JAIIB Syllabus 2022 | JAIIB Exam Pattern & Syllabus By IIBF

• There is no Negative Marking in the Exam
• Candidates will be allowed to retain credits for the subject they have passed in an attempt till the expiry of the time limit for passing the examination.
• Candidates have to score a minimum of 50 marks out of 100 in each paper
• Candidates securing at least 45 marks in each subject with an aggregate of 50% marks in all subjects of examination in a single attempt will also be declared as having completed the examination

 Module A- Indian Financial System

• Indian Financial System – An Overview- Role of RBI, Commercial Banks, NBFCs, PDs, FIs, Cooperative Banks, CRR, SLR; Equity & Debt Market; IRDA
• Banking Regulation– Constitution, Objectives, Functions of RBI; Tools of Monetary Control; Regulatory Restrictions on Lending
• Retail Banking, Wholesale and International Banking– Retail Banking- Products, Opportunities; Wholesale Banking, Products; International Banking, Requirements of Importers & Exporters, Remittance Services; Universal Banking; ADRs; GDRs; Participatory Notes
• Role Of Money Markets, Debt Markets & Forex Market– Types of Money & Debt Market Instruments incl.
  G-Secs; ADs, FEMA, LIBOR, MIBOR, etc
• Role and Functions of Capital Markets, SEBI– Overview of Capital Market; Stock Exchange; Commonly used Terms; Types of Capital Issues; Financial Products/Instruments including ASBA, QIP; SEBI; Registration of Stock Brokers, Subbrokers, Share Transfer Agents, etc; QIBs
• Mutual Funds & Insurance Companies, Bancassurance & IRDA– Types of Mutual Funds, its Management & its
  Role; Role & Functions of Insurance Companies; Bancassurance; IRDA
• Factoring, Forfaiting Services and Off-Balance Sheet items– Types & advantages of Factoring & forfaiting
  services; Types of off balance sheet items
• Risk Management, Basel Accords– Introduction to Risk Management; Basel I, II & III Accords
• CIBIL, Fair Practices Code for Debt Collection,BCSBI– Role and Functions of CIBIL; Fair Practices Code
  for Debt Collection; Codes of BCSBI
• Recent Developments in the Financial System– Structure, Reforms in the Indian Financial System; recent developments in Money, Debt, Forex Markets; Regulatory Framework; Payments and Settlement System

  Module-B Functions of Banks

• Banker Customer Relationship -Types; Different Deposit Products & Services; Services to Customers & Investors
• KYC/ AML / CFT norms– PMLA Act; KYC Norms
• Bankers’ Special Relationship – Mandate; POA; Garnishee Orders; Banker’s Lien; Right of Set off
• Consumer Protection COPRA, Banking Ombudsman Scheme– Operational Aspects of COPRA Act & Banking Ombudsman Scheme
• Payment and Collection of Cheques and Other Negotiable Instruments- NI Act; Role & Duties of Paying & Collecting Banks; Endorsements; Forged Instruments; Bouncing of Cheques; Its Implications; Return of Cheques; Cheque Truncation System
• Opening accounts of various types of customers– Operational Aspects of opening and Maintaining
  Accounts of Different Types of Customers including Aadhar, SB Rate Deregulation
• Ancillary Services– Remittances; Safe Deposit Lockers; Govt. Business; EBT
• Cash Operations– Cash Management Services and its Importance
• Principles of lending, Working Capital Assessment and Credit Monitoring– Cardinal Principles; Non-fund Based Limits; WC; Term Loans; Credit Appraisal Techniques; Sources of WC Funds & its Estimation; Operating Cycle; Projected Net WC; Turnover Method; Cash Budget; Credit Monitoring & Its Management; Base Rate
• Priority Sector Advances– Targets; Sub-Targets; Recent Developments
• Agricultural Finance– Types of Agricultural Loans; Risk Mitigation in agriculture (NAIS, MSP etc)
• Micro, Small and Medium Enterprises– MSMED Act, 2006 Policy Package for MSMEs; Performance and Credit Rating Scheme; Latest Developments
• Government Sponsored Schemes- SGSY; SJSRY; PMRY; SLRS
• Self Help Groups– Need for & Functions of SHGs; Role of NGOs in Indirect Finance to SHGs; SHGs & SGSY Scheme; Capacity Building
• Credit Cards, Home Loans, Personal Loans, Consumer Loans– Operational Aspects, Advantages, Disadvantages & Guidelines of Credit Cards; Procedure and Practices for Home Loans, Personal Loans and
  Consumer Loans
• Documentation– Types of Documents; Procedure; Stamping; Securitisation
• Different Modes of Charging Securities– Assignment; Lien; Set-off; Hypothecation; Pledge; Mortgage
• Types of collateral and their characteristics– Land & Buildings; Goods; Documents of Title to Goods; Advances against Insurance Policies, Shares, Book Debts, Term Deposits, Gold, etc; Supply Bills
• Non Performing Assets– Definition; Income Recognition; Asset Classification; Provisioning Norms; CDR
• Financial Inclusion– BC; BF; Role of ICT in Financial Inclusion, Mobile based transactions, R SETI
• Financial Literacy– Importance of financial literacy, customer awareness

