New Syllabus for JAIIB / CAIIB / DB&F / SOB Exams

New List of subjects for JAIIB and Diploma in Banking & Finance

CAIIB (4 compulsory papers + 1 elective paper)

List of Compulsory Subjects in CAIIB

CAIIB Elective Subjects – Choose any 1 subject

New subjects for Specialist Officer in Banks (SOB)

SOB (2 compulsory papers)

JAIIB/DB&F/SOB/CAIIB – Introduction of Revised Syllabi

As you are aware, the Institute has revised the syllabi of JAIIB/DB&F/SOB/CAIIB courses to keep pace with the developments and to make them more contemporary and conceptual.

The first examination under the revised syllabi for JAIIB/DB&F/SOB/CAIIB shall be held from May/June 2023 onwards. Thus, the examination to be held in November / December 2022 for JAIIB/DB&F/SOB/CAIIB shall be the last examination under the present syllabi.

Under the revised syllabi, there are 4 compulsory subjects in JAIIB/DB&F, 4 compulsory subjects in CAIIB along with 1 elective paper (to be chosen from five elective subjects) and 3 compulsory subjects in SOB.

In this notification, candidates are requested to take note of the following important points:

1. Subjects under the revised syllabi.
2. Module-wise topics for each subject of the JAIIB/DB&F/SOB/CAIIB courses under the revised syllabi.
3. Examination pattern under the revised syllabi.
4. Credits for subjects passed under the present syllabi.
5. Time limit for passing under the revised syllabi.
6. Validity of credits for subjects passed under the present syllabi.
7. Passing criteria under the revised syllabi.
8. Exam Registration.

A. Subjects Under Revised Syllabi

JAIIB/DB&F – All Subjects Compulsory

1. Indian Economy & Indian Financial System (IE&IFS).
2. Principles & Practices of Banking (PPB).
3. Accounting & Financial Management for Bankers (AFM).
4. Retail Banking & Wealth Management (RBWM).

SOB – All Subjects Compulsory

1. Indian Economy & Indian Financial System (IE&IFS).
2. Principles & Practices of Banking (PPB).
3. Banking Regulations and Business Laws (BRBL).

CAIIB – Compulsory Subjects

1. Advanced Bank Management (ABM).
2. Bank Financial Management (BFM).
3. Advanced Business & Financial Management (ABFM).
4. Banking Regulations and Business Laws (BRBL).

CAIIB – Elective subjects (Candidates to choose any one of their choice)

1. Rural Banking
2. Human Resources Management
3. Information Technology & Digital Banking
4. Risk Management
5. Central Banking

B. Module-Wise Topics For Each Subject Under The Revised Syllabi

To facilitate candidates to have an overview of the revised syllabi, the modules under each subject of the JAIIB/DB&F/SOB/CAIIB courses are listed below:

C. Examination Pattern Under Revised Syllabi

D. Credits for Subjects Passed Under the Present Syllabi

Credits will be allowed only for the following subjects under JAIIB / DB&F / SOB and CAIIB.

(Please also refer Section F on Validity of Credits for subjects passed under the present syllabi)

No credits will accrue to candidates for the following subjects, being new subjects under the revised JAIIB/DB&F / SOB and CAIIB Syllabi:

Such candidates, who are appearing under the revised syllabi and have taken credits under the present syllabi, have to mandatorily pass the aforesaid new subjects in the respective courses within the time limit specified under the revised syllabus, for completing JAIIB/DB&F/SOB/CAIIB as the case may be.

E. Time Limit For Passing Under The Revised Syllabi

The time-limit rule under revised syllabus will be as under:

1. A candidate will be given 5 attempts for completion of each exam (JAIIB / DB&F / SOB / CAIIB) but, within a maximum period of three years, whichever is earlier, from the time he/she registers for the exam. These 5 attempts need not be consecutive.
2. Candidates unable to pass the examination within the maximum stipulated time period of 3 years or 5 attempts, whichever is earlier, will be required to re-enrol themselves afresh. Such candidates will not be granted credit/s for subject/s passed, if any, earlier.
3. Time limit of 3 years or 5 attempts, whichever is earlier, will start from the date of registration for the first attempt. Attempts will be counted when he/she applies for the exam, irrespective of whether the candidate appears for any examination or not.
4. The rules mentioned above imply that, normally a candidate will be eligible to apply for any five examinations out of the six examinations being conducted within the stipulated period of three years. If a candidate avails all five attempts before completion of three years, he/she will be required to re-enrol themselves afresh. Similarly, if a candidate does not avail five attempts but the stipulated period of three years is over, he/she will be required to re-enrol themselves afresh.

F. Validity of Credits for Subjects Passed Under the Present Syllabi

The validity of credits will be linked to the time-limit rule under the revised syllabus. To amplify, in case a candidate has availed / exhausted 3 attempts under the present syllabus, he/she will now get 2 more attempts to pass the JAIIB/DB&F/ CAIIB under the revised syllabi. For such of the candidates who are under the present syllabi but will be availing credits under the revised syllabi for the subject(s) concerned, the time-limit period of 3 years, under the revised syllabi, will be counted from the date of registration for the 1st attempt under the present syllabi.

Some examples are given below for further clarification :

The candidate will get the option of selecting Case 1 or Case 2 when he/she applies for the first time for the exam under the revised syllabi to be held from May/June-2023. Note: This option can be exercised only once.

If any candidate who is eligible to avail credits for the subjects passed under the present syllabus & has balance attempts left under the present syllabus (post Nov/Dec 2022 exam) and chooses not to apply for the May/Jun 2023 exams under revised syllabus, the May/Jun 2023 exam will be considered in his/her count as per the time-limit rule and so on. An example is given below for further clarification.

Once the balance attempts are exhausted, he/she has to compulsorily apply afresh/de-novo.

If a candidate does not clear the exam after availing the credits/attempts within the time limit, then he/she has to register afresh/de-novo.

G. Passing Criteria Under The Revised Syllabi:

1. Minimum marks for pass in each subject will be 50 out of 100.
2. Candidates securing at least 45 marks in each subject with an aggregate of 50% marks in all subjects of the examination in a single attempt will also be declared as having completed the examination.

H. Exam Registration:

Candidates who have balance attempts under the present syllabi, when they apply for the first time under revised syllabus, will get an option to either:

1. Retain the credit/s of passed subject/s (as applicable) and avail the balance attempt/s (as applicable) to complete the exam, subject to the time-limit rule (Refer Points D, E & F above)
   or
2. Forego the credit/s of passed subject/s / balance attempts and apply afresh/de-novo

The above option can be exercised only once

Candidates who have not cleared CAIIB but have passed /not passed Retail Banking (CAIIB elective subject) under the present syllabi will have to select a new CAIIB elective subject as per the revised syllabi.

Candidates will also have the choice to change their CAIIB elective subject. For example, if a candidate had opted for the CAIIB elective paper on Rural Banking for the May / June 2023 exam but had failed can choose another CAIIB elective subject say HRM when he/she applies for the next exam (November / December 2023), if he / she wishes to appear for the same.

New Syllabus

JAIIB

PAPER I - INDIAN ECONOMY & INDIAN FINANCIAL SYSTEM

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
• Economic Planning in India
• Definition of Economic Planning, History of Economic Planning, Objectives of Economic Planning, Types of Planning, Achievements of Planning, Financial resources for 5-year plans
• Sectors of the Indian Economy
• Role & Importance of Primary, Secondary, Tertiary Sector, Quaternary & Quinary Sectors, Different Revolutions in Primary sector, Difference between the sectors, GDP contribution of different sectors, Agriculture, Industry, Services, Employment growth rate in Secondary sector, Sunrise Sector of Indian Economy, Organised and Unorganised sectors
• 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 viz., Atmanirbhar Bharat package, Make in India, Start-up India, Stand-up India etc.
• Infrastructure including Social Infrastructure
• Infrastructure & Economic Development, Energy, Power, Transport system viz., Rail, Road, Civil Aviation, Concept of Social Sector & Social Infrastructure, Health, Education, Family welfare, Development of Health Infrastructure
• Globalisation - Impact on India
• Globalisation and its Advocacy, Globalisation and its Impact on India, Fair Globalisation & the Need for Policy framework, Globalisation in reverse gear - The Threatened Re-emergence of Protectionism
• Economic Reforms
• A brief overview, Transformation, Economic Transformation - Real Sector, Economic Transformation - Financial Sector, Economic Transformation - Integration with the Global Economy, Economic Reforms in India
• Foreign Trade Policy, Foreign Investments and Economic Development
• FTP - Structural Changes during 1990s , FTP policy - 2015-2020, Challenges to be addressed in upcoming FTP, FDIs, FIIs and Recent trends, Economic development vs economic growth, Importance of economic development as a dimension etc.
• International Economic Organizations (World Bank, IMF etc.)
• IMF and World Bank, WTO- India and WTO, Regional Economic Co-operations, Recent International Economic Issues
• 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
• Issues facing Indian Economy
• Poverty Alleviation, Jobless growth, Rising Inequalities, Migration and excessive pressure on resources, Possible remedies, Pandemic situations

