CAIIB BFM Previous Year Paper, Attempt Most Repetitive MCQs

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Preparing for the CAIIB BFM exam requires clear concepts and regular practice. With topics like Foreign Exchange, Risk Management, Treasury Operations, and Balance Sheet Management, revision can be challenging. Solving CAIIB BFM Previous Year Papers and practising repeated MCQs can help candidates understand important topics and improve their exam preparation.

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Boost your CAIIB BFM 2026 preparation by practicing the most frequently asked questions from CAIIB BFM Previous Year Papers. The direct download links are provided below:

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Attempt CAIIB BFM Previous Year Paper Quiz

Evaluate your preparation with our CAIIB BFM Previous Year Paper Quiz specially designed for banking professionals.

CAIIB BFM PYP Practice Quiz Score: 0.00

1. XYZ Bank holds the following liquid assets (₹ lakh): Cash 2,000; excess SLR government securities 6,000; Level 2A corporate bonds 3,000; Level 2A covered bonds 2,000; Level 2B RMBS 1,200; Level 2B equity securities 800. What is total HQLA after the applicable haircuts?

2. A bank has total assets of ₹13,800 and non-rate-sensitive assets of ₹800. What are its rate-sensitive assets?

3. A bank has total liabilities of ₹13,800 and non-rate-sensitive liabilities of ₹1,200. What are its rate-sensitive liabilities?

4. Match the business line with its primary activities: A. Corporate Finance; B. Trading & Sales; C. Retail Banking; D. Commercial Banking. 1. Retail lending & deposits, trust and estates; 2. Mergers & acquisitions, underwriting, IPO, research; 3. Fixed income, equity, FX, commodities, brokerage; 4. Project finance, trade finance, leasing, guarantees.

5. Which of the following falls under the Trading & Sales business line?

6. Consider the following statements about the Countercyclical Capital Buffer (CCyB) framework in India: 1. It is activated when the credit-to-GDP gap crosses the lower threshold of 3 percentage points. 2. It reaches its maximum at a credit-to-GDP gap of 15 percentage points. 3. The maximum buffer is 2.5% of risk-weighted assets. 4. If the gap remains below 3 percentage points, banks must maintain a 1% CCyB. Which statements are correct?

7. Under RBI securitisation norms, what is the Minimum Retention Requirement (MRR) for residential mortgage-backed securities?

8. An originator securitises loans with a book value of ₹500 crore. What MRR applies to (i) bullet repayment loans, (ii) residential mortgage-backed securities, and (iii) normal loans with original maturity of 24 months or less?

9. ABC Bank has total capital of ₹5,400 crore and RWA of ₹60,000 crore. RBI identifies a ₹1,000 crore provisioning shortfall that must be deducted from capital. After adjustment, what is the bank’s CRAR and compliance position against the 9% Indian minimum and the 8% Basel I Cooke benchmark?

10. Bank X has CET1 of ₹4,800 crore, Tier 1 capital of ₹6,000 crore, Tier 2 capital of ₹1,500 crore and RWA of ₹70,000 crore. It has ₹1,400 crore of capital conservation buffer. Assume the Countercyclical Capital Buffer is not activated. Which statement is most accurate?

11. What is the main indicator in the Countercyclical Capital Buffer framework in India?

12. Match the regulatory capital component with the percentage of RWA: A. Capital Conservation Buffer; B. Minimum CET1 plus CCB; C. Additional Tier 1 Capital; D. Tier 2 Capital. i. 1.5%; ii. 2%; iii. 8%; iv. 2.5%.

13. If a bank’s leverage ratio is 4.5% and Tier 1 capital is ₹11,550 crore, what is its exposure measure?

14. If LCR is 110% and net cash outflow over the next 30 days is ₹550 crore, what HQLA must the bank hold?

15. If Available Stable Funding is ₹375 crore and Required Stable Funding is ₹325 crore, what is the NSFR?

16. A banking loss arising primarily from adverse economic, political or sovereign developments in Greece affecting counterparties in that country is classified as which risk?

17. Under the COSO ERM 2004 framework, which of the following is NOT one of the eight components?

18. Under the Basic Indicator Approach, the operational-risk capital charge is based on which measure?

19. A 91-day Treasury Bill with face value ₹100 is priced at ₹99.26. Using a 365-day year, what is its approximate money-market yield?

