IIBF JAIIB May / June Syllabus 2016 Page 1

JAIIB Syllabus

IIBF May JAIIB Syllabus 2016

Paper 2 : Accounting & Finance for Bankers

Objective :

The candidate would be able to acquire the knowledge of the basics of financial mathematics and basics of accountancy and develop an understanding of the basic financial concepts.

Module A : Business Mathematics and Finance

Calculation of Interest and Annuities : Calculation of Simple Interest & Compound Interest; Calculation of Equated Monthly Instalments; Fixed and Floating Interest Rates; Calculation of Annuities; Interest Calculation using Products / Balances; Amortisation of a Debt; Sinking Funds.

Calculation of YTM : Debt- Definition, Meaning & Salient Features; Loans; Introduction to Bonds; Terms associated with Bonds; Cost of Debt Capital; Bond value with semi-annual Interest; Current Yield on Bond; Calculation of Yield-to-Maturity of Bond; Theorems for Bond Value; Duration of Bond;
Properties of Duration; Bond Price Volatility.

Capital Budgeting : Present Value and Discounting; Discounted Technique for Investment Appraisal; Internal Rate of Return (IRR); Method of Investment Appraisal; NPV and IRR compared; Investment Opportunities with Capital Rationing; Investment Decision making under condition of uncertainty; Expected NPV Rule; Risk Adjusted Discount Rate Approach for NPV Determination; Sensitivity Analysis for NPV Determination; Decision Tree Analysis for NPV Estimation; Payback Methods; ARR.

Depreciation and its Accounting : Depreciation, its types and methods; Comparing Depreciation Methods.

Foreign Exchange Arithmetic : Fundamentals of Foreign Exchange; Forex Markets; Direct and Indirect Quote; Some Basic Exchange Rate Arithmetic – Cross Rate, Chain Rule, Value date, etc.; Forward Exchange Rates – Forward Points; Arbitrage; Calculating Forward Points; Premium / discount; etc.

Module B : Principles of Bookkeeping & Accountancy

Definition, Scope and Accounting Standards : Nature and Purpose of Accounting; Historical Perspectives; Origins of Accounting Principles; Accounting Standards in India and its Definition and Scope; Generally Accepted Accounting Principles of USA ( US GAAP ); Transfer Pricing; Overview of IFRS; Difference between GAAP & IFRS.

Basic Accountancy Procedures : Concepts of Accountancy; Entity Going Concern Entity; Double Entry System; Principle of Conservatism; Revenue Recognition and Realisation; Accrual and Cash Basis.

Maintenance of Cash / Subsidiary Books And Ledger : Record Keeping Basics; Account Categories; Debit and Credit Concepts; Accounting and Ledgers; subsidiary books; etc.

Bank Reconciliation Statement : Need for Bank Reconciliation; Causes of Differences; Preparation of Bank Reconciliation Statement; How to prepare a Bank Reconciliation Statement when Extracts of Cash Book and Pass Book are given; Adjusting the Cash Book Balance; Advantages of Bank Reconciliation Statement.

Trial Balance, Rectification of Errors and Adjusting & Closing Entries : Meaning of a Trial Balance; Features and Purpose of a Trial Balance; Types of Trial Balance and Preparation of a Trial Balance; Disagreement of a Trial Balance; Classification of Errors; Location of Errors; Rectification of Errors; Suspense Account and Rectification; Rectification of Errors when Books are closed; Adjusting and Closing Entries.

Capital and Revenue Expenditure : Expenditure; Distinction between Capital and Revenue Expenditure; Deferred Revenue Expenditure; Receipts; General Illustrations.

Bills of Exchange : Types of Instruments of Credit; Term and Due Date of a Bill; Certain Important Terms; Accounting Entries to be Passed; Accommodation Bill etc.

Module C : Final Accounts

Balance Sheet Equation : Balance Sheet Equation; Computation of Balance Sheet Equation.

Preparation of Final Accounts : Preparation of Trading A/C; Profit and Loss A/C; Profit & Loss Appropriation Account; Balance Sheets.

Ratio Analysis : Meaning of Accounting Ratios; Classification of Ratios; Uses of Accounting Ratios; Limitations of Accounting Ratios; Calculation and interpretation of various Ratios; Different Users and their Use of Ratios.

Final Accounts of Banking Companies : Definition and Functions of a Bank; Requirements of Banking Companies as to Accounts and Audit; Significant Features of Accounting Systems of Banks; Principal Books of Accounts; Preparation and Presentation of Financial Statements of Banks; CMA Format; Accounting Treatment of Specific Items; Preparation of Profit and Loss Account; Comments on Profit and Loss Account; Important Items of Balance Sheet; Disclosure Requirements of Banks; Additional Disclosures prescribed by RBI; Disclosures required under BASEL norms.

Company Accounts I & II : Definition and Types of Companies; Distinction between Partnership and Limited Liability Company; Classes of Share Capital; Issue of Shares; General Illustrations Non-voting Shares; Form of Balance Sheet; Legal Requirements for Assets; Legal Requirements for Liabilities; Legal Requirements for Profit & Loss A/c; Preparation of Final Accounts.