MODULE B: ECONOMIC CONCEPTS RELATED TO BANKING

• Fundamentals of Economics, Microeconomics, Macroeconomics and Types of Economies
• Economics - An Introduction, Microeconomics and Macroeconomics, Types of Economies, Market, Command, and Mixed Economies
• 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, Interpreting Changes in Price and Quantity
• Money Supply and Inflation
• What is Money, Money Supply, Inflation, Causes of Inflation, Measures of Inflation
• Theories of Interest
• Classical Theory of Rate of Interest, Keynes' Liquidity Preference Theory of Rate of Interest, Money Demand Curve, Determination of Rate of Interest: Equilibrium in the Money Market, Effect of an Increase in the Money Supply, shifts in Money Demand or Liquidity Preference Curve, Hicks-Hansen Synthesis: IS-LM Curve Model
• Business Cycles
• Characteristics of a Business Cycle, Phases of a Business Cycle
• Monetary Policy and Fiscal Policy
• Tools of Monetary Policy, how did Monetary Policy in India Respond to the Global Financial Crisis? Fiscal Policy, FRBM Act
• National Income and GDP Concepts
• Computation, Utility
• Union Budget
• Receipts, Expenditure, Plan Expenditure, Deficit Concepts

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) on the banking system in India, Reform of the Banking sector (1992-2008), Present Status of Banking System
• 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
• Banking Regulation Act, 1949 and RBI Act, 1934
• Background of Enactment, PART-I Reserve Bank of India Act, 1934: Chapter I to Chapter V, Schedules to the RBI Act, 1934, PART-II Banking Regulations Act, 1949, Background and Structure of the Banking Regulation Act: Section 1 to Section 56
• Development Financial Institutions
• Evolution of Development Financial Institutions in India ,Gaps in the Post-Independence Financial System ,Objectives of Development Financial Institutions ,Classification of DFIs ,Role of DFIs in the Indian Economy ,Changing Role of DFIs and Emergence of Universal Banks ,Industrial Finance Corporation of India (IFCI) ,Industrial Credit and Investment Corporation of India (ICICI),Industrial Development Bank of India (IDBI) ,Small Industries Development Bank of India (SIDBI) ,Export Import Bank of India (EXIM Bank) ,National Bank for Agriculture and Rural Development (NABARD) ,National Housing Bank (NHB) ,National Bank for Financing Infrastructure and Development (NaBFID).
• 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 Microfinance Institutions, Inclusion of Bank Finance to Microfinance Institutions in Priority Sector Lending, Regulatory Framework for Micro Finance Loans RBI Directions 2022, RBI's Fair Practices Code for NBFC-MFIs,
• Non-Banking Financial Companies
• What is a Non- Banking Financial Company (NBFC)?, Evolution of NBFCs in India, Role of NBFC in Promoting Inclusive Growth of India, Regulators of NBFCs ,Classification of NBFCs ,Regulatory Oversight by RBI on NBFCs ,Types of NBFCs ,Concept of Owned Funds and Net Owned Funds (NOF) for NBFCs, Bank Finance to NBFCs ,Fair Practice Code for NBFCs ,Applicability of Ombudsman Scheme to NBFCs ,Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs.
• Insurance Companies
• History and Development of Insurance. Privatisation and Foreign Direct Investment (FDI) in Insurance Sector. Insurance Business Globally and in India. Insurance Penetration and Density. Number of Insurance Companies Operating in India. Legislations Governing Operation of Insurance Companies. Insurance Intermediaries. Reinsurance. Insurance Repository's-Insurance Account.
• Indian Financial System - Regulators & their roles
• Role of Financial Sector Regulators in an Economy, Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDA), Pension Fund Regulatory and Development Authority (PFRDA).
• Reforms & Developments in the Banking sector
• Bad Banks, Infrastructure financing, Formation/role of NaBFID-National Bank for Financing, Infrastructure & Development, Basic concepts on EASE.

MODULE D: FINANCIAL PRODUCTS AND SERVICES

• Overview of Financial Markets
• What is a Financial Market? Evolution of the Financial Market, Segments of Financial Markets, Functions of Financial Markets, Price Discovery.
• Money Markets and Capital Markets
• Call Money, Notice Money and Term Money, Treasury Bills, Certificates of Deposit, Commercial Paper, Repo, Tri-Party Repo, Bill Rediscounting Scheme (BRDS), Long-Term Repo Operations (LTRO).
• Fixed Income Markets - Debt / Bond Markets
• Government Securities, Bond Valuation and Theorems, Auction of Government Securities, Primary Dealers, Fixed Income Money Market and Derivatives Association of India (FIMMDA), RBI Retail Direct Scheme (RDS), Corporate Bond Market, Inter-Corporate Deposits.
• Capital Markets and Stock Exchanges
• Primary Market, Secondary Market Stock Exchanges in India, Financial Products/Instruments Dealt with in the Secondary Market, Regulatory Requirements Specified by SEBI for Corporate Debt Securities, Commonly Used Terms in the Capital Market, Types of Capital Issues in the Primary Market, Eligibility Norms for Making Capital Issues, Intermediaries in an Issue in the Primary Market, Applications Supported by Blocked Amount (ASBA) Qualified Institutional Placement (QIP).
• Forex Markets
• Profile of Foreign Exchange (Forex) Market, Evolution of the Forex Market in India, Characteristics of the Forex Market, Market Participants, LIBOR and Alternate Reference Rates (ARRs), Foreign Exchange Dealers Association of India (FEDAI), Foreign Exchange Management Act (FEMA), 1999, FX-Retail Platform, US Dollar Index (USDX), American Depository Receipt (ADR) and Global Depository Receipt (GDR).
• Interconnection of various markets/Market Dynamics
• Process of Interconnectedness of Financial Markets, Reasons for interconnectedness, Importance of Interconnectedness of Financial Markets, Heterogeneity of Financial Markets, Achievement of Market Integration in India, Different Levels of Market Integration, Asian Clearing Union, Benefits and Costs of Interconnectedness of Markets, Interconnectedness of the Money Market, Interconnectedness of the Credit Market, Interconnectedness of the Capital Market, Interconnectedness of the Forex Market, Integrated Treasury Operations, Contagion Effect.
• Merchant Banking Services
• Definition of Merchant Banking, Historical Background, Development of Merchant Banking in India, Merchant Banking Vs Commercial Banking, Licensing Requirements, SEBI Regulations on Merchant Banking, Activities of Merchant Banks, Key Policy Requirements as per SEBI Regulations, Key Codes of Conduct as per SEBI Regulations.
• Derivatives Market including Credit Default Swaps
• What is a Derivative? History of Derivatives, Size of the Derivatives Market, Underlying Assets, Exchange Traded and Over-the-Counter Markets, Participants in the Derivatives Market, Functions of Derivatives, Types of Derivatives, Forward Contracts, Futures, Options, Swaps, Credit Default Swaps (CDS), RBI guidelines on Credit Default Swaps, Documentation for Derivatives - ISDA Agreement.
• Factoring, forfaiting & Trade Receivables Discounting System (TReDS)
• What is Factoring? History of Factoring, Types of factoring, Domestic Factoring, International Factoring, Bills Discounting vs Factoring, Fees Involved in Factoring, Advantages of Factoring, What is Forfaiting? Mechanism of a Forfaiting Transaction, Fees Involved in Forfaiting, Advantages of Forfaiting, Differences between Factoring and Forfaiting, What is TReDS? Participants under TReDS, Process Flow under TReDS, Eligibility Criteria to Set Up and Operate TReDS.
• Venture capital
• Concept of Venture Capital, Evolution of Venture Capital in India, Characteristics of Venture Capital Finance, Stages of Venture Capital Financing, Process of Venture Capital Financing, Regulatory Aspects of Venture Capital Funds, Modes of Venture Capital Financing, Advantages and Disadvantages of Venture Capital Financing, Exit Routes for Venture Capital Finance.
• Leasing and Hire Purchase
• Lease Finance, Evolution of Leasing in India, Types of Leasing, Advantages and Disadvantages of Lease Finance, Market Share of Various Leased Asset Classes, Impact of Leasing on Financial Ratios, Legal Aspects of Leasing, Regulatory Aspects of Leasing Activities, Hire Purchase, Evolution of Hire Purchase in India, Legal Aspects of Hire Purchase, Parties to a Hire Purchase Contract, Leasing and Hire Purchase Compared,
• Credit Rating agencies & their functions
• What is Credit Rating? Credit Rating Agencies (CRAs) ;History of Credit Rating; Characteristics of Credit Rating ;Importance of Credit Rating, Benefits of Credit Rating ,Factors Considered while Rating Companies/Instruments ,Process of Credit Rating ,Credit Rating Symbols , Ratings Outlook ,Regulations for CRAs in India ,Fees for Credit Rating ,What is Credit Scoring? , Credit Information Companies (CICs) in India, Membership to CICs, Regulatory Guidelines Governing CICs, Credit Scores, Difference Between Credit Ratings and Credit Scores.
• Mutual Funds
• Mutual Funds and their Functions, Management of Mutual Funds, Evolution of Mutual Funds, Classification of Mutual Funds, Role of Mutual Funds, Supervision of Mutual Funds, New Fund Offer, Risks Associated with Mutual Funds, Risk Depiction - Riskometer, Net Asset Value (NAV), Expenses Ratio, Load/No-Load Funds, Strategies for Investment in Mutual Funds, Role of Mutual Funds in the Capital Market, Alternative Investment Funds.
• Insurance Products
• What is Insurance? Fundamental Principles Governing Insurance Products, Classification of Insurance, Types of Insurance Business, Group Insurance Schemes, Micro Insurance, Insurance Based Social Security Schemes, Bancassurance, Insurance Ombudsman Scheme, Government Business Products (Social Security Schemes like PMJJBY, PMSBY).
• Pension Funds (include APY, NPS)
• Pension System and its Aspects, Pension Products, Different Types of Pension Schemes, Employees Provident Funds Scheme, Public Provident Fund (PPF) Scheme, Insurance Annuity Schemes, National Pension Scheme (NPS), Atal Pension Yojana (APY).
• Guidelines on Para Banking & Financial Services provided by Banks
• Types of Para Banking and Financial Services provided by Banks, Organisation of Para Banking and Financial Services Activities by a Bank, Para-Banking and Financial Services Undertaken by a Bank, Disclosure of Commissions/Remunerations earned from Para Banking and Financial Services Activities.
• Real Estate Investment Funds / Infrastructure Investment Fund (concept)
• What are Real Estate Investment Trusts (REITs), History of REITs, Organisation of REITs, Types of REITs, Difference Between REITs and Real Estate Mutual Funds, Advantages and Disadvantages of Investing in REITs, Comparison of Various Modes of Investment in Real Estate, Taxation Guidelines for Investors of REITs, Regulatory Guidelines for REITs. What are Infrastructure Investment Trusts (InvITs), Organisation of InvITs, Rationale of Setting up InvITs, Activity of InvITs in India, Types of InvITs, Advantages and Disadvantages of InvITs, InvIT's Revenue Model, Taxation on Investments in InvITs.

