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CAIIB
Rules and Syllabus 2008
CONTENTS Page No. The details of JAIIB / CAIIB examination are as under :
1.1 OBJECTIVES
1. JAIIB/CAIIB
1.1 Objectives .......................................................................... 3 JAIIB aims at providing maximum level of basic knowledge in banking and
financial services, banking technology, customer relations, basic accountancy
1.2 Syllabus.............................................................................. 3 and legal aspects necessary for carrying out day to day banking operations.
1.3 Subjects .............................................................................3
CAIIB aims at providing advanced knowledge necessary for better decision
1.4 Scheme of Exemptions...................................................... 3
making covering risk, financial and general bank management.
1.5 Pattern of Examination...................................................... 5
1.6 Duration of Examination ...................................................5 1.2 SYLLABUS
1.7 Periodicity and Examination Centres ................................ 6 The details of the prescribed syllabus which is indicative are furnished in the
1.8 Eligibility ...........................................................................6 booklet. However, Keeping in view the professional nature of examinations, all
1.9 Time limit for passing the examination .............................. 7 matters falling within the realm of the subject concerned will have to be studied
by the candidate as questions can be asked on all relevant matters under the
1.10 Examination fees ...............................................................7
subject. Candidates appearing for the Examination should particularly prepare
1.11 Medium of Examination ....................................................8 themselves for answering questions that may be asked on the latest
1.12 Procedure for applying for examination ............................8 developments taking place under the various subjects of the said examination
1.13 Admit Letter ...................................................................... 8 although those topics may not have been specifically included in the syllabus.
The Institute also reserves to itself the right to vary the syllabus / rules / fee
1.14 Conduct and Discipline in the Examination Hall ...............9 structure from time to time. Any alterations made will be notified from time to
1.15 Penalties for misconduct / unfair practices ..................... 10 time.
1.16 Passing Criteria ............................................................... 11
1.17 Declaration of results ...................................................... 11 1.3 SUBJECTS
1.18 Facility for verification of marks ..................................... 11 JAIIB
(i) Principles of Banking
1.19 Issue of Certificates ........................................................ 12
(ii) Accounting & Finance for Bankers
2. EDUCATIONAL SUPPORT (iii) Legal Aspects of Banking
2.1 Bank Quest...................................................................... 12 CAIIB
2.2 IIB Vision ........................................................................ 12 (i) Risk Management
2.3 e-newsletter : Fin@Quest ............................................... 12 (ii) Financial Management
2.4 Study Material / Workbook ............................................. 12 (iii) General Bank Management
2.5 Tutorial / Contact Programmes ....................................... 13 JAIIB and CAIIB have been equated with Part I and Part II respectively of the
3. OTHER INFORMATION Associate Examination under old syllabus.
3.1 Price list of the Study Material/Workbook ...................... 14
1.4 SCHEME OF EXEMPTIONS
3.2 Addresses of Publisher of Study Material/Workbook..... 15
The Institute will consider granting exemption from passing the following
4. SYLLABUS ................................................................... 18 subjects for candidates who possess the qualification/s noted against each
subject :
4 RULES AND SYLLABUS 2008 ASSOCIATE EXAMINATION 5
(v) Communication of any sort between candidates or with outsiders is not (i) Pass : Minimum marks for pass in every subject – 50 out of 100 marks.
permitted and complete silence should be maintained during the (ii) Candidate securing at least 45 marks in each subject with an aggregate
examination. of 50% marks in all subjects of JAIIB/CAIIB examination in a single
(vi) Copying answers from answer books of other candidates or permitting attempt will also be declared as having completed JAIIB/CAIIB
others to copy from one’s answer book will attract the rules relating to Examination. The benefit will not be available to candidates availing the
unfair practices in the examination. facility of credit transfer as they would not be passing the examination
in single attempt.
(vii) No candidate shall impersonate others or allow others to impersonate
(iii) First Class : 60% or more marks in aggregate and pass in all the subjects
himself/herself at the examination.
in the first attempt.
(viii) No candidate shall misbehave/argue with the examination conducting (iv) First Class with Distinction : 75% or more marks in any individual subject
authorities at the centre. and 60% or more marks in the aggregate and pass in all subjects in the
If any candidate violates any of the above rules, it will be considered to be an first attempt.
act of misconduct and he / she will be liable for punishment mentioned below. (v) First Class / First Class with Distinction will not be applicable to candidates
availing the facility of credit transfer as they would not be passing the
examination in first attempt.
