JAIIB 2026 PPB is not about covering the entire syllabus blindly. It is about identifying what is repeatedly tested and preparing with clarity. Based on the last 2 years exam analysis trend and the memory-based papers, strong repetition patterns are clearly visible. Certain topics consistently carry direct, conceptual, and practical MCQs.
Understanding the most repetitive topics, question trends, and the framing pattern of questions can significantly improve your score in the PPB paper conducted by the Indian Institute of Banking and Finance. This blog provides a detailed analysis of the topics from which questions were asked, along with the latest exam trends.
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What are the most repetitive topics in JAIIB 2026 PPB?
Some topics are consistently tested in every cycle. These areas are concept-driven and closely connected to day-to-day banking operations.
| Topic | What is Usually Asked? | Repetition Level |
| Banker–Customer Relationship | Rights, duties, types of relationships | Very High |
| Negotiable Instruments Act, 1881 | Holder, endorsement, crossing, dishonour | Very High |
| Types of Accounts | SB, CA, FD rules, nomination | High |
| Payment & Collection of Cheques | Protection to paying/collecting banker | High |
| KYC & AML Guidelines | Documents, risk category, PMLA basics | High |
| Priority Sector Lending (PSL) | Targets, categories, limits | Moderate–High |
| Financial Inclusion Schemes | PMJDY, DBT basics | Moderate |
| Payment Systems | NEFT, RTGS, UPI features & limits | Moderate |
| Digital Banking & Cyber Security | Fraud types, phishing, security practices | Moderate |
30 Practice Questions from the Most Repetitive Topics in JAIIB PPB
Q1. A cheque bears the words ‘Account Payee Only.’ What is the effect of this crossing?
- A) The cheque cannot be transferred or negotiated to any other person
- B) The cheque can still be endorsed to a third party
- C) The cheque can be encashed at any counter
- D) The crossing has no legal effect under NI Act
Answer: A) The cheque cannot be transferred or negotiated to any other person
Q2. What is the difference between a ‘holder’ and a ‘Holder in Due Course’?
- A) There is no difference — both terms are used interchangeably
- B) A holder must have paid consideration; a Holder in Due Course need not
- C) A Holder in Due Course has better title than a holder and takes free of most defects
- D) A holder can sue the maker; a Holder in Due Course cannot
Answer: C) A Holder in Due Course has better title than a holder and takes free of most defects
Q3. Section 85 of the NI Act provides protection to the paying banker when:
- A) The cheque is forged
- B) Payment is made in due course on a bearer cheque or an order cheque with regular endorsements
- C) The cheque is materially altered but not visibly
- D) The cheque is post-dated
Answer: B) Payment is made in due course on a bearer cheque or an order cheque with regular endorsements
Q4. Section 131 of the NI Act provides statutory protection to the collecting banker provided:
- A) The customer is a high-value client
- B) The bank acted in good faith and without negligence
- C) The cheque was specially crossed to the collecting bank
- D) The bank obtained RBI approval before collection
Answer: B) The bank acted in good faith and without negligence
Q5. A cheque dated 3 months ago is presented for payment. The paying bank should:
- A) Pay it immediately as there is no restriction on old cheques
- B) Refer to drawer before payment
- C) Refuse payment as it is a stale cheque (beyond 3 months)
- D) Accept it only if the drawer gives written confirmation
Answer: C) Refuse payment as it is a stale cheque (beyond 3 months)
Q6. Which Section of the NI Act deals with the protection of the paying banker against materially altered cheques?
- A) Section 85
- B) Section 89
- C) Section 131
- D) Section 138
Answer: B) Section 89
Q7. A cheque is drawn by Mr. A in favor of Mr. B. Mr. B endorses it to Mr. C, and Mr. C endorses it to Mr. D. The cheque is dishonored. Who can Mr. D sue?
- A) Only Mr. A (drawer)
- B) Only Mr. C (immediate endorser)
- C) Mr. A, Mr. B, and Mr. C — all prior parties
- D) Only Mr. B
Answer: C) Mr. A, Mr. B, and Mr. C — all prior parties
Q8. What is an ‘accommodation bill’?