PAPER II - PRINCIPLES & PRACTICES OF BANKING

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, Indemnifier and Indemnified, Different Deposit Products or Services, Services to Customers and Investors
• 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, Correspondent Banks, Reporting Under FATCA/ CRS, Reporting Obligations, Implications of Non-compliance of PMLA Obligations, Secrecy Obligations
• Operational Aspects of KYC
• Know Your Customers (KYC) Norms, Wire Transfers, Other Operations - Regulations, Central KYC Records Registry (CKYCR), Monitoring of Transactions
• 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
• Operational Aspects of Deposit Accounts
• Salient Feature of Deposit Accounts, Interest on Deposit Accounts, Prohibitions & Exemptions, Inoperative Accounts & Unclaimed Deposits, Operational Instructions in Joint Accounts, Nomination Facility, Other Operational Guidelines, Attachment Orders, Procedure for Submission of Records to Statutory Authorities
• 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
• Banker's Special Relationship
• Mandate - Definition, Power of Attorney (POA) - Definition, Banker's Lien, Right of Set-off, Right of Appropriation
• 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
• Operational Aspects of NRI Business
• Permitted Accounts in India for NRIs and PIOs, Accounts in India of Foreign Nationals Visiting India, Special Non-Resident Rupee Account - SNRR Account, Remittance of Assets Held by NRIs/ PIOs, Acquisition and Transfer of Immovable Property in India by a Non-Resident Indian (NRI), Creation of Charge on Immovable Property in India, Repatriation of Income and Sale Proceeds of Assets Held Abroad by NRIs, Investments by NRIs/ PIOs
• Foreign Currency Accounts for Residents and Other Aspects
• Types of Accounts Permitted, Foreign Currency Denominated Accounts in India, Permitted Foreign Currency Accounts Outside India, Remittance of Assets by Foreign Nationals not Being PIOs, Modes of Acquiring Property Outside India by a Resident, Foreign Contribution (Regulation) Act 2010
• Cash Management Services and Its Importance
• Developments in CMS, Importance of Cash Management System, Types of Cash Management Services, Challenges and Issues
• 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 - Duties of a Collecting Bank, Endorsement of Cheques, Crossing of Cheques, Forged Instruments, Bouncing (Dishonour) of Cheques, Cheque Truncation System
• Responsibility of Paying Bank
• Negotiable Instruments Act and Paying Banks, Liability of Paying Banker when Customer's Signature on the Cheque is Forged, Payment to be in Due Course for Bank to Seek Protection, Payment in Good Faith without Negligence of an Instrument on which Alteration is not Apparent, Payment by Bank Under Mistake Whether Recoverable, Cheque Truncation
• Responsibility of Collecting Bank
• Statutory Protection to Collecting Bank, Duties of the Collecting Bank
• Ancillary Services
• Remittances: Introduction, Demand Drafts (DD) and Banker's Cheques (BC), Mail Transfer (MT), Telegraphic Transfer (TT), National Electronic Funds Transfer System (NEFT), Real Time Gross Settlement System (RTGS), Electronic Benefit Transfer (EBT) Scheme, Mobile Banking in India, Electronic/Digital Payments, Safe Deposit Lockers, Portfolio Management Services, Merchant Banking, Government Business, Levying of Service Charges
• Financial Inclusion & Financial Literacy
• Financial Inclusion by Extension of Banking Services, Use of Mobiles/Tablets in Financial Inclusion Drive, Financial Literacy, Rural Self Employment Training Institutes (RSETI)
• Customer Service Guidelines
• Customer Service in Banks, Policy for General Management of the Branches, ATM Operations, Security Issues and Risk Mitigation Measures, Service at the Counters, Information to the Customers, Special Arrangements at Branches, Other Provisions
• 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, Obligations on the Customer
• Grievance Redressal & RBI Integrated Ombudsman Scheme 2021
• Model Policy on Grievance Redressal, Internal Machinery to Handle Customer Complaints/ Grievances, The RBI - Integrated Ombudsman Scheme
• The Consumer Protection Act, 2019: Preamble, Extent and Definitions
• Purpose of The Act, Preamble and Extent, Act not Overriding on Any Other Law, Salient New Aspects of CPA 2019, Definitions, Various Fora, Consumer Protection Councils, Central Consumer Protection Authority, Consumer Disputes Redressal Commissions, Jurisdictions of Commissions, Complaints to District Commissions, Complaints to State Commissions/ National Commission, Appeals Against Orders of District/ State Commission, Other Aspects, Mediation Process, Product Liability, Unfair Contracts, Data Protection
• The Right to Information Act, 2005
• Applicability, Definitions, Right to Information, Obligations of Public Authorities, Designation of Public Information Officers, Procedure for Obtaining Information, Disposal of Request, Appeal, Orders in Appeal, Central Information Commission, State Information Commission, Penalties, Act to Have Overriding Effect