1.15 PENALITIES FOR MISCONDUCT / UNFAIR PRACTICES
(vi) Candidates will be allowed to retain credits for the subject they have
The Institute shall have the right to impose penalties on any candidate for
passed in one attempt till the expiry of the time limit for passing the
committing an act of misconduct / unfair practice in respect of any matter
examination as mentioned in 1.9 above.
affecting the Institute or in respect of any examination conducted by the
Institute or disqualifying any candidate who, they have reason to believe has
received or given unfair assistance at the examination and 1.17 DECLARATION OF RESULTS
(i) to cancel the result of such candidate in all or any of the subjects of the In the case of online examination provisional score card will be given to
examination at which he / she may have appeared; candidates immediately at the end of each examination.
(ii) to exclude him / her from future examinations either permanently or for a The final result of the examination along with the marks secured for each
specified number of examinations; subject will be normally communicated to candidates appeared within two
months after conclusion of the examination.
(iii) to report his / her name to his / her employer and
(iv) to take such other action against him / her as the Institute shall in their 1.18 FACILITY FOR VERIFICATION OF MARKS
sole discretion deem fit and the decision of the Institute shall be final Facility for verificatoin, of marks will not be available for online examination
and binding on the candidate concerned. since evaluation is computerized.
12 RULES AND SYLLABUS 2008 ASSOCIATE EXAMINATION 13
In case of off-line examination, however, if any candidate requires their marks M/s. Macmillan Ltd. and M/s. Taxmann Ltd. as under :
to be verified, they may request the respective Zonal Office. Such verification Study books in English Medium : Macmillan Ltd.
will cover whether all answers have been valued. The request for verification Study books in Hindi Medium : Taxmann Ltd.
of marks must be received in the Institute’s respective zonal office within one
Study books in English Medium : Taxmann Ltd.
month from the date of the declaration of the examination results. The Candidate
will have to pay sum of Rs. 150/- per subject for verification of marks. The The price of each book and detail list of outlets is mentioned in 3.1 and 3.2
payment should be made by means of Demand Draft drawn in favour of below.
“INDIAN INSTITUTE OF BANKING & FINANCE” and made payable at the Candidates may purchase Study books / Work books directly from outlets/
place of the Institute’s Zonal Office. The candidates should write their showrooms distributors of the above.
membership number, name and subject/s name on the reverse of the draft.
Candidates who purchase books directly from outlets of publishers will be
1.19 ISSUE OF CERTIFICATES offered a discount of 20% on the price of the book. Candidates desirous of
purchasing books by post will not be offered any discount. However the
Candidates who complete JAIIB / CAIIB will receive a Certificate within six
postage will be borne by publishers. Candidates would be required to send
months after the Examination.
their indent to publishers’ outlet along with a Demand Draft for the cost of
book/s. The Demand Draft should be drawn in favor of M/s Taxmann Ltd and/
2. EDUCATIONAL SUPPORT or M/s.Macmillan Ltd. as the case may be. (No cheques will be accepted).
Candidates are requested not to send any request for the purchase of books
2.1 BANK QUEST to the Institute’s Zonal Offices / Corporate Office.
The Institute publishes a quarterly journal Bank Quest, covering various
aspects of banking and allied subjects. This is a priced publication and the 2.5 TUTORIAL / CONTACT PROGRAMMES
annual subscription for the same is Rs.140/ -(for four issues) for the present. Tutorial / Contact programmes will be organized by the Institute / accredited
Institutions. For further details candidates may get in touch with Zonal office
or logon to the Institute’s website www.iibf.org.in
2.2 IIB VISION
The Institute also publishes a monthly newsletter titled as “IIB VISION”
covering news on latest developments in banking and finance. This is sent to
all regular members free of cost.
- Constitution of board of directors and their rights The Companies Act, 1956 Definition, features of company, Types of Companies,
Memorandum, Articles of Association, Doctrines of Ultravires, indoor
- Banks share holders and their rights management and constructive notice, membership of company - acquisition-
- CRR/SLR concepts cessation, rights and duties of members and register of members. Prospects
- Cash/currency management and directors.
- winding up- amalgamation and mergers Indian Partnership Act, 1932 Definition and types of partnership, relation of
partners to one another -Relation of partners to third parties (Section 18 to 29)
- powers to control advances- selective credit control – monetary
Minor admitted to the benefits of Partnership (Section 30) Dissolution of firm
and credit policy
(Section 39 to 45) Effect of non-registration (Section 69) Transfer of property
- Audit and Inspection act FEMA 2000.
