cover the following: i. ii. iii. All answers have been valued. The marks awarded for all the answers have been carried forward correctly to the coverpage for totaling. The total arrived at is arithmetically correct.

The request for verification of marks must be received in the Institute’s Corporate Office at Mumbai within one month from the date of the declaration of the examination results which would be normally after two months from the date of the examination. The candidate will have to pay a sum of Rs.250/- for the verification of marks for each subject of the diploma examination. The payment should be made by means of MICR crossed Demand Draft drawn in favour of “The Indian Institute of Bankers” and made payable at Mumbai. The candidates should write their Registration Number communicated to them on the Examination Admit Card on the reverse of the draft and on the application for verification of marks.

ISSUE OF CERTIFICATES:
• The candidates who complete the examination successfully will be eligible to get Certificate of ‘Diploma in Banking and Finance’.

LEGAL PROCEEDINGS:
• In case of any legal dispute in relation to the examination, the proceedings shall be instituted in the courts at Chennai, Kolkata, New Delhi or Mumbai only depending upon the place at which the application is submitted by the candidate and not in any other court.

SYLLABUS FOR DIPLOMA IN BANKING AND FINANCE
INDIAN FINANCIAL SYSTEM & COMMERCIAL BANKING OBJECTIVES
The candidates would be able to acquire: 1. A fair knowledge about the Banking environment 2. Knowledge of the historical / emerging role of banks and financial institutions 3. Knowledge about the essential legal aspects of banking as also a clear understanding of various functions 4. A clear perspective of banking operations and their implications in various areas

SYLLABUS SECTION A : FINANCIAL SYSTEM
1. Structure of Indian Financial System-Constituents-RBI; Commercial banks; Rural banks; Cooperative banks; Land Development banks; Development banks such as IFCI, NABARD, IDBI, IRBI, SHCI, ICICI, EXIM bank, SIDBI, DFHI, SFCs, NHB; Non Banking Financial Institutions (NBFCs); Indian Capital markets; Mutual funds, Merchant banking, Finance companies, LIC, UTI, GIC;-Main functions of these constituents and respective roles. 2. Origin and evolution of Indian Banking-changes in the role and functions of commercial banks; Banking Regulation Act, 1949 – regulatory framework – provisions relating to opening of new Banks/branches. 3. Role of RBI – functions – supervision, development and refinancing functions; Commercial banks and other constituents of the financial system. 4. RBI Act, 1934; an overview of the provisions relating to Banks and other Financial Institutions; Statutory requirements; Reserve requirements.

SECTION B : TRENDS IN RURAL, SOCIAL AND DEVELOPMENT BANKING
5. Financial sector developments; pre-nationalisation and postnationalisation; rural credit and institutional development for rural and agricultural development. 6. Introduction to Social-Banking-Lead bank Scheme-Service area approach – Socio –economic and Poverty Alleviation programmes such as IRDP, PMRY, PMI UPEP – Housing finance for the poorer and weaker sections; Priority sector lending; various developmental programmes of the Government in agricultural and rural development; Village and Cottage industries, Tiny industries, small scale industries and Ancillaries and their role and scope in the development processes.

SECTION C : DEPOSITS AND ANCILLARY SERVICES

7. Banker-Customer relations – services rendered by Banks –general and special features of the relationship in all aspects of banking transactions; mandates and power of attorney; duty of secrecy; Banker’s lien and right of set-off/appropriation; Garnishee and attachment orders, Disclosures permitted by under law and by practice. 8. Knowledge of Negotiable Instruments Act; Payment and collection of cheques and other negotiable instruments; Duties and responsibilities of a Paying and collective banker; Protection available to the paying and collective banker; types of endorsements/negotiation and their implications; forged instruments and bouncing of cheques and their implication. 9. Deposit Accounts and types of customers; procedure and practice in opening, closing and conduct of accounts; various types of customers like minors, joint account holders, partnership firms, companies, Joint Hindu Family, Executors, Trustees, Clubs and Associations, illiterate, Charitable institutions, Government and allied public sector bodies/institutions; Non-resident accounts-definition, types of deposit accounts, various facilities to NRIs and opening, closing and conduct of NRI accounts; Cash and Currency chests.