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, Other Credit Facilities
• Appraisal and Assesement of Credit Facilities
• Credit Appraisal, Credit Appraisal techniques, Methods of Assessment of Loans, Assessment of Working Capital, Assessment of Term Loan
• Operational Aspects of Loan Accounts
• Interest Rates on Loans, Credit Management, Credit Monitoring, Common Operational Terms/Aspects in Loan Functions, Operational Process of Handling Loans, Accounting Aspects of Loan Products, Basic Operating Instructions on Loan Products, Operating Manual for Loans and Advances, Sample Operating Instructions, Operational Aspects of a Few Common Loan Products, Guidelines on Recovery Agents Engaged by Banks, Fair Practices Code for Lenders
• Types of Collaterals and Their Characteristics
• Effectiveness of Securities, What are 'Secured Loans' and 'Unsecured Loans'?, Types of Securities, Land and Buildings, Goods, Documents of Title to Goods, Advances against Life Insurance Policies, Advance Against Shares, Advance Against Debentures, Loan against Book Debts, Loan against Term Deposits, Loan against Gold Ornaments, Supply Bills, Vehicle Finance
• Different Modes of Charging Securities
• Meaning and Essentials of a Contract, Contract of Agency, Contract of Bailment, Types of Charges, Registration of Charges
• Documentation
• Different Types of Documents, Documentation Procedure
• Non-Performing Assets/ Stressed Assets
• Definition, Income Recognition, Computation of Gross Advances, Gross NPA, Net Advances, and Net NPA, Asset Classification, Provisioning Norms, Writing Off of NPAs, NPA Management - Requirement of Effective Mechanism and Granular Data, Framework for Resolution of Stressed Assets, Prudential Norms Applicable to Restructuring, Other Aspects
• Important Laws Relating to Recovery Of Dues
• Introduction to Recovery of Debts and Bankruptcy Act, 1993 (DRB), Introduction to SARFAESI Act, Introduction To The Insolvency and Bankruptcy Code, Introduction To The Legal Services Authorities Act, Introduction To The Law of Limitation
• Contracts of Indemnity
• Contract of Indemnity Defined, Distinctive Features of Indemnity Contract and Guarantee, Rights of an Indemnity Holder, Implied Indemnity, Enforceability of Contract of Indemnity, Scope and Application of Indemnity Contracts to Banks
• Contracts of Guarantee & Bank Guarantee
• Parties to the Contract, Basic Principles of Contract to be Complied, Consideration, The Liability of the Surety, Continuing Guarantee, Revocation of a Continuing Guarantee, Death of Surety, Variance in Terms of the Contract, Discharge of Principal Debtor, Forbearance to Sue, Surety can Claim His Dues from the Principal Debtor, Security, Implied Promise by the Principal Debtor to Indemnify the Surety, Misrepresentation Made by the Creditor, Co-sureties for the Same Debt, Release of One Co-surety does not Discharge Other, Bank Guarantees, Various Types of Bank Guarantees, Banker's Duty to Honour Guarantee, Issuance of Bank Guarantee - Precautions to be Taken, Payment Under Bank Guarantee - Precautions to be Taken
• Letters of Credit
• Letters of Credit - General Consideration, Parties to a Letter of Credit, Types of Letters of Credit, Documents Under a Letter of Credit, Uniform Customs and Practices for Documentary Credits - UCPDC 600, Payment Under Letter of Credit - Primary Obligations of Banks
• Deferred Payment Guarantee
• Purpose of Deferred Payment Guarantee, Method of Payment
• Laws Relating to Bill Finance
• Class of Bills and Laws Governing Bills, Classification of Bills, Various Types of Bill Finance, Bill Finance and Legal Position of a Banker
• Credit Cards, Home Loans, Personal Loans, Consumer Loans
• Credit Card, Home Loans, Personal Loans, Consumer Loans
• 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, Other Aspects Related to Priority Sector Lending
• Agricultural Finance
• Short-Term Loans, Medium/Long-Term Loans, Crop Loan, Revised Scheme for Issue of Kisan Credit Card (KCC), Selected Activities Under Agricultural Financing, Minimum Support Prices Scheme, Prime Minister Fasal Bima Yojana (PMFBY)
• 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, Bank Loans to NBFCS-MFIs, NBFC-MFI - Channelising Agent for Special Government Schemes, Co-Lending by Banks and NBFC's to Priority Sector, Framework for Scale Based Regulation (SBR) for Non-Banking Financial Companies
• Micro, Small and Medium Enterprises in India
• Aim of MSMEs, Micro, Small and Medium Enterprises Development (MSMED) Act, , Policy Package for MSMEs - Credit/Finance, Measures for Promotion, Development and Enhancement of Competitiveness of Micro, Small and Medium Enterprises, Delayed Payments, Trade Receivables Discounting System (TReDS), Performance and Credit Rating Scheme, Credit Guarantee Fund Scheme for Micro and Small Enterprises, Cluster Based Approach in Financing MSMEs, Common Guidelines / Instructions for Lending to MSME Sector
• Government Sponsored Schemes
• Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM), Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM), Pradhan Mantri Jan Dhan Yojana (PMJDY), MUDRA Loans, Khadi Village Industries Commission (KVIC)
• Self-Help Groups
• SHG - Definition, Need for SHGs, Forming SHGs, SHGs Under DAY-NRLM/ DAY-NULM Schemes, SHG-Bank Linkage Programme

MODULE C: BANKING TECHNOLOGY

• Essentials of Bank Computerisation
• Bank Computerisation, Networking Technologies in Banks, Uninterrupted Power System (UPS), Core Banking, Data Warehousing and Data Mining
• Operational Aspects of CBS Environment
• Functions Performed by CBS, Flow of Transactions in CBS, The Accounting of Transactions in CBS, End of Day (EOD) And Begin of Day (BOD) Operations, End of Day (EOD) Operations, Password Control, Parameter/Master File, Logical Access Control, Operational Aspects of Security Control in CBS, Role and Responsibilities of the Bank Under CBS
• Alternate Delivery Channels - Digital Banking
• Alternate Delivery Channels, Automated Teller Machines (ATMs), Electromagnetic Cards, Electronic Banking, Customer Protection-Limiting Liability of Customers in Unauthorised Electronic Banking Transactions, Harmonization of Turn Around Time (TAT) and Customer Compensation for Failed Transactions Using Authorised Payment Systems
• Data Communication Network and EFT Systems
• Data Communication Networks, Network Scenario in India: Major Networks, Emerging Trends in Communication Networks for Banking, Evolution of EFT Systems, Structured Message Transfer System Using SWIFT, Automated Clearing Systems, Two-Level Funds Transfer System, Emergence of Electronic Payment Systems in India
• Digital Payment Systems - NPCI
• Electronic Clearing Systems in India, National Payment Corporation of India (NPCI), Digital Initiatives by the Government of India
• Impact of Technology Adoption and Trends in Banking Technology
• Trends in Technology Developments, Role and Uses of Technology Upgradation, Global Trends in Banking Systems, Impact of Information Technology on Banks, Some emerging technology trends in Banking
• Security Considerations and Mitigation Measures in Banks
• Risk Concern Areas, Different Types of Threats, Control Mechanism, Computer Audit, Information System Audit (IS Audit), Information System Security (IS Security), Modus Operandi of Online Frauds and Cyber Security Awareness, IT Resources Evaluation Requirements, Disaster Recovery Management Objective, Legal Framework for Electronic Transactions Information Technology Act, G. Gopalakrishana Committee Report, Cyber Security Framework in Banks, Integrated Ombudsman Scheme, 2021 by RBI
• Operational Aspects of Cyber Crimes/Fraud Risk Management in Cyber Tech
• Fraud vs Crime, Phases of an Effective Incident Response Plan
• Technology trends in Banking, e-RUPI, Fintech - RegTech, SupTech, Hashtag banking etc.
• e-RUPI, Fintech/Reg Tech/Sup Tech, Social Media Banking, Hashtag Banking, Account Aggregators, Open Banking

MODULE D: ETHICS IN BANKS AND FINANCIAL INSTITUTIONS

• Ethics, Business Ethics & Banking: An Integrated Perspective
• Values and Ethics, Ethics and Business Values, Business Ethics - Definition, Principles and Practice, An Ethical Crisis: Is Business Ethics an Oxymoron?, Ethical Foundation of Banking: Finance Depends on Trust, Ethical Foundation of Being a Professional, Banking Ethics in Global Context: Enron and Its Lesson, Global Financial Crisis, Ethics in Indian Context: Satyam and Its Lessons, An Indian Bank Case Study
• Ethics at the Individual Level
• Values, Norms, Beliefs and Their Role, Core Values: The Value of a Value, Morality and Personal Values, Value - Conflicts: How Should I Live?, Personal Ethics and Business Ethics: Individual Integrity and Responsibility, The Golden Rule, Understanding Right and Wrong: Doing the Right Thing, Ethical Reasoning and Real-World Application, Ethical Dilemmas: Resolving Ethical Dilemmas, A Framework of Ethical Decision-Making
• Ethical Dimensions: Employees
• Abuse of Official Position: Insider Trading, Proprietary Data, Bribes, etc., Obligations to Third Parties, Job Discrimination, Sexual Harassment, Managing Conflict of Interests, Fair Accounting Practices: Related Party Transactions, HRM Ethics, Principles of Representation and Work Environment, Employees as Ethics Ambassadors & Managers as Ethical Leaders
• Work Ethics and the Workplace
• What Is Work Ethics? Something Bigger Than the Self, Ethical Behaviour at The Workplace: Benefits, Recognising Ethical Workplaces, Unethical Behaviours: Causes and Remedies, Conducting Personal Business During Office Time, Taking Credit for Others' Work, Ethical Lapses and Organizational Culture, Ethics of a Banker, Whistleblowing in Banks, Whistleblowing Law in India
• Banking Ethics: Changing Dynamics
• Ethics and Technology, Data Security and Privacy, Intellectual Property Rights, Patents and Proprietary Rights, Ethics of Information Security

