Sunday, 20 July 2025

JAIIB Syllabus 2025

 # JAIIB Syllabus 2025 Subject Wise and in Bullet Points


The **JAIIB (Junior Associate of the Indian Institute of Bankers)** exam 2025 consists of **four mandatory papers**, conducted by the Indian Institute of Banking & Finance (IIBF) twice a year[1][2][3]. Each paper has **100 MCQ questions worth 100 marks** to be completed in **2 hours** with **no negative marking**[1][2][4].


## Exam Pattern Overview


| Paper | Subject | Questions | Marks | Duration |

|-------|---------|-----------|--------|----------|

| Paper 1 | Indian Economy & Indian Financial System | 100 | 100 | 2 hours |

| Paper 2 | Principles & Practices of Banking | 100 | 100 | 2 hours |

| Paper 3 | Accounting & Financial Management for Bankers | 100 | 100 | 2 hours |

| Paper 4 | Retail Banking & Wealth Management | 100 | 100 | 2 hours |


**Passing Criteria:** Minimum **50 marks out of 100** in each paper, or **45 marks in each subject with 50% aggregate** in all subjects[5][3].


## Paper 1: Indian Economy & Indian Financial System (IE&IFS)


### Module A: Indian Economic Architecture

-  **An Overview of Indian Economy**

  - Evolution of Indian Economy

  - Basic Characteristics of Indian Economy

  - Indian Economy in Pre-British period

  - Economy till 2008 & after 2008

  - Structural changes in Indian Economy[5][6]


-  **Economic Planning in India & NITI Aayog**

  - Definition of Economic Planning

  - History of Economic Planning

  - Objectives of Economic Planning

  - Types of Planning

  - Achievements of Planning

  - Financial resources for 5-year plans[7][6]


-  **Sectors of the Indian Economy**

  - Role & Importance of Primary, Secondary, Tertiary Sector

  - Quaternary & Quinary Sectors

  - Different Revolutions in Primary sector

  - GDP contribution of different sectors

  - Agriculture, Industry, Services

  - Employment growth rate in Secondary sector

  - Sunrise Sector of Indian Economy

  - Organised and Unorganised sectors[5][6]


-  **Role of Priority Sector and MSME in the Indian Economy**

  - Definition & Role of Priority Sector

  - List of Priority Sectors identified in India

  - Priority Sector Lending Norms

  - Definition of MSME

  - Role & Significance of MSME in economic development

  - Contribution of MSME in GDP

  - Recent Initiatives in MSME sector (Atmanirbhar Bharat, Make in India, Start-up India, Stand-up India)[7][5]


-  **Infrastructure including Social Infrastructure**

  - Infrastructure & Economic Development

  - Energy, Power, Transport system (Rail, Road, Civil Aviation)

  - Concept of Social Sector & Social Infrastructure

  - Health, Education, Family welfare

  - Development of Health Infrastructure[5][6]


-  **Globalisation – Impact on India**

  - Globalisation and its Advocacy

  - Globalisation and its Impact on India

  - Fair Globalisation & Need for Policy framework

  - Globalisation in reverse gear[5][6]


-  **Economic Reforms**

  - Economic Transformation – Real Sector

  - Economic Transformation – Financial Sector

  - Economic Transformation – Integration with Global Economy

  - Economic Reforms in India[5][6]


-  **Foreign Trade Policy, Foreign Investments and Economic Development**

  - FTP policy – 2015-2020

  - Challenges to be addressed in upcoming FTP

  - FDIs, FIIs and Recent trends

  - Economic development vs economic growth[5]


-  **International Economic Organizations**

  - IMF and World Bank

  - WTO- India and WTO

  - Regional Economic Co-operations

  - Recent International Economic Issues[5]


-  **Climate change, Sustainable Development Goals (SDGs)**

  - Core elements of Sustainable Development

  - Global Issues and initiatives

  - India's progress in SDGs including Climate change

  - CSR Activities[7][5]


-  **Issues Facing Indian Economy**

  - Poverty Alleviation

  - Jobless growth

  - Rising Inequalities

  - Migration and excessive pressure on resources

  - Possible remedies

  - Pandemic situations[5]


### Module B: Economic Concepts Related to Banking

-  **Fundamentals of Economics, Microeconomics, Macroeconomics**

  - Economics – An Introduction

  - Microeconomics and Macroeconomics

  - Types of Economies (Market, Command, Mixed)[5][6]


-  **Supply and Demand**

  - The Demand Schedule

  - Forces behind the Demand Curve, shifts in Demand

  - The Supply Schedule

  - Forces behind the Supply Curve, shifts in Supply

  - Equilibrium of Supply and Demand

  - Effect of a Shift in Supply or Demand[5][6]


-  **Money Supply and Inflation**

  - What is Money

  - Money Supply

  - Inflation

  - Causes of Inflation

  - Measures of Inflation[5][6]


-  **Theories of Interest**

  - Classical Theory of Rate of Interest

  - Keynes' Liquidity Preference Theory

  - Money Demand Curve

  - Determination of Rate of Interest[5]


-  **Business Cycles**

  - Characteristics of a Business Cycle

  - Phases of a Business Cycle[5]


-  **Monetary Policy and Fiscal Policy**

  - Tools of Monetary Policy

  - Response to Global Financial Crisis

  - Fiscal Policy, FRBM Act[5]


-  **National Income and GDP Concepts**

  - Computation, Utility[5]


-  **Union Budget**

  - Receipts, Expenditure

  - Plan Expenditure

  - Deficit Concepts[5]


### Module C: Indian Financial Architecture

-  **Indian Financial System – An Overview**

  - What is a Financial System?

