Certificate Examinations for Employees of I.T. and BPO Companies

What is the objective of the Exam?

• Recognizing the need of IT professional to acquire knowledge of functions of banks in order to enable them to provide technological solutions to banking industry. Towards this end, following examinations have been customized to meet needs of employees of IT and BPO Companies providing services to banking and finance industry.
• Outsourcing has become an important method of delivery of banking services. Changes and improvement in IT has also speeded up the process of outsourcing. Whereas banks employ banking professionals to carry out their activities, outsourcing agencies employ people with specialized skills such as IT, Marketing, Appraisal (cards) etc. to deliver bank products. It is desirable that these agencies/ firms and their employees possess a certain level of knowledge on banking. Such knowledge is essential to avoid possible operational risks on account of outsourcing.
• The Institute with a mandate for examination and certification feels that it should play an active role in filling up this gap and be of service to banks.
• The broad objectives of examinations are as under:

1. To provide basic knowledge in banking and financial systems and to help students/ employees of business outsourcing clients of banks to develop an overall understanding of certain aspects of banking viz.,
• the Role of banks and regulatory requirements - India as well as UK/ USA
• Functions of banks/ legal aspects of banks in brief
• Basics of banking operations and procedures, compliance requirements etc.
2. To provide a level of comfort to banks, who outsource their activities, about the knowledge of banking with agencies/ firms.

FOR WHOM

Employees of IT and BPO Companies/ DSA/ DMA providing banking and finance related services.
a. Fresh entrants
b. Persons posted in banking and finance domain/ projects

MODE OF DELIVERY

Courses will be offered in a distant learning mode.

ELIGIBILITY

1) Members and Non-Members of the Institute

2) Candidates must have passed the 12th standard examination in any discipline or its equivalent.

Exam details

• Question Paper will contain 120 objective type multiple choice questions for 100 marks.
• The examination will be held in Online Mode only.
• There will NOT be negative marking for wrong answers.

The duration of the examination will be of 2 hours.

Examination will be conducted in English only.

PASSING CRITERIA

Minimum marks for pass in the subject is 60 out of 100.

Exam Fees – Rs.1500/- For Members and Non-Members (Plus applicable taxes)

Application for examination should be registered online from the Institute’s website www.iibf.org.in. The schedule of examination and dates for registration will be published on IIBF website.

Where will I get Employees of I.T. and BPO Companies Model Question Papers?

Syllabus for Certificate Examination in Employees of I.T. and BPO Companies

COURSE - I: CERTIFICATION IN BASICS OF BANKING

I) Overview

• Structure of the Financial system and the Constituents - RBI, Commercial banks, Financial Institutions, NBFCs, Indian capital market, Mutual funds, Merchant banks, Insurance companies, etc.
• Brief overview of their roles and functions.
• Meaning and Objectives of Banking/ Banks & Intermediation- Savings - Credit
• Types of Banking Institutions
• Principles of Banking - intermediation, liquidity, profitability, solvency, trust, etc.
• Meanings & Definition of Banking - Under British Law, Indian Law, Under USA Law.
• Structure of Banking - Evolution, Ownership, size, structure and composition of the industry
• Regulatory requirements - Bank Rate/ Banker's Bank
• Comparative structure of banking in developed Economies like USA, UK etc.
• similarities and contrasts.
• Basics of International Banking, retail banking and wholesale banking
• Organization structure of a typical global Bank - at high level - Wholesale, Retail, ALM & Treasury, etc. - within these the product development, marketing, sales, operations, credit, etc. Also cover enterprise wide divisions like Risk, Audit & Compliance, IT, Finance, HRD, Facilities, Corporate Communications, etc.
• Global Banking - Recent trends

II) Brief on Activities at a Bank:

• Deposits:
• Deposits - different types of deposits (transaction/ non-transaction, interest bearing/ non-interest bearing) - usage & need of deposits at a bank - liquidity management.
• Types of Interest Rates - fixed, floating, etc.
• Basic Operational flow for setting up & managing deposits.