PAPER III - ACCOUNTING & FINANCIAL MANAGEMENT FOR BANKERS

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 and its Definition and Scope, Generally Accepted Accounting Principles of USA (US GAAP), Overview of IFRSs, Difference between GAAP and IFRS, Transfer Pricing
• Basic Accountancy Procedures
• Concepts of Accountancy, 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 Columnar Accounting Mechanics, Journalising
• Bank Reconciliation Statement
• Recording Transactions in Cash Book, Transactions Contained in the Pass Book/Bank Statement, Is Passbook a Mirror Image of Cash Book? Causes for Passbook and Cashbook being different, Understanding Reconciliation, Preparing Reconciliation Statement, Need for Bank Reconciliation, 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
• Depreciation & its Accounting
• Meaning of Depreciation, Causes of Depreciation, Need for Depreciation, Factors of Depreciation, Accounting Entries, Methods of Depreciation, Straight Line Method, Diminishing Balance or Written Down Value (WDV) Method, Advantages and Disadvantages of Straight Line Method, Advantages and Disadvantages of Written Down Value Method, Units of Production Method, Sum of the Years' Digits Method, Replacement of a Fixed Asset and Creation of Sinking Fund, Amortisation of intangible assets
• Capital and Revenue Expenditure
• Expenditure, Distinction between Capital and Revenue Expenditure, Receipts
• 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, Bill Books
• Operational Aspects of Accounting Entries
• Peculiar Features of Accounting System in Banks, Accounting Systems of Different Banks, Illustration
• Back Office Functions/Handling Unreconciled Entries in Banks
• Functions Performed by the Back Office, Reconciliation Function in Banks, Reconciliation of Inter Branch/ Office Entries
• Bank Audit & Inspection
• Bank Audit, Emergence of Risk based Internal Audit, Types of Bank Audits Viz. Concurrent Audit, Internal Audit, Statutory Audit, Role of Audit and Inspection

MODULE B: FINANCIAL STATEMENTS AND CORE BANKING SYSTEMS

• Balance Sheet Equation
• Balance Sheet Equation, Computation of Balance Sheet Equation
• Preparation of Final Accounts
• Preparation of Trial Balance, Adjustment Entries, Preparation of Financial Statements from Trial Balance
• Company Accounts - I
• Definition and Types of Companies, Distinction between Partnership and Limited Liability Company, Classes of Share Capital, Issue of Shares, General Illustrations, Non-voting Shares
• Company Accounts - II
• Form of Balance Sheet, Impact of Ind AS on Financial Statements
• Cash Flow & Funds Flow
• Cash Flow, Funds Flow Statement, Cash Flow Statement, Fund Flow and Cash Flow Analysis
• 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 Account, Preparation and Presentation of Financial Statements of Banks, Accounting Treatment of Specific Items, Preparation of Profit and Loss Account, Comments on Profit and Loss Account Items, Important Items of Balance Sheet. Disclosure Requirements of Banks to be Added as Notes to Accounts, Disclosures Prescribed by RBI Under Basel-III, Banks Listed on a Stock Exchange, Implementation of Indian Accounting Standards (Ind AS)
• Core Banking Systems & Accounting in Computerised Environment
• Meaning of Computerised Accounting, Features of Computerised Accounting, Terms Used in Computerised Accounting, Difference between Computerised and Manual Accounting, Advantages and Disadvantages of Computerised Accounting, Functions Performed by Computerised Accounting Softwares Available in the Market, Computerisation - Scope and Experiences in Banking, The Core Banking Components, Information Security, Internet and World Wide Web - Influences on Banking

MODULE C: FINANCIAL MANAGEMENT

• An Overview of Financial Management
• Forms of Business Organisation, Financial Decision making in a Firm, Objectives of Financial Management, The Fundamental Principles of Finance, Building Blocks of Modern Finance, Risk-Return Trade off, Agency Problem in Financial Management, Business Ethics & Social Responsibility, Organisation of the Finance Function, Relationship of Finance to Economics and Accounting, Emerging Role of the Financial Manager in India
• 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
• Financial Mathematics - Calculation of Interest & Annuities
• What is Simple Interest? What is Compound Interest? Fixed and Floating Interest Rates, Front-end and Back-end Interest Rates, Calculation of Interest Using Products/Balances, What are Annuities? Calculating the Future Value of an Ordinary Annuity, Calculating the Present Value of an Ordinary Annuity, Calculating the Future Value of an Annuity Due, Calculating the Present Value of an Annuity Due, Repayment of a Debt
• Financial Mathematics - Calculation of YTM
• Meaning of Debt, Introduction to Bonds, Terms Associated with Bonds, Types of Bonds, Optionality in Bonds, Valuation of Bonds, Bond Value with Semi-annual Interest, Current Yield on Bond, Yield-to-Maturity of Bond, Theorems for Bond Value, Illustrations, Duration of Bond, Properties of Duration, Bond Price Volatility, Problems and Solutions
• Financial Mathematics - Forex Arithmetic
• Fundamentals of Foreign Exchange, Indian Forex Market, Direct and Indirect Quote, Some Basic Exchange Rate Arithmetic, Forward Exchange Rates
• Capital Structure and Cost of Capital
• Meaning of Capital Structuring, Leverage/Gearing, Factors Influencing Decision on Capital Structuring, Theories/Approaches on Capital Structuring, Net Income Approach, Net Operating Income Approach, Traditional Position, Assumptions in the Approaches on Capital Structuring, Taxation & Capital Structure, Cost of Debt, Preference, Equity, Determining the Proportions, Weighted Average Cost of Capital (WACC), Factors Affecting the WACC, Weighted Marginal Cost of Capital, Determining the Optimal Capital Budget, Divisional and Project Cost of Capital, Floatation Cost and the Cost of Capital, Misconceptions surrounding the Cost of Capital
• Capital Investment Decisions/Term Loans
• Discounted and Non-Discounted Cash Flow Methods for Investment Appraisal, Basic concepts of term loans, Deferred payment Guarantees, Project financing, Difference between term loan appraisal and project appraisal
• Equipment Leasing/Lease Financing
• Meaning of a Lease, Features of a Lease, Types of Leases, Rationale for Leasing, Contents of a Lease Agreement, Legal Aspects of Leasing, Finance Leases, Operating Leases, Accounting of Lease Transaction in the books of Lessor and Lessee, Leasing as a Financing Decision
• Working Capital Management
• Working Capital Cycle, Cash and Marketable Securities, Accruals, Trade Credit, Working Capital Advance by Commercial Banks, Cash Budget Method of Lending, Regulation of Bank Finance, Public Deposits, Inter- Corporate Deposits, Short-term loans from Financial Institutions, Rights Debentures for Working Capital, Commercial Paper, Factoring & Forfaiting
• Derivatives
• Characteristics & Functions of Derivatives, Users of derivatives, Futures, Forward Rate Agreement (FRA), Swaps, Options

MODULE D: TAXATION AND FUNDAMENTALS OF COSTING

• Taxation: Income Tax/TDS/Deferred Tax
• Overview of Income Tax Act, Basic Overview of Deductions in Respect of Certain Incomes & Deduction 80QQB, 80RRB, 80TTA & 80U, TDS/TCS, Returns, Refund & Recovery
• Goods & Services Tax
• Meaning of Direct & Indirect Tax, Introduction to GST
• An Overview of Cost & Management Accounting
• Cost Accounting: Evolution, Meaning, Objectives and Scope, Concepts of Costs, Classifications and Elements of Cost, Cost Centre and Cost Unit, Methods and Techniques of Costing, Cost Accounting Standards, Management Accounting: Evolution, Meaning, Objectives and Scope. Tools and Techniques of Management Accounting, Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management
• Costing Methods
• Unit and Output Costing, Job Costing: Job Cost Cards, Collecting Direct Costs, Allocation of Overheads and its Applications, Batch Costing: Features and Applications, Contract Costing: Features, Distinction between Job and Contract Costing, Progress Payments, Retention Money, Escalation Clause, Contract Accounts, Accounting for Material, Accounting for Plant Used in a Contract, Contract Profit and Accounting Entries, Process Costing: Features, Applications and Types of Process Costing, Process Loss, Abnormal Gains and Losses, Equivalent Units, Inter-Process Profit, Joint Products, By-Products and Accounting, Service Costing: Features and Applications, Unit Costing and Multiple Costing, Application, Identification of Cost Unit and Cost Determination and Control
• Standard Costing
• Definition, Significance and Applications, Various Types of Standards, Installation of Standard Costing System—for Material, Labour, and Overhead, Variance Analysis for Materials, Labour and Overheads and Accounting Treatment of Variances, Benchmarking for Setting of Standards, Variance Reporting to Management
• Marginal Costing
• Meaning, Advantages, Limitations and Applications, Breakeven Analysis, Cost-Volume Profit Analysis, P/V Ratio and its Significance, Margin of Safety, Absorption Costing: System of Profit Reporting and Stock Valuation, Difference between Marginal Costing and Absorption Costing, Income Measurement under Marginal Costing and Absorption Costing
• Budgets and Budgetary Control
• Budget Concept, Manual, Fixed and Flexible Budgets, Preparation and Monitoring of Various Types of Budgets, Budgetary Control System: Advantages, Limitations and Installation, Zero Based Budgeting, Programme and Performance Budgeting

