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JAIIB/DBF Important Dates
JAIIB/DBF Important Dates For May-June Exam 2024
JAIIB/DBF Registration Date 2024(March)
05 March-11 March 2024 Normal Examination Fees
12 March-18 March 2024 Normal Examination fees plus Rs 100/-
19 March-27 March 2024 Normal Examination fees plus Rs 200/-
JAIIB/DBF Exam Date 2024(May-June)
25 May 2024 Indian Economy & Indian Financial System
26 May 2024 Principles & Practices of Banking
02 June 2024 Accounting & Financial Management for Bankers
08 June 2024 Retail Banking & Wealth Management
JAIIB/DBF Important Dates For Oct-Nov Exam 2024
JAIIB/DBF Registration Date 2024(August)
01 August-07 August 2024 Normal Examination Fees
08 August- 14 August 2024 Normal Examination fees plus Rs 100/-
15 August-21 August 2024 Normal Examination fees plus Rs 200/-
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JAIIB/DBF Exam Date 2024(October-November)
20 October 2024 Indian Economy & Indian Financial System
26 October 2024 Principles & Practices of Banking
27 October 2024 Accounting & Financial Management for Bankers
09 November 2024 Retail Banking & Wealth Management
JAIIB/DBF Exam Pattern
Subjects No. of Questions Total Marks Duration
Indian Economy &

100 100 2 Hours
Indian Financial System
Principles & Practices of Banking 100 100 2 Hours
Accounting and Financial Management

100 100 2 Hours
for Bankers
Retail Banking & Wealth Management 100 100 2 Hours
Note: There is no Negative Marking

JAIIB/DBF Passing Criteria
Minimum marks to qualify in each paper of JAIIB will be 50 out of 100.
Candidates securing at least 45 marks in each subject with an aggregate of 50% marks in all
subjects of the examination in a single attempt will also be declared as having passed the
examination.
Time Limit For Qualifying JAIIB/DBF

Aspirants will get 5 attempts to qualify for the exam in the maximum time period of 3 years,
whichever is earlier.
The time limit will commence from the time the candidate registers for the exam.
It is not necessary that the 5 attempts should be consecutive.
Candidates unable to pass the examination within the maximum given time period of 3 years or 5
attempts, whichever is earlier, will have to enroll again for the JAIIB Exam.
The time period of 3 years or 5 attempts, whichever is earlier, will start from the date of
registration for the first attempt. Attempts will be considered when he/she applies for the exam,
irrespective of whether the candidate appears for any examination or not.
Out of the 6 JAIIB examinations conducted within the 3 years time period, a candidate will be
eligible to apply for any five examinations. If a candidate appears for all five attempts before
three years are completed, then he/she will have to enroll again. Similarly, if a candidate does not
avail of five attempts but the prescribed time period of three years is completed then he/she will
have to re-enroll again.
DBF Eligibility Criteria
·Non-Members Of Institute
·To be eligible, applicants must have successfully completed the 12th standard examination in
any field or its equivalent. Alternatively, candidates who have cleared the BC/BF examination
conducted by IIBF are also eligible.
Note: Individuals who are members of the Institute are not eligible to take the DB&F examination
since they are already eligible to appear for the JAIIB examination
600+ Hours of Live Classes
Experienced Faculties
Based on New Syllabus
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JAIIB Eligibility Criteria
Only individuals who are ordinary members of the Institute are eligible to take the
examination. Ordinary membership is open to individuals working in the banking
and finance industry, provided their employer is an Institutional member of the
Institute. For more information, please refer to the IIBF website.
Candidates must have successfully completed the 12th standard examination in
any field or its equivalent to be eligible for the examination. However, the Institute
may, at its discretion, allow candidates from the clerical or supervisory staff cadre
of banks to appear for the examination, even if they have not passed the 12th
standard or its equivalent. This decision is based on the recommendation of the
candidate's bank manager or officer-in-charge.
Members of the Institute who belong to the subordinate staff of recognized
Banking/Financial Institutions in India are eligible to take the examination, provided
they have passed the 12th standard examination or its equivalent.
JAIIB MEMORY BASED QUESTIONS AVAILABLE NOW
JAIIB/DBF Syllabus 2024

Paper 1: Indian Economy and Indian Financial System (IE & IFS)
Module A: Indian Economic Architecture

An Overview of Indian Economy, Sectors of the Indian Economy, Economic Planning in India & NITI
Aayog, Role of Priority Sector and MSME in the Indian Economy, Infrastructure including Social
Infrastructure, Globalisation- Impact on India, Economic Reforms, Foreign Trade Policy, Foreign
Investments and Economic Development, International Economic Organizations (World Bank, IMF,
etc.), Climate change, Sustainable Development Goals (SDGs), Issues Facing Indian Economy.
Module B: Economic Concepts Related to Banking

Fundamentals of Economics, Microeconomics, and Macroeconomics and Types of Economies,
Supply and Demand, Money Supply and Inflation, Theories of Interest, Business Cycles, Monetary
Policy and Fiscal Policy, System of National Accounts and GDP Concepts, Union Budget.
Module C: Indian Financial Architecture

Indian Financial System-An Overview, Indian Banking Structure, Banking Laws - Reserve Bank of India
Act, 1934 & Banking Regulation Act, 1949, Development Financial Institutions, Micro Finance
Institutions, Non-Banking Financial Companies (NBFCs), Insurance Companies, Indian Financial
System- Regulators and Their Roles, Reforms & Developments in the Banking Sector

Module D: Financial Products and Services
Financial Markets, Money Markets, Capital Markets and Stock Exchanges, Fixed Income Markets -
Debt and Bond Markets, Foreign Exchange Markets, Interconnectedness of Markets and Market
Dynamics, Merchant Banking Services, Derivatives Market, Factoring, Forfaiting and Trade
Receivables Discounting System (TReDS), Venture Capital, Lease Finance and Hire Purchase, Credit
Rating and Credit Scoring, Mutual Funds, Insurance Products, Pension Products, Para Banking and
Financial Services Provided by Banks, Real Estate Investment Trusts (REITs) and Infrastructure
Investment Trusts (Inv!Ts)
Paper 2: Principles and Practices of Banking (PPB)
Module A: General Banking Operations

Banker-Customer Relationship, AML- KYC Guidelines, Operational Aspects of KYC, Opening Accounts
of Various Types of Customers, Operational Aspects of Deposit Accounts, Operational Aspects of
Handling Clearing/Collection/Cash, Banker's Special Relationship, Foreign Exchange Remittance
Facilities for Individuals, Operational Aspects of NRI Business, Foreign Currency Accounts for
Residents and Other Aspects, Cash Management Services and its Importance, Payment and
Collection of Cheques and Other Negotiable Instruments, Responsibility of Paying Bank,
Responsibility of Collecting Bank, Ancillary Services, Financial Inclusion & Financial Literacy,
Customer Service Guidelines, Duties & Rights of a Banker and Customer Rights, Grievance Redressal
& RBI Integrated Ombudsman Scheme 2021, The Consumer Protection Act, 2019: Preamble, Extent
and Definitions, The Right to Information Act, 2005.
Module B: Functions of Banks

Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities, Appraisal and
Assessment of Credit Facilities, Operational Aspects of Loan Accounts, Types of Collaterals and their
Characteristics, Different Modes of Charging Securities, Documentation, Non-Performing Assets/
Stressed Assets, Important Laws Relating to Recovery of Dues, Contracts of Indemnity, Contracts of
Guarantee & Bank Guarantee, Letters of Credit, Deferred Payment Guarantee, Laws Relating to Bill
Finance, Personal Finance, Priority Sector Advances, Agricultural Finance, Finance to MFIs/Co-
Lending Arrangements with NBFCs, Micro, Small and Medium Enterprises in India, Government
Sponsored Schemes, Self-Help Groups.
Module C: Banking Technology

Essentials of Bank Computerisation, Operational Aspects of CBS Environment, Alternate Delivery
Channels Digital Banking, Data Communication Network and EFT Systems, Digital Payment Systems-
NPCI, Impact of Technology Adoption and Trends in Banking Technology, Security Considerations
and Mitigation Measures in Banks, Operational Aspects of Cyber Crimes/Fraud Risk Management in
Cyber Tech, Technology Trends in Banking, e-RUPI, Fintech - RegTech, Sup Tech, Hashtag Banking
etc.
Module D: Ethics in Banks and Financial Institutions

Ethics, Business Ethics & Banking: An Integrated Perspective, Ethics at the Individual Level, Ethical
Dimensions: Employees, Work Ethics and the Workplace, Banking Ethics: Changing Dynamics

Paper 3: Accounting and Financial Management for Bankers (AFM)
Module A: Accounting Principles and Processes