SECTION D : LENDING AND OTHERS SERVICES
10. Principles of Bank Lending – Different kinds of borrowers and types of credit facilities granted by Banks-Types of securities and methods of charging them-types of documents such as pledge/hypothecation agreement, demand promissory notes, mortgage deed; valuation of securities; indemnity bonds, Personal loans and Consumer durables finance, finance against shares and securities; overview of Hire-purchase, leasing, Factoring and Export finance. 11. Miscellaneous Services – Bank guarantees and Letters of Credit-Remittance of funds – Safe custody of articles-Safe Deposit Lockers – Nomination facility – Debit/Credit cards – ATMs – Travelers / Gift Cheques – Handling of Government accounts; Overview of Merchant Banking.

2. BUSINESS COMMUNICATION AND CUSTOMER RELATIONS
OBJECTIVES:
The Candidates would be able to know and apply: 1. The essentials of communication, especially business communication 2. The basics of Bank Marketing and customer relations and the relevance of communication skills to these areas.

SYLLABUS SECTION A : INTRODUCTION
1. Communication-need for communication-objectives of communication – methods – communication barriers – channels of communication.

2. Factors affecting communication –essentials for effective communication – perception, attitudes, beliefs, values, norms and experiences and their effect on communication. 3. Non verbal communication –Body language-behaviour implications, group dynamics and effective communication. 4. Listening skills – Communication skills – inter personal communication and intra-personal communication.

SECTION B: WRITTEN COMMUNICATION
5. Essentials of a business letter-parts of the business letter-forms of a business letter. 6. Types of letters and their replies – letters to depositors, external agencies, creditors, users of various services and to other banks letters of enquiry, complaints and their replies; Credit reports. 7. Letters within the bank and to staff members – representations and suggestions. 8. Meetings and conferences – presentation skills-oral communication-report writing.

SECTION C : PUBLIC/CUSTOMER RELATIONS
9. Customer relations in a competitive environment, understanding the needs of customers, customer-bank relationship, customer service and customer orientation, interpersonal skills and relations, Public relations and Image building, Business development and deposit mobilization. 10. Consumer Protection Act/Forums and Ombudsman-concept of service, deficiency in service and redressal mechanism. 11. Recommendations of various committees on customer service.

SECTION D: BANK MARKETING
12. Marketing – why marketing – marketing approach – products marketing and service marketing – marketing concepts and strategies – marketing mix, need for marketing – marketing vs selling- marketing skills-market segmentation. 13. Customer focus – understanding customer behaviour – Identifying buyers – research needs, maintaining database of customers – analysis of potential customers – market forecasting. 14. Customer care – services offered – setting and monitoring standards – quality/Study circles, Customer grievances/ complaints redressal machinery.

3. BASIC ACCOUNTANCY:
OBJECTIVES:

The candidates would be able to acquire: 1. Knowledge about the basic accounting principles and concepts 2. Grasp the mechanics of accountancy and its applications to various categories of accounts 3. Knowledge about preparation of the basic accounting financial statements

SYLLABUS: SECTION A : BACKGROUND
1. Nature and purpose of accounting : Historical perspectives - origins of accounting principles – accounting standards in India-Management accounting and its definition and scope – Distinction between Financial accounting and Management accounting; Accounting in a computerized environment. 2. Accounting concepts and principles – concepts of accountancy entity- going concern-double entry systems; Principles of conservatism – revenue recognition and realization, matching and expense recognition –accrual and cash basis.

SECTION B : BOOK-KEEPING MECHANICS
3. Record keeping basics – account categories-debit and credit concepts-T account and Columnar accounting mechanics – Journalising – Writing cash book – Bank reconciliation statement Trial balance – Adjusting and closing entries.