PAPER IV - RETAIL BANKING & WEALTH MANAGEMENT

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
• Retail Banking: Role within the Bank Operations
• Business Models
• Applicability of Retail Banking Concepts and Distinction between Retail and Corporate/Wholesale Banking
• Applicability of Retail Banking Concepts; Distinction between Retail and Corporate/ Wholesale Banking
• Branch Profitability
• Banking System: An Introduction; Banking in India; What is Profitability? What is Profit? Gross Profit, Operating Profit and Net Profit; Profit and Profitability in the context of Banking; Traditional Measures of Profitability; The ROA (Return on Asset); Return on Equity (ROE) for Banks; Branch Operating Efficiency; Strategies for Improving Efficiencies of Banking Operations; Factors Affecting Profitability of Banks in India; Profitability Analysis of Bank Branches; Steps to Improve Branch Profitability; Essential Factors to Make Continuous Improvement in Profitability

Module B: Retail Products and Recovery

• Customer Requirements
• Maslow's Theory and Customer Requirements; Customer Requirements about Service Quality
• Product Development Process
• Product Development Process; Product Life Cycle; Product Lines of a Banker; Deposit Products or Liability Products; Credit Products or Asset Products; Other Products and Services; Other Fee Based Services - Distribution of third party products; New Product Development; Stages in New Product Development; Constraints in New Product Development; Product Management; Product Policy
• Credit Scoring
• What is a Credit Score?; Evolution of Credit Scoring; What is a Good Credit Score?; Credit Scoring Model; Managing the Credit Score; Positive Side of Credit Score; Warning Signs in Credit Score; Credit Information Companies in India; Issues in Credit Scoring; Mistakes in Credit Scoring; Troubleshooting Credit Score
• Important Retail Liability Products
• Demand Deposits : An Introduction; Current Deposit: An Introduction; Main features of Current Deposit Account; Advantage of Current Deposit Account; Documents required for opening various types of Current Accounts; Opening of Current Account; Operational Instructions in Current Account; Transfer of Accounts; Inoperative Accounts; Closure of Current Account; Savings Bank Account: An Introduction; Advantages and Importance of Savings Bank Deposits to Customers; Who Can Open a Savings Bank Account?; Deregulation of interest in Savings Deposit Account; Maintenance of Balance in Savings Bank Account and Interest Payment; Restrictions on Transactions in SB Account; Services offered in Savings Bank Accounts; Time Deposit - An Introduction; Periodicity of Time Deposit; Operational instructions; Interest on Fixed Deposit; Term Deposit accounts of minors; Premature Payment of FD; Operational Issues of FD; Advances Against Bank's own Time Deposit Receipts; Renewal of FD; Recent Rule of RBI on overdue FD; Form 15 G/ 15 H; Deposit of TDS to Income Tax Department by Banks; 2 in 1 Account; Recurring Deposit (RD)
• Important Retail Asset Products
• Home Loans; Housing Loan under Prime Minister's Awas Yojana (PMAY); Home Improvement Loans; Home Decor Loans; Auto/Vehicle Loans; Personal Loans; Educational Loans; Other Retail Loans; Processing of Retail Loans
• Credit and Debit Cards
• Credit Cards; Charge Cards; Pre-paid Cards; Debit Cards; Co-branded Cards; Contactless Cards
• Remittance Products
• Electronic Payment Systems; National Electronic Funds Transfer (NEFT); Real Time Gross Settlement (RTGS); Electronic Clearing Services (ECS); National Automated Clearing House (NACH) System; Aadhaar enabled Payment System (AePS); Bharat Bill Payment System (BBPS); Benchmarking India's Payment System
• Digitisation of Retail Banking Products
• Technology in Retail Banking; Technology Processes in Retail Banking; Some Important User Friendly Features; Customer Analytics; Institute for Development and Research on Banking Technologies (IDRBT); Indian Financial Network (INFINET); Structured Financial Messaging System (SFMS); National Financial Switch (NFS); Indian Banking Community Cloud (IBCC); Wealth Management Solutions; Digital Lending
• Role of AI and Technology in Retail Banking
• Dimensions of Banking Technology; Banking Today; Relationship between Banking and Technology; Evolution of Banking Technology; A New Era in Banking; Evolution of Banking Technology in India; Challenges towards adoption of Technology by Indian Banks; Technology in Retail Banking; Benefits of Technology in Retail Banking; Artificial Intelligence (AI); Difference between Artificial Intelligence (AI) and Automation; Evolution of Artificial Intelligence; Artificial Intelligence Industry in India; Artificial Intelligence in Indian Banking Industry; Indian Banks and the Technology; Why AI in Banking Industry?; Benefits of Artificial Intelligence Technology in Banking and Finance; Artificial Intelligence in Retail Banking; Artificial Intelligence in Retail Banking in India; The Challenges Facing India's AI Development; Benefits of AI in Retail Banking
• Recovery of Retail Loans
• Repayment in Retail Loans; Default and Re-scheduling in Retail Loans; Monitoring of Loan Accounts; Classification of Irregular Loan Accounts; Recovery Policy of Banks; Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act); Debt Recovery Tribunal (DRT); Recovery through Lok Adalat; Engaging Direct Recovery Agents
• Management Information Systems
• The main elements of MIS; Role of Management Information Systems; Role of MIS in Improving decision making; Role of MIS in Banking Industry; Designing MIS for a Bank; Issues Related to Management Information System (MIS); Suggestions for Solution to MIS related Issues
• Securitization
• Securitization of Assets

Module C: Support Services - Marketing of Banking Services/Products

• Marketing - An Introduction
• Marketing in Retail Banking; Marketing Mix in Retail Banking
• 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
• Delivery Models
• Delivery Models; Internal Customers - Staff at the Branch Level; Dedicated Marketing Managers; Direct Selling Agents (DSAs); Tie-up with Institutions/OEMs/Dealers, etc.
• Customer Relationship Management in Retail Banking
• Customer Relationship Management in Retail Banking; Why CRM?; Implementation Aspects of CRM in Banks; Implementation Process of CRM in Banks; Implementation Stages in CRM; Benefits of CRM; Impact of CRM on Customer Satisfaction
• Service Standards for Retail Banking
• Members of BCSBI; Main Aims and Objects; Code of Banks' Commitment; Code of Banks Commitment to Micro and Small Enterprises; Function of BCSBI; Code Compliance Rating; Customer Grievances Handling Mechanism; General Information
• Marketing Information Systems- A Longitudinal Analysis
• Functions of MKIS; Components of MKIS; The MKIS Model; Observations; Usage of Computers in MKIS; Supports for Marketing Management; Supports for Marketing Mix Decisions; Use of Decision Models; Performance of MKIS; Recommendations; Advantages of MKIS

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; Bond; Insurance; Mutual fund; Real estate Service; Retirement Planning; Strategic Business Strategy; Will Writing; Private Wealth Management; Personal Financial Planning; Wealth Management Assessment; Private Banking; Benefits of Wealth Management; Importance of Wealth Management
• Investment Management
• Element of Investment; Basics of Investment Management; Steps in Investment Management; Investment Banking; Services being offered by Full-service Investment Banks; Investment Bank Organizational Structure; Investment Management Vs Investment Banking; Portfolio Management; Objectives of Portfolio Management; Key Elements of Portfolio Management; Portfolio Management Vs Investment Banking; Role of Portfolio Manager; Portfolio Management Service Vs Mutual Funds (MFs); Types of Portfolio Management Services; Steps of the Portfolio Management Process; Advantages of Portfolio Management Services; Disadvantages of PMS; Recent developments in the Portfolio Management Services area in India
• Tax Planning
• Classification of Tax Structure in India; Financial Year; Assessment Year; Previous Year; Concept of Previous Year & Financial Year vis-a-vis Assessment Year; Residential Status for Income Tax; A few important terms in Income Tax; Heads of Income for computation of the total income; Income Tax Slab rate for FY 2021-22 (AY 2022-23); Conditions for opting New Tax Regime; Example for Old Tax Regime Vs New Tax Regime & which is better; Income Tax Slabs for non-individual entities; Investment Products for Tax Savings; Estate Planning-Tax Planning through Wills/ Trusts; Capital Gains Tax
• Other Financial Services Provided by Banks
• Distribution of Third Party Products in Retail Banking; Mutual Fund Business; Insurance Business; Some Social Security Insurance Schemes; Cross Selling; Depository Services by Banks; Portfolio Management Services; Factoring; Other Agency Business by Banks
• Additional Reading Material on Home Loans
• Lender's Appraisal Procedure
• Appraisal Procedures; Application Form; Documents to be Submitted for Availing a Home Loan; Application Received through Agent; Appraisal of Loan Request; Other Relevant Issues at Pre-sanction Stage; Documentation; Mortgage; Registration of Documents; Detection of Forged and Fabricated Title Deeds; Other Securities; Registration of Charges with CERSAI on Security Internet; Monitoring; Closure of Account; Home Loan Frauds
• Housing Finance and Tax Planning
• Tax Benefits in Respect of Housing Finance
• Mortgage Advice
• Development of “Home Information Packs”; Time Value of Money-interest and Annuities; Capital Gains; Loan Calculator and Loan Amortization Schedule
• Valuation of Real Property
• Who does Valuation?; Land with Building; Life of Structures; Sinking Fund; Reverse Mortgage