Definition, Scope & Accounting Standards including Ind AS, Basic Accountancy Procedures,
Maintenance of Cash/Subsidiary Books and Ledger, Bank Reconciliation Statement, Trial Balance,
Rectification of Errors and Adjusting & Closing Entries, Depreciation and its Accounting, Capital and
Revenue Expenditure, Bills of Exchange, Operational Aspects of Accounting Entries, Back Office
Functions/Handling Unreconciled Entries in Banks, Bank Audit & Inspection.
Module B: Financial Statements and Core Banking Systems

Balance Sheet Equation, Preparation of Final Accounts, Company Accounts-I, Company Accounts-II,
Cash Flow and Funds Flow, Final Accounts of Banking Companies, Core Banking Systems and
Accounting in Computerised Environment.
Module C: Financial Management

Financial Management -An Overview, Ratio Analysis, Financial Mathematics Calculation of Interest
and Annuities, Financial Mathematics Calculation of YTM, Financial Mathematics- Forex Arithmetic,
Capital Structure and Cost of Capital, Capital Investment Decisions/Term Loans, Equipment
Leasing/Lease Financing, Working Capital Management, Derivatives.
Module D: Taxation and Fundamentals of Costing

Taxation: Income Tax/TDS/Deferred Tax, Goods & Services Tax, An Overview of Cost & Management
Accounting, Costing Methods, Standard Costing, Marginal Costing, Budgets and Budgetary Control,
Bibliography.
Paper 4: Retail Banking and Wealth Management (RBWM)
Module A: Retail Banking

Retail Banking: Introduction, Retail Banking: Role within the Bank Operations, Applicability of Retail
Banking Concepts and Distinction between Retail and Corporate/Wholesale Banking, Branch
Profitability.
Module B: Retail Products and Recovery

Customer Requirements, Product Development Process, Credit Scoring, Important Retail Liability
Products, Important Retail Asset Products, Credit and Debit Cards, Remittance Products, Digitisation
of Retail Banking Products, Role of AI and Technology in Retail Banking, Recovery of Retail Loans,
Management Information Systems, Securitization.
Module C: Support Services- Marketing of Banking Services/Products

Marketing: An Introduction, Delivery Channels in Retail Banking, Delivery Models, Customer
Relationship Management in Retail Banking, Service Standards for Retail Banking, Marketing
Information Systems-A Longitudinal Analysis.
Module D: Wealth Management

Importance of Wealth Management, Investment Management, Tax Planning, and Other Financial
Services Provided by Banks.

CAIIB Important Dates
CAIIB Important Dates For July Exam 2024

CAIIB Registration Date 2024(May)
07 May-13 May 2024 Normal Examination fees
14 May-20 May 2024 Normal Examination fees plus Rs 100/-
21 May-27 May 2024 Normal Examination fees plus Rs 200/-
CAIIB Exam Date 2024(July)
07 July 2024 Advanced Bank Management
13 July 2024 Bank Financial Management
14 July 2024 Advance Business & Financial Management
21 July 2024 Banking Regulation and Business Laws
27 July 2024 Elective Paper
CAIIB Important Dates For Nov-Dec Exam 2024
CAIIB Registration Date 2024(September)
03 September-09 September 2024 Normal Examination fees
10 September- 16 September 2024 Normal Examination fees plus Rs 100/-
17 September-23 September 2024 Normal Examination fees plus Rs 200/-

CAIIB Exam Date 2024(November-December)
24 November 2024 Advanced Bank Management
01 December 2024 Bank Financial Management
08 December 2024 Advance Business & Financial Management
14 December 2024 Banking Regulation and Business Laws
15 December 2024 Elective Paper
CAIIB Exam Pattern
Subjects No. of Questions Total Marks Duration
Advanced Bank Management 100 100 2 Hours
Bank Financial Management 100 100 2 Hours
Advance Business & Financial

100 100 2 Hours
Management
Banking Regulation and Business Laws 100 100 2 Hours
Elective Paper 100 100 2 Hours

Note 1: There is no Negative Marking
Note 2: Elective Paper in the above exam pattern includes Rural Banking, Human Resources
Management, Information Technology & Digital Banking, Risk Management,Central Banking. Out of
these subjects, candidates have to opt for one subject.
CAIIB Eligibility Criteria

Members who have completed JAIIB
CAIIB Passing Criteria

A minimum score of 50 out of 100 is required to pass each subject of CAIIB.
Candidates who achieve a minimum of 45 marks in every subject and an overall aggregate of
50% in a single attempt will also be considered to have successfully qualified for the examination.
Time Limit For Qualifying CAIIB

Candidates who register for the CAIIB exam will have a maximum of three years or five attempts,
whichever comes first, to complete the exam. The five attempts do not have to be consecutive.
Candidates who are unable to pass the exam within the maximum time limit of three years or five
attempts, whichever comes first, will need to register again for the exam. Previous credits for any
passed subjects will not be carried over.
The three-year or five-attempt time limit begins from the date of the candidate's registration for
their first attempt. Attempts will be counted regardless of whether the candidate appears for the
exam or not.
These rules mean that a candidate can usually apply for any five out of the six examinations
conducted within the three-year period. If a candidate exhausts all five attempts before the end of
the three years, they will need to register again. Similarly, if a candidate does not use all five
attempts but exceeds the three-year time limit, they will need to register again.
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CAIIB Syllabus 2024
CAIIB Syllabus Paper 1: Advanced Bank Management(ABM)
Module A: Statistics
Definition of Statistics, Importance & Limitations & Data Collection, Classification &
Tabulation:Importance of Statistics; Functions of Statistics; Limitation or Demerits of Statistics;
Definitions; Collection of Data; Classification and Tabulation; Frequency Distribution, Sampling
Techniques:Random Sampling; Sampling Distributions; Sampling from Normal Populations; Sampling
from NonNormal Populations; Central Limit Theorem; Finite Population Multiplier, Measures of
Central Tendency & Dispersion, Skewness, Kurtosis: Arithmetic Mean; Combined Arithmetic Mean;
Geometric Mean; Harmonic Mean; Median and Quartiles; Mode; Introduction to Measures of
Dispersion; Range and Coefficient of Range; Quartile Deviation and Coefficient of Quartile Deviation;
Standard Deviation and Coefficient of Variation; Skewness and Kurtosis,Correlation and Regression:
Scatter Diagrams; Correlation; Regression; Standard Error of Estimate, Time Series:Variations in Time
Series; Trend Analysis; Cyclical Variation; Seasonal Variation; Irregular Variation; Forecasting
Techniques,Theory of Probability: Mathematical Definition of Probability; Conditional Probability;
Random Variable; Probability Distribution of Random Variable; Expectation and Standard Deviation;
Binomial Distribution; Poisson Distribution; Normal Distribution; Credit Risk; Value at Risk; Option
Valuation, Estimation: Estimates; Estimator and Estimates; Point Estimates; Interval Estimates;
Interval Estimates and Confidence Intervals; Interval Estimates of the Mean from Large Samples;
Interval Estimates of the Proportion from Large Samples Linear Programming Graphic Approach;
Simplex Method, Simulation:Simulation Exercise; Simulation Methodology
Module B: Human Resource Management

Fundamentals of Human Resource Management: The Perspective; Relationship between HRM &
HRD and their Structure and Functions; Role of HR Professionals; Strategic HRM; Development of HR
Functions in India, Development of Human Resources HRD and its Subsystems; Learning and
Development – Role and Impact of Learning; Attitude Development; Career Path Planning; Self-
Development; Talent Management; Succession Planning,Human Implications of Organisations:
Human Behaviour and Individual Differences; Employees Behaviour at Work; Diversity at Workplace
and Gender Issues; Theories of Motivation and their Practical Implications; ‘Role’ : Its Concept &
Analysis,Employees’ Feedback and Reward System: Employees’ Feedback; Reward and
Compensation System, Performance Management: Appraisal Systems; Performance Review and
Feedback; Counselling; Competency Mapping and Assessment of Competencies; Assessment
Centres; Behavioural Event Interview (BEI) Conflict Management and Negotiation Conflict: Concept &
Definition; Characteristics of Conflict; Types of Conflicts; Reasons for Conflict; Different Phases of
Conflict; Conflict Resolution; Conflict Management; Negotiation Skills for Resolution of Conflicts,
HRM and Information Technology:Role of Information Technology in HRM; HR Information and
Database Management; Human Resource Information System (HRIS); Human Resource Management
System (HRMS); e–HRM; HR Research;Knowledge Management; Technology in Training; HR
Analytics