- supervision and control-board for financial supervision-its scope
and role
- disclosure of accounts and balance sheets CAIIB
- submission of returns to RBI etc
Subjects
2. Module B- Legal aspects of banking operations 1. Risk Management
Case laws on responsibility of paying /collecting banker Indemnities/ 2. Financial Management
guarantees-scope and application-obligations of a banker-precautions and
3. General Bank Management
rights—laws relating to bill finance, LC and Deferred Payment Guarantees-
Laws relating to securities-valuation of securities-modes of charging securities-
Objective: To provide advanced knowledge in banking and financial systems
lien, pledge, mortgage, hypothecation etc-registration of firms/companies-
for better decision-making.
creation of charge and satisfaction of charge
Level: At par with Post-Graduation from any University in India.
3. Module C- Banking related laws Question Pattern: Objective type.
Provisions of Bankers Book Evidence Act
Eligibility: 1. Members of the Institute.
Special features of Recovery of Debts Due to Banks and Financial Institutions
2. Pass in JAIIB.
Act, 1993
The Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 The Consumer Protection Act, 1986 Definition, PAPER 1- RISK MANAGEMENT
Consumer Protection Councils Objectives
ChapterII (Sections 4-8) Consumer Disputes Redressal Agencies (Sections 9-15)
The candidates would be able
District Forums, State Commission and National Commission, their powers etc.
Banking Ombudsman 1. to acquire a basic knowledge of various aspects of Risk management.
2. to understand the different dimensions of risk and its impact
4. Module D – Commercial Laws with reference to banking operations
Indian Contract Act, 1872 Chapters VII, IX and X: (Indemnity, Guarantee, Module A: Asset Liability Management
Bailment, Pledge and Agency) Banks Balance Sheet- Components of Assets/Liabilities and their management
24 RULES AND SYLLABUS 2008 ASSOCIATE EXAMINATION 25
Liquidity Management- definition-dimensions of liquidity management-role of PAPER 2- FINANCIAL MANAGEMENT:
liquidity risk management in asset liability management-measurement of liquidity
through ratio analysis Objectives:
The students would be able to acquire in depth knowledge of:
Interest Rate Management-factors affecting interest rates-management of
Interest Rate Risk (a) Principles of financial management and quantitative techniques.
Management of exchange risk- identification, measurement etc: (b) Techniques of analysis and interpretation of financial statements.
ALM Implementation – RBI Guidelines Module A: Quantitative Techniques and Financial Mathematics.
Concept of time value of money-Net Present Value-Discounted Cash Flow-
Module B: Risk Management Sampling methods-Presentation of data-analysis and interpretation of sample
Market Risk Measurement and Management data-hypothesis testing
Value at Risk:definition, measurement, limitations and alternative risk measures, Time series analysis-mean –standard deviation-co relation-Regression-
e.g., conditional value at risk -stress testing- back testing covariance and volatility
Credit Risk Measurement and Management Probability Distribution-Confidence interval analysis-estimating parameters of
distribution
Credit risk terminology-Credit ratings-Default probabilities-Credit spreads-Credit
Bond valuation-duration-modified duration
migration, transition matrices and Creditmetrics –Counterpart risks: exposures,
recovery rates, risk mitigation techniques including rating triggers, collateral Linear programming-decision making-simulation
clauses -Credit derivatives
Statistical analysis using spreadsheets
Operational & Integrated Risk Management
Module B: Study of Financial Statements.
Module C: Treasury Management: Scope, Functions and objectives.
Treasury management; concepts and functions; instruments in the treasury Capital Expenditure, Decision on Capital Investments and profitability Study.
market; development of new financial products; control and supervision of
Treasury management; linkage of domestic operations with foreign operations. Sources of finance and Cost of Capital-Long term and Short term.
Study of Financial Statements-Relationship between items in Balance Sheet
Asset-liability management; Interest rate risk; interest rate futures;
and Profit and Loss Account. Trend Analysis, Comparative Statement-Common
Stock options; debt instruments; bond portfolio strategy; risk control and size Statement-Preparations of projected Financial Statements.
hedging instruments.
Module C: Ratio Analysis
Investments – Treasury bills – Money markets instruments such as CDs, CPs,
IBPs; Securitisation and Forfaiting; Refinance and rediscounting facilities. Ratio analysis-Balance Sheet Ratios. Current Ratio-Liquid Ratio-Proprietary
Ratio-Debt Equity Ratio-Stock Working Capital Ratio-Gross Profit Ratio-
Module D: Capital Management and Profit Planning Operating Ratio-Expenses Ratio-Stock Turnover Ratio-Composite Ratios-
Return on Capital Employed-Return on Proprietor’s Funds-Return on Equity
Prudential Norms- Capital Adequacy-Basel II-Asset Classification-provisioning Capital-Return on Capital Employed-Turnover of debtors-Debt Service
Profit and Profitability-Historical Perspective of the Approach of Banks to Coverage Ratio.
profitability-Effects of NPA on profitability-A profitability Model-Share holders Statement of Sources and Applications of Funds. Interpretation and analysis
value maximization & EVA-Profit Planning-measures to improve profitability of different Ratios, Limitation of the use of ratios.