SECTION C : BALANCE SHEET AND P&L ACCOUNTING
4. Balance sheet structure – accounts – categories – Asset, Liabilities and Net worth components. 5. Income and Expenditure accounts – P&L Account – Income Statement – Accounting for depreciation – Accounting for bad and doubtful debts – P&L accounts and appropriationReserves and Provisions accounting and concepts – Sinking funds.

SECTION D : ACCOUNTING FOR TYPES OF ENTITIES
6. Partnership accounts – partner’s fixed capital accounts – current accounts – loan accountstreatment of intangibles like goodwill-admission/retirement/death of partner – sleeping/quasi and limited partnerships. 7. Company accounts – Partnership vs. Limited Liability Company accounts – classes of share capital-issues/forfeiture of share, non-voting shares-issue of bonus shares – Schedule VI of the Companies Act, 1956 – preparation of final accounts – Final accounts of Banking Companies. 8. Special accounts – Leasing and Hire-purchase company accounts contracting companies accounts – Accounts of Non- Trading concerns – Receipts and payments

4. INTRODUCTION TO COMPUTERS
OBJECTIVES:
The Candidates would be able to understand: 1. The developments in the field of Computers and Information Technology 2. The relevance of Computers in day to day operations with special reference to banking

SYLLABUS SECTION A: INTRODUCTION
1. Introduction to computers; What is a computer – its main functions, capabilities and limitations – when to use computers – role of computers in data processing – impact of computerization on Banks. 2. Why computerization – impact on customer service, data transmission and as a storage device and impact on business development-uses of computers-various services offered by use of computers and their advantages over the manual system.

SECTION B: HARDWARE AND SOFTWARE
3. Computer Hardware – Anatomy of Computer – Types of computers, Central processing unit, main memory, RAM and ROM; Computer systems, Peripheral controllers, Peripherals Terminals, Printers, Floppy drive, Disk drives, Compact disk, Tape drive, Cartridge tape, Graph plotter, Mark sense reader, voice recognition, CD-ROM, etc.); Current Trends in Hardware. 4. Software-Need for software; What is software – types of software-systems and applications software-Operating systems, DOS: WINDOWS; Data Base management systems; Software development; Current Trends.

SECTION C : MECHANISATION IN BANKS
5. Different approaches to bank mechanisation-Stand alone computer systems – Wide Area and Local Area Networks – local processing and batch concepts; on-line systems-Mini computers and Main Frame networking systems – DTP and Scanners – UPS. 6. Electronic Payment systems – Teller Machines at the Bank counters – Cash dispensers – ATMs Anywhere Anytime Banking – Home banking (corporate and personal) – Online enquiry and update facilities – Personal identification numbers and their use in conjunction with magnetic cards of both credit and debit cards, smart cards, signature storage and display by electronic means, cheque truncation, microfiche, note and coin counting devices. 7. Document handling systems – cheque sorting and balancing systems (MICR and OCR etc…) – Document storage and retrieval systems (Micro films etc…) – Document transmission Systems

(Fax etc….) – Inter branch reconciliation uses in Foreign exchange, dealing and investment management, cash management systems and for statistical analysis.

SECTION D : INFORMATION TECHNOLOGY AND ITS IMPACT
8. Electronic funds transfer systems-plain messages (Telex or data communication) –structured messages (SWIFT etc…) – Direct funds settlement systems (CHIPS, Electronic clearing etc…) – Two level funds transfer and settlement (FEDWIRE, BANKWIRE, POS Systems etc.). 9. Information Technology – Current trends – Banknet, RBI net, Datanet, Nicnet, I-net, Internet, E-mail, etc…Modems and their uses-Multimedia-VSAT-Role and uses of technology upgradation – Global developments in Banking Technology –Information Technology in finance and service delivery - Management information systems. 10. Impact of Technology on Banks – Protecting the confidentiality and secrecy of data – effect on employees and employment – effect on customers and service quality – Audit trails – Computer Audit – Rangarajan, Saraf and Shere Committee Recommendations.