Accounting in a Computerized Environment : Meaning, Features of and Terms used in Computerized Accounting; Difference between Computerized and Manual Accounting; Advantages and Disadvantages of Computerized Accounting; Functions performed by Computerized Accounting Softwares available in the Market; Computerization – Scope and Experiences in Banking; The Core Banking Components; Information Security; Internet and World Wide Web – Influences on Banking.

Module D : Banking Operations

Banking Operations & Accounting Functions : Preparation of Vouchers, cash receipt and payment entries, clearing inward and outward entries, transfer debit and credit entries, what is KYC and what are the different documents to satisfy KYC, verify KYC and authenticity of documents, operational aspects in regard to opening of all types of accounts, scrutiny of loan applications / documents, allowing drawals and accounting entries involved at various stages, operational aspects of CBS environment etc., Back office operations in banks, handling of unreconciled entries in banks.

Paper 3 : Legal & Regulatory Aspects of Banking Operations

Objectives :

The candidates would be able to acquire knowledge in :

  • The Legal & Regulatory framework of the banking system.
  • The various Laws and Enactments affecting day to day Banking Operations.

Module A : Regulations and Compliance

Legal Framework of Regulation of Banks : Business of Banking; Constitution of Banks; RBI Act, 1934; Banking Regulation Act, 1949; Role of RBI; Govt. as a Regulator of Banks; Control over Cooperative Banks; Regulation by other Authorities.

Control Over Organization of Banks : Licensing of Banking Companies; 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; Control over Management; Corporate Governance; Directors and Corporate Governance.

Regulation of Banking Business : Power of RBI to Issue Directions; Acceptance of Deposits; Nomination; Loans and Advances; Regulation of Interest Rate; Regulation of Payment Systems; Internet Banking Guidelines; Regulation of Money Market Instruments; Banking Ombudsman; Reserve Funds; Maintenance of CRR, SLR; Assets in India.

Returns Inspection, Winding up, Mergers & Acquisitions : Annual Accounts & Balance Sheet; Audit & Auditors; Submission of Returns; Preservation of Records and Return of Paid Instruments; Inspection and Scrutiny; Board for Financial Supervision; Acquisition of Undertakings; Amalgamation of Banks; Winding up of Banks; Penalties for offences.

Public Sector Banks and Cooperative Banks : SBI and its Subsidiaries; Regional Rural Banks; Nationalized Banks; Application of BR Act to Public Sector Banks; Disinvestment of Shares by Govt.; Cooperative Banks.

Financial Sector Legislative Reforms : Need, Approach for Financial Sector Legislative Reforms; Important Reforms.

Recent Legislative Changes in RBI Act : Recent Legislative Changes in RBI Act, Need thereof. Financial Sector Development Council.

Financial Sector Development Council : Role and Functions of Financial Sector Development Council.

Module B : Legal aspects of banking operations

Different Types of Borrowers : Types of Borrowers; Limited Liability Partnership.

Types of Credit Facilities : Cash Credit, Overdraft, Demand Loans, Term Loans, Bill Finance.

Secured and Unsecured Loans, Registration of Firms and Incorporation of Companies : Definition of Secured and Unsecured loans; Need for Secured Loans; Registration of Firms; Consequences of Non-registration of Firms; Incorporation of a Company.

Indemnities : Definition of Contract of Indemnity; Features of Indemnity Contract & Guarantee; Scope and Application of Indemnity Contracts to Banks; Obligations of a Banker; Precaution & Rights of an Indemnity Holder.

Bank Guarantees : Definition and Types of Bank Guarantees; Banker’s Duty to Honour Guarantee; Precautions to be taken for Issuance of Bank Guarantee; Precautions to be taken for Payment under Bank Guarantee; Invocation & Enforcement.

Letters of Credit : General Considerations of Letters of credit; Parties to a Letter of credit; Types of Letters of credit; Documents under a Letter of credit; UCPDC 600; Banks obligation for payment of Letter of credit.

Deferred Payment Guarantees : Purpose of DPGs; Methods of Payment.

Laws Relating to Bill Finance : Class of Bills and Laws Governing Bills; Classification of Bills; Categories of Bill Finance; Bill Finance and Legal Position of Banker.

Various Types of Securities : Types of Securities; Escrow Arrangements; Trust and Retention Arrangements.

Laws Relating to Securities and Modes of Charging – I : Mortgage; Types of Mortgage; Enforcement of Mortgages.

Laws Relating to Securities and Modes of Charging – II : Lien; Pledge; Hypothecation; etc.

Registration and Satisfaction of Charges : Definition of Charge; Procedure for Registration of Charge; Effect of Non-registration of Charges; Provisions of Law relating to Registration of Charges.

Case Laws on Responsibility of Paying Bank : Negotiable Instruments Act and Paying Banks; Liability of Paying Banker; Payment in due course; Payment in Good Faith; Whether Payment under Mistake Recoverable.

Case Laws on Responsibility of Collecting Bank : Statutory protection to Collecting Bank; Duties of Collecting Bank.

Module C : Banking Related Laws

Recovery of Debts due to Banks and Financial Institutions Act, 1993 ( DRT Act ) : Objective of the Act, Constitution of Tribunal, Procedure to be followed, Enforcement process.

Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act ( SARFAESI ) : Constitutional Validity; Definitions; Regulation & Reconstruction; Enforcement of Security Interest; Central Registry; Offences & Penalties; Miscellaneous Provisions.

Banking Ombudsmen Scheme : Purpose; Extent; Definitions; Establishment; Powers; Procedure for Redressal Grievance.

Bankers Books Evidence Act, 1891 : Applicability; Definition; Important Provisions.

The Legal Services Authorities Act, 1987 : Lok Adalats- Organisation; Jurisdiction; Disposal of Cases; Awards.

The Consumer Protection Act, 1986 and CERSAI : Preamble, Extent & Definitions; Consumer Protection Councils; Consumer Disputes Redressal Agencies; Objectives and important provisions of Central Registry of Securitisation Asset Reconstruction and Security Interest of India.

The Law Of Limitation : Definition; Computation of Limitation; Important Provisions in schedule to the Limitation Act.

Tax Laws : Income Tax; Fringe Benefit Tax; Banking Cash Transaction Tax; Service Tax.

Negotiable Instruments Act, 1881 : Applicability; Definition; Important Provisions.

Payment & Settlements Systems Act, 2007 : Applicability; Definition; Important Provisions.

Module D : Commercial Laws with reference to Banking Operations

Indian Contract Act, 1872 : Meaning and essentials of contract; Contract of Indemnity & Rights of Indemnity Holder; Contract of Guarantee; Contract of Bailment; Contract of Pledge; Contract of Agency.

The Sale of Goods Act, 1930 : Features; Sale & Agreement to Sell; Conditions and Warranties; Express & Implied; Rights of Unpaid Seller.

Indian Partnership Act, 1932 : Definition & Types of Partnerships; Relation of partners to one another & to third Parties; Minor admitted to benefits of partnership; Dissolution of a firm; Effect of non registration; Limited liability partnerships-formation, registration, rights and liabilities of partners.

Definition and features of a company : Definition & Features of a Company; Distinction between Company and Partnership.

The Companies Act, 1956 : Definition, Features & Types of companies; Memorandum and Articles of Association; Doctrine of Ultra Vires, Constructive Notice, Indoor Management; Membership of CompanyAcquisition, Cessation, Register, Rights & Duties of Members, Prospectus; Directors; Winding up of Companies.

Foreign Exchange Management Act, 1999 : Important Terms; Powers of RBI, Regulation and Management; Directorate of Enforcement.

Transfer of Property Act, 1882 : Sale, Mortgage of Immovable Property; Types of Mortgages; Sale with and without court intervention; Lease of Immovable Property.

The Right to Information Act, 2005 : Applicability; Definition; Important Provisions.

Right To Information and Obligation of Public Authorities : Obligations; Procedure; Disposal; Appeal; Orders; Penalties.

The Prevention of Money Laundering Act, 2002 : Obligations; Records to be Maintained; Procedure for Maintaining & Furnishing Information; Maintenance & Verifications of Records of Identity of Clients.

Information Technology Act, 2000 : Definitions; Electronic Governance; Certifying Authorities; Digital Signature Certificates; Penalties; Appeal.


CAIIB Syllabus

IIBF CAIIB Syllabus 2014

Elective Paper – II : International Banking

Module – A : International Banking and Finance

  1. International Banking
    1. Global Trends and developments in International Banking.
    2. International Financial Centres, Offshore Banking Units, SEZs.
    3. Profitability of International Banking operations.
    4. Correspondent Banking and inter – Bank Banking.
    5. Investment Banking, Wholesale Banking, Retail Banking, Merchant Banking.
    6. International Financial Institutions : IMF, IBRD, BIS, IFC, ADB.
    7. Legal and regulatory aspects.
    8. Risk Management.
  2. International Finance
    1. Fundamental Principles of Lending to MNCs, documentation and Monitoring.
    2. International Credit Policy Agencies and Global Capital Markets.
    3. Raising resources : Availability features and risks of various Equity and debt products like ECBs, ADRs, ECCBs and other types of Bonds etc, Syndication of loans.
    4. Project and infrastructure Finance : Investments both in India ( FII & FDI ) and abroad, Joint ventures abroad by Indian Corporates. Investment opportunities abroad for resident Indians.
    5. Financing of mergers and acquisitions.

Module – B : Foreign Exchange Business

  1. Foreign Exchange Management Act ( FEMA ) and its philosophy.
  2. Different types of Exchange Rates.
  3. RBI and FEDAI : their role in regulating Foreign Exchange Business of Banks / other Authorised Dealers.
  4. Rules regarding rate structure, cover operations, dealing room activities and risk management principles, including correspondent Bank arrangements.
  5. NRI customers and various banking and investment products available to them under FEMA.
  6. Remittance facilities.

