Table of Contents
The CAIIB Syllabus 2024 is available on the official website of the Indian Institute of Banking and Finance at www.iibf.org.in. The CAIIB Exam comprises five papers: four compulsory and one elective. The syllabus focuses on important areas such as Credit Management, International Banking, Risk Management, and Treasury Management, aimed at enhancing the decision-making abilities of banking professionals. The given article provides the detailed module-wise CAIIB Syllabus 2024 and Exam Pattern.
CAIIB Syllabus 2024
The Indian Institute of Banking and Finance will soon begin the CAIIB 2024 November-December cycle exam. This table provides an overview of the CAIIB Syllabus 2024, highlighting key aspects such as the conducting body, exam name, mode of exam, types of questions, number of papers, and the official website where candidates can find more information.
| CAIIB Syllabus | |
| Aspect | Exam Details |
| Exam Conducting Body | Indian Institute of Banking and Finance (IIBF) |
| Exam Name | CAIIB 2024 |
| CAIIB Admit Card 2024 | 19 November 2024 |
| CAIIB Exam Date 2024 | 24 November, 01, 08, 14, 15 December 2024 |
| Category | Syllabus |
| Exam Level | National Level |
| Mode of Exam | Online |
| Types of Questions | Multiple Choice Type |
| Number of Papers | 5 Papers |
| No.of Questions Asked (Each Paper) | 100 |
| Maximum Marks (Each Paper) | 100 |
| Time Duration (Each Paper) | 2 Hours |
| Official Website | www.iibf.org.in |
CAIIB Exam Pattern 2024
The CAIIB (Certified Associate of Indian Institute of Bankers) exam pattern 2024 typically consists of four compulsory papers and one elective paper. Each paper carries 100 marks, and candidates are given two hours to complete each paper. The exam covers various aspects of banking and finance, with the compulsory papers as follows: Advanced Bank Management (ABM), Bank Financial Management (BFM), Advanced Business and Financial Management(ABFM), and Banking Regulations and Business Laws(BRBL). Additionally, candidates can choose one optional paper from a list of subjects such as Rural Banking, Human Resource Management, Risk Management, Central Banking, Information Technology & Digital Banking. The exam is conducted by the Indian Institute of Banking and Finance (IIBF) and is designed to assess the knowledge and expertise of banking professionals, particularly those working in the Indian banking sector.
| CAIIB Exam Pattern 2024 |
|||
| Papers | No. of Qs. | Total Marks | Duration |
| Advanced Bank Management | 100 | 100 | 2 Hours |
| Bank Financial Management | 100 | 100 | 2 Hours |
| Advanced Business and Financial Management | 100 | 100 | 2 Hours |
| Banking Regulations and Business Laws | 100 | 100 | 2 Hours |
| Elective Paper | 100 | 100 | 2 Hours |
IIBF CAIIB Syllabus 2024
In the CAIIB Syllabus, there are four mandatory subjects and five Elective Papers. Among the five Elective Papers, candidates are required to select one according to their preference. Below, we have provided a list of both the Compulsory and Elective Subjects for CAIIB.
CAIIB Syllabus: CAIIB Compulsory Subjects:
- Paper 1: Advanced Bank Management(ABM)
- Paper 2: Bank Financial Management(BFM)
- Paper 3: Advanced Business and Financial Management (ABFM)
- Paper 4: Banking Regulations and Business Laws (BRBL)
CAIIB Syllabus: CAIIB Elective Subjects:
- Rural Banking
- Human Resources Management
- Risk Management
- Central Banking
- Information Technology and Digital Banking
CAIIB Syllabus: Compulsory Papers
The CAIIB Syllabus comprises four mandatory papers: Advanced Bank Management (ABM), Bank Financial Management (BFM), Advanced Business and Financial Management (ABFM), and Banking Regulations and Business Laws (BRBL). These papers are subdivided into multiple modules, comprising various topics and their corresponding sub-topics.