Module C: Credit Management
Overview of Credit Management: Importance of Credit; Historical Background of Credit in India; Principles of
Credit; Types of Borrowers; Types of Credit; Components of Credit Management; Role of RBI Guidelines in
Bank’s Credit Management, Analysis of Financial Statements: Which are the Financial Statements; Users of
Financial Statements; Basic Concepts Used in Preparation of Financial Statements; Accounting Standards
(AS); Legal Position Regarding Financial Statements; Balance Sheet; Profit and Loss Account; Cash Flow
Statement; Funds Flow Statement; Projected Financial Statements; Purpose of Analysis of Financial
Statements by Bankers; Rearranging the Financial Statements for Analysis; Techniques used in Analysis of
Financial Statements; Creative Accounting; Related Party Transactions, Working Capital Finance: Concept of
Working Capital; Working Capital Cycle; Importance of Liquidity Ratios; Methods of Assessment of Bank
Finance; Working Capital Finance to Information Technology and Software Industry; Bills/Receivables Finance
by the Banks; Guidelines of RBI for Discounting/Rediscounting of Bills by Banks; Trade Receivables
Discounting System (TReDS); Non-Fund Based Working Capital Limits; Other Issues Related to Working Capital
Finance, Term Loans: Important Points about Term Loans; Deferred Payment Guarantees (DPGs); Difference
between Term Loan Appraisal and Project Appraisal; Project Appraisal; Appraisal and Financing of
Infrastructure Projects, Credit Delivery and Straight Through Processing Documentation; Third-Party
Guarantees; Charge over Securities; Possession of Security; Disbursal of Loans; Lending under
Consortium/Multiple Banking Arrangements; Syndication of Loans; StraightThrough Loan Processing or Credit
Underwriting Engines, Credit Control and Monitoring: Importance and Purpose; Available Tools for Credit
Monitoring/Loan Review Mechanism (LRM), Risk Management and Credit Rating: Meaning of Credit Risk;
Factors Affecting Credit Risk; Steps taken to Mitigate Credit Risks; Credit Ratings; Internal and External
Ratings; Methodology of Credit Rating; Use of Credit Derivatives for Risk Management; RBI guidelines on Credit
Risk Management; Credit Information System,Restructuring/Rehabilitation and Recovery: Credit
Default/Stressed Assets/NPAs; Wilful Defaulters; Non-cooperative borrowers; Options Available to Banks for
Stressed Assets; RBI Guidelines on Restructuring of Advances by Banks; Available Frameworks for
Restructuring of Assets; Sale of Financial Assets, Resolution of Stressed Assets under Insolvency and
Bankruptcy Code 2016:Definition of Insolvency and Bankruptcy; To Whom the Code is Applicable; Legal
Elements of the Code; Paradigm Shift; Corporate Insolvency Resolution Process; Liquidation process; Pre-
packed Insolvency Resolution Process for stressed MSMEs.
Module D: Compliance in Banks & Corporate Governance

Compliance Function in Banks: Compliance Policy; Compliance Principles, Process and Procedures;
Compliance Programme; Scope of Compliance Function; Role & Responsibilities of Chief Compliance Officer
(CCO), Compliance Audit: Role of Risk Based Internal Audit and Inspection; Reporting Framework and
Monitoring Compliance; Disclosure Requirements; Accounting Standards; Disclosures under Listing
Regulations of SEBI, Compliance Governance Structure:Organisational Structure; Responsibility of the Board
and Senior Management; Compliance Structure at the Corporate Office; Functional Departments; Compliance
Structure at Field Levels; Internal Controls and its Importance, Framework for Identification of Compliance
Issues and Compliance Risks
Compliance Issues; Compliance Risk; Inherent Risk and Control Risk; Independent Testing and Effective Audit
Programme; Reporting Framework and Monitoring Compliance; Role of Inspection and Audit; Loan Review
Mechanism/Credit Audit; What is Good Compliance, Compliance Culture and GRC Framework: How to Create
Compliance Culture Across the Organisation; Governance, Risk and Compliance – GRC Framework; Benefits of
an Integrated GRC Approach; Whistle-blower Policy; The Components of a Whistle-blower Policy; Reasons for
Compliance Failures,Compliance Function and Role of Chief Compliance Officer in NBFCs: Framework for
Scale Based Regulation for Non-Banking Financial Companies; Transition Path; Framework for Compliance
Function and Role of Chief Compliance Officer in Non-Banking Financial Companies in Upper Layer and Middle
Layer (NBFC-UL & NBFC-ML), Fraud and Vigilance in Banks: Definition of Fraud; Definition of Forgery; Areas in
which Frauds are committed in Banks; Banking and Cyber Frauds; Fraud Reporting and Monitoring System;
Vigilance Function in Banks; RBI Guidelines for Private Sector and Foreign.

CAIIB Syllabus Paper 2: Bank Financial Management(BFM)
Module A: International Banking

Exchange Rates and Forex Business: Foreign Exchange – Definition and Markets; Factors Determining
Exchange Rates; Exchange Rate Mechanism; Foreign Exchange Dealing Room Operations; Derivative
Products; RBI / FEDAI Guidelines; Foreign Exchange Arithmetic – Concepts and Examples, Liberalised
Remittance Scheme (LRS) and other Remittance Facilities for Residents: Capital Account Transactions
and Current Account Transactions; Key Sections under FEMA vis-à-vis Liberalized Remittance Scheme;
Permissible/Non-permissible Remittances under LRS; Operational Guidelines; Remittances under LRS for
Current Account Transactions; Tax Collected at Source (TCS); LRS vis-à-vis Capital Account Transactions;
Reporting Requirements under LRS, Correspondent Banking and NRI Accounts:Correspondent Banking –
Accounts and other Services; Nostro, Vostro and Loro Accounts; Electronic Modes of
Transmission/Payment Gateways – SWIFT, CHIPS, CHAPS, RTGS, etc.; NRI Banking; NRI accounts –
Rupee and Foreign Currency Accounts; Facilities to NRIs; Advances to Non-Residents against Non-
Resident Deposits; Housing Loans to Non-Resident Indians, Documentary Letters of Credit: Definition of
Letter of Credit; Types of Letters of Credit; Operations of Letter of Credit; UCP 600 and Important Articles;
Liabilities, Responsibilities and Rights of the Parties; Documents under LC – Scrutiny, Crystallization,
Follow-up for Bills under LC and Safeguards for Banks; Risks Relating to LC Transactions; Standby Letter
of Credit (Similar to Guarantees); Uniform Rules for Bank-to-Bank Reimbursements (URR–725);
International Standard Banking Practice – 745 (ISBP 745); Incoterms; Case Studies,Facilities for Exporters
and Importers Exchange and Trade Control Guidelines for Exporters; Facilities for Exporters;Export
Finance; Gold Card Scheme for Exporters; Export Data Processing and Monitoring System (EDPMS);
Factoring and Forfaiting; Exchange and Trade Control Guidelines for Importers; Import Finance; Import
Data Processing and Monitoring System (IDPMS); Trade Credit – Supplier’s Credit and Buyer’s Credit;
Case Study on Export Finance, External Commercial Borrowings and Foreign Investments in India:
External Commercial Borrowings – Concepts; ECBs – Other Operational Concepts; Reporting
Requirements; Conversion of ECB into Equity; Foreign Investments; Key Concepts; Eligible Foreign
Investors; Eligible Investee Entities; Eligible Investment Instruments; Prohibited Sectors; Rules Governing
Pledge of Shares; Operational Guidelines; Snap Shot of Non-Debt Instruments (NDI) Rules; List of
Documents for Obtention of Foreign Investments; List of Documents for Refund of Foreign
Investments,Risks in Foreign Trade – Role of ECGC: Definition of Risk and Risks in International Trade;
Country Risk; Export Credit Insurance in International Trade; ECGC Role and Products; ECGC Policies;
ECGC’s Products for Banks; Other Aspects Relating to ECGC Policies and Guarantees; Some of the
Common “To Do Points” under ECGC Policies; Claims Role of EXIM Bank, Reserve Bank of India,
Exchange Control in India – FEMA, FEDAI and Others EXIM Bank – Role, Functions and Facilities; Reserve
Bank of India – Role and Exchange Control Regulations in India; Foreign Exchange Management Act
(FEMA) 1999; Role of FEDAI and FEDAI Rules; Short Notes on Other Topics: ECB and ADR/GDRs and
FCCB; International Financial Service Centres (IFSC), GIFTCity Scope of IFSC in India; Opportunities at Gift
City; Guidelines relating to setting up of IFSC Banking Units (IBUs); Role of IFSCA ; Regulatory Framework;
Permissible Activities at IBUs; Relaxations for the FPI (Foreign Portfolio Investors) Entities at GIFT City
Technology in International Banking Introduction to Digitization in International Banking – An Overview,
Evolution of Technology in International Banking; Benefits and Limitations of Technology in International
Banking; Digital Platforms in International Banking; FINTECH and evolution of FINTECH in International
Banking; Delivery channels under FINTECH in International Banking; Sample process of International
Trade Using Blockchain Technology; Challenges in FINTECH.

