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What is JAIIB Exam?

The Reserve Bank of India founded the Indian Institute of Banking and Finance (IIBF), a registered public business that provides banking and finance education. The Ministry of Finance governs the IIBF, the Indian Government. It is the official professional organisation in India for bankers. It has over 700 banks and financial institutions as institutional members and nearly 300,000 workers as individual members. It collaborates with the RBI to develop and enforce banking rules and regulations. The JAIIB test is conducted by IIBF twice a year in May and November. The JAIIB Exam tests candidates’ basic understanding of banking and financial services, banking technology, customer service, fundamental accounting, and legal considerations. The test fosters both individual and professional development.

Check more: JAIIB Exam Scholarship Test

JAIIB Exam Syllabus

The IIBF-recommended syllabus for JAIIB Exam is followed. It has recently been modified to reflect and accommodate the shifting skill needs of banking professionals. Each paper is further broken down into four modules, the specifics of which are shown below.

PAPER I – INDIAN ECONOMY & INDIAN FINANCIAL SYSTEM

MODULE A: INDIAN ECONOMIC ARCHITECTURE

• An overview of Indian Economy
• Economic Planning in India
• Sectors of the Indian Economy
• Role of Priority Sector and MSME in the Indian Economy
• Infrastructure including Social Infrastructure
• Globalisation – Impact on India
• Economic Reforms
• Foreign Trade Policy, Foreign Investments and Economic Development
• International Economic Organizations (World Bank, IMF etc.)
• Climate change, Sustainable Development Goals (SDGs)
• Issues facing Indian Economy

MODULE B: ECONOMIC CONCEPTS RELATED TO BANKING

• Fundamentals of Economics, Microeconomics, Macroeconomics and Types of Economies
• Supply and Demand
• Money Supply and Inflation
• Theories of Interest
• Business Cycles
• Monetary Policy and Fiscal Policy
• National Income and GDP Concepts
• Union Budget

MODULE C: INDIAN FINANCIAL ARCHITECTURE

• Indian Financial System – An Overview
• Indian Banking Structure
• Banking Regulation Act, 1949 and RBI Act, 1934
• Development Financial Institutions
• Micro Finance Institutions
• Non-Banking Financial Companies
• Insurance Companies
• Indian Financial System – Regulators & their roles
• Reforms & Developments in the Banking sector

MODULE D: FINANCIAL PRODUCTS AND SERVICES

• Overview of Financial Markets
• Money Markets and Capital Markets
• Fixed Income Markets – Debt / Bond Markets
• Capital Markets and Stock Exchanges
• Forex Markets
• Interconnection of various markets/Market Dynamics
• Merchant Banking Services
• Derivatives Market including Credit Default Swaps
• Factoring, forfaiting & Trade Receivables Discounting System (TReDS)
• Venture capital
• Leasing and Hire Purchase
• Credit Rating agencies & their functions
• Mutual Funds
• Insurance Products
• Pension Funds (include APY, NPS)
• Guidelines on Para Banking & Financial Services provided by Banks
• Real Estate Investment Funds / Infrastructure Investment Fund (concept)

PAPER II – PRINCIPLES & PRACTICES OF BANKING

MODULE A: GENERAL BANKING OPERATIONS

• Banker-Customer Relationship
• AML-KYC Guidelines
• Operational Aspects of KYC
• Opening Accounts of Various Types of Customers
• Operational Aspects of Deposit Accounts
• Operational Aspects of Handling Clearing/Collection/Cash
• Banker’s Special Relationship
• Foreign Exchange Remittance Facilities for Individuals
• Operational Aspects of NRI Business
• Foreign Currency Accounts for Residents and Other Aspects
• Cash Management Services and Its Importance
• Payment and Collection of Cheques and Other Negotiable Instruments
• Responsibility of Paying Bank
• Responsibility of Collecting Bank
• Ancillary Services
• Financial Inclusion & Financial Literacy
• Customer Service Guidelines
• Duties & Rights of a Banker and Customer Rights
• Grievance Redressal & RBI Integrated Ombudsman Scheme 2021
• The Consumer Protection Act, 2019: Preamble, Extent and Definitions
• The Right to Information Act, 2005

MODULE B: FUNCTIONS OF BANKS

• Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities
• Appraisal and Assesement of Credit Facilities
• Operational Aspects of Loan Accounts
• Types of Collaterals and Their Characteristics
• Different Modes of Charging Securities
• Documentation
• Non-Performing Assets/ Stressed Assets
• Important Laws Relating to Recovery Of Dues
• Contracts of Indemnity
• Contracts of Guarantee & Bank Guarantee
• Letters of Credit
• Deferred Payment Guarantee
• Laws Relating to Bill Finance
• Credit Cards, Home Loans, Personal Loans, Consumer Loans
• Priority Sector Advances
• Agricultural Finance
• Finance to MFIs/Co-Lending Arrangements with NBFCs
• Micro, Small and Medium Enterprises in India
• Government Sponsored Schemes
• Self-Help Groups

