DIPLOMA IN BANKING &

FINANCE
Rules&Syllabus2020

HOSTING OF THE RESUME OF SUCCESSFUL CANDIDATES ON IIBF’S

WEBSITE FOR EMPLOYMENT:
IIBF will host the details of all the successful candidates on its website and make it available to
its member Banks / Institutions which include Reserve Bank of India, State Bank of India,Public
Sector Banks,Private Sector Banks, Foreign Banks, Co-operative Banks and IT / BPO
companies providing services to banking industry, for considering them for employment.
INDIAN BANKS ASSOCIATION (IBA) HAS APPROVED DIPLOMA IN BANKING &
FINANCE EXAMINATION CONDUCTED BY IIBF AS A DESIRABLE QUALIFICATION
ALONG WITH OTHER PRESCRIBED ENTRY LEVEL QUALIFICATION FOR
RECRUITMENT IN BANKS.

SALIENT FEATURES
At an additional fee, candidates can seek educational support in the form of e-learning / virtual
classes / contact classes.
The diploma carries professional recognition among the banking and finance community as it
is equivalent to banking industry recognized JAIIB qualification of IIBF.

EDUCATIONAL SUPPORT
Books.
E-learning support / Class room learning.
YouTube Video.

ELIGIBILITY
Non-Members of Institute.
Candidate must have passed the 12th standard examination in any discipline or its equivalent
or Candidate who have completed BC / BF examination conducted by IIBF

SUBJECTS OF EXAMINATION
(1) Principles & Practices of Banking
(2) Accounting & Finance for Bankers
(3) Legal & Regulatory Aspects of Banking

PASSING CRITERIA:
1.Minimum marks for passing the subject is 50% out of 100%.
2. Candidate securing at least 45% marks in each subject with an aggregate of 50% marks in
a single attempt will also be declared as PASS.
3.Candidates will be allowed to retain credits for the subject they have passed in an attempt
till the expiry of the time limit for passing the examination (2 years).

“CLASS OF PASS” CRITERIA:

1.TheInstitutewillconsidertheFIRSTPHYSICALATTEMPTofthecandidateattheexaminati
onasfirstattemptforawardingclass.Inotherwords,thecandidateshouldnothaveattempteda
nyofthesubject/spertainingtotheconcernedexaminationanytimeinthepastandhastopassal
lthesubjectasperthepassingcriteriaandsecureprescribedmarksforawardingclass.Candid
atesre-
enrollingfortheexaminationafterexhaustingallpermissibleattemptsasperthetimelimitrulewi
llnotbeconsideredforawardingclass.
2.FirstClass:60%ormoremarksinaggregateandpassinallthesubjectsintheFIRSTPHYSIC
ALATTEMPT
3.FirstClasswithDistinction:70%ormoremarksinaggregateand60ormoremarksin
eachsubjectintheFIRSTPHYSICALATTEMPT.

TIME LIMIT FOR PASSING THE EXAMINATION:

1.Candidate will be required to pass the examination with in a time limit of 2 years (i.e. 4
consecutive attempts). If Candidate don't pass the examinationwithin twoyearsare
requiredtore-enrollthemselvesafresh and willnotbegrantedcredit forsubjects
passed,ifany,earlier.
3.Timelimitof2yearswillstartfromthedateofapplicationforfirstattempt.Attemptswillbecountedirres
pectiveofwhetheracandidateappearsforanyexaminationorotherwise.
EXAMINATION FEES/ REGISTRATION FEES:
Description Fees*
First attempt fee Rs.3,500/-
2nd attempt fee Rs.1,300/-
3rd attempt fee Rs.1,300/-
4th attempt fee Rs.1,300/-
* PlusconveniencechargesandTaxesasapplicable
PleaseNote:CandidatesarerequiredtoRegisterforeveryattemptseparately.
Institutewillchargeregularexaminationfeetocandidateswhoregistersfortheexaminationduringthe
firstweekofregistration.
Forsecondandthirdweekofregistration,thefeeswillberegularexaminationfeeplusRs.100/-
For
Fourthweekofregistration,thefeeswillberegularexaminationfeeplusRs.200/-.Incase,theregistr
ationdateisextendedbeyond4weekstheexaminationfeeswillberegularexaminationfeeplu
sRs.200/-

MEDIUM OF EXAMINATION:
ExaminationwillbeconductedinEnglishonly.

PATTERN OF EXAMINATION:
(i)QuestionPaperwillcontainapproximately120objectivetypemultiplechoicequestionsfor100mar
ksincludingquestionsbasedoncasestudies/caselets.
(ii)TheexaminationwillbeheldinOnlineModeonly
(iii)TherewillNOTbenegativemarkingforwronganswers.