  - Phase I: Pre-1951 organisation

  - Phase II: 1951 to Mid-eighties organisation

  - Phase III: Post Nineties Organisation

  - Narasimham Committee (1991)

  - Reform of the Banking sector (1992-2008)

  - Present Status of Banking System[5][6]


-  **Indian Banking Structure**

  - Functions

  - Development of Banking in India

  - Scheduled Commercial Banks- Types and functions

  - Local Area Banks

  - Regional Rural Banks

  - Cooperative Banks: Types

  - Payment Banks and Small Finance Banks

  - NBFCs

  - Key RBI Guidelines[5]


-  **Banking Regulation Act, 1949 and RBI Act, 1934**

  - Background of Enactment

  - Reserve Bank of India Act, 1934: Chapter I to Chapter V

  - Schedules to the RBI Act, 1934

  - Banking Regulations Act, 1949

  - Section 1 to Section 56[5]


-  **Development Financial Institutions**

  - Evolution of DFIs in India

  - Gaps in Post-Independence Financial System

  - Objectives of DFIs

  - Classification of DFIs

  - Role of DFIs in Indian Economy

  - IFCI, ICICI, IDBI, SIDBI, EXIM Bank, NABARD, NHB, NaBFID[5]


-  **Micro Finance Institutions**

  - Evolution of Microfinance in India

  - Grameen Bank Model

  - Delivery of Microfinance

  - SHG-Bank Linkage programme

  - Joint Liability Groups (JLGs)

  - Regulatory Framework for MFIs[5]


-  **Non-Banking Financial Companies**

  - What is a NBFC?

  - Evolution of NBFCs in India

  - Role of NBFC in Promoting Inclusive Growth

  - Regulators of NBFCs

  - Classification of NBFCs

  - Types of NBFCs

  - Scale Based Regulation (SBR)[5]


-  **Insurance Companies**

  - History and Development of Insurance

  - Privatisation and FDI in Insurance

  - Insurance Business Globally and in India

  - Insurance Penetration and Density

  - Legislations Governing Insurance Companies

  - Insurance Intermediaries[5]


-  **Indian Financial System - Regulators & their roles**

  - Reserve Bank of India (RBI)

  - Securities and Exchange Board of India (SEBI)

  - Insurance Regulatory and Development Authority (IRDA)

  - Pension Fund Regulatory and Development Authority (PFRDA)[5]


-  **Reforms & Developments in Banking sector**

  - Bad Banks

  - Infrastructure financing

  - Formation/role of NaBFID

  - Basic concepts on EASE[5]


### Module D: Financial Products and Services

-  **Overview of Financial Markets**

  - What is a Financial Market?

  - Evolution of Financial Market

  - Segments of Financial Markets

  - Functions of Financial Markets

  - Price Discovery[5]


-  **Money Markets and Capital Markets**

  - Call Money, Notice Money, Term Money

  - Treasury Bills

  - Certificates of Deposit

  - Commercial Paper

  - Repo, Tri-Party Repo

  - Bill Rediscounting Scheme (BRDS)

  - Long-Term Repo Operations (LTRO)[5]


-  **Fixed Income Markets - Debt / Bond Markets**

  - Government Securities

  - Bond Valuation and Theorems

  - Auction of Government Securities

  - Primary Dealers

  - FIMMDA

  - RBI Retail Direct Scheme (RDS)

  - Corporate Bond Market[5]


-  **Capital Markets and Stock Exchanges**

  - Primary Market

  - Secondary Market Stock Exchanges

  - Financial Products/Instruments in Secondary Market

  - SEBI Regulatory Requirements

  - Types of Capital Issues

  - Eligibility Norms for Capital Issues

  - ASBA, QIP[5]


-  **Forex Markets**

  - Profile of Foreign Exchange Market

  - Evolution of Forex Market in India

  - Market Participants

  - LIBOR and Alternate Reference Rates

  - FEDAI

  - FEMA, 1999

  - FX-Retail Platform[5]


-  **Interconnection of various markets/Market Dynamics**

  - Process of Interconnectedness

  - Reasons for interconnectedness

  - Importance of Interconnectedness

  - Market Integration in India

  - Asian Clearing Union

  - Contagion Effect[5]


-  **Merchant Banking Services**

  - Definition of Merchant Banking

  - Historical Background

  - Development in India

  - Merchant Banking Vs Commercial Banking

  - SEBI Regulations on Merchant Banking

  - Activities of Merchant Banks[5]


-  **Derivatives Market including Credit Default Swaps**

  - What is a Derivative?