Lending:

• Broad categories of lending - Working Capital, Long Term, Project Finance, etc.
• Types of Interest Rates - fixed, floating, etc.
• Concepts of secured/ unsecured & collateral management
• Value chain in loan delivery - (wholesale) Credit Appraisal and sanction - processing/ delivery - monitoring - recovery procedures, security and documentation procedures - stamping (make generic)
• Value chain in loan delivery (retail) - Need for credit reports & computation of credit scores - based on these templates based appraisal and approval - processing/ delivery - monitoring - recovery procedures, security and documentation procedures

Transaction & Other Services:

• Account related services - Opening, Servicing (Statements/ Reporting, Standing instructions, etc.), Closing.
• High level discussion on evolution of Servicing at Banks - from Brick & Mortar to ATMs, mobiles, Internet Banking, etc.
• Payment and Collection procedures- clearing house fundamentals (ACH) - electronic funds transfer - negotiable instruments, RTGS, etc.
• Remittance facilities - forex, etc. Brief note on SWIFT.
• Trade Finance Services - need for Trade Finance desks, risks in international trade & brief overview of Letters of Credit and Guarantees products. Business process for an LC transaction to be explained.
• Cash Management Services - need for CMS - collections, payments & pooling/ sweeping/ liquidity management offerings to Corporate customers.
• Treasury Services - Forex & Fixed Income overview, Asset Liability Management overview - money markets/ risks involved, etc.
• Institutional Banking - need for correspondent banking - definition of Nostro, Vostro
• Corporate Finance - Broad overview of need & activities (Advisory, IPO, Capital Structuring, etc.)
• Bankcards - types of cards- charge cards, debit cards, credit cards, co-branded cards, smart cards etc. - basic business process for a credit card transaction could be explained.

III) Legal aspects & Risk Management

• Basic laws affecting Banking Operations - Compliance requirements
• Best Practices
• KYC principles - Nature of the business - Relations with Customers
• Types of Risk - Credit, Market (Interest/ Liquidity), Operational, etc. Brief on processes in Banks to control & manage Risks E.g. Market Risk Desk, Credit Analysis, Credit Admin, etc.
• Brief overview of BASEL NORMS stipulations for managing risk

IV) Accounting:

• Nature and purpose of accounting; principles - accounting standards and its definition and Scope - Basic Accountancy Procedures - account categories - debit and credit concepts
• Understanding the P&L, Balance Sheet (definition of assets/ liabilities), contingents - source & deployment of funds - revenue streams in a bank
• Profit maximization - Net Interest Income, Non-Interest Income, Cost to Income ratios, etc.
• Core banking Solutions- Accounting in a computerized environment
• KYC principles - Nature of the business - Relations with Customers
• Types of Risk - Credit, Market (Interest/ Liquidity), Operational, etc. Brief on processes in Banks to control & manage Risks E.g. Market Risk Desk, Credit Analysis, Credit Admin, etc.
• Brief overview of BASEL NORMS stipulations for managing risk

COURSE - II: CERTIFICATION IN FUNCTIONS OF BANKS

• Overview of Banking Operations - Various Products/ Services

Deposits:

• KYC principles -Nature of the business - Relations with Customers -
• Deposits-types - a/c opening/ closing procedures - premature closure - interest rate application-renewal of deposits - procedure for settlement of claims - Types of customers - joint accounts - E or S accounts/ F or S accounts - procedure for attachment - Income tax orders/ Garnishee orders - Lien - Loans against deposits

Payment and collection procedures- clearing- electronic funds transfer Lending:

• Working Capital - Investment Loans Lending - different categories of lending - appraisal and sanction - processing - monitoring - recovery procedures, security and documentation procedures -stamping

Other services:

• Overview of Non-fund based services - remittance facilities - procedure on issue/ payment of Demand Drafts/ Bankers Cheques etc./ Safe deposit lockers/ safe custody of articles/ L.C./ LG. etc. - Agency functions - allied activities - Bancassurance etc. Basic laws affecting Banking Operations - Compliance requirements - Best Practices - Case Laws

COURSE - III: CERTIFICATION IN CARD OPERATIONS

Module - A:

• A brief history of bank cards - types of cards- charge cards, debit cards, credit cards, co-branded cards, smart cards etc.
• Credit card organization - appraisal and sanction of limits - credit card billing cycle- profitability-marketing-credit process - administrative support functions;
• Credit process - general credit policies - credit application - credit decision process - determining credit worthiness - credit scoring method - automated processing of applications - credit review - monitoring warning signals
• Production function - production characteristics - account set up - card production
• card production scheduling - statement production - payment processing – receipt
• preparation - capture - balancing – posting
• Customer Service - collections - credit card frauds - recovery process - legal and regulatory issues - merchant establishments - turnover commission

Module - B: Credit Card Operations

• Bank cards - types of cards - debit cards, credit cards, co-branded cards, smart cards etc., credit card organization - appraisal and sanction of limits - credit card billing cycle - profitability - marketing - credit process - administrative support functions; Customer Service - collections - credit card frauds - recovery process legal and regulatory issues - merchant establishments - turnover commission.