DURATION OF EXAMINATION:
Thedurationoftheexaminationwillbeof2hours.

PERIODICITY AND EXAMINATION

CENTRES:
a)Examinationwillbeconductedonpre-announceddatespublishedonIIBFWebSite.
Instituteconductsexaminationonhalfyearlybasis,howeverperiodicityoftheexaminationmaybech
angeddependingupontherequirementofbankingindustry.
b)ListofExaminationcenterswillbeavailableonthewebsite.
(Institutewillconductexaminationinthosecentreswherethereare20ormorecandidates.)
CUT-OFF DATE OF GUIDELINES/IMPORTANT DEVELOPMENTS
FOR
EXAMINATIONS:
TheInstitutehasapracticeofaskingquestionsineachexamabouttherecentdevelopments/guidelin
esissuedbytheregulator(s)inordertotestifthecandidateskeepthemselvesabreastofthecurrentdev
elopments.However,therecouldbechangesinthe
developments/guidelinesfromthedatethequestionpapersarepreparedandthedatesoftheactuale
xaminations.
Inordertoaddresstheseissueseffectively, Thetablegivenbelowfurtherclarifiesthesituation.
,ithasbeendecidedthat:
(i)InrespectoftheexaminationstobeconductedbytheInstitutefortheperiodFebruarytoJulyofacalen
daryear,instructions/guidelinesissuedbytheregulator(s)andimportantdevelopmentsinbanki
ngandfinanceupto31stDecemberwillonlybeconsideredforthepurposeofinclusioninthequest
ionpapers".
(ii)InrespectoftheexaminationstobeconductedbytheInstitutefortheperiodAugustto
Januaryofacalendaryear,instructions/guidelinesissuedbytheregulator(s)andimportantdevelop
mentsinbankingandfinanceupto30thJunewillonlybeconsideredforthepurposeofinclusionintheq
uestionpapers.

E-LEARNING:
Institutefacilitatese-
learningtoalltheJAIIB,DB&FandCAIIBpaperstoenhancetheunderstandingoftheconcepts.Candi
datescanaccessthee-
learning(FromDesktopsandLaptopsonly)throughourwebsitewww.iibf.org.inattheirconvenience
andfromtheirplaceofchoice.Theuseridandpasswordwillbesenttoallthecandidatesregisteredforth
esaidexaminationsattheirregisteredemailidwiththeInstitute.

SYLLABU
S
allmattersfallingwithintherealmofthesubjectconcernedwillhavetobestudiedbythecandidateas
questionscanbeaskedonallrelevantmatters
underthesubject.Candidatesappearingfortheexaminationshouldparticularlyprepare
themselvesforansweringquestionsthatmaybeasked
onthelatestdevelopmentstakingplaceunderthevarioussubject/softhesaidexamination although
thosetopicsmaynothavebeenspecificallyincludedinthesyllabus.
Further,questionsbasedoncurrentdevelopmentsinbankingandfinancemaybeasked.
Candidatesareadvisedtorefertofinancialnewspapers/periodicals .
However,asbankingandfinancefieldsaredynamic,rulesandregulationswitnessrapidchanges.T
herefore,thecoursewareshouldnotbeconsideredastheonlysourceofinformationwhilepreparing
fortheexaminations.CandidatesareadvisedtogothroughtheupdatesputontheIIBFwebsitefromti
metotimeandgothroughMasterCirculars/MasterDirectionsissuedbyRBIandpublicationsofIIBFl
ikeIIBFVision,BankQuest,etc.Allthesesourcesareimportantfromtheexaminationpointofview.C
andidatesarealsotovisitthewebsitesoforganizationslikeRBI,SEBI,BIS,IRDAI,FEDAIetc.beside
sgoingthroughotherbooks&publicationscoveringthesubject/examconcernedetc.Questionsba
sedoncurrentdevelopmentsrelatingtothesubject/exammayalsobeasked.