Module B: Risk Management
Risk and Basic Risk Management Framework:What is Risk?, Linkages among Risk, Capital and Return;
Why Risk Management?; Basic Risk Management Framework, Risks in Banking Business: Risk
Identification in Banking Business; The Banking Book; The Trading Book; Off-Balance Sheet Exposures;
Banking Risks – Definitions, Risk Regulations in Banking Industry: Regulation of Banking Industries –
Necessities and Goals; The Need for Risk-based Regulation in a Changed World Environment; Basel I:
The Basel Capital Accord; 1996 Amendment to Include Market Risk; Basel II Accord – Need and Goals;
Basel II Accord; Towards Basel III; Capital Charge for Credit Risk; Credit Risk Mitigation; Capital Charge
for Market Risk; Capital Charge for Operational Risk; Pillar 2 – Supervisory Review Process; Pillar 3 –
Market Discipline; Capital Conservation Buffer; Leverage Ratio; Countercyclical Capital Buffer;
Systemically Important Financial Institutions (SIFIs); Risk Based Supervision (RBS), Market Risk: Market
Risk – Concept; Market Risk in Banks; Market Risk Management Framework; Organisation Structure;
Risk Identification; Risk Measurement; Risk Monitoring and Control; Risk Reporting; Managing Trading
Liquidity; Risk Mitigation, Credit Risk: General; Credit Risk Management Framework; Organisation
Structure; Risk Identification; Risk Measurement; Credit Risk Control and Monitoring; Credit Risk Policies
and Guidelines at Transaction Level; Credit Control and Monitoring at Portfolio Level; Active Credit
Portfolio Management; Controlling Credit Risk through Loan Review Mechanism (LRM); Credit Risk
Mitigation; Securitisation; Credit Derivatives (CDs), Operational Risk and Integrated Risk Management:
Operational Risk – General; Operational Risk – Classification; Operational Risk Classification by Event
Type – Definitions; Operational Risk Management Practices; Management Overview and Organisational
Structure; Processes and Framework; Risk Monitoring and Control Practices; Operational Risk
Qualification; Operational Risk Mitigation; Scenario Analysis; Integrated Risk Management; The
Necessity of Integrated Risk Management; Integrated Risk Management – Challenges; Integrated Risk
Management – Approach,Liquidity Risk Management: Liquidity Risk Management – Need & Importance;
Potential Liquidity Risk Drivers; Types of Liquidity Risk; Principles for Sound Liquidity Risk Management;
Governance of Liquidity Risk Management; Liquidity Risk Management Policy, Strategies and Practices;
Management of Liquidity Risk; Ratios in respect of Liquidity Risk Management; Stress Testing;
Contingency Funding Plan; Overseas Operations of the Indian Banks’ Branches and Subsidiaries and
Branches of Foreign Banks in India; Broad Norms in Respect Of Liquidity Management; Liquidity Across
Currencies; Management Information System; Reporting to the Reserve Bank of India; Internal Controls,
Basel III Framework on Liquidity Standards: Liquidity Coverage Ratio; Liquidity Risk Monitoring Tools;
Net Stable Funding Ratio
Module C: Treasury Management

Introduction to Treasury Management:The Concept; Functions of Integrated Treasury; The Process of
Globalisation; Evolving Role of Treasury as Profit Centre; Organisation of Treasury, Treasury
Products:Products of Foreign Exchange Markets; Money Market Products; Securities Market Products;
Domestic and Global Markets, International Equity and Debt Products:Regulatory Environment; Global
Depository Receipts; Indian Depository Receipts; External Commercial Borrowings; Trade Credits; Rupee
Denominated Bonds, Funding and Regulatory Aspects:Reserve Assets: CRR and SLR; The Liquidity
Adjustment Facility (LAF); Payment and Settlement Systems, Treasury Risk Management: Supervision
and Control of Treasury; Market Risk and Credit Risk; Risk Measures: VaR and Duration; Use of
Derivatives in Risk Management, Derivative Products: Derivatives and the Treasury; OTC and Exchange
Traded Products; Forwards, Options, Futures and Swaps; Interest Rate and Currency Swaps;
Developments in Indian Markets and RBI Guidelines on Risk Exposure, Treasury and Asset-Liability
Management: Meaning of Asset-Liability Management (ALM), Liquidity Risk and Interest Rate Risk, Role
of treasury in ALM, Use of derivatives in ALM, Credit risks and Credit Derivatives, Transfer pricing, Policy
Environment

Module D: Balance Sheet Management
Components of Assets and Liabilities in Bank’s Balance Sheet and their Management: Components
of a Bank’s Balance Sheet; What is Asset Liability Management?; Significance of Asset Liability
Management; Purpose and Objectives of Asset Liability Management; ALM as Co-ordinated Balance
Sheet Management, Banking Regulation and Capital: Capital and Banking Regulation, Capital
Adequacy – Basel Norms: Scope of Application; Pillar-1 – Minimum Capital Requirements; Pillar 2-
Supervisory Review Process; Pillar 3 – Market Discipline, Asset Classification and Provisioning
Norms: Asset Classification; Provisioning Norms, Liquidity Management: Definition; Dimensions and
Role of Liquidity Risk Management; Measuring and Managing Liquidity Risk, Interest Rate Risk
Management: Essentials of Interest Rate Risk; Sources of Interest Rate Risk; Effects of Interest Rate
Risk; Measurement of Interest Rate Risk; Interest Rate Risk Measurement Techniques; Strategies for
Controlling Interest Rate Risk; Controls and Supervision of Interest Rate Risk Management; Sound
Interest Rate Risk Management Practices; RBI’s Draft Guidelines on Interest Rate Risk in Banking
Book, RAROC and Profit Planning: Profit Planning; Risk Aggregation and Capital Allocation; Economic
Capital and RAROC
CAIIB Syllabus Paper 3:Advance Business and Financial Management (ABFM)
Module A: The Management Process

Basics of Management: Definition of Management, The Management Process, Functions of
Management, Importance of Management, Management Thoughts & Approaches, Management
Challenges & Opportunities, Introduction to Strategic Management, Business Environment Analysis,
Planning: Fundamentals of Planning, Steps in Planning, Importance of Planning, Advantages and
disadvantages of planning, Management by Objectives, Plan Components, Contingency planning,
Forecasting & Decision Making, Organizing: Introduction and Fundamentals of Organizing,
Importance of Organisation, Stages in Organising
Process, The Organising Process, Principles of organizing, Types of Organisations, Organisation
structure, Organisation charts and manuals, The Organisation culture, Authority & Responsibility, Key
Issues in Organisation Structure, Organisational Change, Conflict Dynamics, Staffing: Functions of
Staffing, Objectives of staffing, Nature of staffing, Facets of staffing, Significance of staffing,
System approach to staffing, Recruitment, Selection, Training, Retention and development,
Knowledge and learning management,Performance Appraisal, Human Resource Development,
Directing: Characteristics of directing, Importance of directing, Elements of directing, Leadership,
Motivation,Communication, Supervision, Controlling:Basics of Controlling, Characteristics of
controlling, Advantages of controlling, Limitations of controlling, Types of control management,
Control process, Relation between planning and control, Control Techniques, Control technique and
Information Technology.

Module B: Advanced Concepts Of Financial Management
Sources of Finance and Financial Strategies: Equity Capital, Internal Accruals, Preference Capital,
Term Loans, Debentures, Alternative Financing Strategies in the Context of Regulatory Requirements,
Financial and Operating Leverages: Financial Leverage, Degree of Financial Leverage and its
Behaviour, Operating Leverage, Degree of Operating Leverage and its Behaviour, Combined or Total
Leverage, Capital Investment Decisions: Objective of capital investment decisions, Estimation of
project cash flows, Forecasting and its relation to regulation of capital for short, medium and long
term periods, Relationship between sales, production and other functional budgets, Cash Forecasts,
Cost analysis for projects, Methods of Investment appraisal;Social Cost Benefit Analysis, Capital
Budgeting for International Project Investment Decisions: Foreign Investment Analysis, Special
Considerations-Foreign & Home Currency Cash Flows, Foreign Currency Discount Rates
Computation, International Portfolio Investment and Institutional Constraints, Direct and Indirect
Channels for International Portfolio Investment, Exchange and Country Risk, Return and Risk of
Foreign Investment, Capital asset pricing model, Arbitrage pricing theory; International Capital
Budgeting Issues involved in overseas projects, Approaches for evaluation of overseas projects,
Evaluation methods, , Impact of transfer pricing, Adjustment of Risk and Uncertainty in Capital
Budgeting Decision: Sources & Perspectives on Risk, Sensitivity Analysis, Scenario Analysis, Hillier
Model, Simulation Analysis, Decision Tree Analysis, Corporate Risk Analysis, Managing Risk, Project
Selection Under Risk, Risk Analysis in Practice, Decision Making: Decision Making using Cost-
Volume-Profit (CVP) Analysis, Decision Making using Relevant Cost Concepts, Decision Making using
Activity Based Costing, Ethical and Non-Financial Considerations Relevant to Decision Making
Module C: Valuation, Mergers & Acquisitions
Corporate Valuations: Approaches to Corporate Valuation, Adjusted Book Value Approach, Stock and
Debt Approach, Direct Comparison Approach, Discounted Cash Flow Approach, Steps involved in
valuation using DCF Approach, Discounted Cash Flow Valuation: Estimating Inputs, Approaches to
Discounted Cash Flow Models, Various discounted Cash Flow Models, Dividend Discount Model,
Applicability of the Dividend Discount Model, Other Non-DCF valuation models: Relative valuation
model, Equity Valuation Multiples Model, , Enterprise value multiples Model, Choosing the right
multiples, Book value approach Model, Stock and debt approach, Special cases of valuation:
Intangibles –Brand, Human valuation etc., Real estate Firms, Start-up firms, Firms with negative or
low earnings, Financial Service companies, Distressed firms, Valuation of cash and cross holdings,
Warrants and convertibles, Cyclical & non-cyclical companies, Holding companies, E-commerce
firms, Mergers, Acquisitions and Restructuring: Types of Transactions, Reasons for Merger,
Mechanics of a Merger, Costs and Benefits of a Merger, Exchange Ratio in a Merger, Purchase of a
Division / Plant, Takeovers, Leveraged Buyouts, Acquisition Financing, Business Alliances, Managing
Acquisitions, Divestitures, Holding Company, Demergers, Deal structuring and financial strategies:
Negotiations, Payment and legal considerations, Tax and accounting considerations, Tax reliefs and
benefits in case of Amalgamation in India, Financial reporting of business combinations, Deal
Financing, Financing of cross border acquisitions in India.

