JAIIB Syllabus 2023, Check JAIIB New Syllabus & Download PDF

JAIIB Syllabus

JAIIB Syllabus 2023: The Indian Institute of Banking and Finance (IIBF) has announced a change in the syllabus and exam pattern of JAIIB and CAIIB courses. The changes in the JAIIB syllabus will be in effect from May/June 2023 onwards. IIBF offers JAIIB as a flagship course in banking and finance for professionals employed in the banking and finance sector. From 2023, onwards, JAIIB will follow the revised syllabus and exam pattern, including changes to the papers, topics, and questions.

This blog will focus on the changes in topics and syllabus for JAIIB detailed in the official notification released by IIBF on 30th August 2022. IIBF has released the official changed syllabus on 19th January 2023. You can download the JAIIB New Syllabus PDF here.

JAIIB Syllabus 2023 – Overview

Exam conducting Body	Indian Institute of Banking and Finance
Exam Name	JAIIB 2023
Category	Syllabus
Exam Level	National Level
Mode of Exam	Online
Exam Date	–
Type of Questions	Multiple Choice Questions
No. of Papers	4 Papers
No. of Questions	100 each paper
Negative Marking	No Negative Marking
Selection Process	Computer Based Test
Official Website	www.iibf.org.in

JAIIB New Syllabus 2023

The following is the syllabus for JAIIB, revised by IIBF:

• Paper I: Indian Economy and Indian Financial System (IE & IFS)
• Paper II: Principles and Practices of Banking (PPB)
• Paper III: Accounting and Financial Management for Bankers (AFM)
• Paper IV: Retail Banking and Wealth Management (RBWM)

Download the JAIIB Updated Syllabus PDF, curated according to the notification released by IIBF on 19th January 2023. You can find the module-wise topics for each paper in an easily accessible manner.

JAIIB New Exam Pattern

Papers	Papers	No. of Questions	Total Marks	Duration
Paper-I	Indian Economy & Financial System	100	100	2 hours
Paper-II	Accounting & Financial Management of Banking	100	100	2 hours
Paper-III	Principles & Practices of Banking	100	100	2 hours
Paper-IV	Retail Banking & Wealth Management	100	100	2 hours

JAIIB Syllabus 2023

The JAIIB 2023 examination is conducted by the Indian Institute of Banking and Finance (IIBF) at the national level. The exam is conducted online and consists of four papers. Each paper consists of 100 multiple-choice questions. There is no negative marking for incorrect answers. The selection process for JAIIB 2023 is based on a computer-based test. To access official updates and information about the exam, candidates can visit the official website of IIBF at www.iibf.org.in.

JAIIB Syllabus 2023 Paper 1 – Indian Economy & Indian Financial System

JAIIB Paper 1 consist total 4 modules given below.

1. Module A- Indian Economic Architecture
2. Module B- Economic Concept related to Banking
3. Module C- Indian Financial Architecture
4. Module D- Financial Products and Services

Paper 1 of this study focuses on the Indian economy and the Indian financial system. It comprises four modules: Module A examines the Indian economic architecture, including sectors like agriculture, industry, and services, along with government policies and institutions. Module B covers economic concepts related to banking, such as demand and supply, inflation, interest rates, and their impact on banks and financial institutions. Module C explores the Indian financial architecture, including various financial institutions like banks, NBFCs, insurance companies, and capital markets, as well as financial intermediaries and their role. Module D specifically deals with financial products and services.

