The CAIIB (Certified Associate of the Indian Institute of Banking and Finance) exam is a professional examination conducted by the Indian Institute of Banking and Finance (IIBF) twice a year for banking and finance sector professionals. Professionals working in banks or financial institutions who have already passed JAIIB (Junior Associate of the IIBF) can appear for this exam.
In this blog, we have provided the previous year papers free PDF to help professionals practice the types of questions that were asked in previous CAIIB exams.
CAIIB Memory Based Papers
The CAIIB exam comprises four compulsory papers and one elective paper, which professionals can select as per their preference. The minimum qualifying marks for each paper are 50, with an aggregate of 45% in each paper and an overall aggregate of 50%.
Download CAIIB May June 2025 Previous Year Paper Free PDF
The direct link to download the CAIIB memory-based PYPs are as follows:
| Subject | Download Link |
| Paper 1 (ABM) | Download Free PDF |
| Paper 2 (BFM) | Download Free PDF |
| Paper 3 (ABFM) | Download Free PDF |
| Paper 4 (BRBL) | Download Free PDF |
CAIIB ABM Previous Year Questions
CAIIB ABM Previous Year Paper is a valuable resource for understanding exam patterns and frequently asked questions. It helps in improving time management and reinforcing key concepts for better exam performance.
- What is the primary purpose of risk management in banking?
a) To increase profits
b) To minimize losses
c) To improve customer satisfaction
d) To expand market share
Answer: b) To minimize losses - Which of the following is NOT a type of financial risk?
a) Market risk
b) Operational risk
c) Credit risk
d) Systematic risk
Answer: d) Systematic risk - Which approach is used to measure market risk?
a) VaR (Value at Risk)
b) NPV (Net Present Value)
c) IRR (Internal Rate of Return)
d) CAPM (Capital Asset Pricing Model)
Answer: a) VaR (Value at Risk) - Operational risk includes risks due to:
a) Credit default
b) Market fluctuations
c) Human errors and frauds
d) Foreign exchange movements
Answer: c) Human errors and frauds - The Basel framework primarily addresses which type of risk?
a) Operational risk
b) Credit risk
c) Market risk
d) All of the above
Answer: d) All of the above
- The Weighted Average Cost of Capital (WACC) is calculated by:
a) Adding equity and debt capital costs
b) Taking a weighted average of equity and debt capital costs
c) Using only equity capital costs
d) Using only debt capital costs
Answer: b) Taking a weighted average of equity and debt capital costs - What is the primary objective of capital budgeting?
a) Managing operational cash flow
b) Selecting long-term investment projects
c) Managing day-to-day financial operations
d) Reducing tax liabilities
Answer: b) Selecting long-term investment projects - Which formula is used to calculate NPV (Net Present Value)?
a) Future value – Present value
b) Sum of discounted cash flows – Initial investment
c) IRR × Investment cost
d) WACC × Capital expenditure
Answer: b) Sum of discounted cash flows – Initial investment - The Payback Period measures:
a) The time required to recover the initial investment
b) The profitability of a project
c) The rate of return of a project
d) The cost of capital
Answer: a) The time required to recover the initial investment - IRR is the discount rate at which:
a) NPV equals zero
b) Payback period equals zero
c) Cash inflows are maximized
d) Profitability index equals one
Answer: a) NPV equals zero
Also Check: CAIIB ABM Previous Year Papers
CAIIB BFM Most Repetitive MCQs
Some of the questions that were being asked in the BFM paper are as follows:
- Which regulatory body governs the banking sector in India?
- A) SEBI
- B) IRDAI
- C) RBI
- D) NABARD
- Answer: C
- The Negotiable Instruments Act was enacted in which year?
- A) 1880
- B) 1881
- C) 1882
- D) 1883
- Answer: B
- What is the primary objective of KYC guidelines?
- A) To ensure customer satisfaction
- B) To prevent money laundering
- C) To enhance digital banking
- D) To increase market competition
- Answer: B
- Which act governs SARFAESI provisions?
- A) 1999
- B) 2000
- C) 2002
- D) 2005
- Answer: C
- What is the full form of CRR in banking?
- A) Credit Retention Ratio
- B) Cash Reserve Ratio
- C) Current Reserve Requirement
- D) Capital Retention Ratio
- Answer: B
- What is the minimum capital requirement for small finance banks as per RBI?