RECOMMENDED READING
• The Institute has prepared comprehensive study material in the form of kits to facilitate preparation for the examination without intervention of teacher. Attempt has been made to cover fully in the write-ups the syllabus prescribed for each subject/paper. The presentation of topics in the self-study material may not always be in the same sequence as given in the syllabus. • Candidate are also expected to take note of all the latest developments relating to the subjects covered in the syllabus by referring to Economic Journals, Financial Papers, latest books and publications on the subjects concerned.

LIST OF OFFICES OF THE INSTITUTE
The Deputy Director, Western Zonal Office The Indian Institute of Bankers, 191-F, Maker Towers, 19th Floor, Cuffe Parade, Mumbai-400 005. Telephone : 022-2218 3302/2218 5134 Fax : 022 –2218 0845. Email : iibwz@iib.org.in, iibmum@vsnl.com The Deputy Director Northern Zonal Office The Indian Institute of Bankers Address: 11A, Atmaram House Tolstoy Marg, New Delhi-110 001. Telephone : 011-2335 4921/335 4316 Fax : 011-2335 1165 Email : iibnz@iib.org.in The Deputy Director Eastern Zonal Office

The Indian Institute of Bankers Address : “Anand Lok” 3rd Floor, 227, Acharya J.C. Bose Road, Kolkata 700 020. Telephone : 033-2280 9681/82/83 Fax : 033-2280 9680 Email: iibcal@vsnl.net.in, iibez@iib.org.in The Deputy Director Southern Zonal Office The Indian Institute of Bankers 61, Arya Gowda Road, West Mambalam, Chennai - 600 033 Telephone : 044 -2474 6961 Fax : 044 -2474 6966. E-mail: iibchen@vsnl.net

Corporate Office:
Mumbai The Deputy Director (CPD) The Indian Institute of Bankers Maker Towers, ‘F’ 19th Floor, Cuffe Parade, MUMBAI – 400 005 Tel: 022-22166029 Fax: 022- 22187126 Email: banc@iib.org.in

Website: http://www.iib-online.org LIST OF CENTRES FOR DIPLOMA IN BANKING & FINANCE EXAMINATION
(Examination shall be conducted at any of the following centres where minimum 25 candidates enrol.)

NORTHERN ZONE
CHANDIGARH 603 ...... CHANDIGARH DELHI 609 ...... DELHI 610 ...... NEW DELHI HARYANA 130 ...... AMBALA CITY 131 ...... AMBALA CANTT 132 ...... BAHADURGARH 133 ...... BHIWANI 134 ...... FARIDABAD 136 ...... GURGAON 137 ...... HISSAR 138 ...... JIND 139 ...... KAITHAL 140 ...... KARNAL

141 ...... KURUKSHETRA 143 ...... PANIPAT 144 ...... REWARI 145 ...... ROHTAK 146 ...... SIRSA 147 ...... SONEPAT 150 ...... YAMUNANAGAR HIMACHAL PRADESH 158 ...... DHARAMSALA 159 ...... HAMIRPUR 160 ...... RECKONG PEO(Kalpa) 163 ...... MANDI 165` ...... PALAMPUR 166 ...... SIMLA 167 ...... SOLAN 168 ...... UNA JAMMU & KASHMIR 174 ...... ANANTNAG 175 ...... BARAMULLA 176 ...... DODA 177 ...... JAMMU 178 ...... KATHUA 179 ...... LEH 180 ...... POONCH 181 ...... RAJOURI 182 ...... SRINAGAR 183 ...... UDHAMPUR PUNJAB 386 ...... ABOHAR 387 ...... AMRITSAR CITY 388 ...... BARNALA 389 ...... BATALA 390 ...... BHATINDA 392 ...... FEROZEPUR 393 ...... GURDASPUR 394 ...... HOSHIARPUR 395 ...... JULLUNDUR 396 ...... KAPURTHALA 397 ...... LUDHIANA 398 ...... MANSA 399 ...... MOGA 400 ...... MUKTSAR 401 ...... PATHANKOT 402 ...... PATIALA 404 ...... PHAGWARA 405 ...... RUPNAGAR 406 ...... SANGRUR UTTARANCHAL 504 ...... ALMORA 514 ...... DEHRADUN 526 ...... HARDWAR 541 ...... NAINITAL 548 ...... ROORKEE