Module D: Emerging Business Solutions
Hybrid Finance: Advantages and disadvantages of Hybrid securities, Types of hybrid securities,
Preference Share Capital, Features of Warrants, Features of Convertible Debentures, Differences
between Warrants and Convertible debentures, Valuation of Warrants, Valuation of Compulsorily
Convertible (Partly or fully) Debentures, Objective of issuing Warrants and Convertible debentures,
Features of Foreign Currency Convertible Bond (FCCB), Mezzanine Financing, Innovative Hybrids,
Start-up Finance:Benefits to startup under the Startup Plan, Startup definition in India, Challenges
faced by Startups, State Startup Policy, Pitch Presentation, Programmes and competitions for
startups, Tax exemptions, Funding, Investor’s outlook in Startups, Funding schemes and
programmes, International challenges and bridges, Private Equity and Venture Capital:
Characteristics of Venture Capital Investments, Characteristics shared by Private Equity and Venture
Capital as well as their key distinctions, Financing options available through Venture Capital,
Investment in Private equity, Benefits obtained through private equity, Drawbacks to the practice of
private equity, Due diligence, Exit Strategies, Artificial Intelligence: History of Artificial Intelligence,
Applicability of Artificial Intelligence, Artificial Intelligence in Banking and Finance, The future scope
of Artificial Intelligence, Neural Networks, Control Theory and Cybernetics, Rational Agents, Motion
and Manipulation, Tools and Techniques of Artificial Intelligence, Artificial Intelligence and Morality,
Business Analytics as Management Tool: Essentials of Business analytics, Types of Analytics,
Elements of Business Analytics, Big Data Analytics, Web and Mobile Analytics, Comparing web Vs
Mobile Analytics, Importance of Business Analytics, Green and Sustainable Financing: ISO Standards
for Green Finance, Building Green Finance, International Best Practices towards Green Finance,
Public Policy in India, Progress of Green Finance in India, Challenges and way forward, Growth of
Regulatory Framework, National Efforts towards Green and Sustainable Financing, RBI Views on
Climate Risk and Sustainable Finance, Special Purpose Acquisition Company: Advantages of SPAC,
Disadvantages of SPAC, SPAC Formation and Timelines, The SPAC Merger, Stakeholders,
Characteristics of SPACs, Process, SPAC Capital Structure, Trust Account, Warrants, Forward
Purchase, IPO Agreements, De-SPAC Process
CAIIB Syllabus Paper 4: Banking Regulations and Business Laws (BRBL)
Module A: Regulations and Compliance

Legal Framework of Regulation of Banks: Business of Banking, Constitution of Banks, Reserve Bank
of India Act, 1934, Banking Regulation Act, 1949, Reserve Bank as a Central Bank and Regulator of
Non-Banking Financial Institutions/Banks, Government as a Regulator of Banks, Control over Co-
operative Banks, Regulation by Other Authorities, Control over Organisation of Banks: Licensing of
Banking Companies including RBI Licencing Policy for Universal Banks and Small Finance
Banks/Branch Licensing, Paid-up Capital and Reserves, Shareholding in Banking Companies,
Subsidiaries of Banking Companies, Board of Directors, Chairman of Banking Company, Appointment
of Additional Directors, Restrictions on Employment, Controls over Management, Corporate
Governance, Directors and Corporate Governance, Regulation of Banking Business: Power to Issue
Directions, Acceptance of Deposits, Nomination, Loans and Advances, Regulation of Interest Rates,
Regulation of Payment Systems, Internet Banking Guidelines, Regulation of Money Market
Instruments, Banking Ombudsman, Regulation to Strengthen Financial Stability Returns, Inspection,
Winding Up, Mergers & Acquisitions Annual Accounts and Balance Sheet, Audit and Auditors,
Submission of Returns.

Preservation of Records and Return of Paid Instruments, Special Audit, Inspection and Scrutiny,
Board for Financial Supervision, Acquisition of Undertakings, Amalgamation of Banks, Winding up of
Banks, Penalties for Offences Public Sector Banks, Private Sector Banks, Regional Rural Banks,
Differentiated Banks and Co-operative Banks, Local Area Banks, State Bank of India, Regional Rural
Banks, Other Public Sector Banks, Application of Banking Regulation Act to Public Sector Banks,
Disinvestment of Shares by Government, Co-operative Banks, Private Sector Banks, Differentiated
Banks, Local Area Banks, Non-Banking Financial Companies (NBFCs): Regulators of NBFCs, Role of
NBFC in promoting Inclusive Growth, Registration, Revised Scale Based Regulatory Structure,
Nomenclature and Regulatory Norms, Capital Guidelines, Prudential Guidelines, Corporate
Governance, Fair Practices Code for applicable NBFC, Bank Finance to NBFCs registered/not
requiring registration with RBI, Co-Lending by banks and NBFCs to PSA Financial Sector Legislative
Reforms and Financial Stability and Development Council Narasimham Committees 1/2, Banking
Sector Reforms, Reforms in Monetary Policy, Reforms in Financial Markets, Reforms in Forex Market,
Financial Sector Development Council (FSDC), Function of the FSDC, Wings of FSDC.
Module B: Important Acts/Laws & Legal Aspects of Banking Operations –Part A

The Prevention of Money Laundering Act, 2002: Offence of Money Laundering, Punishment for
Money Laundering, Obligations of Banking Companies, Financial Institutions and Intermediaries,
Enhanced Due Diligence, Rules Framed, Records to be Maintained, Information Contained in the
Records, Procedure for Maintaining Information, Procedure for Furnishing Information to the Director,
Verification of Records of the Identity of Clients, Maintenance of Records of Identity of Clients, Some
Cases pertaining to the Act, Negotiable Instruments Act, 1881:Negotiable Instruments, Types and
Characteristics, Drawer/Acceptor, Payment of Cheques – Protection to Bankers’ /Customers’,
Material Alteration, Where Alteration is not apparent, Protection to the Collecting Banker, Foreign
Exchange Management Act, 1999: Meaning of Certain Important Terms Used in FEMA, Regulation
and Management of Foreign Exchange, Powers of RBI with Respect to Authorized Persons,
Contravention, Penalties, Adjudication and Appeals, Directorate of Enforcement, Special Provisions
relating to Assets held outside India Payment & Settlement Systems Act, 2007 Definitions,
Designated Authority/Authorization, Regulation and Supervision by the RBI, Settlement and Netting,
Power of RBI to make regulations, Law Relating to Securities and Modes of Charge – I: Mortgage,
Document of Title to Immoveable Property – Meaning, Copy of Document of Title to Immoveable
Property Where Acceptable Law Relating to Securities and Modes of Charge – II Appropriation,
Assignment, Pledge, Hypothecation, Bankers lien, Set-off Creation/Registration and Satisfaction of
Charges What is a Charge?, Procedure for Registration of Charge, Effect of Registration of Charges,
Effect of Nonregistration of Charges, Provisions of Companies Act 2013 Relating to Registration of
Charges

Practice Questions For JAIIB
Q1. During the post reforms period, what was the main reason for the high growth rate the Indian economy
experienced?
(a) Increased inflow of foreign capital
(b) Technological advances
(c) New product developments
(d) Increase in consumer demand structure
S1. Ans.(a)
Sol. Although a lot of factors resulted in the boom of economic growth of India, however the increase in the inflow of
foreign capital under the new economic policy of 1991 can be considered the foremost catalyst making India, the
world’s second fastest-growing economy after China from 1992 to 2008
Q2. Consider the following statements regarding agriculture and select the Incorrect one.
(a) It is the largest unorganized sector in India
(b) It employs 93.4 percent of the total unorganized labor force of the economy
(c) It accounts for 17.8% of India’s GVA
(d) The share of Agriculture in GDP valuation is constantly growing since the reforms of 1991
S2. Ans.(d)
Sol. India on its path to development is following the norms of a developing economy with structural changes in the
workforce as well, which accounts for moving from an agrarian economy to an industrial economy. The share of
agriculture in the GDP has been reducing as a result of the same.
Q3. India’s service sector is dominated by services relating to?

