The JAIIB (Junior Associate of the Indian Institute of Bankers) exam is an important step for bank employees who want to grow in their careers. Indian Economy and Financial System (IFS) Module C helps candidates understand the structure of India’s financial system, including banking and financial institutions, their roles, and the regulations that guide their work. This module builds a clear understanding of how India’s banking and financial system operates.
Download Free PDF for JAIIB IE & IFS Module C Practice Questions
To make your preparation even more effective, we have compiled a comprehensive practice question PDF for Module C. The PDF contains a set of questions that cover all the major topics in this module, along with detailed answers and explanations.
JAIIB IE & IFS Module C Practice Questions
The following sample practice questions will help you assess your understanding of the important topics covered in JAIIB IE & IFS Module C.
1. The ‘Fit and Proper’ criteria for bank directors and key managerial personnel are prescribed under which framework?
2. A NBFC that is classified as ‘Systematically Important’ (NBFC-SI) must comply with which additional norm compared to non-systemically important NBFCs?
3. What is the maximum permissible foreign direct investment (FDI) in Indian private sector banks under the automatic route?
4. The ‘Lead Bank Scheme’ in India was introduced on whose recommendation?
5. Which of the following statements about the ‘Business Correspondent’ (BC) model in Indian banking is correct?
6. The ‘Insolvency and Bankruptcy Code (IBC), 2016’ established which authority as the adjudicating authority for corporate insolvency?
7. Under the Priority Sector framework, which of the following is the treatment when a bank fails to meet PSL targets?
8. ‘Micro Finance Institutions’ (MFIs) as per the RBI’s Microfinance Directions 2022 are defined as NBFCs with what percentage of assets as microfinance loans?
9. Which of the following statements about Cooperative Banks in India is correct? 1. Urban Cooperative Banks (UCBs) are regulated by both RBI (banking aspects) and Registrar of Cooperative Societies (management aspects). 2. Primary Agricultural Credit Societies (PACS) directly accept deposits from the public and are regulated by RBI. 3. State Cooperative Banks are at the apex of the three-tier cooperative credit structure. 4. Multi-State UCBs operating in more than one state are regulated by the Central Registrar of Cooperative Societies.
10. The term ‘Priority Sector’ in Indian banking was first formally defined and targets set on whose recommendation?
11. An NBFC wants to accept public deposits. Under which conditions can it do so?
12. The ‘Account Aggregator’ (AA) framework in India was introduced by RBI to enable:
13. Which of the following is a correct statement about the ‘Prompt Corrective Action’ (PCA) framework of RBI?
14. Under the ‘Ombudsman Scheme for NBFCs’, a customer can approach the NBFC Ombudsman after:
15. What is the primary function of the ‘Credit Information Companies (CICs)’ like CIBIL in India?
16. Consider a case: An NBFC has Paid-up Equity Capital = ₹10 crore, Free Reserves = ₹8 crore, Accumulated Losses = ₹3 crore, and Investments in subsidiary companies = ₹6 crore. Calculate the Net Owned Fund.
17. The ‘Financial Stability and Development Council’ (FSDC) was set up under which authority?
18. Which of the following correctly describes the structure of a ‘Universal Bank’ in India?
19. The RBI’s ‘Monetary Policy Committee’ (MPC) was constituted under which amendment to the RBI Act?
20. An NBFC-MFI’s qualifying assets must satisfy which key conditions under RBI Directions 2022? 1. Loan to household with annual income up to ₹3 lakh 2. No collateral required 3. Repayment obligation not to exceed 50% of monthly household income 4. Minimum loan amount of ₹1 lakh
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What does JAIIB IE & IFS Module C cover?
Module C of the JAIIB exam is designed to provide an in-depth understanding of the Indian Financial System, covering the evolution of banking, key financial institutions, their regulations, and the role of financial sector regulators. Grasping these topics is essential for bank employees to understand the broader financial environment in which they operate.
| Unit | Topics and details |
|---|---|
| Indian financial system – An overview | Financial system meaning, development phases, Narasimham Committee (1991), banking reforms (1992–2008), and current banking system. |
| Indian banking structure | Bank functions, scheduled commercial banks, Local Area Banks, cooperative banks, Payments Banks, Small Finance Banks, NBFCs, and RBI guidelines. |
| Banking Regulation Act, 1949 and RBI Act, 1934 | Overview of both Acts and key provisions of Sections 1–56 of the Banking Regulation Act. |
| Development financial institutions (DFIs) | Evolution, role, and key institutions: IFCI, ICICI, SIDBI, NABARD, EXIM Bank, and NaBFID. |
| Microfinance institutions | Evolution, SHG-Bank Linkage Programme, regulations, and financial inclusion. |
| Non-banking financial companies (NBFCs) | NBFC classification, RBI regulation, and Fair Practices Code. |
| Insurance companies | Insurance sector growth, FDI, regulations, and key laws. |
| Indian financial system – Regulators | Roles of RBI, SEBI, IRDAI, and PFRDA. |
| Reforms and developments in the banking sector | Bad banks, NaBFID, and the EASE framework. |
Why should you practice JAIIB IE & IFS Module C questions?
Preparing for JAIIB IE & IFS Module C is not only about reading the theory. This module focuses on the Indian financial system, banking institutions, regulators, and financial sector reforms. Practicing questions regularly helps you understand how these concepts are asked in the exam and improves your overall preparation.
- Builds confidence: Regular practice helps you feel more confident while attempting the JAIIB exam.
- Improves concept clarity: Strengthens your understanding of the Indian financial system, banking structure, NBFCs, and microfinance.
- Improves exam readiness: Helps you understand the JAIIB question pattern and question types.
- Enhances speed and accuracy: Trains you to solve questions quickly and correctly.
- Develops practical knowledge: Connects banking regulations, financial institutions, and regulators like RBI, SEBI, IRDAI, and PFRDA with real banking operations.
- Identifies weak areas: Helps you find topics that need more revision and practice.
What are the important topics to study in JAIIB IE & IFS Module C?
When preparing for Module C, it is essential to focus on understanding the evolution of India’s financial system and the role of various financial institutions. Here are a few crucial areas to emphasize:
- Evolution of the Indian Banking System: Banking reforms, Narasimham Committee (1991), and changes in the banking sector.
- Development Financial Institutions (DFIs): Role of NABARD, SIDBI, and ICICI in supporting economic growth and key sectors.
- Microfinance and Financial Inclusion: Role of MFIs, Grameen Bank model, and SHG-Bank Linkage Programme.
- Regulatory Oversight: Roles of RBI, SEBI, and IRDAI in regulating the financial system and maintaining stability.
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 |
FAQs
Module C covers India’s financial system, including the evolution of banking, development financial institutions, microfinance, NBFCs, and financial regulators.
The Narasimham Committee (1991) laid the foundation for crucial banking reforms that improved the overall structure and efficiency of India’s financial system.
The SHG-Bank Linkage Programme connects self-help groups (SHGs) with banks to provide financial services to marginalized communities, fostering financial inclusion.
The Securities and Exchange Board of India (SEBI) regulates the securities market to ensure transparency, fairness, and protection of investor interests.
Practicing questions helps solidify your understanding of key topics, improves problem-solving skills, and enhances confidence for the exam.
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