8 Essential Topics That Appear Every Year in JAIIB PPB Exams

The PPB (Principles & Practices of Banking) exam is a crucial assessment for banking professionals looking to strengthen their knowledge in banking operations, lending, digital banking, and regulatory compliance. For aspirants preparing for upcoming exams, focusing on high-frequency topics that repeatedly appear in past exams can greatly improve your chances of scoring well.

Based on previous cycles and expert insights, certain topics in PPB have consistently contributed significant marks in each attempt. In this guide, we provide a detailed module-wise breakdown of must-know PPB topics so that you can focus your preparation strategically.

8 Essential Topics of JAIIB PPB

The 8 important JAIIB PPB topics are as follows:

1. KYC and AML Norms
2. Priority Sector Lending
3. Lending Principles and Loan Products
4. Digital Banking and Payment Systems
5. Banker-Customer Relationship
6. Ethics in Banking
7. Negotiable Instruments Act
8. Non-Performing Assets

Module-wise Breakdown of Important Topics

The detailed module-wise important topics for the JAIIB PPB exam, scheduled to be held on 8th November, are as follows:

Module A: KYC & AML Compliance

This module is high-yield and focuses on regulatory compliance and risk management. Questions often come directly from procedures and roles.

Topic	Description	Approx. Marks
Customer Identification Procedure	Steps for verifying customers, documents required	3–4
Risk Categorization	Classification of customers into low, medium, high risk	3–4
PMLA Compliance & STR	Reporting suspicious transactions, record-keeping norms	4–5
Principal Officer & Director Roles	Responsibilities of designated officers in AML	2–3
Cash Transaction Limits & Due Diligence	Thresholds and reporting requirements	2–3

Module B: Priority Sector Lending & Loans

Covers agriculture, MSME, export, and retail loans. Practical calculations often appear from working capital, cash budget, and term loans.

Topic	Description	Approx. Marks
Agriculture Advances	Direct, Indirect, Crop Loan Mechanism	3–4
MSME & Export Credit	Credit procedures, documentation	3–4
Lending Principles	Working capital, turnover method, inventory financing	4–5
Retail & Term Loans	Auto, personal loans, credit appraisal	3–4
Non-Fund Based Facilities	Bank guarantees, letters of credit	2–3

Module C: Digital Banking & Payment Systems

Focuses on delivery channels, digital banking operations, and customer experience.

Topic	Description	Approx. Marks
Core Banking & Digital Channels	CBS, internet banking, mobile banking, ATMs	3–4
Payment Systems	NEFT, RTGS, IMPS, UPI	3–4
Digital Threats & Mitigation	Cybersecurity, regulatory compliance	2–3
Digital Transformation	Recent trends & regulatory updates	2–3

Module D: Banker-Customer Relationship & Ethics

Scenario-based questions dominate this module, testing ethics, governance, and regulatory compliance.

Topic	Description	Approx. Marks
Banker-Customer Relationship	Roles: Debtor, Creditor, Trustee, Beneficiary, Agent	3–4
Duty of Secrecy & Right of Set-Off	Legal rights and obligations	2–3
Ethics & Governance	Employee ethics, corporate ethics, regulatory compliance	4–5
Committee Recommendations	Key recommendations by RBI/IRDA/Banks	2–3

Module E: Negotiable Instruments & Recovery

Includes key instruments and recovery mechanisms under NPA/IBC framework.

Topic	Description	Approx. Marks
Negotiable Instruments	Promissory note, bill of exchange, cheque, endorsement	4–5
Banker’s Protection	Sections 85, 131, 138	3–4
NPA & Recovery	Insolvency, SARFAESI, DRT	4–5

Last-Minute Preparation Strategy

The last-minute preparation strategy for the JAIIB PPB paper is as follows:

• Prioritize High-Weightage Modules – Focus on Modules B, D, and E first.
• Practice Numericals & Case Studies – Especially for lending and NPA recovery.
• Revise Regulatory Updates – Keep updated with recent circulars, PMLA amendments, and digital banking changes.
• Use Scenario-Based Questions – Ethics and governance often appear in case-based format.
• Attempt Mock Tests – Full-length and module-wise to improve accuracy and timing.

JAIIB PPB May Memory-Based Questions

Question: Which of the following methods is commonly used by commercial banks in
India for assessing and calculating the working capital limits for large borrowers?

Options 1: a) Debt-Equity Ratio Method b) Cash Budget Method c) Tandon Committee
Methods d) Discounted Cash Flow Method

Correct Answer: c) Tandon Committee Methods
Solution: The Tandon Committee (1975) and Chore Committee (1979)
recommendations laid down the framework for working capital financing by
commercial banks in India, including various methods (like the Maximum Permissible
Bank Finance – MPBF) for assessing limits.

Question 2: What is the full form of ‘MMID’ in the context of mobile banking
transactions in India?

Options: a) Mobile Money Identification Document b) Mobile Money Identifier c)
Mobile Merchant ID d) Main Money Identification Digit

Correct Answer: b) Mobile Money Identifier
 Solution: MMID (Mobile Money Identifier) is a 7-digit number issued by a bank to its
customers for conducting IMPS (Immediate Payment Service) transactions using
mobile phones.

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