(a) Communication
(b) Tourism
(c) Software
(d) Transportation
S3. Ans.(c)
Sol. India is globally respected because of its contributions to the Software sector. Because of this, India is among
the top ten service exporters globally. The share of Software in Service exports is 40%.
Q4. What is/are the reason/s the third plan spanning 1961-65 wasn’t able to accomplish its objectives?
(a) The war with China
(b) The war with Pakistan
(c) The drought of 1961
(d) All of the above
S4. Ans.(d)
Sol. All of the above reasons are responsible for the shortcoming of the achievement of the third plan.
Q5. Which of the following is not the function of NITI AAYOG?

(a) Promote cooperative federalism
(b) Allocation of revenue resources between the Union and the State Governments
(c) Assess and monitor program and initiative execution
(d) Create a strategy and long-term policy and program framework
S5. Ans.(b)
Sol. Finance Commission is the constitutional body responsible for the allocation of revenue resources between the
Union and the State Governments

Q6. Which entities are eligible for MSME registration?
a) Proprietorship, partnership firm, company, trust, or society with an investment below Rs. 50 crore and annual
turnover below Rs. 250 crores
b) Partnership firm or company with an investment below Rs. 50 crore and annual turnover below Rs. 250 crores
c) Proprietorship or partnership firm with an investment below Rs. 50 crore and annual turnover below Rs. 250
crores
d) Proprietorship or partnership firm with an investment below Rs. 100 crore and annual turnover below Rs. 200
crores
S6. Ans.(a)
Sol. Proprietorship, partnership firms, companies, trusts, or society are all eligible for MSME registration provided,
they have an investment below Rs. 50 crore and annual turnover below Rs. 250 crores
Q7. The advantage of futures contracts relative to forward contracts is that futures contracts:
(a) are standardized, making it easier to match parties, thereby increasing liquidity.
(b) specify that more than one bond is eligible for delivery, making it harder for someone to corner the market and
squeeze traders.
(c) all of the above
(d) None of the above
S7. Ans.(c)
Sol. Both (a) & (b) are the advantage of futures contracts relative to forward contracts.
Q8. If a firm must pay for goods it has ordered with foreign currency, it can hedge its foreign exchange rate risk
by?
(a) selling foreign exchange futures short
(b) buying foreign exchange futures long
(c) staying out of the exchange futures market
(d) none of the above
S8. Ans.(b)
Sol. If a firm must pay for goods it has ordered with foreign currency, it can hedge its foreign exchange rate risk by
buying foreign exchange futures long.
Q9. The price specified on an option that the holder can buy or sell the underlying asset is called?
(a) Premium
(b) Coupon rate
(c) The Exercise price
(d) Market value
S9. Ans.(c)
Sol. The exercise price is the price specified on an option that the holder can buy or sell the underlying asset
Q10. Match the following measures in credit appraisal with their descriptions:
A) Verification of information
B) Field verification
C) Validation of required approvals and licenses
D) Applicant's capacity to borrow
1. Checking if the information provided by the applicant is supported by the relevant documents.
2. Ensuring that the person requesting credit has the authority and legal capacity to sign a loan agreement.
3. Visiting the factory or office of the applicant to assess their business operations and management skills.
4. Verifying all the necessary approvals and licenses required for the business to operate.
(a) A-1, B-3, C-4, D-2
(b) A-2, B-1, C-4, D-3
(c) A-3, B-4, C-1, D-2
(d) A-4, B-3, C-2, D-1

S10 Ans.(a)
Sol. In credit appraisal, it is important to gather all the facts, information, and data before verifying them for
accuracy. Banks should only ask for essential information that is relevant to the decision-making process and avoid
an information overload.
· The credit appraisal process includes verifying the information provided by the applicant with the supporting
documents, where possible, such as financial statements, certificate of incorporation, and memorandum of articles.
· Field verification is also an essential modality where the bank representatives visit the applicant's office or factory
to assess their business operations, level of activities, and management skills or quality.
· Verifying all the required approvals and licenses, both on record and on display at the premises, is another
important part of the validation process.
The applicant's capacity to borrow is also a critical factor, and the bank must ensure that they have the legal
authority and capacity to request and sign a loan agreement.
Q12. Which of the following statements regarding the credit appraisal process are true?
A) The credit rating score of the applicant is the primary criterion for decision-making
B) If the credit rating score falls below the cutoff point set by the lending bank's management, the proposal will be
rejected
C) The lender checks whether the purpose of the loan aligns with the bank's credit policy
D) The lender ensures that approving the loan does not breach the concentration limits prescribed by the bank
E) If the proposal fails to meet any of these criteria, it will be approved
(a) A, B, C, and D are true, and E is false
(b) A, B, C, D, and E are true
(c) A and B are true, C and D are false, and E is true
(d) A is true, B, C, D, and E are false
S12. Ans.(a)
Sol. The credit appraisal process involves various criteria that the lending bank considers before approving or
rejecting a credit proposal. The credit rating score of the applicant is the primary criterion for decision-making, and if
it falls below the cutoff point set by the lending bank's management, the proposal will be rejected. The lender also
checks whether the purpose of the loan aligns with the bank's credit policy and whether the proposed activity of the
borrower is on the restricted list. Additionally, the lender ensures that approving the loan does not breach the
concentration limits prescribed by the bank. Therefore, options A, B, C, and D are true. However, option E, which
states that the proposal will be approved if it fails to meet any of these criteria, is false, as the proposal will be
rejected if it fails to meet any of these criteria.
Q13. What was the major difference between FERA and FEMA?
(i) FERA treated offenses related to foreign exchange as criminal offenses, while FEMA treated them as civil
offenses
(ii) FEMA is extended to the whole of India, while FERA excluded the Gujarat International Foreign Tec-City
(iii) FERA regulated foreign exchange transactions, while FEMA regulated foreign investment in India
(iv) FERA was introduced in 1947, while FEMA was introduced in 1973
(a) Only i, and ii
(b) Only i
(c) Only ii
(d) All from i to iv
S13. Ans.(b)
Sol. FERA (Foreign Exchange Regulation Act) and FEMA (Foreign Exchange Management Act) are two acts related
to foreign exchange in India. The major difference between the two acts is that FERA treated offences related to
foreign exchange as criminal offences, while FEMA treated them as civil offences. Option (i) is therefore correct.
Option (ii) is incorrect as FEMA is also applicable to the whole of India.
Option (iii) is incorrect as FERA and FEMA both regulate foreign exchange transactions, but FERA focused more on
regulating foreign exchange transactions while FEMA regulates foreign investment in India.
Option (iv) is incorrect as FERA was introduced in 1973 and FEMA was introduced in 1999.

Q14. A company has an average daily Raw material consumption of 500 kg and an average stock of
2,000 kg. The opening stock of Raw materials was 1,000 kg, and the closing stock was 3,000 kg. The
annual consumption was 150,000 kg. What is the Raw material storage period?
(a) 4 days
(b) 3 days
(c) 9 days
(d) 7 days
S14. Ans.(a)
Sol. Raw Material Storage Period = (Average Stock of Raw Materials / Average Daily Consumption)
Average Stock of Raw Materials = (Opening Stock + Closing Stock) / 2 = (1,000 kg + 3,000 kg) / 2 = 2,000
kg
Next, we can calculate the raw material storage period:
Raw Material Storage Period = (Average Stock of Raw Materials / Average Daily Consumption) = (2,000 kg
/ 500 kg per day) = 4 days
Q15. What is the primary role of Credit Information Companies (CICs)?

A. To seek and obtain credit information from non-Credit Institutions (CI)
B. To keep credit information collected/maintained by them, updated on a monthly basis
C. According to Section 17 of the Credit Information Companies (Regulation) Act of 2005, a Credit
Information Company (CIC) may ask its members for credit information.
D. Currently there are 4 companies that have been granted certificates of registration by the RBI
(a) A, B, C, D
(b) B, C, D
(c) A, C, D
(d) A, B, D
S.15. (b)
Sol. CICs may seek and obtain credit information from their members, i.e., Credit Institutions (CI) only. all
CIs shall become members of all CICs and submit data to them as per RBI directives. CICs and CIs shall
keep the credit information collected/maintained by them updated regularly on a monthly basis or at such
shorter intervals as may be mutually agreed upon between the CI and the CIC.
Q16. What are the benefits of having a Credit Information Report?