     Module -C Banking Technology

• Essentials of Bank Computerization– Computer Systems; LANs; WANs; UPS; Core Banking
• Payment Systems and Electronic Banking– ATMs; HWAK; PIN; Electromagnetic Cards; Electronic Banking; Signature Storage & Retrieval System; CTS; Note & Coin Counting Machines; Microfiche; NPC;  RUPAY
• Data Communication Network and EFT systems– Components & Modes of Transmission; Major Networks in India; Emerging Trends in Communication Networks for Banking; Evolution of EFT System; SWIFT; Automated Clearing Systems; Funds Transfer Systems; Recent Developments in India
• Role of Technology Upgradation and its impact on Banks– Trends in Technology Developments; Role & Uses of Technology Upgradation; Global Trends; Impact of IT on Banks
• Overview of IT Act– Gopalakrishna Committee Recommendations
• Security Considerations– Risk Concern Areas; Types of Threats; Control Mechanism; Computer Audit; IS Security; IS Audit; Evaluation Requirements
• Preventive Vigilance in Electronic Banking– Phishing; Customer Education; Safety Checks; Precautions

Module D – Support Services- Marketing of Banking Services/                                                                  Products

• Marketing – An Introduction– Concept; Management; Products & Services; Marketing Mix; Brand Image
• Social Marketing/ Networking– Evolution, Importance & Relevance of Social Marketing/ Networking
• Consumer Behavior and Product– Consumer Behavior; Product Planning, Development, Strategies, etc.; CRM
• Pricing– Importance, Objectives, Factors, Methods, Strategies of Pricing; Bank Pricing
• Distribution– Distribution Channels; Channels for Banking Services; Net Banking; Mobile Banking
• Channel Management– Meaning, Levels, Dynamics, Advantages
• Promotion– Role of Promotion in Marketing; Promotion Mix
• Role of Direct Selling Agent/ Direct Marketing Agent in a bank– Definition; Relevance; Banker as DSA/ DMA; Delivery Channels in Banks; Benefits
• Marketing Information Systems – a longitudinal analysis- Functions & Components of MKIS; MKIS Model; Use of Computers & Decision Models; Performance of MKIS; Advantages     

                    Module A – Business Mathematics & Finance

• Calculation of Interest and Annuities- Calculation of Simple Interest & Compound Interest; Calculation of Equated Monthly Installments; Fixed and Floating Interest Rates; Calculation of Annuities; Interest Calculation using Products/ Balances; Amortization of a Debt; Sinking Funds

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

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

• Depreciation and its Accounting- Depreciation, its types and methods; Comparing Depreciation Methods

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

             Module B – Principles of Bookkeeping and Accountancy

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

• Basic Accounting Procedures- Concepts of Accountancy; Going Concern Entity; Double Entry System; Principle of Conservatism; Revenue Recognition and Realization; 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; Journals; Ledgers; subsidiary books; etc.

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

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

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

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

                                 Module C – Final Accounts

• Balance Sheet Equation-Balance Sheet Equation; Computation of Balance Sheet Equation.

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

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

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

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

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

                              Module D – Banking Operations

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

Module A – Regulations and Compliance

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

• Control over Organization of Banks-Licensing of Banking Companies; Branch Licensing; Paid up Capital and Reserves; Shareholding in Banking Companies; Subsidiaries of Banking Companies; Board of Directors; Chairman of Banking Company; Appointment of Additional Directors; Restrictions on Employment; Control over Management; Corporate Governance; Directors and Corporate Governance.

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

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

• Public Sector Banks and Co-operative Banks-SBI and its Subsidiaries; Regional Rural Banks; Nationalized Banks; Application of BR Act to Public Sector Banks; Disinvestment of Shares by Govt.; Co-operative Banks

• Financial Sector Legislative Reforms-Need, Approach for Financial Sector Legislative Reforms; Important Reforms

• Recent Legislative Changes in RBI Act-Recent Legislative Changes in RBI Act, Need thereof

• Financial Sector Development Council- Role and Functions of Financial Sector Development Council

Module B – Legal Aspects of Banking Operations

• Different Types of Borrowers-Types of Borrowers; Limited Liability Partnership

• Types of Credit Facilities-Cash Credit, Overdraft, Demand Loans, Term Loans, Bill Finance

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

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

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

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

• Deferred Payment Guarantees-Purpose of DPGs; Methods of Payment

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

• Various Types of Securities-Types of Securities; Escrow Arrangements; Trust and Retention Arrangements.

• Laws Relating to Securities and Modes of Charging – I-Mortgage; Types of Mortgage; Enforcement of Mortgages

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

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

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

• Case Laws on Responsibility of Collecting Bank-Statutory protection to Collecting Bank; Duties of Collecting Bank

Module C – Banking Related Laws 

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

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

• Banking Ombudsmen Scheme-Purpose; Extent; Definitions; Establishment; Powers; Procedure for Redressal Grievance

• Bankers Books Evidence Act, 1891-Applicability; Definition; Important Provisions

• The Legal Services Authorities Act, 1987-Lok Adalats- Organization; Jurisdiction; Disposal of Cases; Awards

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

• The Law of Limitation-Definition; Computation of Limitation; Important Provisions in schedule to the Limitation Act

• Tax Laws-Income Tax; Commodity Transaction Tax; Service Tax

• Negotiable Instruments Act, 1881-Applicability; Definition; Important Provisions

• Payment & Settlements Systems Act, 2007-Applicability; Definition; Important Provisions

Module D – Commercials Laws with Reference to Banking Operations

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

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

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

• Definition and features of a company-Definition & Features of a Company; Distinction between Company and Partnership

• The Companies Act, 1956 (Now Companies Act, 2013)-Definition, Features & Types of companies; Memorandum and Articles of Association; Doctrine of Ultra Vires, Constructive Notice, Indoor Management; Membership of Company Acquisition, Cessation, Register, Rights & Duties of Members, Prospectus; Directors; Winding up of Companies

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

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

• The Right to Information Act, 2005 –Applicability; Definition; Important Provisions

• Right to Information and Obligation of Public Authorities-Obligations; Procedure; Disposal; Appeal; Orders; Penalties.

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

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