Uttar Pradesh
497 ...... BARA BANKI 498 ...... FIROZABAD 499 ...... MAU 501 ...... AGRA 502 ...... ALIGARH 503 ...... ALLAHABAD

505 ...... AZAMGARH 506 ...... BAHRAICH 508 ...... BAREILLY 509 ...... BASTI 510 ...... BIJNOR 511 ...... BUDAUN 512 ...... BULANDSHAR 513 ...... CHANDAUSI 515 ...... DHAMPUR 516 ...... ETAH 517 ...... ETAWAH 518 ...... FAIZABAD 519 ...... FARRUKHABAD 521 ...... GHAZIABAD 522 ...... GHAZIPUR 523 ...... GONDA 524 ...... GORAKHPUR 525 ...... HARDOI 528 ...... JAUNPUR 529 ...... JHANSI 530 ...... KANPUR 532 ...... LAKHIMPUR-KHERI 533 ...... LUCKNOW 534 ...... MAINPURI 535 ...... MATHURA 536 ...... MEERUT CANTT. 537 ...... MIRZAPUR 539 ...... MORADABAD 540 ...... MUZAFFARNAGAR 542 ...... ORAI 543 ...... PILIBHIT 546 ...... RAEBAREILLY 547 ...... RAMPUR 550 ...... SAHARANPUR 551 ...... SHAHJAHANPUR 552 ...... SITAPUR 555 ...... VARANASI 556 ...... DEORIA 558 ...... SULTANPUR 559 ...... ROBERTS GANJ

EASTERN ZONE
ANDAMAN & NICOBAR ISLANDS 597 ...... PORT BLAIR 598 ...... CAR NICOBAR ARUNACHAL PRADESH 589 ...... ALONG 590 ...... NAHARLAGUN (Itanagar) 591 ...... ZIRO 592 ...... PASIGHAT 593 ...... TAWANG 594 ...... TEZU ASSAM 044 ...... DHUBRI 045 ...... DIBRUGARH 046 ...... DIPHU 047 ...... DISPUR 048 ...... GUWAHATI 049 ...... HAFLONG 050 ...... JORHAT 051 ...... KOKRAJHAR

052 ...... NORTHLAKHIMPUR 053 ...... NOWGONG 054 ...... SIBSAGAR 055 ...... SILCHAR 056 ...... TEZPUR 057 ...... TINSUKIA 058 ...... GOLAPARA 059 ...... BONGAIGAON BIHAR 063 ...... ARRAH 064 ...... BEGUSARAI 065 ...... BETTIAH 066 ...... BHAGALPUR 067 ...... BIHARSHARIF 070 ...... DALMIANAGAR 072 ...... DARBHANGA 080 ...... KATIHAR 081 ...... MADHUBANI 082 ...... MONGHYR 083 ...... MUZAFFARPUR 084 ...... NAWADAH 085 ...... PATNA 086 ...... PURNEA 088 ...... SAHARSA 089 ...... SAMASTIPUR 090 ...... SASARAM 091 ...... SITAMARHI 094 ...... MOTIHARI JHARKHAND 068 ...... BOKARO STEEL CITY 071 ...... DALTONGANJ 073 ...... DHANBAD 074 ...... DUMKA 076 ...... GIRIDIH 077 ...... HAZARIBAGH 078 ...... JAMSHEDPUR 079 ...... JHUMRI-TELAIYA 087 ...... RANCHI 093 ...... DEOGHAR 095 ...... SAHIBGANJ MANIPUR 338 ...... IMPHAL MEGHALAYA 344 ...... SHILLONG 345 ...... TURA MIZORAM 351 ...... AIZWAL NAGALAND 357 ...... KOHIMA 358 ...... MOKOK CHUNG 359 ...... TUENSANG ORISSA 365 ...... BALASORE 367 ...... BARIPADA 368 ...... BERHAMPUR (Ganjam) 369 ...... BHAWANIPATNA