Module A- Indian Financial System

Indian Economy- An Overview	Evolution of Indian EconomyBasic Characteristics of Indian EconomyIndian Economy in Pre-British periodEconomy till 2008 & after 2008Structural changes in Indian Economy
Economic Planning in India	Definition of Economic PlanningHistory of Economic PlanningObjectives of Economic PlanningTypes of PlanningAchievements of PlanningFinancial resources for 5-year plans
Sectors of the Indian Economy	Role & Importance of Primary, Secondary, Tertiary Sector, Quaternary & Quinary SectorsDifferent Revolutions in Primary sectorDifference between the sectorsGDP contribution of different sectors- Agriculture, Industry, ServicesEmployment growth rate in Secondary sectorSunrise Sector of Indian EconomyOrganised and Unorganised sectors
Role of Priority Sector and MSME in the Indian Economy	Definition & Role of Priority SectorList of Priority Sectors identified in IndiaPriority Sector Lending NormsDefinition of MSMERole & Significance of MSME in economic developmentContribution of MSME in GDPRecent Initiatives in MSME sector viz., Atmanirbhar Bharat package, Make in India, Start-up India, Stand-up India etc.
Infrastructure including Social Infrastructure	Infrastructure & Economic DevelopmentEnergy, Power, Transport system viz., Rail, RoadCivil Aviation,Concept of Social Sector & Social InfrastructureHealth, Education, Family welfareDevelopment of Health Infrastructure
Globalisation – Impact on India	Globalisation and its AdvocacyGlobalisation and its Impact on IndiaFair Globalisation & the Need for Policy frameworkGlobalisation in reverse gear –The Threatened Re-emergence of Protectionism
Economic Reforms	A brief overviewTransformationEconomic Transformation – Real SectorEconomic Transformation – Financial SectorEconomic Transformation – Integration with the Global EconomyEconomic Reforms in India
Foreign Trade Policy, Foreign Investments and Economic Development	FTP – Structural Changes during 1990sFTP policy – 2015-2020Challenges to be addressed in upcoming FTP, FDIs, FIIs and Recent trendsEconomic development vs economic growthImportance of economic development as a dimension etc.
International Economic Organizations (World Bank, IMF etc.)	IMF and World BankWTO- India and WTORegional Economic Co-operationsRecent International Economic Issues
Climate change, Sustainable Development Goals (SDGs)	Core elements of Sustainable DevelopmentGlobal Issues and initiativesIndia’s progress in SDGs including Climate changeCSR Activities
Issues facing Indian Economy	Poverty AlleviationJobless growthRising InequalitiesMigration and excessive pressure on resourcesPossible remediesPandemic situations

Module B – Economic Concepts Related to Banking

Fundamentals of Economics, Microeconomics,  Macroeconomics and Types of Economies	Economics – An IntroductionMicroeconomics and MacroeconomicsTypes of Economies, Market, CommandMixed Economies
Supply and Demand	The Demand ScheduleForces behind the Demand Curve, shifts in DemandThe Supply ScheduleForces behind the Supply Curve, shifts in SupplyEquilibrium of Supply and DemandEffect of a Shift in Supply or DemandInterpreting Changes in Price and Quantity
Money Supply and Inflation	What is MoneyMoney SupplyInflationCauses of InflationMeasures of Inflation
Theories of Interest	Classical Theory of Rate of InterestKeynes’ Liquidity Preference Theory of Rate of InterestMoney Demand CurveDetermination of Rate of Interest: Equilibrium in the Money MarketEffect of an Increase in the Money Supply, shifts in Money Demand or Liquidity Preference CurveHicks-Hansen Synthesis: IS-LM Curve Model
Business Cycles	Characteristics of a Business CyclePhases of a Business Cycle
Monetary Policy and Fiscal Policy	Tools of Monetary PolicyHow did Monetary Policy in India Respond to the Global Financial Crisis?Fiscal PolicyFRBM Act
National Income and GDP Concepts	ComputationUtility
Union Budget	ReceiptsExpenditurePlan ExpenditureDeficit Concepts