Module – C : International Trade

  1. Regulations covering international trade
    1. Various Aspects of International Trade, Government policies, DGFT and their schemes, Customs procedures, Banks’ role in implementing these policies and schemes.
    2. WTO- its impact.
    3. Balance of payment, balance of trade, Current account and capital account convertibility.
    4. Documents used in Trade : bill of exchange, invoice, Bill of lading, Airways bill, Insurance policy etc.
    5. Role of Banks in foreign Trade.
    6. Letters of credit; importance in international trade, various types of LCs, settlement of disputes, UCP600, INCOTERMS.
    7. Exchange control relating to foreign trade. Returns required to be submitted to RBI.
  2. Import / Export Finance
  1. Laws governing trade finance viz, FEMA, NIAct, Indian stamp Act, EXIM policy, RBI / FEDAI guidelines.
  2. Role of Banks, including EXIM Bank, in financing Foreign Trade, various facilities to Exporters and importers including project finance, Forfaiting and Factoring.
  3. Risks involved in foreign trade finance : Country risk, Currency risk, Exchange risk, legal risk etc, Role of ECGC.

Module – D : Derivatives

  1. Treasury operations of banks and corporates.
  2. Derivatives as hedging instruments, types of instruments available in Indian Market.
  3. RBI rules and guidelines regarding derivatives.
  4. Mathematics of derivative valuation and pricing.
  5. Risk assessment of derivatives, Lessons from recent crisis in derivatives market.

Elective Paper – III : Rural Banking

Module – A : Rural India

Demographic features : Population, occupation, literacy, socio-economic development indicators, health, nutrition and education, – urban migration.

Characteristics of Rural Society : Caste and power structure – rural social stratification,

Economic Features : Economic life of rural people, share in National income -Trends in per capita income, rural money markets, rural indebtedness, rural poverty – main causes and methods of measuring rural poverty.

Rural infrastructure : Transport, Power, Markets and other services.

Agriculture Economy : Structure and characteristics of Indian agriculture, Role of agriculture in economic development, agriculture – industry linkages, Resources and technical changes in agriculture, constraints to agriculture development, Emerging issues in Indian Agriculture.

Rural Development Policy : Government policies and programs for rural farm and non – farm sectors. Economic reforms and its impact on rural economy.
Rural Issues : Development issues, Management Issues, Marketing issues, Pricing issues,

Module – B : Financing Rural Development

Regulation of Rural Financial Services : Function and policies of RBI in Rural Banking, NABARD-Main functions, role, refinance support. Lead bank approach, State level and District level Credit committees.

Rural Credit Institutions : Co-operative Credit Societies and Banks, Land Development Banks, Regional Rural Banks, Commercial Banks. Role of Information and communication technologies in rural banking-Models, Financial inclusion & inclusive growth for rural development banking, rural insurance micro insurance scheme, concept of Business Facilitators and Business Correspondents in rural financing.

Financing agriculture / allied activities : Crop Loans-Assessment, Sanction, Disbursement, rephasement. Term loans for irrigation, Farm mechanization, Godowns / cold-storage facilities etc. Financing allied agriculture activities like Horticulture, Fisheries, Social forestry, etc. Finance against Warehouse / cold storage receipts.

Financing Rural Non-Farm Sector ( RNFS ) : Importance of RNFS, Segments in RNFS, Role of Development and Promotional Institutions in RNFS.

SME Finance : Definition of SME .Importance to Indian economy. Financing of SME and small enterprise Refinance from SIDBI. Project funding techniques and requirement assessment. Cluster based approach and joint finance with SIDBI.MSMED Act 2006, CGTMSE, Working capital assessment of SMEs. Risk rating of SME proposals, role of rating agencies and rating methodology. Revival of sick units; revival package and implementation, Stressed assets under rehabilitation. Debt restructuring mechanism for SMEs.

Module – C : Priority Sector Financing and Government Initiatives

  • Components of priority sector. RBI guidelines.
  • Government initiatives; Poverty alleviation programs / Employment programs / Production oriented programs – rationale and philosophy, progress and impact, problems and deficiencies.
  • Rural housing and Urban housing schemes under priority sector, their refinance, Educational loans.

Module – D: Problems and prospects in Rural Banking

  • Role of rural banking.
  • Problems of Rural branches of Commercial banks – transaction costs and risk costs. Technology based Financial Inclusion.
  • Emerging trends in rural banking-financing poor as bankable opportunity, Micro Credit, Self  Help Groups / NGOs, linkages with banking, latest guidelines of GOI and RBI.

Elective Paper – IV : Financial Advising

Module – A : Introduction to Financial Advising

Indian financial and investment industry, participants in the Indian finance system, Indian economic and social environment, Role of Regulators viz., RBI, SEBI etc.

Financial counseling- Essentials in financial counseling, Profile of effective counselor, Basic communication principles, Elements of non – verbal behavior, Attending and Listening skills, Counselor leading responses, understanding and meeting client’s needs through financial planning, evolution of financial planning as a profession. Marketing of financial services.

Fundamental Investment concepts, The Time Value of Money, Risk-Reward Trade-Off, Diversification -Spreading Risk, Investment Timing, Direct Investment – What Are They and Who Uses Them?

Module – B : Financial Planing

Financial Planning, Role of a Financial planner, Fundamental investment concepts, Asset classes, Asset allocation towards a financial plan, working with clients, gathering initial / additional information from the client, understanding investor’s risk appetite, meeting the client’s objectives, Asset Allocation, Good practices in financial planning, Content of a comprehensive financial plan, Recommending financial planning strategies to investors, Asset allocation the strategic tool – Selection of Investment and Insurance Products, Implementation, ongoing Service, Using stop loss, understanding market behaviour.