MODULE C: BANKING TECHNOLOGY

• Essentials of Bank Computerisation
• Operational Aspects of CBS Environment
• Alternate Delivery Channels – Digital Banking
• Data Communication Network and EFT Systems
• Digital Payment Systems – NPCI
• Impact of Technology Adoption and Trends in Banking Technology
• Security Considerations and Mitigation Measures in Banks
• Operational Aspects of Cyber Crimes/Fraud Risk Management in Cyber Tech
• Technology trends in Banking, e-RUPI, Fintech – RegTech, SupTech, Hashtag banking etc.

MODULE D: ETHICS IN BANKS AND FINANCIAL INSTITUTIONS

• Ethics, Business Ethics & Banking: An Integrated Perspective
• Ethics at the Individual Level
• Ethical Dimensions: Employees
• Work Ethics and the Workplace
• Banking Ethics: Changing Dynamics

PAPER III – ACCOUNTING & FINANCIAL MANAGEMENT FOR BANKERS

MODULE A: ACCOUNTING PRINCIPLES AND PROCESSES

• Definition, Scope and Accounting Standards including Ind AS
• Basic Accountancy Procedures
• Maintenance of Cash/Subsidiary Books and Ledger
• Bank Reconciliation Statement
• Trial Balance, Rectification of Errors and Adjusting & Closing Entries
• Depreciation & its Accounting
• Capital and Revenue Expenditure
• Bills of Exchange
• Operational Aspects of Accounting Entries
• Back Office Functions/Handling Unreconciled Entries in Banks
• Bank Audit & Inspection

MODULE B: FINANCIAL STATEMENTS AND CORE BANKING SYSTEMS

• Balance Sheet Equation
• Preparation of Final Accounts
• Company Accounts – I
• Company Accounts – II
• Cash Flow & Funds Flow
• Final Accounts of Banking Companies
• Core Banking Systems & Accounting in Computerised Environment

MODULE C: FINANCIAL MANAGEMENT

• An Overview of Financial Management
• Ratio Analysis
• Financial Mathematics – Calculation of Interest & Annuities
• Financial Mathematics – Calculation of YTM
• Financial Mathematics – Forex Arithmetic
• Capital Structure and Cost of Capital
• Capital Investment Decisions/Term Loans
• Equipment Leasing/Lease Financing
• Working Capital Management
• Derivatives

MODULE D: TAXATION AND FUNDAMENTALS OF COSTING

• Taxation: Income Tax/TDS/Deferred Tax
• Goods & Services Tax
• An Overview of Cost & Management Accounting
• Costing Methods
• Standard Costing
• Marginal Costing
• Budgets and Budgetary Control

PAPER IV – RETAIL BANKING & WEALTH MANAGEMENT

MODULE A: Retail Banking

• Retail Banking: Introduction
• Retail Banking: Role within the Bank Operations
• Applicability of Retail Banking Concepts and Distinction between Retail and Corporate/Wholesale Banking
• Branch Profitability

MOUDLE B: Retail Products and Recovery

• Customer Requirements
• Product Development Process
• Credit Scoring
• Important Retail Liability Products
• Important Retail Asset Products
• Credit and Debit Cards
• Remittance Products
• Digitisation of Retail Banking Products
• Role of AI and Technology in Retail Banking
• Recovery of Retail Loans
• Management Information Systems
• Securitization

MODULE C: Support Services – Marketing of Banking Services/Products

• Marketing – An Introduction
• Delivery Channels in Retail Banking
• Delivery Models
• Customer Relationship Management in Retail Banking
• Service Standards for Retail Banking
• Marketing Information Systems- A Longitudinal Analysis

MODULE D: Wealth Management

• Importance of Wealth Management
• Investment Management
• Tax Planning
• Other Financial Services Provided by Banks
• Additional Reading Material on Home Loans
• Lender’s Appraisal Procedure
• Housing Finance and Tax Planning
• Mortgage Advice
• Valuation of Real Property

JAIIB Exam Pattern

The JAIIB examination pattern has been made public. JAIIB 2023 will include four papers, following the current exam format. Below are the specifics of the JAIIB Exam Pattern:

The four papers of the JAIIB Examination are

1. Indian Economy and Indian Financial System
2. Principles and Practices of banking
3. Accounting and Finance for Bankers
4. Retail Banking and Wealth Management

JAIIB Exam Date 2023

Candidates should be aware of important dates and events to help in planning. Here are the significant events and dates for the 2023 JAIIB Exam.

Important Dates for JAIIB May 2023 Cycle

Important Dates for JAIIB October 2023 Cycle