Paper 1: Advanced Bank Management (ABM)
CAIIB Syllabus Paper 1 Advance Bank Management (ABM) includes 4 modules. Statistics, Human Resource Management, Credit Management & Compliance in Banks & Corporate Governance. The detailed syllabus is mentioned below
Module A: Statistics
Module A for CAIIB Paper 1, Advanced Bank Management(ABM) is Statistics. The topics and sub-topics for the given module have been discussed in the below table.
| Paper 1- Module A: Statistics | |
|---|---|
| Topic | Subtopics |
| Definition of Statistics, Importance & Limitations, Data Collection, Classification & Tabulation | Importance of Statistics – Functions of Statistics – Limitations or Demerits of Statistics – Definitions – Collection of Data – Classification & 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 and 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
Human Resource Management is the second module of CAIIB Paper 1, Advanced Bank Management(ABM). The below table comprises the topics and sub-topics of Module B.
| Paper 1- Module B: Human Resource Management | |
|---|---|
| Topic | Subtopics |
| 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
The banking and financial sector employees can check the given section for the topics and sub-topics of CAIIB Paper 1(Advanced Bank Management), Module C, Credit Management.
| Paper 1- Module C: Credit Management | |
|---|---|
| Topic | Subtopics |
| 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
To know the topic and its sub-topics for CAIIB Paper 1(Advanced Bank Management), Module D, Compliance in Banks and Corporate Governance candidates can look for the given table.
| Paper 1- Module D: Compliance in Banks & Corporate Governance | |
|---|---|
| Topic | Subtopics |
| 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 Banks |
Paper 2: Bank Financial Management (BFM)
IIBF CAIIB Syllabus Paper 2 Bank Financial Management (BFM) includes the four modules:
Module A: International Banking
Module A for CAIIB Paper 2, Bank Financial Management(BFM) is International Banking. The topics and sub-topics for the given module have been discussed in the below table.
| Paper 2- Module A: International Banking | |
|---|---|
| Topic | Subtopics |
| 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 Management is the second module of CAIIB Paper 2, Bank Financial Management(BFM). The below table comprises the topics and sub-topics of Module B.
| Paper 2- Module B: Risk Management | |
|---|---|
| Topic | Subtopics |
| 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 the 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
The banking and financial sector employees can check the given section for the topics and sub-topics of CAIIB Paper 2(Bank Financial Management), Module C, Treasury Management.
| Paper 2- Module C: Treasury Management | |
|---|---|
| Topic | Subtopics |
| 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 |
| 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
To know the topic and its sub-topics for CAIIB Paper 2(Bank Financial Management), Module D, Balance Sheet Management, candidates can look for the given table.
| Paper 2- Module D: Balance Sheet Management | |
|---|---|
| Topic | Subtopics |
| Components of Assets and Liabilities | 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 |
Paper 3: Advanced Business and Financial Management (ABFM)
CAIIB Paper 3 Advanced Business and Financial Management also contains four vast modules, the topics and sub-topics of which has been discussed below.
Module A: The Management Process
Module A for CAIIB Paper 3, Advanced Business and Financial Management(ABFM) is The Management Process. The topics and sub-topics for the given module have been discussed in the below table.
| Paper 3- Module A: The Management Process | |
|---|---|
| Topic | Subtopics |
| 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
Advanced Concepts of Financial Management is the second module of CAIIB Paper 3, Advanced Business and Financial Management(ABFM). The below table comprises the topics and sub-topics of Module B.
| Paper 3- Module B: Advanced Concepts Of Financial Management | |
|---|---|
| Topic | Subtopics |
| 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 – 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
The banking and financial sector employees can check the given section for the topics and sub-topics of CAIIB Paper 3(Advanced Business and Financial Management), Module C, Valuation, Mergers, and Acquisitions.
| Paper 3- Module C: Valuation, Mergers & Acquisitions | |
|---|---|
| Topic | Subtopics |
| 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
To know the topic and its sub-topics for CAIIB Paper 3(Advanced Business and Financial Management), Module D, Emerging Business Solutions candidates can look for the given table.
| Paper 3- Module D: Emerging Business Solutions | |
|---|---|
| Topic | Subtopics |
| 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 |
CAIIB Syllabus 2024-Click Here To Download PDF
Paper 4: Banking Regulation and Business Laws(BRBL)
CAIIB Syllabus Paper 4 of Banking Regulations & Business Laws (BRBL) has four modules, which has been explained in detail below.