Module C – Indian Financial Architecture

Indian Financial System – An Overview	What is a Financial System?Phase I: Pre-1951 organisationPhase II: 1951 to Mid-eighties organisationPhase III: Post-Nineties OrganisationNarasimham Committee (1991) on the banking system in IndiaReform of the Banking sector (1992-2008)Present Status of Banking System
Indian Banking Structure	FunctionsDevelopment of Banking in IndiaScheduled Commercial Banks- Types and functionsLocal Area BanksRegional Rural BanksCooperative Banks: Types, Payment Banks and Small Finance Banks, NBFCsKey RBI Guidelines
Banking Regulation Act, 1949 and RBI Act, 1934	Background of EnactmentPART-I Reserve Bank of India Act, 1934: Chapter I to Chapter V, Schedules to the RBI Act, 1934PART-II Banking Regulations Act, 1949Background and Structure of the Banking Regulation Act: Section 1 to Section 56
Development Financial Institutions	Evolution of Development Financial Institutions in IndiaGaps in the Post-Independence Financial SystemObjectives of Development Financial InstitutionsClassification of DFIsRole of DFIs in the Indian EconomyChanging Role of DFIs and the Emergence of Universal BanksIndustrial 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 IndiaGrameen Bank ModelDelivery of MicrofinanceSHG-Bank Linkage programmeJoint Liability Groups (JLGs)Regulatory Framework for Microfinance InstitutionsInclusion of Bank Finance to Microfinance Institutions in Priority Sector LendingRegulatory Framework
Non-Banking Financial Companies	What is a Non- Banking Financial Company (NBFC)?Evolution of NBFCs in IndiaRole of NBFC in Promoting Inclusive Growth of IndiaRegulators of NBFCsClassification of NBFCsRegulatory Oversight by RBI on NBFCsTypes of NBFCsConcept of Owned Funds and Net Owned Funds (NOF) for NBFCsBank Finance to NBFCsFair Practice Code for NBFCsApplicability of Ombudsman Scheme to NBFCsScale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs.
Insurance Companies	History and Development of InsurancePrivatisation and Foreign Direct Investment (FDI) in Insurance SectorInsurance Business Globally and in India. Insurance Penetration and DensityNumber of Insurance Companies Operating in IndiaLegislations Governing Operation of Insurance CompaniesInsurance IntermediariesReinsuranceInsurance Repository’s-Insurance Account
Indian Financial System – Regulators & their roles	Role of Financial Sector Regulators in an EconomyReserve 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 financingFormation/role of NaBFID-National Bank for FinancingInfrastructure & DevelopmentBasic concepts on EASE

Paper 2 – Principles & Practices of Banking

JAIIB Paper 2 of this study explores the principles and practices of banking. It is divided into four modules: Module A covers general banking operations, Module B focuses on the functions of banks, Module C delves into banking technology, and Module D addresses ethics in banks and financial institutions.

1. Module A- General Banking Operations
2. Module B- Functions of banks
3. Module C- Banking Technology
4. Module D- Ethics in Banks and Financial Institutions