Module – C : Financial Investment Products

Financial investment products – Portfolio analysis & selection, Efficient markets, Securities markets – Primary market, Secondary market, Depository & investment process, regulatory framework, fundamental and technical analysis-basic philosophies and underlying assumptions – Bond and Money markets, Indian debt markets – Securities traded in debt market, Commodities Market, Insurance products, Pension products, Mutual fund industryproducts & services, Banking products, Investment in Real estate. Cash generation and return on investment. Statutory provisions regarding starting of business / industrial units by NRIs / MNCs.

Module – D : Taxation

Income Tax law, important definitions-person, Assessee, Agriculture income, capital / Revenue receipts / expenditure, Gross total income, Total income, residential status, Heads of income viz. salaries, income from house property, profits and gains of business or profession, Capital gains, income from other sources, Income exempt from tax, Permissible deductions from gross total income, income tax return, tax deducted at source Tax planning strategies- House wife, Salaried person, Businessman, persons having income from more than one source, Retirement planning and taxation, Tax triggered investments Estate Planning, Will, Administration of an estate, Passing of an asset, Tax planning through wills and trusts, Taxation of Terminal benefits.

Elective Paper – V : Corporate Banking

Module – A : Corporate Banking and Finance

Corporate Banking : Meaning and importance, various services provided viz., Cash Management, Salary Payment, Debt Management, Factoring and Forfaiting, Trusteeship, Custodial services, Business advisory, Off shore services, Trade services, Forex Management, etc.

Corporate Deposits : Importance of Institutional deposits vis-a-vis retail deposits Importance of Institutional deposits vis-a-vis retail deposits

Corporate Finance : Working capital finance, Fund and Non fund based limits and Import Export finance. Corporate Debt Restructuring.

Module  – B : Investment Banking

  1. Meaning and scope of Investment Banking, Evolution, overview of current state of Investment Banking in India.
  2. Merchant Banking : Advisory services for equity / debt issues, Management, placement and distribution of equity / debt.
  3. Mergers and Acquisitions, Divestitures : Identification, Structuring, Negotiation and Execution, arranging finances etc.
  4. Corporate advisory services : Capital restructuring, Project advisory, Private equity and Venture capital, Loan Syndication etc.

Module – C : Project and Infrastructure Finance

Characteristics of Project Finance – Technology selection, Assessment of technical collaborator – Market Analysis : International competitiveness and SWOT analysis – Assessing the project cost – Means of financing projects – Estimation of project cash flows – Use of free and equity cash flow valuation for assessing projects – Financial Analysis : Break-even point analysis, Decision tree, Scenario analysis and Internal Rate of Return, Sensitivity analysis Common risks in projects – Risk mitigation methodologies in projects – Securitisation as a tool for risk mitigation – Project planning – Network techniques for project implementation – Disbursement, supervision and follow up of project by lender – Infrastructure financing cash flow deal agreement with parties involved – SPV – Monitoring and follow-up of the project.


Syllabus for CAIIB

CAIIB 2014 Syllabus

Elective Paper – VI : Retail Banking

Module – A : Introduction

History and definition, role within the bank operations, Applicability of retailing concepts distinction between Retail and Corporate / Wholesale Banking.

Module – B : Retail Products

Retail Products Overview – Customer requirements, Products development process, Liabilities and Assets Products / Description of Liability products, Description of Asset Products, Approval process for retail loans, Credit scoring.

Important Asset Products – Home Loans – Eligibility, Purpose, Amounts, Margin, Security, Disbursement, Moratorium, Prepayment issues, Repayments / Collection.

Auto / Vehicle Loans –  Eligibility, Purpose, Amounts, Margin, Security, Disbursement, Moratorium, Prepayment issues, Repayments / Collection.

Personal Loans Eligibility, Purpose, Amounts, Security, Disbursement, Moratorium, Prepayment issues, Repayments / Collection.

Educational Loans Eligibility, Purpose, Amounts, Security, Disbursement, Moratorium, Prepayment issues, Repayments.

Credit / Debit Cards – Credit Vs Debit Cards, Eligibility, Purpose, Amounts, Margin, Security, Process of using the cards, Billing Cycle, Credit Points.

Other Products / Remittances / Funds Transfer

Module  –  C  : Marketing / Selling of retail products, MIS and Accounting

Retail Strategies :  Tie-up with Institutions for Personal loans / Credit cards / Educational loans, with OEMs / Authorised Dealers for Auto / Vehicle loans, and with Builders / Developers for Home loans.

Delivery Channels – Branch, Extension counters, ATMs, POS, Internet Banking, M-Banking. Selling Process in retail products-Direct Selling Agents.

Customer Relationship Management – Role and impact of customer relationship management, Stages in customer relationship management process. Regulations and compliance.

Technology for Retail Banking – Static information, Account opening, basic loan origination data etc. Updated information like income details at different frequencies. Transaction information from disbursement till final settlement of the loan amount. Analytics / Alerts. Accounting entries – Loan process and the relevant accounting including EMI Computation.

