JAIIB AND DB&F Paper 1 Syllabus: Principles & Practices of Banking |

Dear Readers,

So, in the previous articles, we read
and discussed about JAIIB/DB&F, exam pattern, Eligibility, Schedule,
Registration fees and some other introduction about the same.

Now, in this article, we will be
discussing about the JAIIB/DB&F Subjects and Syllabus of PAPER I subject in details.

SUBJECTS OF EXAMINATION:

(1) Principles & Practices of Banking, (Paper 1)

(2) Accounting & Finance for Bankers, (Paper 2)

(3) Legal & Regulatory Aspects of Banking (Paper 3)

PAPER I –
PRINCIPLES & PRACTICE OF BANKING

This Paper 1 Subject is divided into four Parts (A,B,C and D)

PART 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,
Sub-brokers, 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

PART 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 Aadhaar, 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 collaterals 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

PART 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

Security
Considerations

Risk Concern Areas; Types of
Threats; Control Mechanism; Computer Audit; IS Security; IS Audit; Evaluation
Requirements

Overview
of IT Act

Gopalakrishna Committee
Recommendations

Preventive
Vigilance in Electronic Banking

Phishing; Customer Education; Safety
Checks; Precautions

PART 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
Behaviour and Product

Consumer Behaviour; 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

On the very next upcoming Articles, we will
be discussing about the Syllabus of Paper 2 in detail, about the
subjects and how to plan for it, study for it, and finally we together will
start the preparation for these.

We want our readers to be on the top of every profession specially
our Banking aspirants and bankers who think that there is no way to stop where
you are and there is never a stop to your growth. And believe us You can’t miss
these courses. It is not mandatory but yes it is very very important for your
knowledge and growth in any banking or financial institution.

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