Module A – General Banking Operations

Banker-Customer Relationship	Requirements to be Called a BankBanker-Customer RelationshipBank as a TrusteeBaileeBailor RelationshipAgent-Principal RelationshipLessor and LesseeIndemnifier and IndemnifiedDifferent Deposit Products or ServicesServices to Customers and Investors
AML-KYC Guidelines	Money Laundering & Financing of Terrorism RisksAML Framework in IndiaKnow Your Customer PolicyOrganisational Set-up for AMLObligations under PMLARisk Management,Obligations under International AgreementsFATF Identified JurisdictionsCorrespondent BanksReporting Under FATCA/ CRSReporting ObligationsImplications of Non-compliance of PMLA ObligationsSecrecy Obligations
Operational Aspects of KYC	Know Your Customers (KYC) NormsWire Transfers, Other Operations – RegulationsCentralKYC Records Registry (CKYCR)Monitoring of Transactions
Opening Accounts of Various Types of Customers	Personal AccountsAccounts of Other CustomersNorms for Opening Current Accounts,Obtaining Photographs of Account HoldersLegal Entity Identifier
Operational Aspects of Deposit Accounts	Salient Feature of Deposit AccountsInterest on Deposit AccountsProhibitions & Exemptions,Inoperative Accounts & Unclaimed DepositsOperational Instructions in Joint Accounts,Nomination FacilityOther Operational GuidelinesAttachment OrdersProcedure for Submission of Records to Statutory Authorities
Operational Aspects of Handling Clearing/Collection/Cash	Cheque Truncation System (CTS)RBI Guidelines on Collection of InstrumentsCash and its CustodySecurity Arrangements at Branches and ATMs
Banker’s Special Relationship	Mandate – DefinitionPower of Attorney (POA) – DefinitionBanker’s LienRight of Set-offRight of Appropriation
Foreign Exchange Remittance Facilities for Individuals	Evolution of FEMADefinitionsBringing in and Taking out Foreign ExchangeInward RemittancesOutward RemittancesIndo – Nepal Remittance Scheme
Operational Aspects of NRI Business	Permitted Accounts in India for NRIs and PIOsAccounts in India of Foreign Nationals Visiting IndiaSpecial Non-Resident Rupee Account – SNRR AccountRemittance of Assets Held by NRIs/ PIOsAcquisition and Transfer of Immovable Property in India by a Non-Resident Indian (NRI)Creation of Charge on Immovable Property in IndiaRepatriation of Income and SaleProceeds of Assets Held Abroad by NRIsInvestments by NRIs/ PIOs
Foreign Currency Accounts for Residents and Other Aspects	Types of Accounts PermittedForeign Currency Denominated Accounts in IndiaPermitted Foreign Currency Accounts Outside IndiaRemittance of Assets by Foreign Nationals not Being PIOsModes of Acquiring Property Outside India by a ResidentForeign Contribution (Regulation) Act 2010
Cash Management Services and Its Importance	Developments in CMSImportance of Cash Management SystemTypes of Cash Management ServicesChallenges and Issues
Payment and Collection of Cheques and Other Negotiable Instruments	Negotiable Instruments ActPayment of a ChequePayment in due course – Section 10,Liability of the Paying Bank – Section 31Collection of Cheques – Duties of a Collecting Bank,Endorsement of ChequesCrossing of ChequesForged Instruments, Bouncing (Dishonour) of ChequesCheque Truncation System
Responsibility of Paying Bank	Negotiable Instruments Act and Paying BanksLiability of Paying Banker when Customer’sSignature on the Cheque is ForgedPayment to be in Due Course for Bank to Seek ProtectionPayment in Good Faith without Negligence of an Instrument on which Alteration is not ApparentPayment by Bank Under Mistake Whether RecoverableCheque Truncation
Responsibility of Collecting Bank	Statutory Protection to Collecting BankDuties of the Collecting Bank
Ancillary Services	Remittances: IntroductionDemand 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) SchemeMobile Banking in India, Electronic/Digital PaymentsSafe Deposit LockersPortfolio Management ServicesMerchant BankingGovernment BusinessLevying of Service Charges
Financial Inclusion & Financial Literacy	Financial Inclusion by Extension of Banking ServicesUse of Mobiles/Tablets in Financial Inclusion DriveFinancial LiteracyRural Self Employment Training Institutes (RSETI)
Customer Service Guidelines	Customer Service in BanksPolicy for General Management of the BranchesATM OperationsSecurity Issues and Risk Mitigation MeasuresService at the Counters,Information to the CustomersSpecial Arrangements at BranchesOther Provisions
Duties & Rights of a Banker and Customer Rights	Duty of Secrecy & ConfidentialityDuty of Reasonable CareGarnishee or Attachment Order,Bank’s RightsCustomer AwarenessBanking Codes and Standards Board of India,Obligations on the Customer
Grievance Redressal & RBI Integrated Ombudsman Scheme 2021	Model Policy on Grievance RedressalInternal Machinery to Handle Customer Complaints/GrievancesThe RBI – Integrated Ombudsman Scheme
The Consumer Protection Act, 2019: Preamble, Extent and Definitions	Purpose of The ActPreamble and ExtentAct not Overriding on Any Other LawSalient New Aspects of CPA 2019DefinitionsVarious Fora Consumer Protection CouncilsCentral Consumer Protection AuthorityConsumer Disputes Redressal CommissionsJurisdictions of CommissionsComplaints to District CommissionsComplaints to State Commissions/ National CommissionAppeals Against Orders of District/ State CommissionOther Aspects,Mediation ProcessProduct LiabilityUnfair ContractsData Protection
The Right to Information Act, 2005	ApplicabilityDefinitionsRight to InformationObligations of Public AuthoritiesDesignation of Public Information OfficersProcedure for Obtaining InformationDisposal of RequestAppeal, Orders in AppealCentral Information CommissionState Information CommissionPenaltiesAct to Have Overriding Effect