CAIIB

Compulsory Paper I: Advance Bank Management

MODULE A: STATISTICS

• Definition of Statistics, Importance & Limitations & Data Collection, Classification & Tabulation
• Importance of Statistics; Functions of Statistics; Limitation or Demerits of Statistics; Definitions; Collection of Data; Classification and Tabulation; Frequency Distribution
• Sampling Techniques
• Random Sampling; Sampling Distributions; Sampling from Normal Populations; Sampling from Non-Normal Populations; Central Limit Theorem; Finite Population Multiplier
• Measures of Central Tendency & Dispersion, Skewness, Kurtosis
• Arithmetic Mean; Combined Arithmetic Mean; Geometric Mean; Harmonic Mean; Median and Quartiles; Mode; Introduction to Measures of Dispersion; Range and Coefficient of Range; Quartile Deviation and Coefficient of Quartile Deviation; Standard Deviation and Coefficient of Variation; Skewness and Kurtosis
• Correlation and Regression
• Scatter Diagrams; Correlation; Regression; Standard Error of Estimate
• Time Series
• Variations in Time Series; Trend Analysis; Cyclical Variation; Seasonal Variation; Irregular Variation; Forecasting Techniques
• Theory of Probability
• Mathematical Definition of Probability; Conditional Probability; Random Variable; Probability Distribution of Random Variable; Expectation and Standard Deviation; Binomial Distribution; Poisson Distribution; Normal Distribution; Credit Risk; Value at Risk; Option Valuation
• Estimation
• Estimates; Estimator and Estimates; Point Estimates; Interval Estimates; Interval Estimates and Confidence Intervals; Interval Estimates of the Mean from Large Samples; Interval Estimates of the Proportion from Large Samples
• Linear Programming
• Graphic Approach; Simplex Method
• Simulation
• Simulation Exercise; Simulation Methodology

MODULE B: HUMAN RESOURCE MANAGEMENT

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

MODULE C: CREDIT MANAGEMENT

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

MODULE D: COMPLIANCE IN BANKS & CORPORATE GOVERNANCE

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

COMPULSORY PAPER II: BANK FINANCIAL MANAGEMENT

MODULE A: INTERNATIONAL BANKING

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

MODULE B: RISK MANAGEMENT

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

MODULE C: TREASURY MANAGEMENT

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

MODULE D: BALANCE SHEET MANAGEMENT

• Components of Assets and Liabilities in Bank's Balance Sheet and their Management
• Components of a Bank's Balance Sheet; What is Asset Liability Management?; Significance of Asset Liability Management; Purpose and Objectives of Asset Liability Management; ALM as Co-ordinated Balance Sheet Management
• Capital Adequacy - Basel Norms
• Scope of Application; Pillar-1 - Minimum Capital Requirements; Pillar 2- Supervisory Review Process; Pillar 3 - Market Discipline;
• Asset Classification and Provisioning Norms
• Asset Classification; Provisioning Norms
• Liquidity Management
• Definition; Dimensions and Role of Liquidity Risk Management; Measuring and Managing Liquidity Risk
• Interest Rate Risk Management
• Essentials of Interest Rate Risk; Sources of Interest Rate Risk; Effects of Interest Rate Risk; Measurement of Interest Rate Risk; Interest Rate Risk Measurement Techniques; Strategies for Controlling Interest Rate Risk; Controls and Supervision of Interest Rate Risk Management; Sound Interest Rate Risk Management Practices; RBI's Draft Guidelines on Interest Rate Risk in Banking Book
• RAROC and Profit Planning
• Profit Planning; Risk Aggregation and Capital Allocation; Economic Capital and RAROC

COMPULSORY PAPER III: ADVANCED BUSINESS & FINANCIAL MANAGEMENT

MODULE A: THE MANAGEMENT PROCESS

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

MODULE B: ADVANCED CONCEPTS OF FINANCIAL MANAGEMENT

• Sources of Finance and Financial Strategies
• Equity Capital, Internal Accruals, Preference Capital, Term Loans, Debentures, Alternative Financing Strategies in the Context of Regulatory Requirements
• Financial and Operating Leverages
• Financial Leverage, Degree of Financial Leverage and its Behaviour, Operating Leverage, Degree of Operating Leverage and its Behaviour, Combined or Total Leverage
• Capital Investment Decisions
• Objective of capital investment decisions, Estimation of project cash flows, Forecasting and its relation to regulation of capital for short, medium and long term periods, Relationship between sales, production and other functional budgets, Cash Forecasts, Cost analysis for projects, Methods of Investment appraisal;Social Cost Benefit Analysis
• Capital Budgeting for International Project Investment Decisions
• Foreign Investment Analysis, Special Considerations-Foreign & Home Currency Cash Flows, Foreign Currency Discount Rates Computation, International Portfolio Investment and Institutional Constraints, Direct and Indirect Channels for International Portfolio Investment, Exchange and Country Risk, Return and Risk of Foreign Investment, Capital asset pricing model, Arbitrage pricing theory; International Capital Budgeting Issues involved in overseas projects, Approaches for evaluation of overseas projects, Evaluation methods, Impact of transfer pricing
• Adjustment of Risk and Uncertainty in Capital Budgeting Decision
• Sources & Perspectives on Risk, Sensitivity Analysis, Scenario Analysis, Hillier Model, Simulation Analysis, Decision Tree Analysis, Corporate Risk Analysis, Managing Risk, Project Selection Under Risk, Risk Analysis in Practice
• Decision Making
• Decision Making using Cost-Volume-Profit (CVP) Analysis, Decision Making using Relevant Cost Concepts, Decision Making using Activity Based Costing, Ethical and Non-Financial Considerations Relevant to Decision Making

MODULE C: VALUATION, MERGERS & ACQUISITIONS

• Corporate Valuations
• Approaches to Corporate Valuation, Adjusted Book Value Approach, Stock and Debt Approach, Direct Comparison Approach, Discounted Cash Flow Approach, Steps involved in valuation using DCF Approach,
• Discounted Cash Flow Valuation
• Estimating Inputs, Approaches to Discounted Cash Flow Models, Various discounted Cash Flow Models, Dividend Discount Model, Applicability of the Dividend Discount Model,
• Other Non-DCF valuation models
• Relative valuation model, Equity Valuation Multiples Model, Enterprise value multiples Model, Choosing the right multiples, Book value approach Model, Stock and debt approach
• Special cases of valuation
• Intangibles -Brand, Human valuation etc., Real estate Firms, Start-up firms, Firms with negative or low earnings, Financial Service companies, Distressed firms, Valuation of cash and cross holdings, Warrants and convertibles, Cyclical & non-cyclical companies, Holding companies, E-commerce firms
• Mergers, Acquisitions and Restructuring
• Types of Transactions, Reasons for Merger, Mechanics of a Merger, Costs and Benefits of a Merger, Exchange Ratio in a Merger, Purchase of a Division / Plant, Takeovers, Leveraged Buyouts, Acquisition Financing, Business Alliances, Managing Acquisitions, Divestitures, Holding Company, Demergers Deal structuring and financial strategies Negotiations, Payment and legal considerations, Tax and accounting considerations, Tax reliefs and benefits in case of Amalgamation in India, Financial reporting of business combinations, Deal Financing, Financing of cross border acquisitions in India

MODULE D: EMERGING BUSINESS SOLUTIONS

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

COMPULSORY SUBJECT IV: BANKING REGULATIONS AND BUSINESS LAWS

MODULE A: REGULATIONS AND COMPLIANCE

• Legal Framework of Regulation of Banks
• Control over Organisation of Banks
• Regulation of Banking Business
• Returns, Inspection, Winding Up, Mergers & Acquisitions
• Non-Banking Financial Companies (NBFCs)

MODULE B: IMPORTANT ACTS/LAWS & LEGAL ASPECTS OF BANKING OPERATIONS - PART A

• The Prevention of Money Laundering Act, 2002
• Negotiable Instruments Act, 1881
• Foreign Exchange Management Act, 1999
• Payment & Settlement Systems Act, 2007
• Law Relating to Securities and Modes of Charge - I
• Law Relating to Securities and Modes of Charge - II
• Creation/Registration and Satisfaction of Charges