PAPER1–
PRINCIPLES&PRACTICESOFBANKINGMODULEA–
INDIANFINANCIALSYSTEM
IndianFinancialSystem–AnOverview
RoleofRBI,CommercialBanks,NBFCs,PDs,FIs,CooperativeBanks,CRR,SLR;Equity&DebtMar
ket;IRDA
BankingRegulation
Constitution,Objectives,FunctionsofRBI;ToolsofMonetaryControl;Regulatory
RestrictionsonLending
RetailBanking,WholesaleandInternationalBanking
RetailBanking-
Products,Opportunities;WholesaleBanking,Products;InternationalBanking,RequirementsofIm
porters&Exporters,RemittanceServices;UniversalBanking;ADRs;GDRs;ParticipatoryNotes
RoleofMoneyMarkets,DebtMarkets&ForexMarket
TypesofMoney&DebtMarketInstrumentsincludingG-Secs;ADs,FEMA,LIBOR,MIBOR,etc.
RoleandFunctionsofCapitalMarkets,SEBI
OverviewofCapitalMarket;StockExchange;CommonlyusedTerms;TypesofCapitalIssues;Fi
nancialProducts/InstrumentsincludingASBA,QIP;SEBI;RegistrationofStockBrokers,Sub-
brokers,ShareTransferAgents,etc.QIBs.
Factoring,ForfaitingServicesandOff-BalanceSheetitems
Types&advantagesofFactoring&forfaitingservices;Typesofoff-balancesheetitems
RiskManagement,BaselAccords
IntroductiontoRiskManagement;BaselI,II&IIIAccords
CIBIL,FairPracticesCodeforDebtCollection,BCSB
RoleandFunctionsofCIBIL;FairPracticesCodeforDebtCollection;CodesofBCSBI
RecentDevelopmentsintheFinancialSystem
Structure,ReformsintheIndianFinancialSystem;recentdevelopmentsinMoney,Debt,ForexMar
kets;RegulatoryFramework;PaymentsandSettlementSystem
MODULEB–FUNCTIONSOFBANKS
BankerCustomerRelationship
Types;DifferentDepositProducts&Services;ServicestoCustomers&Investors
KYC/AML/CFTnormsPMLAA
ct;KYCNormsBankers’Speci
alRelationship
Mandate;POA;GarnisheeOrders;Banker’sLien;RightofSetoff
ConsumerProtection-COPRA,BankingOmbudsmanScheme
OperationalAspectsofCOPRAAct&BankingOmbudsmanScheme
PaymentandCollectionofChequesandOtherNegotiableInstruments
NIAct;Role&DutiesofPaying&CollectingBanks;Endorsements;ForgedInstruments;Bouncingo
fCheques;ItsImplications;ReturnofCheques;ChequeTruncationSystem
Openingaccountsofvarioustypesofcustomers
OperationalAspectsofopeningandMaintainingAccountsofDifferentTypesofCustomersincludin
gAadhaar,SBRateDeregulation
AncillaryServices
Remittances;SafeDepositLockers;Govt.Business;EBT
CashOperations
CashManagementServicesanditsImportance
PrinciplesofLending,WorkingCapitalAssessmentandCreditMonitoring
CardinalPrinciples;Non-
fundBasedLimits;WC;TermLoans;CreditAppraisalTechniques;SourcesofWCFunds&itsEstimat
ion;OperatingCycle;ProjectedNetWC;TurnoverMethod;CashBudget;CreditMonitoring&ItsMan
agement;BaseRate
PrioritySectorAdvances
Targets;Sub-Targets;RecentDevelopments
AgriculturalFinance
TypesofAgriculturalLoans;RiskMitigationinagriculture(NAIS,MSPetc.)
Micro,SmallandMediumEnterprises
MSMEDAct,2006PolicyPackageforMSMEs;PerformanceandCreditRatingScheme;LatestD
evelopments
GovernmentSponsoredSchemes
SGSY;SJSRY;PMRY;SLRS
SelfHelpGroups
Needfor&FunctionsofSHGs;RoleofNGOsinIndirectFinancetoSHGs;SHGs&SGSYScheme;C
apacityBuilding
 CreditCards,HomeLoans,PersonalLoans,ConsumerLoans
OperationalAspects,Advantages,Disadvantages&GuidelinesofCreditCards;ProcedureandPr
acticesforHomeLoans,PersonalLoansandConsumerLoans
Documentation
TypesofDocuments;Procedure;Stamping;Securitisation