Module B – Functions of Banks

Banker Customer Relationship	Types; Different Deposit Products & ServicesServices to Customers & Investors
KYC/ AML/ CFT norms	PMLA ActKYC Norms
Bankers’ Special Relationship	Mandate; POAGarnishee OrdersBanker’s Lien
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 BanksEndorsements; Forged InstrumentsBouncing of ChequesIts ImplicationsReturn of ChequesCheque Truncation System
Opening accounts of various types of customers	Operational Aspects of opening and Maintaining Accounts of Different Types of Customers including AadhaarSB Rate Deregulation
Ancillary Services	RemittancesSafe Deposit LockersGovt. BusinessEBT
Cash Operations	Cash Management Services and its Importance
Principles of Lending, Working Capital Assessment and Credit Monitoring	Cardinal PrinciplesNon-fund Based LimitsWCTerm LoansCredit Appraisal TechniquesSources of WC Funds & its EstimationOperating CycleProjected Net WCTurnover MethodCash BudgetCredit Monitoring & Its ManagementBase Rate
Priority Sector Advances	Targets; Sub-TargetsRecent Developments
Agricultural Finance	Types of Agricultural LoansRisk Mitigation in agriculture (NAIS, MSP, etc.)
Micro, Small, and Medium Enterprises	MSMED Act, 2006 Policy Package for MSMEsPerformance and Credit Rating SchemeLatest Developments
Government Sponsored Schemes	SGSY, SJSRY, PMRY, SLRS
Self Help Groups	Need for & Functions of SHGsRole of NGOs in Indirect Finance to SHGsSHGs & SGSY Scheme; Capacity Building
Cards, Home Loans, Personal Loans, Consumer Loans	Operational Aspects, Advantages, Disadvantages & Guidelines of Credit CardsProcedure and Practices for Home Loans, Personal Loans and Consumer Loans
Documentation	Types of Documents; ProcedureStampingSecuritization
Different Modes of Charging Securities	Assignment; Lien; Set-off; HypothecationPledge; Mortgage
Types of collaterals and their characteristics	Land & Buildings; GoodsDocuments of Title to GoodsAdvances against Insurance Policies, Shares, Book Debts, Term Deposits, Gold, etc.Supply Bills
Non-Performing Assets	Definition; Income RecognitionAsset ClassificationProvisioning Norms; CDRFinancial Inclusion BC; BFRole of ICT in Financial Inclusion, Mobile-based transactions, RSETI
Financial Literacy	Importance of financial literacyCustomer awareness

Module C – Banking Technology

Essentials of Bank Computerization	Computer Systems; LANs; WANsUPS; Core Banking
Payment Systems and Electronic Banking	ATMs; HWAK; PINElectromagnetic CardsElectronic BankingSignature Storage & Retrieval SystemCTS; Note & Coin Counting MachinesMicrofiche; NPC; RUPAY
Data Communication Network and EFT systems	Components & Modes of TransmissionMajor Networks in IndiaEmerging Trends in Communication Networks for BankingEvolution of EFT System; SWIFTAutomated Clearing SystemsFunds Transfer Systems; Recent Developments in India
Role of Technology Upgradation and its impact on Banks	Trends in Technology DevelopmentsRole & Uses of Technology Upgradation; Global TrendsImpact of IT on Banks
Security Considerations	Risk Concern AreasTypes of ThreatsControl MechanismComputer AuditIS Security; IS AuditEvaluation Requirements
Overview of IT Act	Gopalakrishna Committee Recommendations
Preventive Vigilance in Electronic Banking	Phishing; Customer EducationSafety Checks; Precautions

Module D – Ethics in Banks and Financial Institutions

Ethics, Business Ethics & Banking: An Integrated Perspective	Business EthicsEthical FoundationBanking Ethics in Global and Indian Contexts
Ethics at the Individual Level	ValuesNormsBeliefsMoralityConflictIntegrityGolden RuleDilemmasDecision-Making
Ethical Dimensions: Employees	Obligation to Bank/ Third Parties, Abuse of Official PositionSexual Harassment, Conflict of InterestFair Accounting Practices, HRM EthicsEmployees as Ethics Ambassadors & Managers as Ethical Leaders
Work Ethics and the Workplace	Work Ethics, Benefits of Ethical BehaviorUnethical Behavior: Causes and RemediesCode of Ethics Manual, Whistleblowing in BanksWhistleblowing Laws in India
Banking Ethics: Changing Dynamics	Ethics and Technology, Data Security and PrivacyIntellectual Property Rights, Patents, and Proprietary RightsEthics of Information SecurityCyber Threats, Digital Rights Management

JAIIB Syllabus Paper 3 – Accounting and Financial Management for Bankers

JAIIB Paper 3, “Accounting and Financial Management for Bankers,” comprises four modules:

Module A: Accounting Principles and Processes
Module B: Financial Statement and Core Banking Systems
Module C: Financial Management
Module D: Taxation and Fundamentals of Costing.