370 ...... BHUBANESHWAR 372 ...... CUTTACK 373 ...... DHENKANAL 374 ...... KEONJHAR 375 ...... KORAPUT 379 ...... ROURKELA 380 ...... SAMBALPUR SIKKIM 443 ...... GANGTOK TRIPURA 495 ...... AGARTALA 496 ...... KAILASHAHAR WEST BENGAL 562 ...... ASANSOL 565 ...... BARRACKPORE 566 ...... BERHAMPORE (Murshidabad) 567 ...... BURDWAN 568 ...... KOLKATA 570 ...... COOCHBEHAR 572 ...... HABRA 573 ...... HOWRAH 575 ...... KANCHRAPARA 577 ...... MALDA 578 ...... MIDNAPORE 581 ...... SERAMPORE 582 ...... SILIGURI

WESTERN ZONE
CHHATTISGARH 250 ...... KORBA 253 ...... AMBIKAPUR 256 ...... BHILAI 258 ...... BILASPUR 264 ...... DURG 278 ...... RAIGARH 279 ...... RAIPUR 293 ...... RAJNANDGAON GOA 618 ...... MARGAO 619 ...... PANAJI GUJARAT 098 ...... AHMEDABAD 100 ...... VADODARA 101 ...... BHAVNAGAR 102 ...... BHUJ (Dist. Kutch) 103 ...... BHARUCH 108 ...... GODHRA 109 ...... HIMATNAGAR 110 ...... JAMNAGAR 111 ...... JUNAGADH 115 ...... NADIAD 118 ...... PORBANDAR 119 ...... RAJKOT 120 ...... SURAT

MADHYA PRADESH 254 ...... BALAGHAT 255 ...... BARWANI 257 ...... BHOPAL 259 ...... CHHATARPUR 260 ...... CHHINDWARA 262 ...... DEWAS 265 ...... GUNA 266 ...... GWALIOR 267 ...... HOSHANGABAD 268 ...... INDORE 269 ...... JABALPUR 270 ...... JAGDALPUR 271 ...... JHABUA 272 ...... KHANDWA 273 ...... KHARGONE 275 ...... MANDSAUR 276 ...... NARSINGHPUR 280 ...... RAJGARH 281 ...... RATLAM 282 ...... REWA 283 ...... SAUGOR 284 ...... SATNA 285 ...... SEHORE 286 ...... SHAHDOL 287 ...... SHIVPURI 288 ...... TIKAMGARH 289 ...... UJJAIN 291 ...... BETUL 295 ...... SIDHI MAHARASHTRA 296 ...... AHMEDNAGAR 297 ...... AKOLA 298 ...... ALIBAG 300 ...... AMARAWATI 301 ...... AURANGABAD 303 ...... VASAI 306 ...... MUMBAI 307 ...... BULDHANA 308 ...... CHANDRAPUR 309 ...... DHULE 311 ...... JALGAON 313 ...... KALYAN 314 ...... KOLHAPUR 316 ...... LATUR 317 ...... NAGPUR 318 ...... NANDED 319 ...... NASHIK 321 ...... PARBHANI 322 ...... PUNE 323 ...... RATNAGIRI 324 ...... SANGLI 326 ...... SATARA 327 ...... SOLAPUR 329 ...... THANE 330 ...... ULHASNAGAR 331 ...... WARDHA 332 ...... YEOTMAL 334 ...... NAVI MUMBAI RAJASTHAN 413 ...... AJMER 414 ...... ALWAR 415 ...... BANSWARA 416 ...... BARMER

417 ...... BHARATPUR 418 ...... BHILWARA 419 ...... BIKANER 420 ...... BUNDI 421 ...... CHITTORGARH 422 ...... CHURU 424 ...... DUNGARPUR 425 ...... GANGANAGAR(Sriganganagar) 426 ...... HANUMANGARH(Town) 428 ...... JAIPUR 429 ...... JAISALMER 430 ...... JALORE 431 ...... JHALAWAR 432 ...... JHUN JHUNU 433 ...... JODHPUR 434 ...... KOTAH 436 ...... PALI (Marwar) 437 ...... SAWAI MADHOPUR 438 ...... SIKAR 439 ...... SIROHI 442 ...... UDAIPUR