- A) A bill drawn for actual trade transactions
- B) A bill drawn without any underlying trade transaction to raise funds
- C) A bill drawn against warehouse receipts
- D) A bill issued by the RBI for monetary operations
Answer: B) A bill drawn without any underlying trade transaction to raise funds
Q9. Under Section 138 of the NI Act, a cheque bounce case can be filed only if: (1) The cheque was returned for insufficient funds; (2) The payee made a demand within 30 days of dishonor memo; (3) The drawer failed to pay within 15 days of notice.
- A) 1 only
- B) 1 and 2 only
- C) All 1, 2 and 3
- D) 1 and 3 only
Answer: C) All 1, 2 and 3
Q10. A ‘sans recours’ endorsement means:
- A) The endorser guarantees payment
- B) The endorser excludes personal liability in case of dishonor
- C) The cheque cannot be further endorsed
- D) Payment must be made to the endorsee only
Answer: B) The endorser excludes personal liability in case of dishonor
Also download the JAIIB Previous Year Papers PDF
Q11. Which of the following instruments is NOT a negotiable instrument under the NI Act, 1881?
- A) Promissory note
- B) Bill of exchange
- C) Cheque
- D) Fixed Deposit Receipt
Answer: D) Fixed Deposit Receipt
Q12. The presentment of a bill of exchange for acceptance is required in which of the following cases?
- A) All bills of exchange
- B) Bills payable after sight or after a specified event
- C) Demand bills only
- D) Only foreign bills
Answer: B) Bills payable after sight or after a specified event
Q13. What is the minimum balance requirement for a Basic Savings Bank Deposit Account (BSBDA)?
- A) ₹500
- B) ₹1,000
- C) Zero (no minimum balance required)
- D) ₹100
Answer: C) Zero (no minimum balance required)
Q14. Which of the following statements about a Current Account is correct?
- A) Current accounts earn interest at savings account rates
- B) Overdraft facility is not available in current accounts
- C) No interest is paid on current account balances as per RBI guidelines
- D) Current accounts can only be opened by individuals
Answer: C) No interest is paid on current account balances as per RBI guidelines
Q15. A customer wants to open a Recurring Deposit (RD) account. Which statement is correct?
- A) The customer deposits a lump sum amount once and earns interest
- B) The customer deposits fixed amounts at regular intervals and gets a lump sum on maturity
- C) The deposit is repayable on demand
- D) RD accounts cannot be prematurely closed
Answer: B) The customer deposits fixed amounts at regular intervals and gets a lump sum on maturity
Q16. A nomination facility in bank accounts is governed by which section of the Banking Regulation Act?
- A) Section 45ZA
- B) Section 35A
- C) Section 21A
- D) Section 10A
Answer: A) Section 45ZA
Q17. A post-dated cheque (PDC) presented before its date should be:
- A) Paid immediately if funds are available
- B) Returned unpaid as it is not yet valid
- C) Held by the bank and paid on the date mentioned
- D) Converted into a demand draft
Answer: B) Returned unpaid as it is not yet valid
Q18. Which of the following statements about ‘payment in due course’ is correct?
- A) Payment must be made only to account holders of the paying bank
- B) Payment must be made in good faith, without negligence, at the proper time, and to the right person
- C) Payment in due course applies only to RTGS and NEFT transactions
- D) Payment in due course means the bank ensures the payee’s identity through biometrics
Answer: B) Payment must be made in good faith, without negligence, at the proper time, and to the right person
Q19. The primary objective of the Know Your Customer (KYC) guidelines is:
- A) To increase bank deposits by verifying wealthy customers
- B) To prevent banks from being used for money laundering and terrorist financing
- C) To ensure customers maintain minimum balance requirements
- D) To facilitate faster account opening for all customers
Answer: B) To prevent banks from being used for money laundering and terrorist financing
Q20. Which of the following is an Officially Valid Document (OVD) for KYC purposes?