A. Helps in analyzing true financial standing, avoiding debt traps, and making informed credit decisions
B. Helps in managing business discrimination and avoiding conflicts of interest
C. Helps in cultivating financial discipline
D. avoiding debt traps
(a) B, C, D
(b) A, C, D
(c) A, B, D
(d) A, B, C
S.16. (b)
Sol. a Credit Information Report helps in analyzing one's true financial standing and making plans for
future finances. it allows individuals to be on top of their borrowings and avoid debt traps. having a Credit
Information Report enables individuals to make informed decisions regarding availing new forms of credit
and extract the best possible rates from banks or other lenders.

Q17. Which statements are correct regarding maintaining a good credit score?
Statement I On-time loan EMI payments, regular payment of credit card bills, avoiding over-leveraging,
maintaining strong financial records, and proper utilization of approved credit limit.
Statement II Too many forms of credit among family members, requesting and maintaining a copy
personally, and ensuring positive information is submitted to CICs.
a. Both statements are false
b. Both statements are true
c. Statement I is true and statement II is false
d. Statement I is false and statement II is true
S.17. (b)
Sol. several factors that contribute to maintaining a good credit score, including on-time loan EMI
payments, regular payment of credit card bills, avoiding over-leveraging, maintaining strong financial
records, and proper utilization of approved credit limits. These factors indicate financial discipline and
responsible credit management, which are essential for maintaining a good credit score.
Q18. What are the benefits that can be associated with a good credit score?
A. Easy availability of credit such as loans, quick processing of loan and credit card applications,
B. the possibility of negotiating or waiving processing fees as well as choosing prepayment options
C. ability to negotiate interest rates
D. Improved sustainability of business models.
(a) A, C, D
(b) A, B, D
(c) A, B, C
(d) A, B, C, D
S.18. (c)
Sol. the benefits of having a good credit score, include easy availability of credit such as loans, quick
processing of loan and credit card applications, the ability to negotiate interest rates, and the possibility of
negotiating or waiving processing fees as well as choosing prepayment options.
Q19. In Schedule 3 of the Companies Act,2013, which division speaks about the financial statements for
a company who are required to comply with companies (accounting standard) rules 2006 without
complying to Ind AS?
(a) I
(b) II
(c) III
(d) IV
S19. Ans.(a)
Sol. Schedule 3 of the Companies Act, 2013
Division 1- financial statements for a company whose financial statements of the company are complied
with companies (accounting standard) rules 2006
Division 2- financial statements for a company whose financial statements of the company are complied
with companies (Indian accounting standard) rules, 2015
Division 3- financial statements for Non-Banking Financial Companies whose financial statements are
drawn up in compliance of the with companies (Indian accounting standard) rules, 2015

Q20. The statement of “source and application of fund “is known as
(a) Cash Flow Statement
(b) Fund Flow Statement
(c) Balance Sheet
(d) Notes To Accounts
S20. Ans.(b)
Sol. Fund Flow statement shows the movement of funds and can learn about the changes in the structure of assets,
liabilities and equity capital.
Q21. Every company has to transfer ____________ to reserve fund as per the RBI Notification.
(a) 25% of the profit
(b) 75% of the profit
(c) 25 % of the total income
(d) 75% of the total income.
S21. Ans.(a)
Sol. Every banking company incorporated in India is required to create a Reserve Fund and to transfer at least 25% of its
profit to the reserve fund as per RBI notification.
Q22. The banking company has to write off _________ Expenses before paying dividends.
(a) Revenue
(b) Operating
(c) Capital
(d) Outstanding
S22. Ans.(c)
Sol. Before paying any dividend, a banking company has to write off completely all its
capitalised expenses including preliminary expenses, organisation expenses, share-
selling commission, brokerage, and amounts of losses incurred by tangible assets.
Q23. Bank has to maintain a certain minimum cash balance to meet requirements is known as _________
(a) Statutory Liquidity Ratio
(b) Cash revenue ratio
(c) Capital reserve
(d) cash reserve ratio.
S23. Ans.(b)
Sol. To smoothly meet cash payment requirements, banks have to maintain certain minimum ready cash balances at all
times. This is called as Cash Reserve Ratio (CRR).
Q24. What are the various safety arrangements that need to be put in place at bank branches and ATMs?
(a) Electronic security tools
(b) Fire protection-related measures
(c) Security guards related measures
S24. Ans.(d)
Sol. d)
Explanation – All of the above safety arrangements need to be put in place at bank branches and ATMs
Q25. Which of the following statement(s) is/are true for Money laundering?
i) It is a process of converting illegal money into clean money
ii) The offences under this crime are non-bailable
iii) The minimum imprisonment under the crime is 2 years
(a) Only i
(b) Both i and ii
(c) Both i and iii
S25. Ans.(b)

Sol. b)
Explanation - Money laundering is a process that criminals use to hide the illegal source of income and clean the money
through complex financial transactions. The offences under this crime are cognizable and non-bailable and the
imprisonment can be up to 3-7 years.
Q26. Which among the following lending principles states, "The money should return to the banks as per the repayment
schedule?"
(a) Liquidity
(b) Safety
(c) Security
(d) Diversification of risks
S26. Ans.(a)
Sol. a)
Explanation – Liquidity states that the money should return to the banks as per the repayment schedule
Q27. In whose presence, the Power of Attorney (PO(A) can be executed?

(a) Cabinet Secretary
(b) Notary public
(c) Oath commissioner
(d) Any of the above
S27. Ans.(b)
Sol. b)
Explanation – The Power of Attorney (POA) can be executed in the presence of a Notary Public
Q28. What is the maximum exposure of banks to each of leasing, hire purchase and factoring services in relation to total
advances?
(a) 5%
(b) 10%
(c) 15%
(d) 20%
S28. Ans.(b)
Sol. b)
Explanation – The maximum exposure of banks to each of leasing, hire purchase and factoring services in relation to total
advances is 10%
Q29. A data lake __

(a) ingests the data in its original form
(b) is focused on a single functional area of business
(c) stores less data than a data warehouse
S29. Ans.(a)
Sol. a) ingest the data in its original form
Explanation – A data lake ingests the data in its original form
Q30. In what situations are Financial Guarantees mostly issued?

(a) On behalf of customers/contractors dealing with Government departments
(b) On behalf of customers who have entered into contracts to do certain things on or before a given date
(c) In situations where a party is required to deposit cash as a part of the contract
(d) In all of the above situations
S30. Ans.(a)
Sol. a) On behalf of customers/contractors dealing with Government departments
Explanation - Financial Guarantees are mostly issued on behalf of customers/contractors dealing with Government
departments

Practice Questions For CAIIB
Q1. A numerical value used as a summary measure for a sample, such as sample mean, is known as a
(a) population parameter
(b) sample parameter
(c) sample statistic
(d) population mean
S1. Ans.(c)
Sol. If it pertains to a sample it is called a statistic, if it pertains to the population, it is called a parameter.
Q2. Where an organization takes into account the effect its strategic decisions have on society, this is known as:
(a) Corporate governance
(b) Business policy
(c) Business ethics
(d) Corporate social responsibility
S2. Ans.(d)
Sol. Corporate social responsibility
Q3. Which of the following are the compliance functions in a bank.

(a) To ensure compliance to all applicable statutory provisions,
(b) Compliance of rules, regulations and code of conducts.
(c) Compliance of all guide lines issued by Central Govt. and Central Bank
(d) All the above
S3. Ans.(d)
Sol. All the above
Q4. The frequency distribution given below refers to the heights in centimetres of 100 people. Determine the mean
value of the distribution, correct to the nearest millimetre.
1. 150–156 = 5
2. 157–163 = 18
3. 164–170 = 20
4. 171–177 = 27
5. 178–184 = 22
6. 185–191 = 8
(a) 168.7 cm
(b) 170.7 cm
(c) 171.7 cm
(d) 173.7 cm
S4. Ans.(c)
Sol. 171.7 cm
Exp: Mean value
= {(5 x 153) + (18 x 160) + (20 x 167) + (27 x 174) + (22 x 181) + (8 x 188)} / 100
= 17169 / 100 = 171.7 cm
Q5. Since the population size is always larger than the sample size, then the sample statistic
(a) can never be larger than the population parameter
(b) can never be equal to the population parameter
(c) can never be smaller than the population parameter
(d) none of the above is correct
S5. Ans.(d)
Sol. Sample statistics will depend upon the sample chosen. It can be less than, greater than, or equal to the population
parameter. It can assume the value of zero.