Module A: Regulations & Compliance
Module A for CAIIB Paper 4, Banking Regulations & Business Laws is Regulations and Compliance. The topics and sub-topics for the given module have been discussed in the below table.
| Paper 4- Module A: Regulations & Compliance | |
|---|---|
| Topic | Subtopics |
| Legal Framework of Regulation of Banks | Business of Banking – Constitution of Banks – Reserve Bank of India Act, 1934 – Banking Regulation Act, 1949 – Reserve Bank as a Central Bank and Regulator of Non-Banking Financial Institutions/Banks – Government as a Regulator of Banks – Control over Co-operative Banks – Regulation by Other Authorities |
| Control over Organisation of Banks | Licensing of Banking Companies including RBI Licensing Policy for Universal Banks and Small Finance Banks/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 – Controls over Management – Corporate Governance – Directors and Corporate Governance |
| Regulation of Banking Business | Power to Issue Directions – Acceptance of Deposits – Nomination – Loans and Advances – Regulation of Interest Rates – Regulation of Payment Systems – Internet Banking Guidelines – Regulation of Money Market Instruments – Banking Ombudsman – Regulation to Strengthen Financial Stability |
| Returns, Inspection, Winding Up, Mergers & Acquisitions | Annual Accounts and Balance Sheet – Audit and Auditors – Submission of Returns – Preservation of Records and Return of Paid Instruments – Special Audit – Inspection and Scrutiny – Board for Financial Supervision – Acquisition of Undertakings – Amalgamation of Banks – Winding up of Banks – Penalties for Offences |
| Non-Banking Financial Companies (NBFCs) | Regulators of NBFCs – Role of NBFC in promoting Inclusive Growth – Registration – Revised Scale Based Regulatory Structure – Nomenclature and Regulatory Norms – Capital Guidelines – Prudential Guidelines – Corporate Governance – Fair Practices Code for applicable NBFC – Bank Finance to NBFCs registered/not requiring registration with RBI – Co-Lending by banks and NBFCs to PSA |
Module B: Important Laws/Acts & Legal Aspects of Banking Operations- Part A
Important Laws/Acts and Legal Aspects of Banking Operations- Part A is the second module of CAIIB Paper 4, Banking Regulations and Business Laws(BRBL). The below table comprises the topics and sub-topics of Module B.
| Paper 4- Module B: Important Laws/Acts & Legal Aspects of Banking Operations- Part A | |
|---|---|
| Topic | Subtopics |
| The Prevention of Money Laundering Act, 2002 | Offence of Money Laundering – Punishment for Money Laundering – Obligations of Banking Companies, Financial Institutions and Intermediaries – Enhanced Due Diligence – Rules Framed – Records to be Maintained – Information Contained in the Records – Procedure for Maintaining Information – Procedure for Furnishing Information to the Director – Verification of Records of the Identity of Clients – Maintenance of Records of Identity of Clients – Some Cases pertaining to the Act |
| Negotiable Instruments Act, 1881 | Negotiable Instruments, Types and Characteristics – Drawer/Acceptor – Payment of Cheques – Protection to Bankers’ /Customers’ – Material Alteration – Where Alteration is not apparent – Protection to the Collecting Banker |
| Foreign Exchange Management Act, 1999 | Meaning of Certain Important Terms Used in FEMA – Regulation and Management of Foreign Exchange – Powers of RBI with Respect to Authorized Persons – Contravention, Penalties, Adjudication and Appeals – Directorate of Enforcement – Special Provisions relating to Assets held outside India |
| Payment & Settlement Systems Act, 2007 | Definitions – Designated Authority/Authorization – Regulation and Supervision by the RBI – Settlement and Netting – Power of RBI to make regulations |
| Law Relating to Securities and Modes of Charge – I | Mortgage – Document of Title to Immoveable Property – Meaning – Copy of Document of Title to Immoveable Property Where Acceptable |
| Law Relating to Securities and Modes of Charge – II | Appropriation – Assignment – Pledge – Hypothecation – Bankers lien – Set-off |
| Creation/Registration and Satisfaction of Charges | What is a Charge? – Procedure for Registration of Charge – Effect of Registration of Charges – Effect of Non-registration of Charges – Provisions of Companies Act 2013 Relating to Registration of Charges |
Module C: Important Laws/Acts & Legal Aspects of Banking Operations- Part B
The banking and financial sector employees can check the given section for the topics and sub-topics of CAIIB Paper 4(Banking Regulations and Business Laws), Module C, Important Laws/Acts and Legal Aspects of Banking Operations-Part B.