  - History of Derivatives

  - Size of Derivatives Market

  - Underlying Assets

  - Exchange Traded and OTC Markets

  - Types of Derivatives

  - Credit Default Swaps (CDS)

  - ISDA Agreement[5]


-  **Factoring, forfaiting & Trade Receivables Discounting System (TReDS)**

  - What is Factoring?

  - Types of factoring

  - Domestic and International Factoring

  - Bills Discounting vs Factoring

  - What is Forfaiting?

  - What is TReDS?

  - Participants under TReDS[5]


-  **Venture capital**

  - Concept of Venture Capital

  - Evolution in India

  - Characteristics of VC Finance

  - Stages of VC Financing

  - Regulatory Aspects

  - Exit Routes for VC Finance[5]


-  **Leasing and Hire Purchase**

  - Lease Finance

  - Evolution of Leasing in India

  - Types of Leasing

  - Advantages and Disadvantages

  - Legal and Regulatory Aspects

  - Hire Purchase

  - Parties to HP Contract[5]


-  **Credit Rating agencies & their functions**

  - What is Credit Rating?

  - Credit Rating Agencies (CRAs)

  - History of Credit Rating

  - Characteristics and Importance

  - Process of Credit Rating

  - Credit Rating Symbols

  - Regulations for CRAs in India[5]


-  **Mutual Funds**

  - Mutual Funds and their Functions

  - Management of Mutual Funds

  - Evolution of Mutual Funds

  - Classification of Mutual Funds

  - Role and Supervision

  - Net Asset Value (NAV)

  - Alternative Investment Funds[5]


-  **Insurance Products**

  - What is Insurance?

  - Fundamental Principles

  - Classification of Insurance

  - Types of Insurance Business

  - Group Insurance Schemes

  - Micro Insurance

  - Bancassurance

  - Insurance Ombudsman Scheme[5]


-  **Pension Funds (include APY, NPS)**

  - Pension System and its Aspects

  - Pension Products

  - Different Types of Pension Schemes

  - EPF Scheme

  - PPF Scheme

  - National Pension Scheme (NPS)

  - Atal Pension Yojana (APY)[5]


-  **Guidelines on Para Banking & Financial Services**

  - Types of Para Banking Services

  - Organisation of Para Banking Activities

  - Disclosure of Commissions/Remunerations[5]


-  **Real Estate Investment Funds / Infrastructure Investment Fund**

  - What are REITs?

  - History and Organisation of REITs

  - Types of REITs

  - Taxation Guidelines for REITs

  - What are InvITs?

  - Organisation and Activity of InvITs

  - Types and Revenue Model of InvITs[5]


## Paper 2: Principles & Practices of Banking (PPB)


### Module A: General Banking Operations

-  **Banker-Customer Relationship**

  - Requirements to be Called a Bank

  - Banker-Customer Relationship

  - Bank as a Trustee

  - Bailee-Bailor Relationship

  - Agent-Principal Relationship

  - Lessor and Lessee

  - Different Deposit Products or Services[8][9][10]


-  **AML-KYC Guidelines**

  - Money Laundering & Financing of Terrorism Risks

  - AML Framework in India

  - Know Your Customer Policy

  - Organisational Set-up for AML

  - Obligations under PMLA

  - Risk Management

  - Obligations under International Agreements

  - FATF Identified Jurisdictions[8][9][10]


-  **Operational Aspects of KYC**

  - Know Your Customers (KYC) Norms

  - Wire Transfers

  - Other Operations - Regulations

  - Central KYC Records Registry (CKYCR)

  - Monitoring of Transactions[8][11][10]


-  **Opening Accounts of Various Types of Customers**

  - Personal Accounts

  - Accounts of Other Customers

  - Norms for Opening Current Accounts

  - Obtaining Photographs of Account Holders

  - Legal Entity Identifier[8][11]


-  **Operational Aspects of Deposit Accounts**

  - Salient Feature of Deposit Accounts

  - Interest on Deposit Accounts

  - Prohibitions & Exemptions

  - Inoperative Accounts & Unclaimed Deposits

  - Nomination Facility

  - Attachment Orders[5]


-  **Operational Aspects of Handling Clearing/Collection/Cash**

  - Cheque Truncation System (CTS)

  - RBI Guidelines on Collection of Instruments

  - Cash and its Custody

  - Security Arrangements at Branches and ATMs[5]


-  **Banker's Special Relationship**

  - Mandate – Definition

  - Power of Attorney (POA)

  - Banker's Lien

  - Right of Set-off

  - Right of Appropriation[5][12]


-  **Foreign Exchange Remittance Facilities for Individuals**

  - Evolution of FEMA

  - Definitions

  - Bringing in and Taking out Foreign Exchange

  - Inward Remittances

  - Outward Remittances

  - Indo - Nepal Remittance Scheme[5]


-  **Operational Aspects of NRI Business**

  - Permitted Accounts in India for NRIs and PIOs

  - Accounts of Foreign Nationals Visiting India

  - Special Non-Resident Rupee Account

  - Remittance of Assets Held by NRIs/PIOs

  - Acquisition and Transfer of Immovable Property

  - Investments by NRIs/PIOs[5]