DifferentModesofChargingSecurities
Assignment;Lien;Set-off;Hypothecation;Pledge;Mortgage
Typesofcollateralsandtheircharacteristics
Land&Buildings;Goods;DocumentsofTitletoGoods;AdvancesagainstInsurance
Policies,Shares,BookDebts,TermDeposits,Gold,etc.;SupplyBills
Non-PerformingAssets
Definition;IncomeRecognition;AssetClassification;ProvisioningNorms;CDR
FinancialInclusionBC;BF;RoleofICTinFinancialInclusion,Mobilebasedtransactions,RSETI
FinancialLiteracy
Importanceoffinancialliteracy,customerawareness
MODULEC–BANKINGTECHNOLOGY
EssentialsofBankComputerization
ComputerSystems;LANs;WANs;UPS;CoreBanking
PaymentSystemsandElectronicBanking
ATMs;HWAK;PIN;ElectromagneticCards;ElectronicBanking;SignatureStorage&Retri
evalSystem;CTS;Note&CoinCountingMachines;Microfiche;NPC;RUPAYDataComm
unicationNetworkandEFTsystems
Components&ModesofTransmission;MajorNetworksinIndia;EmergingTrendsinCommu
nicationNetworksforBanking;EvolutionofEFTSystem;SWIFT;AutomatedClearingSyste
ms;FundsTransferSystems;RecentDevelopmentsinIndia
RoleofTechnologyUpgradationanditsimpactonBanks
TrendsinTechnologyDevelopments;Role&UsesofTechnologyUpgradation;Global
Trends;ImpactofITonBanks
SecurityConsiderations
RiskConcernAreas;TypesofThreats;ControlMechanism;ComputerAudit;ISSecurity;ISAudit;
EvaluationRequirements
OverviewofITAct
GopalakrishnaCommitteeRecommendations
PreventiveVigilanceinElectronicBanking
Phishing;CustomerEducation;SafetyChecks;Precautions
MODULED–SUPPORTSERVICES-MARKETINGOFBANKINGSERVICES/PRODUCTS
Marketing–AnIntroduction
Concept;Management;Products&Services;MarketingMix;BrandImage
SocialMarketing/Networking
Evolution,Importance&RelevanceofSocialMarketing/Networking
ConsumerBehaviorandProduct
ConsumerBehavior;ProductPlanning,Development,Strategies,etc.;CRM
Pricing
Importance,Objectives,Factors,Methods,StrategiesofPricing;BankPricing
Distribution
DistributionChannels;ChannelsforBankingServices;NetBanking;MobileBanking
ChannelManagement
Meaning,Levels,Dynamics,Advantages
Promotion
RoleofPromotioninMarketing;PromotionMix
RoleofDirectSellingAgent/DirectMarketingAgentinabank
Definition;Relevance;BankerasDSA/DMA;DeliveryChannelsinBanks;Benefits
MarketingInformationSystems–alongitudinalanalysis
Functions&ComponentsofMKIS;MKISModel;UseofComputers&DecisionModels;Performanc
eofMKIS;Advantages
MODULEE–ETHICSINBANKSANDFINANCIALINSTITUTIONS
Ethics,BusinessEthics&Banking:AnIntegratedPerspective
BusinessEthics,EthicalFoundationandBankingEthicsinGlobalandIndianContexts
EthicsattheIndividualLevel
Values,Norms,Beliefs,Morality,Conflict,Integrity,GoldenRule,Dilemmas,Decision-Making.
EthicalDimensions:Employee
s
ObligationtoBank/ThirdParties,AbuseofOfficialPosition,SexualHarassment,ConflictofInterest
,FairAccountingPractices,HRMEthics,EmployeesasEthicsAmbassadors&ManagersasEthica
lLeaders
WorkEthicsandtheWorkplace
WorkEthics,BenefitsofEthicalBehavior,UnethicalBehavior:CausesandRemedies,CodeofEthi
csManual,WhistleblowinginBanks,WhistleblowingLawsinIndia
BankingEthics:ChangingDynamics
EthicsandTechnology,DataSecurityandPrivacy,IntellectualPropertyRights,PatentsandPropri
etaryRights,EthicsofInformationSecurity,CyberThreats,DigitalRightsManagement