- A) Voter ID card, Aadhaar, Passport, Driving Licence, NREGA Job Card
- B) PAN card only
- C) Bank statement from another bank
- D) Employer identity card
Answer: A) Voter ID card, Aadhaar, Passport, Driving Licence, NREGA Job Card
Q21. Under PMLA 2002, the minimum imprisonment for the offence of money laundering is:
- A) 1 year
- B) 3 years
- C) 5 years
- D) 7 years
Answer: B) 3 years
Q22. A cash transaction of ₹10 lakh and above must be reported to the Financial Intelligence Unit (FIU-IND) as:
- A) Suspicious Transaction Report (STR)
- B) Cash Transaction Report (CTR)
- C) Non-Profit Organisation Transaction Report (NPTR)
- D) Currency Declaration Report (CDR)
Answer: B) Cash Transaction Report (CTR)
Q23. How frequently must High Risk customers’ KYC be updated?
- A) Every year
- B) Every 2 years
- C) Every 5 years
- D) Every 10 years
Answer: B) Every 2 years
Q24. A ‘Politically Exposed Person’ (PEP) is classified under which risk category for KYC purposes?
- A) Low Risk
- B) Medium Risk
- C) High Risk
- D) PEPs are exempt from KYC requirements
Answer: C) High Risk
Q25. Under the PMLA, a Suspicious Transaction Report (STR) must be filed with FIU-IND within:
- A) 7 days of detecting the suspicion
- B) 15 days of detecting the suspicious transaction
- C) 30 days
- D) At the end of the financial year
Answer: A) 7 days of detecting the suspicion
Q26. The concept of ‘Beneficial Owner’ under KYC requires identification of the individual who:
- A) Holds the bank account in their name
- B) Ultimately owns or controls the customer and on whose behalf a transaction is conducted
- C) Is authorized to operate the account on behalf of the customer
- D) Introduced the customer to the bank
Answer: B) Ultimately owns or controls the customer and on whose behalf a transaction is conducted
Q27. A customer is found on the UN Consolidated Sanctions List. What immediate action should the bank take?
- A) Close the account and return funds to the customer
- B) Continue normal operations and file a routine CTR
- C) Freeze the account and report to MHA and FIU-IND
- D) Refer the matter to the branch manager for a decision
Answer: C) Freeze the account and report to MHA and FIU-IND
Q28. What is the threshold for ‘Beneficial Owner’ identification in a company?
- A) 10% shareholding
- B) 25% shareholding or more
- C) 51% shareholding
- D) Shareholding exceeding 75%
Answer: B) 25% shareholding or more
Q29. What does ‘Customer Due Diligence’ (CDD) involve?
- A) Verifying customer’s income tax returns only
- B) Identifying the customer, verifying identity, understanding the nature of business, and ongoing monitoring
- C) Checking only the customer’s credit score before loan approval
- D) Reviewing the customer’s social media profile
Answer: B) Identifying the customer, verifying identity, understanding the nature of business, and ongoing monitoring
Q30. The term ‘Shell Bank’ in AML refers to:
- A) A bank operating only through ATMs with no physical branch
- B) A bank with no physical presence in any country where it is licensed and unaffiliated with any regulated financial group
- C) A bank that exclusively handles foreign currency transactions
- D) A correspondent bank that processes international payments
Answer: B) A bank with no physical presence in any country where it is licensed and unaffiliated with any regulated financial group
Scenario: Mrs. Sunita, an illiterate widow aged 68, holds a savings account at Mahalaxmi Bank. She suffers a stroke and becomes bedridden, unable to visit the branch or sign documents. Her son Rahul wants to operate the account on her behalf. The bank is also asked by her daughter Priya to add her name as a joint holder.
CS-Q1. What is the correct procedure for allowing Rahul to operate Mrs. Sunita’s account given her incapacitation?
- A) Rahul can operate the account by simply presenting his Aadhaar card at the branch
- B) The bank should obtain a court order appointing Rahul as her legal guardian before allowing account operation
- C) Mrs. Sunita can authorize Rahul through an Authorisation-cum-Indemnity letter with a thumb impression witnessed by two independent witnesses, or through a Power of Attorney
- D) The bank should freeze the account until Mrs. Sunita recovers and visits the branch personally
Answer: C) Mrs. Sunita can authorize Rahul through an Authorisation-cum-Indemnity letter with a thumb impression witnessed by two independent witnesses, or through a Power of Attorney
CS-Q2. Regarding Priya’s request to be added as a joint holder — can the bank add her name to the existing account, and what mandate options are available?