-  **Foreign Currency Accounts for Residents**

  - Types of Accounts Permitted

  - Foreign Currency Denominated Accounts in India

  - Permitted Foreign Currency Accounts Outside India

  - Foreign Contribution (Regulation) Act 2010[5]


-  **Cash Management Services and Its Importance**

  - Developments in CMS

  - Importance of Cash Management System

  - Types of Cash Management Services

  - Challenges and Issues[5]


-  **Payment and Collection of Cheques and Other Negotiable Instruments**

  - Negotiable Instruments Act

  - Payment of a Cheque

  - Payment in due course – Section 10

  - Liability of the Paying Bank – Section 31

  - Collection of Cheques

  - Endorsement and Crossing of Cheques

  - Forged Instruments

  - Bouncing (Dishonour) of Cheques[5][12]


-  **Responsibility of Paying Bank**

  - Negotiable Instruments Act and Paying Banks

  - Liability when Customer's Signature is Forged

  - Payment to be in Due Course

  - Payment in Good Faith without Negligence

  - Payment Under Mistake

  - Cheque Truncation[5]


-  **Responsibility of Collecting Bank**

  - Statutory Protection to Collecting Bank

  - Duties of the Collecting Bank[5]


-  **Ancillary Services**

  - Remittances: DD, BC, MT, TT

  - NEFT, RTGS

  - Electronic Benefit Transfer (EBT) Scheme

  - Mobile Banking in India

  - Electronic/Digital Payments

  - Safe Deposit Lockers

  - Portfolio Management Services

  - Merchant Banking

  - Government Business[5]


-  **Financial Inclusion & Financial Literacy**

  - Extension of Banking Services

  - Use of Mobiles/Tablets in Financial Inclusion

  - Financial Literacy

  - Rural Self Employment Training Institutes (RSETI)[5]


-  **Customer Service Guidelines**

  - Customer Service in Banks

  - Policy for General Management of Branches

  - ATM Operations

  - Security Issues and Risk Mitigation

  - Service at Counters

  - Information to Customers[5]


-  **Duties & Rights of a Banker and Customer Rights**

  - Duty of Secrecy & Confidentiality

  - Duty of Reasonable Care

  - Garnishee or Attachment Order

  - Bank's Rights

  - Customer Awareness

  - Banking Codes and Standards Board of India[5][12]


-  **Grievance Redressal & RBI Integrated Ombudsman Scheme 2021**

  - Model Policy on Grievance Redressal

  - Internal Machinery to Handle Complaints

  - The RBI - Integrated Ombudsman Scheme[5][12]


-  **The Consumer Protection Act, 2019**

  - Purpose of The Act

  - Preamble and Extent

  - Salient New Aspects of CPA 2019

  - Definitions

  - Various Fora

  - Consumer Protection Councils

  - Mediation Process

  - Product Liability[5]


-  **The Right to Information Act, 2005**

  - Applicability

  - Definitions

  - Right to Information

  - Obligations of Public Authorities

  - Procedure for Obtaining Information

  - Appeals and Penalties[5]


### Module B: Functions of Banks

-  **Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities**

  - Principles of Lending

  - Types of Borrowers

  - Types of Credit Facilities

  - Fund Based Working Capital Facilities

  - Term/Demand Loans

  - Non-fund Based Facilities[5][12]


-  **Appraisal and Assessment of Credit Facilities**

  - Credit Appraisal

  - Credit Appraisal techniques

  - Methods of Assessment of Loans

  - Assessment of Working Capital

  - Assessment of Term Loan[5]


-  **Operational Aspects of Loan Accounts**

  - Interest Rates on Loans

  - Credit Management

  - Credit Monitoring

  - Common Operational Terms in Loan Functions

  - Operational Process of Handling Loans

  - Accounting Aspects of Loan Products

  - Fair Practices Code for Lenders[5]


-  **Types of Collaterals and Their Characteristics**

  - Effectiveness of Securities

  - Secured vs Unsecured Loans

  - Types of Securities

  - Land and Buildings

  - Goods and Documents of Title

  - Advances against Life Insurance Policies

  - Advance Against Shares and Debentures

  - Loan against Book Debts and Term Deposits

  - Vehicle Finance[5][12]


-  **Different Modes of Charging Securities**

  - Meaning and Essentials of a Contract

  - Contract of Agency

  - Contract of Bailment

  - Types of Charges

  - Registration of Charges[5][12]


-  **Documentation**

  - Different Types of Documents

  - Documentation Procedure[5]


-  **Non-Performing Assets/ Stressed Assets**

  - Definition and Income Recognition

  - Computation of Gross and Net NPA

  - Asset Classification

  - Provisioning Norms

  - Writing Off of NPAs

  - Framework for Resolution of Stressed Assets

  - Prudential Norms for Restructuring[5][12]


-  **Important Laws Relating to Recovery Of Dues**

  - Recovery of Debts and Bankruptcy Act, 1993 (DRB)