PAPER2–ACCOUNTING&FINANCEFORBANKERS
MODULEA–BUSINESSMATHEMATICSANDFINANCE
CalculationofInterestandAnnuities
CalculationofSimpleInterest&CompoundInterest;CalculationofEquatedMonthlyInstalments;F
ixedandFloatingInterestRates;CalculationofAnnuities;InterestCalculationusingProducts/Bala
nces;AmortizationofaDebt;SinkingFunds
CalculationofYTM
Debt-
Definition,Meaning&SalientFeatures;Loans;IntroductiontoBonds;TermsassociatedwithBond
s;CostofDebtCapital;Bondvaluewithsemi-
annualInterest;CurrentYieldonBond;CalculationofYield-to-
MaturityofBond;TheoremsforBondValue;DurationofBond;PropertiesofDuration;BondPriceVo
latility
CapitalBudgeting
PresentValueandDiscounting;DiscountedTechniqueforInvestmentAppraisal;InternalRateofR
eturn(IRR);MethodofInvestmentAppraisal;NPVandIRRcompared;InvestmentOpportunitieswi
thCapitalRationing;InvestmentDecisionmakingunderconditionofuncertainty;ExpectedNPVRu
le;RiskAdjustedDiscountRateApproachforNPVDetermination;SensitivityAnalysisforNPVDete
rmination;DecisionTreeAnalysisforNPVEstimation;PaybackMethods;ARR.
DepreciationanditsAccounting
Depreciation,itstypesandmethods;ComparingDepreciationMethods
ForeignExchangeArithmeti
c
FundamentalsofForeignExchange;ForexMarkets;DirectandIndirectQuote;SomeBasicExch
angeRateArithmetic–CrossRate,ChainRule,Valuedate,etc.;ForwardExchangeRates–
ForwardPoints;Arbitrage;CalculatingForwardPoints;Premium/discount;etc.
MODULEB–PRINCIPLESOFBOOKKEEPING&ACCOUNTANCY
Definition,ScopeandAccountingStandards
NatureandPurposeofAccounting;HistoricalPerspectives;OriginsofAccountingPrinciples;Acco
untingStandardsinIndiaanditsDefinitionandScope;GenerallyAcceptedAccountingPrinciplesof
USA(USGAAP);TransferPricing;OverviewofIFRS;DifferencebetweenGAAP&IFRS.
BasicAccountancyProcedure
s
ConceptsofAccountancy;GoingConcernEntity;DoubleEntrySystem;Principleof
Conservatism;RevenueRecognitionandRealization;AccrualandCashBasis.
MaintenanceofCash/SubsidiaryBooksandLedger
RecordKeepingBasics;AccountCategories;DebitandCreditConcepts;Accountingand
ColumnarAccountingMechanics;Journals;Ledgers;subsidiarybooks;etc.
BankReconciliationStatemen
t
NeedforBankReconciliation;CausesofDifferences;PreparationofBankReconciliationStateme
nt;HowtoprepareaBankReconciliationStatementwhenExtractsofCashBookandPassBookare
given;AdjustingtheCashBookBalance;AdvantagesofBankReconciliationStatement.
TrialBalance,RectificationofErrorsandAdjusting&ClosingEntries
MeaningofaTrialBalance;FeaturesandPurposeofaTrialBalance;TypesofTrialBalanceandPre
parationofaTrialBalance;DisagreementofaTrialBalance;ClassificationofErrors;LocationofErr
ors;RectificationofErrors;SuspenseAccountandRectification;RectificationofErrorswhenBook
sareclosed;AdjustingandClosingEntries.
CapitalandRevenueExpenditure
Expenditure;DistinctionbetweenCapitalandRevenueExpenditure;DeferredRevenue
Expenditure;Receipts;GeneralIllustrations.
BillsofExchang
e
TypesofInstrumentsofCredit;TermandDueDateofaBill;CertainImportantTerms;AccountingEn
triestobePassed;AccommodationBilletc.
MODULEC–FINALACCOUNTS
BalanceSheetEquatio
n
BalanceSheetEquation;ComputationofBalanceSheetEquation.
PreparationofFinalAccounts
PreparationofTradingA/C;ProfitandLossA/C;Profit&LossAppropriationAccount;BalanceShee
ts
RatioAnalysis
MeaningofAccountingRatios;ClassificationofRatios;UsesofAccountingRatios;LimitationsofA
ccountingRatios;CalculationandinterpretationofvariousRatios;DifferentUsersandtheirUseofR
atios.
FinalAccountsofBankingCompanies
DefinitionandFunctionsofaBank;RequirementsofBankingCompaniesastoAccountsandAudit;
SignificantFeaturesofAccountingSystemsofBanks;PrincipalBooksofAccounts;Preparationan
dPresentationofFinancialStatementsofBanks;CMAFormat;AccountingTreatmentofSpecificIt
ems;PreparationofProfitandLossAccount;CommentsonProfitandLossAccount;ImportantItem
sofBalanceSheet;DisclosureRequirementsofBanks;AdditionalDisclosuresprescribedbyRBI;
DisclosuresrequiredunderBASELnorms.
CompanyAccountsI&II