Module A- Business Mathematics and Finance

Definition, Scope and Accounting Standards including Ind AS	Nature and Purpose of AccountingHistorical PerspectivesNew Accounting system / Value system accounting Origins of Accounting PrinciplesAccounting Standards in India and its Definition and ScopeGenerally Accepted Accounting Principles of USA (US GAAP),Overview of IFRSsDifference between GAAP and IFRSTransfer Pricing
Basic Accountancy Procedures	Concepts of AccountancyGoing Concern EntityDouble Entry SystemPrinciple of ConservatismRevenue Recognition and RealisationAccrual and Cash Basis
Maintenance of Cash/Subsidiary Books and Ledger	Record Keeping BasicsAccount CategoriesDebit and Credit ConceptsAccounting andColumnar Accounting MechanicsJournalising
Bank Reconciliation Statement	Recording Transactions in Cash BookTransactions Contained in the Pass Book/Bank StatementIs Passbook a Mirror Image of Cash Book?Causes for Passbook and Cashbook being differentUnderstanding ReconciliationPreparing Reconciliation StatementNeed for Bank ReconciliationHow to prepare a Bank Reconciliation Statement when extracts of Cash Book and Pass Book are given?Adjusting the Cash Book balanceAdvantages of Bank Reconciliation Statement
Trial Balance, Rectification of Errors and Adjusting & Closing Entries	Meaning of a Trial BalanceFeatures and Purpose of a Trial BalanceTypes of Trial Balance and Preparation of a Trial BalanceDisagreement of a Trial BalanceClassification of Errors,Location of ErrorsRectification of ErrorsSuspense Account and RectificationRectification of Errors when Books are ClosedAdjusting and Closing Entries
Depreciation & its Accounting	Meaning of DepreciationCauses of DepreciationNeed for DepreciationFactors of DepreciationAccounting EntriesMethods of DepreciationStraight Line MethodDiminishing Balance or Written Down Value (WDV) MethodAdvantages and Disadvantages of Straight Line MethodAdvantages and Disadvantages of Written Down Value MethodUnits of Production MethodSum of the Years’ Digits MethodReplacement of a Fixed Asset and Creation of Sinking FundAmortisation of intangible assets
Capital and Revenue Expenditure	ExpenditureDistinction between Capital and Revenue ExpenditureReceipts
Bills of Exchange	Types of Instruments of Credit,Term and Due Date of a BillCertain Important Terms,Accounting Entries to be PassedAccommodation BillBill Books
Operational Aspects of Accounting Entries	Peculiar Features of Accounting System in BanksAccounting Systems of Different BanksIllustration
Back Office Functions/Handling Unreconciled Entries in Banks	Functions Performed by the Back OfficeReconciliation Function in BanksReconciliation of Inter Branch/ Office Entries
Bank Audit & Inspection	Bank AuditEmergence of Risk based Internal AuditTypes of Bank Audits Viz. Concurrent Audit Internal AuditStatutory AuditRole of Audit and Inspection

Module C – Financial Management
An Overview of Financial Management	Forms of Business Organisation, Financial Decision making in a Firm, Objectives of FinancialManagement, The Fundamental Principles of Finance, Building Blocks of Modern Finance,Risk-Return Trade off, Agency Problem in Financial Management, Business Ethics & SocialResponsibility, Organisation of the Finance Function, Relationship of Finance to Economicsand Accounting, Emerging Role of the Financial Manager in India
Ratio Analysis	Meaning of Accounting Ratios, Classification of Ratios, Uses of Accounting Ratios, Limitationsof Accounting Ratios, Calculation and Interpretation of Various Ratios, Different Users andTheir 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 thePresent 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 Yieldon 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, SomeBasic Exchange Rate Arithmetic, Forward Exchange Rates
Capital Structure and Cost of Capital	Meaning of Capital Structuring, Leverage/Gearing, Factors Influencing Decision on CapitalStructuring, Theories/Approaches on Capital Structuring, Net Income Approach, NetOperating Income Approach, Traditional Position, Assumptions in the Approaches on CapitalStructuring, Taxation & Capital Structure, Cost of Debt, Preference, Equity, Determining theProportions, Weighted Average Cost of Capital (WACC), Factors Affecting the WACC,Weighted Marginal Cost of Capital, Determining the Optimal Capital Budget, Divisional andProject Cost of Capital, Floatation Cost and the Cost of Capital, Misconceptions surroundingthe Cost of Capital
Capital Investment Decisions/Term Loans	Discounted and Non-Discounted Cash Flow Methods for Investment Appraisal, Basicconcepts of term loans, Deferred payment Guarantees, Project financing, Difference betweenterm loan appraisal and project appraisal
Equipment Leasing/Lease Financing	Meaning of a Lease, Features of a Lease, Types of Leases, Rationale for Leasing, Contentsof 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 FinancingDecision
Working Capital Management	Working Capital Cycle, Cash and Marketable Securities, Accruals, Trade Credit, WorkingCapital Advance by Commercial Banks, Cash Budget Method of Lending, Regulation of BankFinance, Public Deposits, Inter- Corporate Deposits, Short-term loans from FinancialInstitutions, Rights Debentures for Working Capital, Commercial Paper, Factoring & Forfaiting
Derivatives	Characteristics & Functions of Derivatives, Users of derivatives, Futures, Forward RateAgreement (FRA), Swaps, Options