  - SARFAESI Act

  - Insolvency and Bankruptcy Code

  - Legal Services Authorities Act

  - Law of Limitation[5]


-  **Contracts of Indemnity**

  - Contract of Indemnity Defined

  - Distinctive Features of Indemnity and Guarantee

  - Rights of Indemnity Holder

  - Implied Indemnity

  - Scope and Application to Banks[5]


-  **Contracts of Guarantee & Bank Guarantee**

  - Parties to the Contract

  - Basic Principles to be Complied

  - Continuing Guarantee

  - Revocation of Continuing Guarantee

  - Variance in Terms of Contract

  - Bank Guarantees

  - Various Types of Bank Guarantees

  - Precautions for Issuance and Payment[5]


-  **Letters of Credit**

  - Letters of Credit – General Consideration

  - Parties to a Letter of Credit

  - Types of Letters of Credit

  - Documents Under Letter of Credit

  - Uniform Customs and Practices (UCPDC 600)

  - Payment Under Letter of Credit[5]


-  **Deferred Payment Guarantee**

  - Purpose of Deferred Payment Guarantee

  - Method of Payment[5]


-  **Laws Relating to Bill Finance**

  - Class of Bills and Laws Governing Bills

  - Classification of Bills

  - Various Types of Bill Finance

  - Legal Position of a Banker[5]


-  **Credit Cards, Home Loans, Personal Loans, Consumer Loans**

  - Credit Card

  - Home Loans

  - Personal Loans

  - Consumer Loans[5][12]


-  **Priority Sector Advances**

  - Applicability

  - Targets/Sub-Targets for Priority Sector

  - Categories of Priority Sector

  - Non-Achievement of Priority Sector Targets

  - Common guidelines for Priority Sector Loans

  - Other Modes of Lending to Priority Sectors[5][12]


-  **Agricultural Finance**

  - Short-Term Loans

  - Medium/Long-Term Loans

  - Crop Loan

  - Kisan Credit Card (KCC)

  - Selected Activities Under Agricultural Financing

  - Minimum Support Prices Scheme

  - Prime Minister Fasal Bima Yojana (PMFBY)[5]


-  **Finance to MFIs/Co-Lending Arrangements with NBFCs**

  - Background

  - Bank Borrowings - Source of Finance for NBFC's

  - Bank Finance to NBFC's

  - Bank Loans to NBFC's for On-Lending

  - Co-Lending by Banks and NBFC's to Priority Sector

  - Scale Based Regulation (SBR)[5]


-  **Micro, Small and Medium Enterprises in India**

  - Aim of MSMEs

  - MSMED Act

  - Policy Package for MSMEs

  - Credit rating

  - Credit Guarantee Scheme

  - Other Initiatives[5][12]


-  **Government Sponsored Schemes**

  - Various Government Schemes for different sectors

  - Implementation and operational aspects[5]


-  **Self-Help Groups**

  - Self Help Groups and Other Schemes

  - Functions, role & capacity building[5][12]


### Module C: Banking Technology

-  **Essentials of Bank Computerisation**

  - Evolution of Banking Technology

  - Benefits of Technology in Banking

  - Challenges in Technology Adoption[5]


-  **Operational Aspects of CBS Environment**

  - Core Banking Systems

  - Features and Benefits of CBS

  - Implementation Aspects[5]


-  **Alternate Delivery Channels – Digital Banking**

  - ATMs

  - Internet Banking

  - Mobile Banking

  - Phone Banking

  - Digital Banking Products[5]


-  **Data Communication Network and EFT Systems**

  - Network Infrastructure

  - Electronic Fund Transfer Systems

  - SWIFT

  - INFINET[5]


-  **Digital Payment Systems – NPCI**

  - National Payments Corporation of India

  - UPI (Unified Payments Interface)

  - IMPS

  - RuPay Cards

  - BHIM App[5]


-  **Impact of Technology Adoption and Trends in Banking Technology**

  - Technology Trends

  - Artificial Intelligence

  - Machine Learning

  - Blockchain Technology

  - Cloud Computing[5]


-  **Security Considerations and Mitigation Measures in Banks**

  - Cyber Security Framework

  - Information Security

  - Risk Management

  - Security Controls[5]


-  **Operational Aspects of Cyber Crimes/Fraud Risk Management**

  - Types of Cyber Crimes

  - Fraud Detection and Prevention

  - Incident Response

  - Recovery Mechanisms[5]


-  **Technology trends in Banking**

  - e-RUPI

  - Fintech - RegTech, SupTech

  - Hashtag banking

  - Open Banking

  - API Banking[5]


### Module D: Ethics in Banks and Financial Institutions

-  **Ethics, Business Ethics & Banking: An Integrated Perspective**

  - Definition of Ethics

  - Business Ethics in Banking Context

  - Ethical Framework

  - Corporate Governance[5]


-  **Ethics at the Individual Level**

  - Personal Ethics

  - Professional Ethics

  - Ethical Decision Making

  - Moral Values[5]


-  **Ethical Dimensions: Employees**

  - Employee Code of Conduct

  - Conflict of Interest

  - Confidentiality

  - Fair Dealing[5]