| Paper 4- Module C: Important Laws/Acts & Legal Aspects of Banking Operations- Part B | |
|---|---|
| Topic | Subtopics |
| Reserve Bank – Integrated Ombudsman Scheme, 2021 | Coverage and Definitions – Ombudsman–Appointment/Location of Offices/Establishment of a Centralized Receipt and Processing Centre – Procedure for Redressal of Grievance – Procedure for Filing a Complaint / its Initial Scrutiny and Resolution – Passing of an Award and Right to Prefer to Appeal – Suspension of the Scheme |
| The Micro, Small and Medium Enterprises Development Act, 2006 | Coverage and Definitions – Summary of Regulation – National Board for Micro, Small and Medium Enterprises (NBMSME)/Advisory Committee – Memorandum of Micro, Small and Medium Enterprises – Delayed Payments to Micro and Small Enterprises – Micro and Small Enterprises Facilitation Council and Reference to the Council in case of Disputes – Disclosures and Penalty for Contravention of the Provisions of the Statute |
| Introduction to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) | Constitutional Validity of the Act – Definitions Under SARFAESI Act, 2002 – Preamble, Appellate Tribunal, Asset Reconstruction, Bank, Board, Borrower, Central Registry, Debt Recovery Tribunal, Default, Financial Assistance, Financial Asset, Financial Institution, Hypothecation, Non-performing Asset, Originator, Obligor, Property, Qualified Institutional Buyer, Scheme, Securitization, Security Agreement, Secured Asset, Secured Creditor, Secured Debt, Security Interest, Security Receipt, Sponsor |
| Regulation of Securitisation and Reconstruction of Financial Assets of Banks and Financial Institutions | Registration of Asset Reconstruction Company, Cancellation of Certificate of Registration, Acquisition of Rights of Interest in Financial Assets, Notices to Obligor and Discharge of Obligation of Such Obligor, Issue of Security Receipts and Raising of Funds by Securitization or Reconstruction Company, Exemption from Registration of Security Receipt, Measures of Assets Reconstruction, Other Functions of the Securitization Company or Reconstruction Company, Resolution of Dispute, Powers Available with RBI |
| Enforcement of Security Interest | Enforcement of Security Interest, Chief Metropolitan Magistrate or District Magistrate’s Assistance for Taking Possession of Secured Asset, Manner and Effect of Takeover of Management, No Compensation to Directors for Loss of Office, Application against Measures to Recover Secured Debt, Appeal to Appellate Authority, Right of the Borrower for Compensation and Costs |
| Central Registry | Central Registry, Central Registrar, Register of Securitization, Reconstruction and Security Interest Transactions, Filing of Transactions of Securitization, Reconstruction and Creation of Security Interest, Modification of Security Interest Registered, Satisfaction of Security Interest, Right to Inspect Particulars of Securitization, Reconstruction of Security Interest Transactions |
| Offences and Penalties | Penalties, Penalties for Non-compliance of Directions of Reserve Bank of India, Offences, Cognizance of Offences, Power of Adjudicating Authority to Impose Penalty/Appeals against Penalty and Adjudicating Appellate Authority |