Module D – Taxation and Fundamental 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 ofCosting, Cost Accounting Standards, Management Accounting: Evolution, Meaning,Objectives and Scope. Tools and Techniques of Management Accounting, Relationship ofCost Accounting, Financial Accounting, Management Accounting and Financial Management
Costing Methods	Unit and Output Costing, Job Costing: Job Cost Cards, Collecting Direct Costs, Allocation ofOverheads and its Applications, Batch Costing: Features and Applications, Contract Costing:Features, Distinction between Job and Contract Costing, Progress Payments, RetentionMoney, Escalation Clause, Contract Accounts, Accounting for Material, Accounting for PlantUsed 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, ServiceCosting: 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 StandardCosting System—for Material, Labour, and Overhead, Variance Analysis for Materials, Labourand Overheads and Accounting Treatment of Variances, Benchmarking for Setting ofStandards, Variance Reporting to Management
Marginal Costing	Meaning, Advantages, Limitations and Applications, Breakeven Analysis, Cost-Volume ProfitAnalysis, P/V Ratio and its Significance, Margin of Safety, Absorption Costing: System of ProfitReporting 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 VariousTypes of Budgets, Budgetary Control System: Advantages, Limitations and Installation, ZeroBased Budgeting, Programme and Performance Budgeting

JAIIB Paper 4 Syllabus– Retail Banking and Wealth Management

JAIIB Paper 4, “Retail Banking and Wealth Management,” comprises four modules:

Module A: Retail Banking
Module B: Retail Products and Recovery
Module C: Support Services – Marketing of Banking Services/Products
Module D: 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 RetailBanking 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/ WholesaleBanking
Branch Profitability	Banking System: An Introduction; Banking in India; What is Profitability? What is Profit? GrossProfit, 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) forBanks; Branch Operating Efficiency; Strategies for Improving Efficiencies of BankingOperations; Factors Affecting Profitability of Banks in India; Profitability Analysis of BankBranches; Steps to Improve Branch Profitability; Essential Factors to Make ContinuousImprovement 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; DepositProducts or Liability Products; Credit Products or Asset Products; Other Products andServices; Other Fee Based Services – Distribution of third party products; New ProductDevelopment; Stages in New Product Development; Constraints in New ProductDevelopment; Product Management; Product Policy
Credit Scoring	What is a Credit Score?; Evolution of Credit Scoring; What is a Good Credit Score?; CreditScoring Model; Managing the Credit Score; Positive Side of Credit Score; Warning Signs inCredit Score; Credit Information Companies in India; Issues in Credit Scoring; Mistakes inCredit Scoring; Troubleshooting Credit Score
Important Retail Liability Products	Demand Deposits : An Introduction; Current Deposit: An Introduction; Main features of CurrentDeposit Account; Advantage of Current Deposit Account; Documents required for openingvarious types of Current Accounts; Opening of Current Account; Operational Instructions inCurrent Account; Transfer of Accounts; Inoperative Accounts; Closure of Current Account;Savings Bank Account: An Introduction; Advantages and Importance of Savings BankDeposits to Customers; Who Can Open a Savings Bank Account?; Deregulation of interest inSavings Deposit Account; Maintenance of Balance in Savings Bank Account and InterestPayment; Restrictions on Transactions in SB Account; Services offered in Savings BankAccounts; Time Deposit – An Introduction; Periodicity of Time Deposit; Operationalinstructions; Interest on Fixed Deposit; Term Deposit accounts of minors; Premature Paymentof 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 toIncome 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 ImprovementLoans; Home Decor Loans; Auto/Vehicle Loans; Personal Loans; Educational Loans; OtherRetail Loans; Processing of Retail Loans
Credit and Debit Cards	Credit Cards; Charge Cards; Pre-paid Cards; Debit Cards; Co-branded Cards; ContactlessCards
Remittance Products	Electronic Payment Systems; National Electronic Funds Transfer (NEFT); Real Time GrossSettlement (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 UserFriendly Features; Customer Analytics; Institute for Development and Research on BankingTechnologies (IDRBT); Indian Financial Network (INFINET); Structured Financial MessagingSystem (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 andTechnology; Evolution of Banking Technology; A New Era in Banking; Evolution of BankingTechnology in India; Challenges towards adoption of Technology by Indian Banks; Technologyin Retail Banking; Benefits of Technology in Retail Banking; Artificial Intelligence (AI);Difference between Artificial Intelligence (AI) and Automation; Evolution of ArtificialIntelligence; Artificial Intelligence Industry in India; Artificial Intelligence in Indian BankingIndustry; Indian Banks and the Technology; Why AI in Banking Industry?; Benefits of ArtificialIntelligence Technology in Banking and Finance; Artificial Intelligence in Retail Banking;Artificial Intelligence in Retail Banking in India; The Challenges Facing India’s AIDevelopment; Benefits of AI in Retail Banking
Recovery of Retail Loans	Repayment in Retail Loans; Default and Re-scheduling in Retail Loans; Monitoring of LoanAccounts; Classification of Irregular Loan Accounts; Recovery Policy of Banks; Securitizationand Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(SARFAESI Act); Debt Recovery Tribunal (DRT); Recovery through Lok Adalat; EngagingDirect Recovery Agents
Management Information Systems	The main elements of MIS; Role of Management Information Systems; Role of MIS inImproving decision making; Role of MIS in Banking Industry; Designing MIS for a Bank; IssuesRelated to Management Information System (MIS); Suggestions for Solution to MIS relatedIssues
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; Pointof Sale Terminal; Mobile Banking; Internet Banking; Customer’s Liability on UnauthorizedElectronic Transactions
Delivery Models	Delivery Models; Internal Customers – Staff at the Branch Level; Dedicated MarketingManagers; 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 Aspectsof 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 BanksCommitment 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 ofComputers in MKIS; Supports for Marketing Management; Supports for Marketing MixDecisions; Use of Decision Models; Performance of MKIS; Recommendations; Advantages ofMKIS