-  **Work Ethics and the Workplace**

  - Work Culture

  - Team Ethics

  - Leadership Ethics

  - Communication Ethics[5]


-  **Banking Ethics: Changing Dynamics**

  - Evolution of Banking Ethics

  - Regulatory Requirements

  - Customer Protection

  - Stakeholder Management[5]


## Paper 3: Accounting & Financial Management for Bankers (AFM)


### Module A: Accounting Principles and Processes

-  **Definition, Scope and Accounting Standards including Ind AS**

  - Nature and Purpose of Accounting

  - Historical Perspectives

  - New Accounting system/Value system accounting

  - Origins of Accounting Principles

  - Accounting Standards in India

  - Generally Accepted Accounting Principles (US GAAP)

  - Overview of IFRSs

  - Difference between GAAP and IFRS

  - Transfer Pricing[13][14]


-  **Basic Accountancy Procedures**

  - Concepts of Accountancy

  - Going Concern Entity

  - Double Entry System

  - Principle of Conservatism

  - Revenue Recognition and Realisation

  - Accrual and Cash Basis[13][5]


-  **Maintenance of Cash/Subsidiary Books and Ledger**

  - Record Keeping Basics

  - Account Categories

  - Debit and Credit Concepts

  - Various Books of Accounts

  - Ledger Posting[13][5]


-  **Bank Reconciliation Statement**

  - Need for Bank Reconciliation

  - Preparation of BRS

  - Causes of Differences

  - Reconciliation Process[5]


-  **Trial Balance, Rectification of Errors and Adjusting & Closing Entries**

  - Preparation of Trial Balance

  - Types of Errors

  - Rectification Methods

  - Adjusting Entries

  - Closing Entries[5]


-  **Depreciation & its Accounting**

  - Concept of Depreciation

  - Methods of Depreciation

  - Straight Line Method

  - Written Down Value Method

  - Accounting for Depreciation[5]


-  **Capital and Revenue Expenditure**

  - Distinction between Capital and Revenue

  - Capital Expenditure

  - Revenue Expenditure

  - Deferred Revenue Expenditure[5]


-  **Bills of Exchange**

  - Definition and Features

  - Parties to Bill of Exchange

  - Types of Bills

  - Accounting for Bills[5]


-  **Operational Aspects of Accounting Entries**

  - Day-to-day Accounting Entries

  - Banking Transactions

  - Special Accounting Entries[5]


-  **Back Office Functions/Handling Unreconciled Entries**

  - Back Office Operations

  - Unreconciled Entries

  - Reconciliation Process[5]


-  **Bank Audit & Inspection**

  - Types of Audits

  - Internal Audit

  - External Audit

  - RBI Inspection

  - Compliance Requirements[5]


### Module B: Financial Statements and Core Banking Systems

-  **Balance Sheet Equation**

  - Accounting Equation

  - Assets = Liabilities + Equity

  - Balance Sheet Format

  - Items in Balance Sheet[5][13]


-  **Preparation of Final Accounts**

  - Trading Account

  - Profit and Loss Account

  - Balance Sheet

  - Final Accounts of Different Entities[5]


-  **Company Accounts – I**

  - Share Capital

  - Types of Shares

  - Issue of Shares

  - Calls on Shares

  - Forfeiture of Shares[5]


-  **Company Accounts – II**

  - Debentures

  - Issue of Debentures

  - Redemption of Debentures

  - Final Accounts of Companies[5]


-  **Cash Flow & Funds Flow**

  - Cash Flow Statement

  - Funds Flow Statement

  - Operating, Investing, Financing Activities

  - Direct and Indirect Method[5]


-  **Final Accounts of Banking Companies**

  - Banking Company Balance Sheet

  - Profit and Loss Account

  - Statutory Requirements

  - RBI Guidelines[5]


-  **Core Banking Systems & Accounting in Computerised Environment**

  - CBS Implementation

  - Computerised Accounting

  - Features of CBS

  - Benefits and Challenges[5]


### Module C: Financial Management

-  **An Overview of Financial Management**

  - Objectives of Financial Management

  - Functions of Finance Manager

  - Financial Decisions

  - Scope of Financial Management[5][15]


-  **Ratio Analysis**

  - Types of Ratios

  - Liquidity Ratios

  - Activity Ratios

  - Leverage Ratios

  - Profitability Ratios

  - Market Value Ratios[5]


-  **Financial Mathematics - Calculation of Interest & Annuities**

  - Simple Interest

  - Compound Interest

  - Present Value and Future Value

  - Annuities

  - Perpetuities[5]


-  **Financial Mathematics - Calculation of YTM**

  - Yield to Maturity

  - Current Yield

  - Yield Calculations

  - Bond Pricing[5]


-  **Financial Mathematics - Forex Arithmetic**

  - Foreign Exchange Calculations

  - Cross Rates

  - Forward Rates

  - Currency Conversions[5]


-  **Capital Structure and Cost of Capital**

  - Capital Structure Concepts

  - Optimal Capital Structure

  - Cost of Equity

  - Cost of Debt

  - Weighted Average Cost of Capital (WACC)[5]