| Miscellaneous Provisions | Non-Applicability of the Provisions of the SARFAESI Act in Certain Cases, Exemption of Certain Classes of Banks /Financial Institutions, Protection of Action Taken in Good Faith, Offences by Companies, Civil Court not to have Jurisdiction, Overriding Effect on Other Laws, Limitation, Power of the Central Government to Make Rules, Amendments to Certain Other Enactments |
| Registration of Security Interest by Secured Creditors and Other Creditors/ Rectification by Central Government in Some Cases | Registration by Secured Creditors and Other Creditors, Rectification by Central Government in Matters of Registration, Effect of the Registration of Transactions, Right of Enforcement of Securities and Priority Allowed to Secured Creditors |
| The Recovery of Debts and Bankruptcy Act, 1993 | Constitutional Validity of the Act, Extent, Commencement, Application and Definitions – 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 | Definitions, Coverage, Pillars of IBC, 2016, The Insolvency Resolution Process for Companies and Limited Liability Entities, Corporate Insolvency Resolution Process (CIRP), Initiation of Corporate Insolvency Resolution Process by a Financial Creditor, Suspension of Initiation of CIRP, Persons not Entitled to Make Application, Time – Limit for completion of Insolvency Resolution Process and withdrawal of application admitted under the Code, Declaration of Moratorium and Public Announcement by the Adjudicating Authority, Appointment/Tenure of the Interim Resolution Professional, Committee of Creditors, Appointment of Resolution Professional, Liquidation, Order of Priority of Payment of Debts, Fast Track Insolvency Resolution Process, Voluntary Liquidation of Corporate Person |
| The Bankers’ Books Evidence Act, 1891 | Applicability and Definitions, Conditions in the Printout, Mode of Proof of Certain Entries in Bankers’ Books, Case in which Officer of Bank not Compellable to Produce Books, Inspection of Books by Order of Court or Judge, Costs of Application |
| The Legal Services Authorities Act, 1987: Lok Adalats | Organization of Lok Adalats, Jurisdiction of Lok Adalats, Cognizance of Cases by Lok Adalats, Disposal of Cases by Lok Adalats, Nature of Award of the Lok Adalats and Powers |
| The Consumer Protection Act, 2019 | Definitions, Unfair Contract and Unfair Trade Practice, Central, State and District Consumer Protection Councils, Central Consumer Protection Authority, District, State and National Consumer Disputes Redressal Commission, Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs) Notification dated 30th December, 2021, Finality of Orders and Limitation Period, Consumer Mediation Cell |
| The Law of Limitation | Definitions, Limitation and Its Computation, Computation of the Period of Limitation, Acts Giving Rise to Fresh Period of Limitation, Certain Important Provisions in Schedule to the Limitation Act |
| Tax Laws | Income Tax, Commodity Transaction Tax, Goods and Services Tax |
Module D: Commercial & Other Laws with Reference to Banking Operations
To know the topic and its sub-topics for CAIIB Paper 4(Banking Regulations and Business Laws), Module D, Commercial and Other Laws with reference to banking operations candidates can look for the given table.