- A) ₹50 Crores
- B) ₹100 Crores
- C) ₹200 Crores
- D) ₹500 Crores
- Answer: B
- What is a demand draft?
- A) A type of loan
- B) A negotiable instrument
- C) A type of savings account
- D) A non-banking financial product
- Answer: B
- Which of the following is NOT a feature of RTGS?
- A) Real-time settlement
- B) Minimum transaction value of ₹2 lakh
- C) Operates 24×7
- D) Used for small value transactions
- Answer: D
- What does CASA stand for in banking terms?
- A) Current Account Savings Account
- B) Capital and Savings Account
- C) Cash and Security Assets
- D) Credit and Savings Allocation
- Answer: A
- Which of the following is NOT a financial instrument?
- A) Bonds
- B) Fixed Deposits
- C) Gold Jewelry
- D) Equity Shares
- Answer: C
Also Check: CAIIB BFM Most Asked Questions
CAIIB ABFM Previous Year Questions
Some of the type of questions that were being asked in the CAIIB ABFM exam paper are as follows:
1. Which of the following is a key objective of asset liability management (ALM)?
- A) Maximizing net interest income
- B) Reducing operational costs
- C) Matching the maturity of assets and liabilities
- D) Improving customer service
Answer: C) Matching the maturity of assets and liabilities
2. Which of the following is a significant characteristic of a bank’s capital adequacy ratio (CAR)?
- A) It indicates the level of profit
- B) It helps in measuring the bank’s risk exposure
- C) It calculates operational costs
- D) It calculates liquidity
Answer: B) It helps in measuring the bank’s risk exposure
3. What does the term ‘loan loss provisioning’ refer to?
- A) The practice of preparing for loan repayments
- B) Allocating funds to cover potential loan defaults
- C) Reducing loan interest rates
- D) Minimizing loan term lengths
Answer: B) Allocating funds to cover potential loan defaults
4. Which of the following is NOT part of the Basel III framework?
- A) Liquidity Coverage Ratio (LCR)
- B) Capital Conservation Buffer
- C) Leverage Ratio
- D) Cash Reserve Ratio (CRR)
Answer: D) Cash Reserve Ratio (CRR)
5. The term ‘Duration’ in risk management refers to:
- A) A measure of the time it takes to liquidate a security
- B) The time taken by a borrower to repay the loan
- C) The interest rate sensitivity of a bond
- D) The total maturity of an investment
Answer: C) The interest rate sensitivity of a bond
6. Which of the following is a major factor that affects the cost of funds for a bank?
- A) Deposit growth
- B) Regulatory costs
- C) Interest rates in the market
- D) Competition from other banks
Answer: C) Interest rates in the market
7. What is the primary purpose of financial derivatives in a bank’s portfolio?
- A) To diversify the portfolio risk
- B) To increase profitability through speculation
- C) To hedge against interest rate or currency risk
- D) To improve the liquidity position
Answer: C) To hedge against interest rate or currency risk
8. What does the term ‘Net Interest Margin (NIM)’ represent?
- A) Total income generated from lending activities
- B) The spread between interest income and interest expense
- C) The total profit margin after taxes
- D) The percentage of the bank’s capital invested in loans
Answer: B) The spread between interest income and interest expense
9. Which of the following is a method used for managing market risk?
- A) Hedging
- B) Cost-cutting measures
- C) Customer diversification
- D) Increasing loan tenure
Answer: A) Hedging
10. Which ratio is used to assess a bank’s liquidity position?
- A) Return on Assets (ROA)
- B) Debt to Equity Ratio
- C) Loan to Deposit Ratio (LDR)
- D) Current Ratio
Answer: C) Loan to Deposit Ratio (LDR)
CAIIB BRBL Questions
Some of the CAIIB BRBL questions are as follows:
Ques 1. Which of the following exercises control over banks from their opening to their winding up?
A. Reserve Bank of India and SEBI
B. SEBI and Government of India, NABARD
C. Government of India and RBI
D. Government of India, RBI and SEBI
Solution: RBI and the Government of India have been given powers to exercise control under the provisions of the Banking Regulation Act and the Reserve Bank of India Act, 1934.
Ques 2. The banks in India fall under which of the following categories?