DefinitionandTypesofCompanies;DistinctionbetweenPartnershipandLimitedLiabilityCompan
y;ClassesofShareCapital;IssueofShares;GeneralIllustrationsNon-
VotingShares;FormofBalanceSheet;LegalRequirements
forAssets;LegalRequirementsforLiabilities;LegalRequirementsforProfit&LossA/c;Preparatio
nofFinalAccounts
AccountinginaComputerizedEnvironment
Meaning,featuresofandtermsusedinComputerizedAccounting;DifferencebetweenComputeriz
edandManualAccounting;AdvantagesandDisadvantagesofComputerizedAccounting;Functio
nsperformedbyComputerizedAccountingSoftwaresavailableintheMarket;Computerization–
ScopeandExperiencesinBanking;TheCoreBankingComponents;InformationSecurity;Internet
andWorldWideWeb–InfluencesonBankingMODULED–BANKINGOPERATIONS
BankingOperations&AccountingFunctions
PreparationofVouchers,cashreceiptandpaymententries,clearinginwardandoutwardentries,tra
nsferdebitandcreditentries,whatisKYCandwhatarethedifferentdocumentstosatisfyKYC,verify
KYCandauthenticityofdocuments,operationalaspectsinregardtoopeningofalltypesofaccounts,
scrutinyofloanapplications/documents,allowingwithdrawalsandaccountingentriesinvolvedatv
ariousstages,operationalaspectsofCBSenvironmentetc.,Backofficeoperationsinbanks,handli
ngofunreconciledentriesinbanks.
PAPER3–LEGAL&REGULATORYASPECTSOFBANKING
MODULEA–REGULATIONSANDCOMPLIANCE
LegalFrameworkofRegulationofBanks
BusinessofBanking;ConstitutionofBanks;RBIAct,1934;BankingRegulationAct,1949;RoleofR
BI;Govt.asaRegulatorofBanks;ControloverCo-operativeBanks;RegulationbyotherAuthorities.
ControloverOrganizationofBanks
LicensingofBankingCompanies;BranchLicensing;PaidupCapitalandReserves;Shareholdingi
nBankingCompanies;SubsidiariesofBankingCompanies;BoardofDirectors;ChairmanofBanki
ngCompany;AppointmentofAdditionalDirectors;RestrictionsonEmployment;ControloverMana
gement;CorporateGovernance;DirectorsandCorporateGovernance.
RegulationofBankingBusiness
PowerofRBItoIssueDirections;AcceptanceofDeposits;Nomination;LoansandAdvances;Regul
ationofInterestRate;RegulationofPaymentSystems;InternetBankingGuidelines;Regulationof
MoneyMarketInstruments;BankingOmbudsman;ReserveFunds;MaintenanceofCRR,SLR;As
setsinIndia.
ReturnsInspection,Windingup,Mergers&Acquisitions
AnnualAccounts&BalanceSheet;Audit&Auditors;SubmissionofReturns;PreservationofRecor
dsandReturnofPaidInstruments;InspectionandScrutiny;BoardforFinancialSupervision;Acquis
itionofUndertakings;AmalgamationofBanks;WindingupofBanks;Penaltiesforoffences.
PublicSectorBanksandCo-operativeBanks
SBIanditsSubsidiaries;RegionalRuralBanks;NationalizedBanks;ApplicationofBRActtoPublic
SectorBanks;DisinvestmentofSharesbyGovt.;Co-operativeBanks
FinancialSectorLegislativeReforms
Need,ApproachforFinancialSectorLegislativeReforms;ImportantReforms
RecentLegislativeChangesinRBIAct
RecentLegislativeChangesinRBIAct,Needthereof
FinancialSectorDevelopmentCouncil
RoleandFunctionsofFinancialSectorDevelopmentCouncilMO
DULEB–
LEGALASPECTSOFBANKINGOPERATIONSDifferentType
sofBorrowers
TypesofBorrowers;LimitedLiabilityPartnership
TypesofCreditFacilities
CashCredit,Overdraft,DemandLoans,TermLoans,BillFinance
SecuredandUnsecuredLoans,RegistrationofFirmsandIncorporationof
Compani
es
DefinitionofSecuredandUnsecuredloans;NeedforSecuredLoans;RegistrationofFirms;Conseq
uencesofNon-registrationofFirms;IncorporationofaCompany
Indemnities
DefinitionofContractofIndemnity;FeaturesofIndemnityContract&Guarantee;ScopeandApplic
ationofIndemnityContractstoBanks;ObligationsofaBanker;Precaution&RightsofanIndemnity
Holder
BankGuarante
es
DefinitionandTypesofBankGuarantees;Banker’sDutytoHonorGuarantee;Precautionstobetak
enforIssuanceofBankGuarantee;PrecautionstobetakenforPaymentunderBankGuarantee;Inv
ocation&Enforcement.
LettersofCred
it
GeneralConsiderationsofLettersofcredit;PartiestoaLetterofcredit;TypesofLettersofcredit;Doc
umentsunderaLetterofcredit;UCPDC600;BanksobligationforpaymentofLetterofcredit.
DeferredPaymentGuarantee