20. The risk that interest rates on different assets, liabilities and off-balance-sheet items may change by different magnitudes is called:

Quiz Summary

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Final Score: 0.0

Why should you attempt the CAIIB BFM PYP Quiz?

CAIIB BFM Previous Year Paper quizzes help candidates understand the exam difficulty, important topics, repeated questions, and the latest question pattern followed by IIBF. Regular practice also helps improve speed, accuracy, and identify weak areas before the exam.

What are the important topics in CAIIB BFM Module A?

Module A focuses on Foreign Exchange Management and International Banking. It is one of the most scoring sections of the CAIIB BFM paper and contains several concept-based and practical questions. Candidates should pay special attention to forex transactions, trade finance, remittances, and regulatory guidelines issued by RBI.

TopicKey Points
Exchange Rate & Forex BusinessSpot rate, cash rate, forward rate; participants in forex market; RBI and Federal Reserve guidelines; arithmetic and regulatory aspects of forex transactions
Liberalised Remittance Scheme (LRS)Limits on money transfer abroad; guidelines for outward and inward remittances
Capital Account TransactionsRules and schedules (Schedule I, II, III); banking services for forex with or without accounts
Letter of Credit (LC)Types, definitions, involved parties; framework and regulatory guidelines
Uniform Customs & Practices (UCP)Current trends, important articles, and practical applications
Export Data Processing & Monetary SystemExport-import guidelines, trade credit definitions, and operational procedures

What are the important topics in CAIIB BFM Module B?

Module B deals with Risk Management and Treasury Management. It introduces candidates to Basel norms, liquidity management, treasury products, and various banking risks. Questions from this module are often conceptual and may also include case studies.

TopicKey Points
Risk ManagementCredit, operational, and market risks; Basel framework; loan review mechanisms; liquidity risk management
Basel III NormsLCR, NSFR, and Pillars I, II, and III
Treasury Management & ProductsMoney market, forex market, GDRs, debt instruments, treasury operations
Treasury Risk ManagementValue at Risk (VaR), derivatives, and treasury risk controls
Asset Liability Management (ALM)ALM concepts, interest rate risk, and regulatory guidelines

What are the important topics in CAIIB BFM Modules C and D?

Modules C and D focus on Balance Sheet Management, Treasury Functions, and Banking Risks. These modules are highly practical and contain questions related to NPAs, insolvency, and case studies. Candidates should focus on understanding concepts rather than memorizing definitions.

TopicKey Points
Balance Sheet Management & ALMSources and uses of funds, ALM techniques, balance sheet analysis
NPA ManagementNPA classification, provisioning norms, and recovery mechanisms
Insolvency & Bankruptcy Code (IBC)Basic provisions and practical applications in banking
Interest Rate RiskManagement techniques and measurement tools
Treasury & Risk in BankingDerivatives, liquidity management, and treasury case studies
Operational Risk ManagementPractical banking scenarios and mitigation techniques

Which topics are most repetitive in CAIIB BFM Previous Year Papers?

Based on previous CAIIB examinations, certain topics appear more frequently than others. Candidates should revise these areas multiple times before the exam.

TopicFrequency
Basel IIIVery High
Value at Risk (VaR)High
Letter of CreditHigh
FEMA & LRSHigh
Treasury ManagementHigh
NPA & ProvisioningVery High
ALM ConceptsHigh
Forex RatesMedium to High
UCP 600Medium
IBCMedium to High

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FAQs

1. What are the most important topics in CAIIB BFM Module A?

Module A mainly covers Foreign Exchange, FEMA, Letter of Credit, LRS, and Export-Import procedures.

2. Why is Foreign Exchange Management important in CAIIB BFM?

It has high weightage and includes practical banking concepts related to forex transactions and regulations.

3. Which Basel III concepts are frequently asked in CAIIB BFM?

LCR, NSFR, and the three pillars of Basel III are commonly asked in the examination.

4. What topics are covered under Treasury Management?

Treasury Management includes money markets, forex markets, derivatives, VaR, and treasury products.

5. Are questions on Asset Liability Management (ALM) asked in CAIIB BFM?

Yes, ALM concepts and interest rate risk management are important and frequently tested.