-  **Capital Investment Decisions/Term Loans**

  - Capital Budgeting

  - Investment Appraisal Techniques

  - Net Present Value (NPV)

  - Internal Rate of Return (IRR)

  - Payback Period[5]


-  **Equipment Leasing/Lease Financing**

  - Types of Leasing

  - Financial Lease vs Operating Lease

  - Lease Evaluation

  - Advantages and Disadvantages[5]


-  **Working Capital Management**

  - Components of Working Capital

  - Working Capital Cycle

  - Cash Management

  - Inventory Management

  - Receivables Management[5]


-  **Derivatives**

  - Types of Derivatives

  - Forwards and Futures

  - Options

  - Swaps

  - Hedging Strategies[5]


### Module D: Taxation and Fundamentals of Costing

-  **Taxation: Income Tax/TDS/Deferred Tax**

  - Income Tax Act

  - Tax Slabs and Rates

  - Tax Deducted at Source (TDS)

  - Deferred Tax Assets and Liabilities

  - Tax Planning[5]


-  **Goods & Services Tax**

  - GST Framework

  - Types of GST

  - GST Registration

  - Input Tax Credit

  - GST Returns[5]


-  **An Overview of Cost & Management Accounting**

  - Cost Concepts

  - Elements of Cost

  - Cost Classification

  - Cost Behaviour[5]


-  **Costing Methods**

  - Job Costing

  - Process Costing

  - Activity Based Costing

  - Target Costing[5]


-  **Standard Costing**

  - Standard Cost

  - Variance Analysis

  - Material Variances

  - Labour Variances

  - Overhead Variances[5]


-  **Marginal Costing**

  - Variable Cost

  - Fixed Cost

  - Contribution

  - Break-even Analysis

  - Decision Making[5]


-  **Budgets and Budgetary Control**

  - Types of Budgets

  - Budget Preparation

  - Flexible Budgets

  - Budgetary Control

  - Performance Evaluation[5]


## Paper 4: Retail Banking & Wealth Management (RBWM)


### Module A: Retail Banking

-  **Retail Banking: Introduction**

  - Characteristics of Retail Banking

  - Advantages of Retail Banking

  - Constraints in Retail Banking

  - Evolution of Retail Banking

  - Prerequisite for Success of Retail Banking

  - Challenges for Retail Banking

  - Future of Retail Banking[16][17]


-  **Retail Banking: Role within the Bank Operations**

  - Business Models

  - Strategic Business Unit Approach

  - Departmental Approach

  - Integrated Approach[16]


-  **Applicability of Retail Banking Concepts**

  - Applicability of Retail Banking Concepts

  - Distinction between Retail and Corporate/Wholesale Banking[16]


-  **Branch Profitability**

  - Banking System: An Introduction

  - Banking in India

  - What is Profitability?

  - Gross Profit, Operating Profit and Net Profit

  - Profit and Profitability in Banking Context

  - Traditional Measures of Profitability

  - Return on Asset (ROA)

  - Return on Equity (ROE) for Banks

  - Branch Operating Efficiency

  - Factors Affecting Profitability[16][18]


### Module B: Retail Products and Recovery

-  **Customer Requirements**

  - Maslow's Theory and Customer Requirements

  - Customer Requirements about Service Quality[16]


-  **Product Development Process**

  - Product Development Process

  - Product Life Cycle

  - Product Lines of a Banker

  - Deposit Products or Liability Products

  - Credit Products or Asset Products

  - New Product Development

  - Stages in New Product Development[16]


-  **Credit Scoring**

  - What is a Credit Score?

  - Evolution of Credit Scoring

  - Credit Scoring Model

  - Managing the Credit Score

  - Positive Side of Credit Score

  - Credit Information Companies in India

  - Issues in Credit Scoring[16]


-  **Important Retail Liability Products**

  - Demand Deposits

  - Current Deposit Account

  - Savings Bank Account

  - Time Deposit

  - Recurring Deposit (RD)

  - 2 in 1 Account[16]


-  **Important Retail Asset Products**

  - Home Loans

  - Housing Loans under PMAY

  - Home Improvement Loans

  - Auto/Vehicle Loans

  - Personal Loans

  - Educational Loans

  - Processing of Retail Loans[16]


-  **Credit and Debit Cards**

  - Credit Cards

  - Charge Cards

  - Pre-paid Cards

  - Debit Cards

  - Co-branded Cards

  - Contactless Cards[16]


-  **Remittance Products**

  - Electronic Payment Systems

  - NEFT

  - RTGS

  - ECS

  - NACH System

  - Aadhaar enabled Payment System (AePS)

  - Bharat Bill Payment System (BBPS)[16]


-  **Digitisation of Retail Banking Products**

  - Technology in Retail Banking

  - Technology Processes in Retail Banking

  - User-Friendly Features

  - Customer Analytics

  - IDRBT

  - INFINET

  - SFMS

  - Digital Lending[16]


-  **Role of AI and Technology in Retail Banking**

  - Dimensions of Banking Technology

  - Evolution of Banking Technology

  - Artificial Intelligence (AI)