Q6. Majority of the directors i.e. ________ % of the directors should have the qualifications prescribed u/s 10 A (2)
of BR Act
(a) 24%
(b) 49%
(c) 51%
(d) 74%
S6. Ans.(c)
Sol. As per Section 10 A (2) of the Banking Regulation Act (BR Act), at least 51% of the directors of a banking
company should have special knowledge or practical experience in the fields of agriculture and rural economy,
banking, cooperation, economics, finance, law, small-scale industries, and any other related fields. Therefore, the
majority of the directors, i.e. more than 50%, should have the prescribed qualifications.
Q7. For the purpose of Section 42 of RBI which of the following is not included in the demand and time liabilities
(a) saving bank and current deposits
(b) capital and reserves
(c) term deposits up to 1 year
(d) borrowing
S7. Ans.(b)
Sol. Capital and reserves are part of the equity of the bank and are not taken as demand and time liabilities for CRR
purposes i.e. Section 42 of the Reserve Bank of India Act
Q8. The directions issued by RBI to banks u/s 35A of Banking Regulation Act:
(a) are binding on the banks only
(b) are applicable to banks as well as public
(c) are not binding on the bank but are only advisory in nature
(d) are binding on the banks if they give acceptance to the same
S8. Ans.(a)
Sol. The directions of RBI to banks u/s 35A of the Banking Regulation Act are binding on the banks There are
penalties for non-compliance of such directives.
Q9. If there is a transaction of a bank with a borrower that violates the RBI guidelines:
(a) the violation would invalidate the transaction
(b) the bank will be liable for prosecution by RBI
(c) the transaction will be automatically cancelled
(d) all the above
S9. Ans.(b)
Sol. As per the Supreme Court judgement in Bol Finance Ltd vs The Custodian, such transaction will not be
invalidated but RBI can initiate prosecution of the bank concerned
Q10. Which of the following is a correct statement:

(a) RBI can publish the information collected from a banking company in the public interest
(b) RBI cannot publish the information collected from a banking company under provisions of the Banking
Regulation Act
(c) RBI cannot publish the information obtained during the inspection of a banking company
(d) none of the above
S10. Ans.(a)
Sol. RBI can publish any information it deems appropriate in the public interest that it obtained from a banking
company

Q11. Which of the following is not an important function of Effective liquidity management?
(a) It demonstrates to the marketplace that the bank is safe and therefore capable of repaying its borrowings.
(b) It enables the bank to meet its prior loan commitments, whether formal or informal.
(c) It enables the bank to avoid the unprofitable sale of assets. This function permits the bank to avoid the sale of
assets at fire-sale prices, as opposed to going concern values to generate funds.
(d) To provide funds to satisfy funding needs
S11. Ans.(d)
Sol. A bank's effective liquidity management fulfils five critical functions:
(a) It displays to the market that the bank is trustworthy and thus capable of repaying its debts.
(b) It enables the bank to honour prior lending commitments, both formal and informal.
(c) It allows the bank to avoid selling assets at a loss. This feature allows the bank to avoid selling assets at fire-sale
prices rather than going concern valuations in order to raise capital.
(d) It reduces the amount of default risk premium that the bank must pay for financing. This function focuses on the
areas of liquidity management that have an acceptable price. Banks with robust balance sheets will be seen as
liquid and safe by the market.
Q12. Which of the following refers to Forward transactions in foreign exchange

(a)The transaction which has to be settled on the same day
(b)The transaction in which delivery of foreign exchange takes place on the second working day of the contract
(c)The transaction in which security of foreign exchange takes place on the next working day of the contract
(d) A facility for clients to buy or sell currencies at a predetermined price on a future date with settlement beyond 2
business working days.
S12. Ans.(d)
Sol. Foreign exchange forward transactions refers to facility for the clients to buy or sell currencies at a future date
at a predetermined price. The settlement date of the transaction will be more than 2 business working days. We
normally offer foreign exchange forward transactions with settlement no more than one year.
Q13. On the basis of Which of the following the spot rate is determined in the Foreign Market
1. Balance of payment
2. Monetary and Fiscal policy
3. Economic Growth and Interest rates
(a) 1 and 2.
(b) 2 and 3
(c) 1 and 3
(d) 1,2 and 3
S13. Ans.(d)
Sol. Spot rate in the Foreign Market is determined using Fundamental reasons such as Balance of payment,
Monetary and Fiscal policy, Econic Growth, Interest rates.
Balance of payment - A surplus BOP leads to a stronger currency, while a deficit
weakens a currency.
•Economic growth rate - a high growth leads to a rise in imports and a fall in the value of
·currency, and vice versa.
•Fiscal policy - an expansionary policy, e.g., lower taxes can lead to a higher economic
·growth.
•Monetary policy - the way, a central bank attempts to influence and control interest and
·money supply can impact the value of currency of their country.
•Interest rates - high domestic interest rates tend to attract overseas capital, thus the currency appreciates in the
short term. In the longer term, however, high interest rates slow the economy down, thus weakening the currency.
Political issues - political stability is likely to lead the economic stability, and hence a steady currency, while political
instability would have the opposite effect.

Q14. When the value of a currency is more than what is being quoted for spot, then the currency is said to be
at__
(a) Premium
(b) Discount
(c) At Par
(d) Forward Margin
S14. Ans.(a)
Sol. When the value of the currency is more than that being quoted for Spot, it is said to be at a Premium, and
when the currency is cheaper at a future date than Spot, then the currency is said to be at a Discount. Hence,
when the forward value of the currency is higher than (costlier) the spot (present), the currency is said to be at a
premium.
Q15. Consider the following statements regarding arbitrage and choose the incorrect ones:
(a) It refers to the simultaneous buying and selling of commodities in two or more markets to make a profit from
temporary discrepancies in Prices.
(b) A simple arbitrage involves transactions in two centres
(c) A compound arbitrage involves transactions in three or more centres.
(d) Arbitrage in a future market where the trader buys an under-priced asset and sells it short is known as cash
and carry arbitrage.
S15. Ans.(d)
Sol. Arbitrage in the forex market refers to the simultaneous buying and selling of commodities in two or more
markets to make a profit from a temporary discrepancy in Prices. A simple arbitrage involves transactions in two
centres, Whereas A compound arbitrage involves transactions in three or more centres. Arbitrage in the futures
market refers to wherein a trader buys the underlying asset in the cash/spot market and sells the future of that
asset is known as Cash and carry arbitrage. It takes place when the price of the asset in the future is greater than
its price in the cash market. when the trader buys an under priced asset and sells it short is known as Reverse
cash and carry arbitrage.
Q16.The management function of controlling provides the following advantages to the organization:
(a) Assists in accomplishing personal Goals:
(b) Helps in minimizing errors
(c) Making Efficient and effective use of Board of Directors
(d) validates decisions of standards
S16. Ans.(b)
Sol. The management function of controlling provides the following advantages to the organization Assists in
accomplishing Organizational Goals, helps in minimizing errors, Making Efficient and effective use of resources
and validates accuracy of standards
Q17. Which of the following are the main limitations of Controlling in Management?
(a) It may be costly to implement, especially in smaller firms.
(b) It is difficult to compare the actual performance with the accepted standards, specially in case of standards
not expressed in quantitative terms, like job satisfaction, team spirit and employee morale etc.
(c) There is little or no control on external factors like government policies, changes in consumer behavior,
technological changes, competition, etc.
S17. Ans.(d)
Sol. Main limitations of Controlling in Management it may be costly to implement, especially in smaller firms, it is
difficult to compare the actual performance with the accepted standards and there is little or no control on external
factors like government policies, changes in consumer behavior, technological changes, competition, etc.

Q18. The norm called debt-equity ratio means
(a) how much ideally promoters should contribute as equity and how much they should borrow for the long term.
(b) how much ideally banks should contribute as equity and how many promoters should borrow for the long
term.
(c) how much ideally venture should contribute as equity and how much they should borrow for the long term.
S18. Ans.(a)
Sol. The norm called debt-equity ratio means how much ideally promoters should contribute as equity and how
much they should borrow for the long term.
Q19. Equity capital has which of the following features as well as advantages?
(a) It is divided into units called Equity Shares
(b) Each unit has the same value called nominal value.
(c) All subscribers to the Equity Shares are governed by a common document called Memorandum and Articles
of Association
S19. Ans.(d)
Sol. All of the above are features of Equity Share Capital
Q20. Degree of Financial Leverage (DFL) =

(a) Percentage change in Price to Earning (PE)/ Percentage change in Earnings before Interest and Tax (EBIT)
(b) Percentage change in earnings per share (EPS)/ Percentage change in Earnings before Interest and Tax
(EBIT)
(c) Percentage change in Book Value / Percentage change in Earnings before Interest and Tax (EBIT)
(d) Percentage change in operating profit/ Percentage change in Earnings before Interest and Tax (EBIT)
S20. Ans.(b)
Sol. Degree of Financial Leverage (DFL) is the ratio of the Percentage change in earnings per share (EPS) to the
Percentage change in Earnings before Interest and Tax (EBIT)
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