| Paper 4- Module D: Commercial & Other Laws with Reference to Banking Operations | |
|---|---|
| Topic | Subtopics |
| Meaning and Essentials of a Contract | Meaning of Contract, Key Components to Form a Contract, Essentials of a Valid Contract, Contract Act and Banking |
| Contracts of Indemnity | Rights of Indemnity Holder, Implied Indemnity, Enforceability of Contract of Indemnity |
| Contracts of Guarantee | Parties to the Contract, Basic Principles of Contract, Consideration, The Liability of the Surety, Continuing Guarantee, Death of Surety, Variance in Terms, Discharge of Principal Debtor, Forbearance to Sue, Release of Co-surety, Surety’s Dues, Security, Misrepresentation, Implied Promise, Co-sureties, Revocation |
| Contract of Bailment | Meaning, Essential Features, Bailor’s Disclosure, Bailee’s Care of Goods, Mixing of Goods, Duties of Bailee, Bailee’s Lien |
| Contract of Pledge | Ingredients, Nature, Pledge by Way of Hypothecation, Pledge by Pledgee |
| Contract of Agency | Definition, Essential Characteristics, Rules, Types of Agents, Rights and Duties of the Agent and Principal |
| Meaning & Essentials of a Contract of Sale | Important Terms Defined, Features, Sale vs Agreement to Sell, Distinction |
| Conditions and Warranties | Meaning, Implied Conditions and Warranties |
| Unpaid Seller | Rights of an Unpaid Seller |
| Definition, Meaning and Nature of a Partnership | Meaning, Essential Characteristics, Types, Limited Liability Partnership (LLP) |
| Relations of Partners | General Duties, Duty to Indemnify, Rights and Duties by Contract, Conduct of Business, Mutual Rights and Liabilities, Property of the Firm, Profits, Rights and Duties |
| Relations of Partners to Third Parties | Partner as Agent, Implied Authority, Extension and Restriction of Authority, Partner’s Liability, Firm’s Liability, Firm’s Misapplication, Holding Out, Rights of Transferee |
| Minor Admitted to the Benefit of a Partnership | Legal Position, Retirement, Insolvency |
| Dissolution of a Firm | Causes, Modes, Liabilities |
| Effect of Non-Registration | Registration |
| Definition and Features of a Company | Features, Distinction from Partnership |
| Types of Companies | Mode of Incorporation, Liability, Public Interest, Holding and Subsidiary |
| Memorandum of Association and Articles of Association | Definitions, Effect, Distinction |
| Doctrines of Ultra Vires/Constructive Notice/Indoor Management | Definitions, Effects, Constructive Notice, Indoor Management |
| Membership of Company | Who is a Member, Modes of Becoming Member, Cessation, Register, Rights and Duties |
| Prospectus | Definition, Compliance, Mis-statements, Remedies |
| Directors | Minimum Number, Appointment, Retirement, Rights, Duties, Powers, Compensation |
| Limited Liability Partnership Act, 2008 | Definitions, Incorporation, Partners and Relations, Conversion |
| Transfer of Property Act, 1882 | Sale of Immovable Property, Mortgage, Leases, Actionable Claims |
| The Right to Information Act, 2005 | Applicability, Definitions |
| Right to Information & Obligations of Public Authorities | Obligations of Public Authorities, Procedure, Disposal of Request, Appeal, Penalties |
| Information Technology Act, 2000 | Definitions, Electronic Governance, Certifying Authorities, Digital Signature, Certificates, Penalties, Appeal, Investigation, Critical Information Infrastructure –Protected System, Application to Electronic Cheque and Truncated Cheque |
| Prevention of Corruption Act, 1988 | Definitions, Special Judges, Offences, Penalties, Fixing of Fines, Persons authorized to investigate, Powers to inspect ‘Bankers Books’, Appeal and Revision Investigation, Powers, Appeal |
What is the Rule of Marks in the CAIIB Exam?
The Indian Institute of Banking and Finance (IIBF) has established some specific rules of marks for the CAIIB (Certified Associate of Indian Institute of Bankers) Exam, which are as follows:
- To successfully clear each subject of the CAIIB exam, candidates must secure a minimum score of 50 marks out of the total 100 marks allotted.
- Alternatively, candidates who manage to obtain a minimum of 45 marks in every subject and an overall aggregate of at least 50% in a single attempt will also be considered as having qualified for the examination.
- The credits obtained for the subjects in which candidates have achieved passing marks will remain valid until the specified time limit expires for completing the entire examination process.
These well-defined Rule of Marks in the CAIIB Exam ensure a consistent evaluation standard and maintain the quality and credibility of the CAIIB certification, which is widely recognized in the banking and finance industry.
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