Module D – Wealth Management

Importance of Wealth Management	Wealth Management – Broad View; Wealth Management Business Structures; Wealthmanagement process; Wealth Management Products and Services; Alternative asset; Bond;Insurance; Mutual fund; Real estate Service; Retirement Planning; Strategic BusinessStrategy; Will Writing; Private Wealth Management; Personal Financial Planning; WealthManagement Assessment; Private Banking; Benefits of Wealth Management; Importance ofWealth Management
Investment Management	Element of Investment; Basics of Investment Management; Steps in Investment Management;Investment Banking; Services being offered by Full-service Investment Banks; InvestmentBank Organizational Structure; Investment Management Vs Investment Banking; PortfolioManagement; Objectives of Portfolio Management; Key Elements of Portfolio Management;Portfolio Management Vs Investment Banking; Role of Portfolio Manager; PortfolioManagement Service Vs Mutual Funds (MFs); Types of Portfolio Management Services; Stepsof the Portfolio Management Process; Advantages of Portfolio Management Services;Disadvantages of PMS; Recent developments in the Portfolio Management Services area inIndia
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 forIncome Tax; A few important terms in Income Tax; Heads of Income for computation of thetotal income; Income Tax Slab rate for FY 2021-22 (AY 2022-23); Conditions for opting NewTax Regime; Example for Old Tax Regime Vs New Tax Regime & which is better; Income TaxSlabs for non-individual entities; Investment Products for Tax Savings; Estate Planning-TaxPlanning through Wills/ Trusts; Capital Gains Tax
Other Financial Services Provided by Banks	Distribution of Third Party Products in Retail Banking; Mutual Fund Business; InsuranceBusiness; Some Social Security Insurance Schemes; Cross Selling; Depository Services byBanks; 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 HomeLoan; Application Received through Agent; Appraisal of Loan Request; Other Relevant Issuesat Pre-sanction Stage; Documentation; Mortgage; Registration of Documents; Detection ofForged and Fabricated Title Deeds; Other Securities; Registration of Charges with CERSAIon 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

JAIIB Syllabus 2023 – Frequently Asked Questions