Module – D  : Other issues related to Retail Banking

Securitisation, mortgage based securities. Trends in retailing – New products like Insurance, Demat services, online / Phone Banking, Property services, Investment advisory / Wealth management, Reverse Mortgage – Growth of e-banking, Cross selling opportunities.

Recovery of Retail Loans – Defaults, Rescheduling, recovery process. SARAFAESI Act, DRT Act, use of Lok Adalat forum. Recovery Agents – RBI guidelines.

Elective Paper – VII : Co-Operative Banking

Module  – A :  Principles and Laws of co-operative Banking Law and rules relating to Co-op Banks

Principles of Co-operation – brief overview of structure of co-operative credit institutions – Membership – Legal aspects of banking operations – Banking related laws – Provisions of Bankers Book Evidence Act – Special features of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 -Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002-The Consumer Protection Act, 1986 – Banking Ombudsman

Module – B : Co-operative Banking Operations

Deposits, Credit & Investment Management Different Deposit Products – Deposit Policy – Credit Management Loans and advances – Priority sector lending – MSME financing – Personal Finance – Banker – Customer relations – Garnishee orders and Attachment orders, Bankers’ right of lien, set-off and appropriation – Indemnities and Bank Guarantees; Loan Policy – Management of NPA – Investment Management – CRR / SLR Management – Financial Markets – guidelines of RBI / NABARD in regard to investment – Money Market – Call money – Repos and Reverse Repos – Foreign Exchange Market – Debt market – Bancassurance – Meaning and Scope of Investment Policy.

Module – C : Technology, Risk management

Technology Banking – Electronic Payment systems / core banking solutions – Electronic funds transfer systems – RTGS – Risk Management – Exposure limits-Asset Liability Management – Capital Adequacy – Basel-II – Profit and Profitability – Approach of Banks to profitability – Effects of NPAon profitability – Aprofitability Model.

Module –  D : Supervisory and Regulatory aspects

Banking Regulation Act ( As applicable to Co-op. Banks ) – Role of R.B.I. -Supervision and control – Branch licensing-Inspection / audit-Statutory / Reserve requirements – R.B.I. guidelines on Deposits, Advance, Priority sector lending, Weaker section lending, Control Returns – Recommendations of Marathe Committee, Madhav Rao Committee and Vaidyanathan committee – Role of Directors and Corporate Governance Best Practices – Management Information System.

Elective Paper – VIII : Human Resources Management

Module – A : Human Resources Management

  1. Concepts, Policies and Practices : Fundamentals of HRM; Importance of Human Capital, Management of transformation, New insights into HR Management and contemporary issues, Relationship between HRM and HRD; Structure and Functions, Policies and Practices, Role of HRD professional, Development of HRM in India.
  2. Behavioural Dynamics in organizations; Person – Job Fit, Group Dynamics, Group Problem Solving and effectiveness, Leadership and Team building, Change Management, Human Response – Implications of benchmarking; TQM, BPR, ISO 9000 Series and other techniques for Organizational improvement and Management of Service Industry; Quality Circles. Six Sigma and its implication in organizational development.
  3. Organizational Change and Development; Responsibility Charting, Conditions for Optimal Success, Role of Change Agent and Managing Change.
  4. HRM in Banks : Traditional Role of Human Resources Department in Banks, Expectations from HR Department, Conflict of new initiatives with work culture and capacity, Major HRM challenges facing Banks, Core Banking and HR challenges.
  5. Knowledge management in Banks; Need for Knowledge Management Officer, Role in the Banks, HRM and Information Technology, Information and Database Management, Preparation and updation of Manuals and job cards, Linkage with Educational Institutions.

Module – B : Building an HR strategy

  1. Strategy Formulation and implementation; Need for a distinctive HR strategy, Formulating the strategy; connecting strategy to organization, aligning HR Systems with decision framework, Relationship between Sustainable strategic success and performance of the organization, Execution of strategy : Role of CEO, Executive team, and line Managers, Succession Planning, HRD Audit, Effectiveness of HRD, Best HR practices in banks.
  2. Organizational Communication; Barriers to Communications, Steps for effective communication in the organisation.
  3. Manpower Planning; Recruitment, Selection, Placement and Promotion. Recruitment Vs Outsourcing : Concept and Feasibility of Outsourcing, advantages, disadvantages and constraints, Compensation; incentive system linked to productivity, dealing with attrition.
  4. Performance Management and Appraisal Systems : Performance Appraisal System, Role of P A S, Emerging Trends, 360 degree performance Appraisal, Appraisal Vs Feedback, Competency Mapping, Key Performance Areas ( KPA )

Module – C : Motivation, Training and Skill Development

  1. Human implications of Organisations; Learning and instructions, Learning Processes, Employee Behaviour, Theories of Motivation and their practical implications, Motivational strategies, Reward and Incentive schemes, job enrichment, job rotation. Employee Development strategies and Techniques.
  2. Training and Development; Attitude development, Role and impact of training, Career Path Planning and Counseling, Changing face of Banking, Future of Bank Education, Identification of Training Needs.
  3. Training Methodology; subject matters of Training, Training infrastructure in Banks, outsourcing of Training, On – the job training, Management of conflict between Training and operations due to manpower constraints, Development of soft skills and communications. Developing competencies through e-learning, virtual learning and self directed learning. Training measurement and impact.