A. Statutory corporations and private companies
B. Companies and cooperatives
C. Statutory corporations, companies and cooperative societies
D. Companies, public sector banks, public sector companies
Solution: Banks fall in the category of statutory corporations, companies, and cooperative societies.
Ques 3. As per the definition under Section 5(b) of the Banking Regulation Act, 1934, which of the following is not correct in the context of banking business?
A. Accepting deposits and giving loans out of such deposits
B. Deposits are accepted from the public
C. Banks cannot refuse to accept deposits from anyone
D. Accepting deposits and investing such deposits
Solution: Banks can refuse acceptance of deposits from persons who are not found desirable and who do not comply with KYC requirements.
Ques 4. Which of the following cannot accept deposits withdrawable by cheque?
A. Banks
B. Saving bank schemes run by the Government
C. Private credit societies
D. Financial institutions
Solution: Under Section 49A of the Banking Regulation Act, organisations other than banks cannot accept deposits withdrawable by cheque. However, savings bank schemes run by the Government, primary credit societies, and other persons or firms notified by the Government are exempted from this prohibition.
Ques 5. Which of the following cannot accept deposits from the public?
A. Banks
B. Non-Banking Financial Companies regulated by RBI
C. Other companies regulated by the Central Government
D. Other firms engaged in financial business
Solution: Banks, NBFCs registered with RBI, and other companies regulated by the Government can accept deposits from the public.
Ques 6. Which of the following statements is not correct in the context of the Banking Regulation Act?
a. For carrying on banking business, a licence from RBI is required
b. Each banking company has to use the word “bank” as part of its name
c. No firm is allowed to use the word bank, banking, or banking company as part of its name
d. Subsidiaries of banks or, in certain cases, primary credit societies cannot use the word bank
Solution: Statements (a) to (c) are correct. Subsidiaries of banks and, in certain cases, primary credit societies are also allowed to use the word “bank”.
Ques 7. Which of the following forms of business, other than banking business, cannot be undertaken by banks?
A. Buying and selling of foreign exchange or bullion and specie
B. Providing safe deposit vaults
C. Undertaking and executing trusts
D. Buying or selling of goods, directly or indirectly
Solution: Banks can undertake several activities other than banking business. However, buying or selling of goods, directly or indirectly, is not permitted.
Ques 8. Which of the following does not match in the context of the formation of banks?
A. State Bank of India constituted under the SBI Act, 1955
B. Nationalised banks constituted under Nationalisation Acts, 1970 and 1980
C. Regional Rural Banks constituted under the RRB Act, 1976
D. State Bank associate banks constituted under the State Bank (Subsidiary Banks) Act, 1959
Solution: Nationalised banks were constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980.
Ques 9. Cooperative banks fall under which type of organisation?
A. Cooperative society
B. Banking company
C. Public sector bank
D. Any of the above
Solution: Cooperative banks are cooperative societies registered under a Central Act or a State Act.
Ques 10. Which of the following is not correct regarding the purpose for which RBI was created under the Reserve Bank of India Act, 1934?
A. To regulate the issue of bank notes
B. To directly undertake regulation of the banking system
C. To keep reserves for securing monetary stability in India
D. To operate the currency and credit system of India
Solution: RBI does not directly regulate the banking system under the RBI Act, except under Section 42 dealing with CRR. Banking regulation is carried out under the Banking Regulation Act.
Also Check: CAIIB BRBL Questions
FAQs
Candidates who have passed JAIIB and are members of the Indian Institute of Banking and Finance (IIBF) are eligible.
The CAIIB exam is conducted twice a year, usually in May–June and November–December cycles.
The CAIIB exam consists of four compulsory papers and one elective paper.
Candidates must score at least 50 marks in each paper or 45% per paper with an overall aggregate of 50%.
They help in understanding exam patterns, identifying repetitive questions, and improving time management.
- CAIIB Previous Year Question Paper, Download Free PDF
- CAIIB Electives Exam Analysis 2025, December All Paper Review
- CAIIB BRBL Exam Analysis 2025, December Cycle Review
- CAIIB ABFM Exam Analysis 2025, 13th December Review
- CAIIB BFM Exam Analysis 2025, 7th December Difficulty Level
- CAIIB ABM Exam Analysis 2025, All Shifts, 30th November
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