s
PurposeofDPGs;MethodsofPayment
LawsRelatingtoBillFinance
ClassofBillsandLawsGoverningBills;ClassificationofBills;CategoriesofBillFinance;Bill
FinanceandLegalPositionofBanker
VariousTypesofSecuritie
s
TypesofSecurities;EscrowArrangements;TrustandRetentionArrangements.
LawsRelatingtoSecuritiesandModesofCharging–
IMortgage;TypesofMortgage;EnforcementofMortgagesLa
wsRelatingtoSecuritiesandModesofCharging–
IILien;Pledge;Hypothecation;etc.
RegistrationandSatisfactionofCharges
DefinitionofCharge;ProcedureforRegistrationofCharge;EffectofNon-registrationof
Charges;ProvisionsofLawrelatingtoRegistrationofCharges
CaseLawsonResponsibilityofPayingBank
NegotiableInstrumentsActandPayingBanks;LiabilityofPayingBanker;Paymentinduecourse;P
aymentinGoodFaith;WhetherPaymentunderMistakeRecoverable
CaseLawsonResponsibilityofCollectingBank
StatutoryprotectiontoCollectingBank;DutiesofCollectingBank
MODULEC–BANKINGRELATEDLAWS
RecoveryofDebtsduetoBanksandFinancialInstitutionsAct,1993(DRTAct)Object
iveoftheAct,ConstitutionofTribunal,Proceduretobefollowed,Enforcementprocess
SecuritisationandReconstructionofFinancialAssetsandEnforcementofSecurities
InterestAct(SARFAESI
)
ConstitutionalValidity;Definitions;Regulation&Reconstruction;EnforcementofSecurity
Interest;CentralRegistry;Offences&Penalties;MiscellaneousProvisions
BankingOmbudsmenSchem
e
Purpose;Extent;Definitions;Establishment;Powers;ProcedureforRedressalGrievance
BankersBooksEvidenceAct,1891
Applicability;Definition;ImportantProvisions
TheLegalServicesAuthoritiesAct,1987
LokAdalats-Organization;Jurisdiction;DisposalofCases;Awards
TheConsumerProtectionAct,1986andCERSAI
Preamble,Extent&Definitions;ConsumerProtectionCouncils;ConsumerDisputesRedressalAg
encies;ObjectivesandimportantprovisionsofCentralRegistryofSecuritisationAssetReconstruc
tionandSecurityInterestofIndia
TheLawofLimitatio
n
Definition;ComputationofLimitation;ImportantProvisionsinscheduletotheLimitationAct
TaxLaws
IncomeTax;CommodityTransactionTax;ServiceTax
NegotiableInstrumentsAct,1881
Applicability;Definition;ImportantProvisions
Payment&SettlementsSystemsAct,2007
Applicability;Definition;ImportantProvisions
MODULED–COMMERCIALLAWSWITHREFERENCETOBANKINGOPERATIONS
IndianContractAct,187
2
Meaningandessentialsofcontract;ContractofIndemnity&RightsofIndemnityHolder;Contractof
Guarantee;ContractofBailment;ContractofPledge;ContractofAgency
TheSaleofGoodsAct,1930
Features;Sale&AgreementtoSell;ConditionsandWarranties;Express&Implied;RightsofUnpai
dSeller
 IndianPartnershipAct,1932
Definition&TypesofPartnerships;Relationofpartnerstooneanother&tothirdParties;Minoradmitt
edtobenefitsofpartnership;Dissolutionofafirm;Effectofnonregistration;Limitedliabilitypartners
hipsformation,registration,rightsandliabilitiesofpartners
Definitionandfeaturesofacompany
Definition&FeaturesofaCompany;DistinctionbetweenCompanyandPartnership
TheCompaniesAct,1956(NowCompaniesAct,2013)
Definition,Features&Typesofcompanies;MemorandumandArticlesofAssociation;DoctrineofU
ltraVires,ConstructiveNotice,IndoorManagement;MembershipofCompany-
Acquisition,Cessation,Register,Rights&DutiesofMembers,Prospectus;Directors;Windingupo
fCompanies
ForeignExchangeManagementAct,1999
ImportantTerms;PowersofRBI,RegulationandManagement;DirectorateofEnforcement
TransferofPropertyAct,1882
Sale,MortgageofImmovableProperty;TypesofMortgages;Salewithandwithoutcourtinterventio
n;LeaseofImmovableProperty
TheRighttoInformationAct,2005
Applicability;Definition; Important Provisions
RighttoInformationandObligationofPublicAuthorities
Obligations;Procedure;Disposal;Appeal;Orders;Penalties.
ThePreventionofMoneyLaunderingAct,2002
Obligations;RecordstobeMaintained;ProcedureforMaintaining&FurnishingInformation;Maint
enance&VerificationsofRecordsofIdentityofClients.
InformationTechnologyAct,2000
Definitions;ElectronicGovernance;CertifyingAuthorities;DigitalSignatureCertificates;Penaltie
s;Appeal.