Module – D : Personnel Management and Industrial Relations

  1. The personnel functions : Legal aspects of personnel functions, trade unionism and Industrial Relations; Industrial Relations and Negotiations in the Indian Banking Industry, Collective Bargaining Concepts; Bipartite Settlements in Banking, Employee Welfare; Policies and Schemes.
  2. Grievance Redressal and Discipline; Mechanism and Processes, Discipline Management including Domestic Enquiry, Role of Management and Functions, Conflict Management and Resolution, Frauds in Banks, Risks attached to Delegation of Financial Powers; Precautions and Controls, Need for a vigilance Dept in Banks, Diversity and Gender Issues, Dealing with the cases of Sexual harassment.
  3. Workers’ Participation in Management, Experience of Employee Participation in Indian banking industry.

Elective Paper – IX : Information Technology

Module – A : Introduction to Information Technology

  1. Impact of ITon Banking : Changing Financial Environment and ITas a Strategic Response Hardware  (H / W ) – Software : ( S / W )
  2. System Software : Operating Systems ( Desktop OS / Server OS ) Windows ( Desktop / Server) / UNIX (H. P. Unix, Sun Solaris, Linux, IBM AIX )
  3. Computer Languages – 1st Generation Languages  ( Assembly ), 2nd Generation ( Fortran, Algol, Cobol ), 3rd Generation ( C, C++, C# and JAVA etc. ) and 4th Generation Languages ( Clipper, Power Builder, SQL etc. ) and 5th Generation Languages ( Logic Programming Languages ) Database Management System and Relational Database Management Systems ( Oracle10g, MS SQL-2005, MySQL ) Application Servers (Oracle 10AS, BeWeblogic, WebSheare ) Web Servers ( IIS, Apachi etc. ) Web Browsers ( IE 7.0, Firefox etc. ) Application Software : Packaged Software, Custom built Software etc.

Computer Networks, Equipment & Data Communication :

Computer Networks : Network Layers, Topologies, Protocols, IPAddress Mechanisms, LAN, WAN, VLAN, Intranet, Extranet, Internet, Network Equipments : Cables ( BNC, Twisted Pair, Fibre Optics ), Connectors, I / Os, Patch Panel, Jack Panels, Network Racks. Data Communication : CLL, Leased Lines, MPLS, VPNS, ISDN, Satellite Links, Wi Fi, Wi Max., Network / Security Equipments: Modems, Hubs, Switches, Bridges, Routers, Firewalls, NIDS, HIDS, IPS

Module – B : Systems and Design

Systems Design & Analysis ( Data modeling, Entity Relationships, Generic Data Modeling, Semantic Data modeling Normalization( from 1st to 3rd and BCNF, 4th & 5th level of normalization ) Software Development Life Cycle ( SDLC  ) – Various phases of SDLC, In-house / Out-sourcing, Software Project Management, Computer Aided Software Engineering ( CASE ) Tools.

System Architecture : Clients ( Hardware / Software ), Servers ( Hardware / Software). Client Server Architecture, 3 Tier Architecture, N-Tier Architecture etc.

Data Warehousing – Data Mining tools MIS and Organization Support Systems – DSS, EIS, GDSS, Groupware and Multimedia Business Intelligence – Expert Systems, Artificial Neural Networks ( ANN ) Grid Computing, Virtualization and Consolidation.

Module – C : Applications in Banking

Centralized Banking System / Core Banking System / System Administration, Database Administration, Application Server and Application Administration, Network Administration, Domains, ISPS, Hosting, Data Downloads / Uploads, Band widths, Data Centre, Data Storage Devices, Data Backups / Restoration, Disaster Recovery Centre Delivery Channels – ATM, EFTPOS, Phone Banking, Internet Banking, SMS Banking, Mobile Banking, Credit / Debit Cards, Smart Cards E-Mails, SMS alerts

E-Commerce – Secure Electronic Transfer ( SET ), Payment Gateways ( Credit card / Debit cards ), Authentication of payments etc. PKI – CCA, CA, RA, Digital Certificate, Digital Signature, Non-repudiation of Origin, Nonrepudiation of Receipt. Service – Level Agreement

Module – D : Security, Controls and Guidelines

Threats to Information System : i) Physical ( Insiders / outsiders ) ii) Viruses, Worms, Trojan horse, Malwares, Software bombs, Phishing, Spoofing, Spamming, denial of service attacks etc. Information System Security Measures, Policy, controls, ISO, 17799, BS7799, IS4477, IS Audit, BCP / DRP, IT Act 2000, Basel guidelines for E-banking, Various RBI Committee Reports on Information Systems.

IT Service Delivery & Support : Service level management practices, Operations management – work load scheduling, network services management, Preventive maintenance, Systems performance monitoring process tools, techniques, Functionality of hardware, software, data base. Drafting of RFP, system specifications, SLAs, Capacity planning & monitoring, Change management processes / scheduled, emergency in configuration of production systems, application of patches, releases etc., Incident & problem management practices, System resiliency tools and techniques – fault tolerance, elimination of single point of failure, clustering.