- A) Adding a joint holder to an existing account is not permitted — Priya must open a separate new account
- B) The bank can add Priya as a joint holder with Mrs. Sunita’s consent; mandate options include ‘Either or Survivor,’ ‘Jointly,’ or ‘Former or Survivor’
- C) Joint accounts are permitted only between spouses — Priya cannot be added as Mrs. Sunita’s daughter
- D) Priya can be added only as a nominee, not as a joint account holder
Answer: B) The bank can add Priya as a joint holder with Mrs. Sunita’s consent; mandate options include ‘Either or Survivor,’ ‘Jointly,’ or ‘Former or Survivor’
Download JAIIB important MCQs Free PDF
Also, download the JAIIB important MCQs free PDF here:
| Study Material | Study Material |
| JAIIB IE and IFS Important Questions PDF | JAIIB PPB Important Questions PDF |
| JAIIB AFM Important Questions PDF | JAIIB RBWM Important Questions PDF |
What is the question trend observed in recent PPB exams?
Some of the last exam analysis shows a mix of direct and concept-based MCQs. Earlier papers were more theoretical, but recent attempts focus on practical understanding and application-based questions.
- 35–40% Direct concept-based questions
- 25–30% Practical scenario-based questions
- 15–20% Act and section-related questions
- 10–15% Banking schemes and guidelines
- 5–10% Digital banking and new developments
In what way are questions asked in JAIIB PPB paper?
Understanding how questions are framed is as important as knowing the topic. Most questions are simple in language but tricky in options. They test clarity, not memorisation alone.
- Definition-based (e.g., Who is a holder in due course?)
- Statement-based (Which of the following statements is correct?)
- Scenario-based (A cheque is crossed generally. What does it imply?)
- Limit-based (What is the minimum lock-in period?)
- Matching-type concept questions
- Negative framing (Which of the following is NOT correct?)
Which topics carry the highest scoring opportunity?
Certain topics not only repeat but are also scoring if prepared properly. These areas often contain direct or easily eliminable options.
| Topic | Why It Is Scoring? |
| Banker–Customer Relationship | Concept clarity gives direct answers |
| KYC & AML | Mostly rule-based and factual |
| Types of Accounts | Straightforward operational rules |
| Payment Systems | Feature and limit-based questions |
| Priority Sector Lending | Target percentage questions |
Also Check:
| Study Plan | Study Plan |
| JAIIB IE And IFS Study Plan | JAIIB PPB Study Plan |
| JAIIB AFM Study Plan | JAIIB RBWM Study Plan |
How should you prepare based on repetitive trend?
Preparation should be structured around repetition, not randomness. Revise high-frequency areas first and practice MCQs repeatedly.
- Revise core concepts from repetitive topics
- Practice 50–100 MCQs from high-weightage areas
- Focus on understanding options, not just answers
- Revise Acts like the Negotiable Instruments Act clearly
- Attempt mock tests to analyse weak zones
- Revisit mistakes within 24 hours
What modules are covered under the JAIIB PPB syllabus?
The bankers must note that the JAIIB PPB Syllabus is further divided into 4 modules. These modules are:
- Module A : General Banking Operations
- Module B : Functions of Banks
- Module C : Banking Technology
- Module D : Ethics in Banks and Financial Institutions
Also Check,
| Related Topics | Link |
| 50 Most Repetitive JAIIB AFM MCQs | Click here to Check |
| 50 Most Repetitive JAIIB RBWM MCQs | Click here to Check |
| 50 Most Repetitive JAIIB IE & IFS MCQs | Click here to Check |
FAQs
Yes, but they are limited and mostly based on banking calculations, interest, and financial ratios.
Topics like credit cards, RTGS/NEFT, partnership firms, LLP, RBI regulations, digital banking, and PSL are highly repetitive.
You can practice and revise quickly using the PDF to focus on high-probability questions.
- JAIIB Practice Book, Download the JAIIB Genius Free eBoook
- PPB Memory Based Questions for JAIIB 2026, Download PDF
- 100 Expected PPB Questions for JAIIB Exam 2026, Download PDF
- JAIIB 2026 PPB 50 Most Repetitive MCQs, Download PDF
- Balance Sheet Equation Notes, Important for JAIIB AFM 2026
- JAIIB Study Material 2026, Download Subject Wise Notes
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