IMPORTANT RULES/ INFORMATION FOR

CANDIDATES
1.ADMITLETTEROFEXAMINATIONS:
c.Aftersuccessfulregistrationofexamination,realtimeadmitletterwillbegeneratedfortheca
ndidate/s.Candidate/swillbeabletosave,downloadandprintadmitletter.Admitlett
erswillalsotheemailedtothecandidatesintheiremailidregisteredwiththeInstitute.
d.Admit letter will be hosted on Institute's website www.iibf.org.in under the menu
'Examination / Courses > Admit Letter"
e.Fordownloadingandprintingofadmitletterfro
mtheabovementionedwebsite,candidateswillh
avetoenterthefollowing:
i.Membershiporregistrationnumberasloginid
ii.Editprofilepassword.
iii.IfcandidatesdonotremembertheirEditprofilepassword,theyhavetoclickonthe'Forg
otpassword/GetPassword'buttonafterenteringtheMembershiporRegistrationnu
mber.Onclickingfresheditprofilepasswordwillbesenttotheirregisteredemailid.
f.Candidatesarerequiredtoproduceprintedcopyofadmitletteralongwith
MembershipidentitycardoranyothervalidphotoIDcardinoriginal(Aadhaarcard/e-
Aadhaar/Employer'scard/PANCard/DrivingLicense/Electionvoter'scard/Passportet
c.)attheexaminationvenue.
g.IntheabsenceofprintedcopyofAdmitLetterandOriginalPhotoIdentityCard,candidateswil
lbedeniedpermissiontowriteExamination.
h.Admitletterisvalidonlyfortheexamination,date/sandcentre/venuementionedintheadmitl
etter.

4.USEOFCALCULATOR
a.Candidateswillbeallowedtousebatteryoperatedportablecalculatorintheexamination.Th
ecalculatorcanbeofanytypeupto8functionsi.e.
 (Addition,Subtraction,Multiplication,Division,Percentage,Sq.-
root,Tax+andTax-),12digits.
5.OTHERRULES/INFORMATION
e.

Candidateswouldbeabletologintothesystemonlywiththepasswordmentionedinthi
sAdmitLetter.Thispasswordshouldnotbedisclosedtoothers.Keepitsafetoavoidthe
possiblemisuse.
f.

IftheexaminationcouldnotcommenceonscheduledtimeorthereisdelayduetoFailur
eofpower,Technicalsnagofwhatsoevernatureorforanysuchreasonhavingbearing
upontheconductofexamination;candidateshaveto:
i.Waittillresumptionofpowersupply/solvingoftechnicalsnag.
ii.Take-
uptheexaminationatothervenuearrangedbytheexaminationconductin
gauthority.
iii.Followinstructionsgivenbytheexaminationconductingauthority.

6.RESULTADVICE/CONSOLIDATEDMARKSHEET/FINALCERTIFICATE
a.ResultAdviceofcandidateswillbehostedonInstitute'swebsiteondeclarationofresult,wh
ichcanbedownloadedbythecandidates.
b.Consolidatedmarksheetforcandidatescompletingexaminationhavingmorethanonesubj
ect,willbeavailableontheInstitute'swebsiteafterthedeclarationofresults.Candidatesc
andownloadthesameafterenteringlogincredentialsusingtheirmembershipnumberan
deditprofilepassword.
c.Finalcertificate:DigitallySignedCertificatewillbeissuedtothecandidateswho
haveenrolledandpassedtheexamination.TheCertificatewillbeemailedtotheemail-
idofthecandidateregisteredwiththeInstitute,within3weeksfromthedateofdeclarationo
fresult.
MULTIPLE CHOICE QUESTIONS (MCQS) AND
ANSWERS
“TheInstituteconductsitsexaminationsthroughMultipleChoiceQuestions(MCQs).
Asamatterofpolicy,theseMCQsandtheiranswerswillnotbesharedbytheInstitutewiththecandida
tesorothersandnocorrespondenceinthisregardwillbeentertained."