Elective Paper – X : Treasury Management

Module – A : An overview

  1. Financial markets
  2. Treasury
    • Objectives of Treasury
    • Structure and organization
    • Functions of a Treasurer
    • Responsibility of a Treasurer

Module – B : Treasury operations

  1. Liquidity Management – CRR / CCIL/ RTGS
    • Objectives, sources and deployment
    • Internal control, Netting
  2. Cost centre / Profit centre, integrated treasury, Planning & control, Risk analysis
  3. Treasury instruments

Module – C : Treasury & International Banking

  • Global scenario and treasury operations
  • Exchange rate mechanism
  • – Dealing and trading operations : control and orderly conduct, moral and ethical codes, checks and balances
  • Revaluation : Mark to market and profit calculations, VaR (Value at risk)
  • Components of multi-currency balance sheet

Module – D : Risk Management

  1. Treasury and investment policy
  2. Structure : Front office, Back office and Mid office
  3. Accounting, valuation and exposure norms
  1. Role of information technology in treasury management
  2. Regulation and compliance
  3. Internal & External audit

Elective Paper – XI : Risk Management

Module – A : An overview

  1. Risk definition / policies
    • Risk Process-Risk Organization
    • Key risks-Credit risk, market risk, operational risk, liquidity risk, legal risk, interest rate risk and currency risk
  2. Asset Liability Management
    • ALM Concept
    • ALM organization
    • ALCO techniques / tools
    • Simulation, Gap, Duration analysis, Linear and other statistical methods of control 1011
  3. Risk measurement & Control
    • Calculation
    • Risk exposure analysis
    • Risk management / mitigation policy
    • Risk immunization policy / strategy for fixing exposure limits
    • Risk management policy and procedure
    • Risk adjusted return on capital
    • Capital adequacy norms
  4. Risk management
    • Capital adequacy norms
    • Prudential norms
    • Exposure norms
    • Concept of Mid office
    • Forwards
    • Futures
    • Options
    • Strategies and Arbitrage opportunities
    • Regulatory prescriptions of risk management

Module – B : Credit Risk Management

  1. Introduction
  2. Basel-I
  3. Three pillars of Basel-II and Capital for Operational risk
  4. Frame work for risk management
  5. RBI guidelines on risk management
  6. Risk rating and risk pricing
  7. Methods for estimating capital requirements
  8. Credit risk – standardized approach
  9. Credit risk – advanced approach
  10. Credit rating / credit scoring and rating system design
  11. Credit Bureaus
  12. Stress test and sensitivity analysis
  13. Internal Capital Adequacy Assessment Process ( ICAAP )
  14. Introduction to structured products

Module – C : Operational Risk

  • Introduction, Basel-I & II
  • RBI guidelines.
  • Likely forms of operational risk and causes for significant increase in operational risk.
  • Sound Principles of Operational Risk Management ( SPOR ).
  • SPOR – organizational set up and key responsibilities of ORM.
  • SPOR – policy requirements and strategic approach for ORM.
  • SPOR identification, measurement, control / mitigation of pperational risks.
  • Capital allocation for operational risk, methodology, qualifying criteria for banks for the adoption of the methods.
  • Computation of capital charge for operational risk.

Module – D : Market risk

  • Introduction and definition
  • Prescriptions of Basel-I & II
  • Liquidity risk
  • Interest rate risk
  • Foreign exchange risk
  • Price risk ( Equity )
  • Commodity risk
  • Treatment of market risk under Basel
    1. Standardized duration method
    2. Internal measurement approach – VaR

Module – E : Risk Organization and Policy

  • Risk Management Policy
  • Inter – linkages to – Treasury
    • Credit
    • ALCO


19 thoughts on “IIBF JAIIB CAIIB Syllabus 2016

  1. Sir..he many times..we can apper for exam.on one membership..no or one membership card no..please clear my concept..it’s urgent

  2. Sir,please give me a site to open the information of jaiib question paper with answers in Hindi

  3. Sir,please give me a site to open the information of question paper with answers in Hindi

  4. Sir, my Regn no is 500182710. I appeared JAIIB exam in may 2012 and cleared one subject Legal & Regulatory Aspects of Banking Operations with 56%. please intimate me in how may subject I have to appear in Nov 2012 and when I will get my admit card.

  5. Dear Sir/Madam,

    Now i m studying Diploma in banking and finance and used Macmillan Text book but first attempt i didn\’t get pass mark, now i have last chance to get pass for all the subject. Please give some jaiib model question paperS and give some jaiib entrance preparation tips how to get pass all the three subject in DEF. Kindly do the needful.

    Thanks and Regards,


  6. sir, i am preparing the jaiib exam firsttime. pls tell how it was prepare and give me some of model exam papers with previous exampapers and tell me some tips for exam preperations

  7. pls let me know the Indian institute of banking & finance jaiib exam schedule for november

  8. Dear Sir,
    I suggest the following:
    When you are publishing the comments[or doubts] received from the net users, why it is not possible you to publish your reply or redressel for others to know it without repeating the same questions or doubts to you [not disturbing your office repeatedly].

    Thanking You,
    Yours Faithfully,’

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