SOUTHERN ZONE
ANDHRA PRADESH 001 ...... ADILABAD 002 ...... ADONI 003 ...... ANAKAPALLE 004 ...... ANANTAPUR 005 ...... CHIRALA 006 ...... CHITTOOR 007 ...... CUDDAPAH 008 ...... ELURU 009 ...... GUDIVADA 011 ...... GUNTUR 012 ...... HINDUPUR 013 ...... HYDERABAD 014 ...... KAKINADA 015 ...... KARIMNAGAR 016 ...... KHAMMAM 017 ...... KOTHAGUDEM 018 ...... KURNOOL 020 ...... MAHBOOBNAGAR 021 ...... MASULIPATNAM 022 ...... NALGONDA 023 ...... NANDYAL 024 ...... NELLORE 025 ...... NIZAMABAD 026 ...... ONGOLE 027 ...... PALAKOL 028 ...... PRODATTUR 029 ...... RAJAHMUNDRY 030 ...... SANGAREDDY 031 ...... SECUNDERABAD 032 ...... SRIKAKULAM 033 ...... TENALI 034 ...... TIRUPATI 035 ...... VIJAYAWADA 036 ...... VISAKHAPATNAM 037 ...... VIZIANAGARAM 038 ...... WARANGAL 039 ...... AMALAPURAM KARNATAKA 190 ...... BAGALKOT

191 ...... BANGALORE 192 ...... BELGAUM 193 ...... BELLARY 194 ...... BIDAR 195 ...... BIJAPUR 196 ...... CHIKMAGALUR 197 ...... CHITRADURGA 199 ...... DAVANGERE 200 ...... DHARWAR 203 ...... GULBARGA 204 ...... HASSAN 206 ...... HOSPET 207 ...... HUBLI 208 ...... KARWAR 209 ...... KOLAR 212 ...... MADIKERI 214 ...... MANGALORE 216 ...... MYSORE 218 ...... RAICHUR 221 ...... SHIMOGA 223 ...... TUMKUR 224 ...... UDUPI KERALA 231 ...... ALLEPPEY 232 ...... ALWAYE 233 ...... KOZHIKODE 234 ...... CANNANORE 235 ...... KOCHI 236 ...... ERNAKULAM 237 ...... IRINJALAKUDA 238 ...... KALPETTA (Wynad) 239 ...... KOTTAYAM 240 ...... MALAPPURAM 241 ...... PALGHAT 242 ...... PERUMBAVOOR 243 ...... QUILON 244 ...... THIRUVALLA 245 ...... THODUPUZHA 246 ...... TRICHUR 247 ...... THIRUVANANTHAPURAM 248 ...... KATTAPPANA LAKSHDWEEP 625 ...... KAVARATTI PONDICHERRY 632 ...... MAHE 633 ...... PONDICHERRY TAMIL NADU 456 ...... CHINGLEPUT 456 ...... COIMBATORE 459 ...... CUDDALORE 460 ...... DHARMAPURI 461 ...... DINDIGUL 462 ...... ERODE 463 ...... KANCHEEPURAM 464 ...... KARAIKUDI 465 ...... KARUR 466 ...... KUMBAKONAM 467 ...... CHENNAI 468 ...... MADURAI 470 ...... NAGERCOIL 471 ...... NAMAKKAL 472 ...... OOTACAMUND

473 ...... POLLACHI 475 ...... RAJAPALAIYAM 477 ...... SALEM 478 ...... SIVAKASI 479 ...... THANJAVUR 480 ...... TIRUCHIRAPALLI 481 ...... TIRUNELVELI 483 ...... TIRUPUR 484 ...... TIRUVARUR 485 ...... TIRUVANNAMALAI 486 ...... TUTICORIN 487 ...... VELLORE 488 ...... VIRUDHUNAGAR 489 ...... VRIDDHACHALAM

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