  - Benefits of AI Technology in Banking

  - AI in Retail Banking

  - Challenges Facing India's AI Development[16]


-  **Recovery of Retail Loans**

  - Repayment in Retail Loans

  - Default and Re-scheduling

  - Monitoring of Loan Accounts

  - Classification of Irregular Loan Accounts

  - Recovery Policy of Banks

  - SARFAESI Act

  - Debt Recovery Tribunal (DRT)

  - Lok Adalat

  - Direct Recovery Agents[16]


-  **Management Information Systems**

  - Main elements of MIS

  - Role of MIS

  - MIS in improving decision making

  - MIS in Banking Industry

  - Designing MIS for a Bank[16]


-  **Securitization**

  - Securitization of Assets

  - Process and Benefits

  - Regulatory Framework[16]


### Module C: Support Services – Marketing of Banking Services/Products

-  **Marketing – An Introduction**

  - Marketing in Retail Banking

  - Marketing Mix in Retail Banking[16]


-  **Delivery Channels in Retail Banking**

  - Channel Experience

  - Physical/Direct Channels – Branch

  - Automated Teller Machines

  - Point of Sale Terminal

  - Mobile Banking

  - Internet Banking

  - Customer's Liability on Unauthorized Electronic Transactions[16]


-  **Delivery Models**

  - Delivery Models

  - Internal Customers – Staff at Branch Level

  - Dedicated Marketing Managers

  - Direct Selling Agents (DSAs)

  - Tie-up with Institutions/OEMs/Dealers[16]


-  **Customer Relationship Management in Retail Banking**

  - Customer Relationship Management

  - Why CRM?

  - Implementation Aspects of CRM in Banks

  - Implementation Process and Stages

  - Benefits of CRM

  - Impact of CRM on Customer Satisfaction[16]


-  **Service Standards for Retail Banking**

  - Members of BCSBI

  - Main Aims and Objects

  - Code of Banks' Commitment

  - Code of Banks Commitment to MSE

  - Function of BCSBI

  - Code Compliance Rating

  - Customer Grievances Handling Mechanism[16]


-  **Marketing Information Systems – A Longitudinal Analysis**

  - Functions of MKIS

  - Components of MKIS

  - The MKIS Model

  - Usage of Computers in MKIS

  - Supports for Marketing Management

  - Performance of MKIS[16]


### Module D: Wealth Management

-  **Importance of Wealth Management**

  - Wealth Management – Broad View

  - Wealth Management Business Structures

  - Wealth Management Process

  - Wealth Management Products and Services

  - Alternative asset

  - Private Wealth Management

  - Personal Financial Planning

  - Benefits and Importance of Wealth Management[16]


-  **Investment Management**

  - Element of Investment

  - Basics of Investment Management

  - Steps in Investment Management

  - Investment Banking

  - Portfolio Management

  - Objectives and Key Elements of Portfolio Management

  - Types of Portfolio Management Services

  - Advantages and Disadvantages of PMS[16]


-  **Tax Planning**

  - Classification of Tax Structure in India

  - Financial Year and Assessment Year

  - Residential Status for Income Tax

  - Heads of Income

  - Income Tax Slab rates

  - Old vs New Tax Regime

  - Investment Products for Tax Savings

  - Estate Planning

  - Capital Gains Tax[16]


-  **Other Financial Services Provided by Banks**

  - Distribution of Third Party Products

  - Mutual Fund Business

  - Insurance Business

  - Social Security Insurance Schemes

  - Cross-Selling

  - Depository Services by Banks

  - Portfolio Management Services

  - Factoring

  - Other Agency Business[16]


-  **Additional Reading Material on Home Loans**

  - Lender's Appraisal Procedure

  - Application Form and Documents

  - Appraisal of Loan Request

  - Documentation and Mortgage

  - Registration of Documents

  - Detection of Forged Title Deeds

  - Monitoring and Closure

  - Home Loan Frauds[16]


-  **Housing Finance and Tax Planning**

  - Tax Benefits in Respect of Housing Finance

  - Section 80C and 24(b) Benefits

  - Principal and Interest Repayment Benefits[16]


-  **Mortgage Advice**

  - Development of Home Information Packs

  - Time Value of Money

  - Capital Gains

  - Loan Calculator and Amortization Schedule[16]


-  **Valuation of Real Property**

  - Who does Valuation?

  - Land with Building

  - Life of Structures

  - Sinking Fund

  - Reverse Mortgage[16]


## Important Exam Information


**Exam Dates 2025:**[1][19][20]

- **May Session:** 4th, 10th, 11th, and 18th May 2025

- **November Session:** 2nd, 8th, 9th, and 16th November 2025


**Key Features:**[1][2][3]

- **Mode:** Online only

- **Language:** English or Hindi

- **Time Limit:** 5 attempts within 3 years maximum

- **Fees:** ₹4,000 for first attempt, ₹1,300 for subsequent attempts


**Study Resources:**[1][5]

- Official IIBF courseware

- RBI Master Circulars/Directions

- IIBF Vision and Bank Quest publications

- Current developments in banking and finance


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