MODULE C: IMPORTANT ACTS/LAWS & LEGAL ASPECTS OF BANKING OPERATIONS - PART B

• Reserve Bank - Integrated Ombudsman Scheme, 2021
• The Micro, Small and Medium Enterprises Development Act, 2006
• Introduction to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ( SARFAESI Act, 2002)
• Definitions Under SARFAESI Act, 2002
• Regulation of Securitisation and Reconstruction of Financial Assets of Banks and Financial Institutions
• Enforcement of Security Interest
• Central Registry
• Offences and Penalties
• Miscellaneous Provisions
• Registration of Security Interest by Secured Creditors and Other Creditors/ Rectification by Central Government in Some Cases
• The Recovery of Debts and Bankruptcy Act, 1993
• Establishment of Tribunal and Appellate Tribunal
• Jurisdiction, Powers & Authority of Tribunals
• Procedure of Tribunals
• Recovery of Debts Determined by Tribunal and Miscellaneous Provisions
• Introduction to the Insolvency and Bankruptcy Code, 2016
• The Bankers' Books Evidence Act, 1891
• The Legal Services Authorities Act, 1987: Lok Adalats
• The Consumer Protection Act, 2019
• The Law of Limitation
• Tax Laws

MODULE D: COMMERCIAL & OTHER LAWS WITH REFERENCE TO BANKING OPERATIONS

• Meaning and Essentials of a Contract
• Contracts of Indemnity
• Contracts of Guarantee
• Contract of Bailment
• Contract of Pledge
• Contract of Agency
• Meaning and Essentials of a Contract of Sale
• Conditions and Warranties
• Unpaid Seller
• Definition, Meaning and Nature of a Partnership
• Relations of Partners to One Another
• Relations of Partners to Third Parties
• Minor Admitted to the Benefit of a Partnership
• Dissolution of a Firm
• Effect of Non-Registration
• Definition and Features of a Company
• Types of Companies
• Memorandum of Association and Articles of Association
• Doctrines of Ultra Vires/ Constructive Notice/ Indoor Management
• Membership of Company
• Prospectus
• Directors
• Limited Liability Partnership Act, 2008
• Transfer of Property Act, 1882
• The Right to Information Act, 2005
• Right to Information and Obligations of Public Authorities
• Information Technology Act, 2000
• Prevention of Corruption Act, 1988

CAIIB- ELECTIVE

RURAL BANKING

MODULE A: RURAL INDIA

• Demographic Features
• Characteristics of Rural Society
• Economic Features
• Infrastructure
• Agriculture Economy
• Rural Development Policies
• Issues Concerning Rural Areas

MODULE B: FINANCING RURAL DEVELOPMENT

• Regulation of Rural Financial Services
• Rural Credit Institutions
• Financing Agriculture and Allied Activities
• Financing Rural Non-Farm Sector
• SME Finance
• Concepts of Project, Aspects of Project Formulation & Appraisal & Model Bankable Projects

MODULE C: PRIORITY SECTOR FINANCING AND GOVT.

• INITIATIVES Priority Sector Lending
• Poverty Alleviation Programs
• Rural Housing and Education Loans
• Initiatives of R.BI under Financial Inclusion & Financial Education Programs and implementation of various Poverty Reduction Programs

MODULE D: PROBLEMS AND PROSPECTS IN RURAL BANKING

• Role of Banking - Emerging Trends in Rural Banking Characteristics of Rural Society
• Role of Technology in Financial Inclusion and Rural Development
• Financing Poor as Bankable Opportunities: Micro Credit and Self Help Groups

HUMAN RESOURCE MANAGEMENT

Module A: Human Resource Management

• Fundamentals of HRM
• Organisational Behaviour
• Organisational Change
• HRM in Indian Banks
• Knowledge Management

Module B: Building an HR Strategy

• HR as a Strategic Player
• CEO and his/her Team
• Communication
• HR Functions
• Performance Management

Module C: Motivation, Training and Skill Development

• The Learning Process
• Employee Motivation
• Employee Development
• Training Methodology

Module D: Personnel Management and Industrial Relations

• Industrial Relations (Part A)
• Industrial Relations (Part B)
• Employee Discipline (Grievance Redressal and Discipline)
• Workers' Participation in Management (WPM)
• Employee Discipline (Discipline Management)

Module E: Emerging Scenario in HRM

• Contemporary Practices in Employee Engagement
• Organisational Culture & Creativity: New Imperatives
• 'Corporate Sustainability' & 'Green HRM': A Social & Environmental Approach to People Management
• 'HR Analytics', 'HR Entrepreneurship' & 'AI-Based HR Solutions': New HR Trends for Future
• Leading in a 'VUCA' & 'BANI' Scenarios: New Approaches in 'Crisis Management'
• 'Business Ethics', 'Corporate Governance' & 'Corporate Social Responsibility': A Winning Combination for Organisational Excellence

INFORMATION TECHNOLOGY & DIGITAL BANKING

MODULE A: INTRODUCTION TO INFORMATION TECHNOLOGY

• Information Technology and its Implications
• Introduction to Computing
• Introduction to Software
• Networking Systems

MODULE B: SYSTEMS AND DESIGN

• Introduction to Information Systems
• Database Management Systems
• Data Warehousing and Data Mining

MODULE C: BANKING TECHNOLOGY APPLICATIONS AND DIGITAL BANKING

• E-Learning Environment
• Banking Software
• Electronic Clearing and Settlement Systems
• Plastic Money
• Electronic Commerce and Banking
• IT Act 2000 / 2008
• Emerging Technologies

MODULE D: INFORMATION SYSTEM SECURITY CONTROLS AND AUDIT

• Computer Security
• Communication Security
• Business Continuity and Disaster Recovery planning
• Information System Audit
• Competitive Bid Process - RFP and SLA
• RBI Guidelines on Cyber Security (2016) & Digital Payment Security (2021)

RISK MANAGEMENT

MODULE A: RISK AND RISK MANAGEMENT FRAMEWORK

• Why Banks are Special
• Risks and Risk Management in Banks
• Risk Management Framework
• Asset Liability Management and Interest Rate Risk in Banking Book
• Liquidity Risk Management

MODULE B: CREDIT RISK

• Credit Risk Management Framework
• Obligor/Borrower Risk
• Credit Rating System
• Portfolio Credit Risk
• Credit Risk Models
• Measurement of Credit Risk
• Credit Derivatives

MODULE C: MARKET RISK

• Market Risk
• Fixed Income Securities
• Measurement of Interest Rate Risk
• Value at Risk

MODULE D: OPERATIONAL RISK

• Operational Risk and Operational Risk Management Framework
• Collection of Internal Loss Data and External Loss Data
• Risk and Control Self-Assessment (RCSA) & Key Risk Indicator (KRI)
• Technology Risk
• Corporate Governance
• Climate Risk and Sustainable Finance

MODULE E: BASEL AND RBI GUIDELINES ON RISK MANAGEMENT

• Why Do Banks Need Regulation?
• Global Financial Crisis and Basel III
• Regulatory Capital and Capital Adequacy
• Capital Allocation Against Market Risk
• Capital Charge for Operational Risk
• Supervisory Review Process and Internal Capital Adequacy Assessment Process (ICAAP)
• Stress Testing
• Market Discipline
• Basel III Buffers, Liquidity Ratios, Leverage Ratio
• Risk Based Supervision
• Risk Based Internal Audit

MODULE F: DERIVATIVES AND RISK MANAGEMENT

• Derivatives and Risk Management
• Forward Contract
• Futures
• Options
• SWAP

APPENDIX: STATISTICAL CONCEPTS

• Statistical Measures
• Probability Theory

CENTRAL BANKING

MODULE A: RATIONALE AND FUNCTIONS OF CENTRAL BANK

• Theory and Practice of Central Banking: Evolution
• Functions of Central Banks
• Contemporary Issues in Central Banking

MODULE B: CENTRAL BANKING IN INDIA

• Reserve Bank of India
• Financial Inclusion and Development

MODULE C: MONETARY AND CREDIT POLICIES

• Monetary Policy
• Credit Policy
• Fiscal-Monetary Relations
• Liquidity Management in the System

MODULE D: MANAGEMENT OF FOREIGN EXCHANGE RESERVES AND CONSTITUENTS OF INDIAN FINANCIAL MARKET

• Management of Foreign Exchange Reserves
• Constituents of Indian Financial System Structure

MODULE E: REGULATION, SUPERVISION AND FINANCIAL STABILITY

• Evolution of Regulation and Supervision
• Development, Regulation and Supervision and Recent Performance of Scheduled Commercial Banks
• Development, Regulation and Supervision of Co-Operative Banks;
• Financial Stability

MODULE F: NON-BANKING FINANCIAL COMPANIES AND PRIMARY DEALERS

• Non-Banking Financial Institutions: Development, Regulation and Supervision
• Role of Primary Dealers in the Government Securities Market: Development, Regulation and Supervision
• APPENDIX

IIBF Exam Schedule