26 RULES AND SYLLABUS 2008 ASSOCIATE EXAMINATION 27
Module D: Working Capital and Term Lending. HRM and information Technology; Information and database management;
HR research; Knowledge Management-
Working Capital –Concept and management – Appraisal techniques- trade
cycle- credit rating Development of Human resources; HRD sub systems; Training and
Marginal Costing- Break Even Analysis Development; attitude development; role and impact of training; career path
planning and counselling; .
Capital Budgeting- Net present value-discounted cash flow etc
Human Implications of organisations; learning and instruction; employee
Cash Budget-profit planning- Risk Based pricing of products behaviour; diversity and gender issues – ; theories of Motivation and their
practical implications; Role concepts and analysis.
PAPER 3- GENERAL BANK MANAGEMENT
Self development; personnel research and survey; employee feedback survey;
Objectives Reward and compensation system.
The candidates will be able to develop knowledge and understanding of a Performance management and Appraisal systems; performance review and
range of areas such as, International Banking, HRM , marketing, Banking counselling.-HRM issues in banks
technology related subjects specific to the career needs and to develop skill
and competence to help successfully manage the diverse range of situations
Module C –Technology Management
which occur in a dynamic banking environment
RTGS- Infrastructure requirement-RTGS transactions-security features
Module A: International Banking SFMS-fomats of SFMs-SFMS transactions-security aspects
Factors determining exchange rates – national / international, political and RAS-requirements for RAS-Application- Security features of RAS
Economic- Direct and indirect quotations- Spot rates, forward rates premium Digital Certificate-what is PKI,CCA,CA,RA-Types of digital certificate-
and discount and cross rates. application of digital certificate-legal status
Basics of Derivatives-forward Exchange rates, Contracts, Currency options, IT ACT-electronic records-digital signature-application of electronic
Swaps and Interest rate swaps. Major Recommendations of the various Expert transactions
Group on Forex Markets.
Cyber Law-its application –e commerce
Documentary letters of Credit- UCPDC 500) IP Addressing-IP Addresses-Subnet mask
Various facilities to Exporters and Importers including Forfaiting and factoring. Core Banking-concept-benefits-branch coverage-schedules-creation of primary
data centre-disaster recovery site-formation of steering committee-core
Correspondent Banking – Bank accounts – NOSTRO and VOSTRO accounts
committee- primary functions-formation of project management teams-
– SWIFT, CHIPS, CHAPS, FEDWIRE.
implementation team-specialised consultancy-infrastructure –software-
NRI accounts – Indian rupee and Foreign Currency accounts. hardware-networking
Operating System –data base management- information system audit
Role of Exim Bank – Role of RBI and Exchange Control – Regulations of India,
Role of FEDAI and FEDAI rules, Risk in Foreign Trade, Role of ECGC, Types of
insurance and guarantee covers of ECGC. Module D: Marketing Management
Introduction to Marketing management and key concepts-strategic marketing
Module B: Human Resources Management process-Situation Analysis-market segmentation-Marketing information and
research-marketing mix-competion analysis-product strategy-product life cycle-
Fundamentals of Human Resources management; relationship between HRM
product mix-branding-pricing strategy-pricing decisions—distribution strategy-
and HRD; structure and functions; role of the HRD professional; development
channels of distribution-and their functions-ATM-telebanking-direct marketing-
of HRM in India.
28 RULES AND SYLLABUS 2008
COURSES OF IIBF
promotion strategy-Advertising and sales promotion-communication-publicity-
A. Flagship Courses (Only for members*) lCertificate in Quantitative Methods for
public relations-selling-HRD and marketing Associate Examination Bankers (CQM)
l JAIIB l Certified Home LoanAdvisor (CHLA)
l CAIIB l Certificate in Credit Cards for Bankers
RECOMMENDED READING B. Specialised Post Graduate Diploma (CCCB)
Courses (for Members and Non- l Joint Certificate in various aspects of
“The Institute has prepared comprehensive study material in the form of kits Members**) banking, in collaboration with
modelled on IGNOU pattern to facilitate preparation for the examination without l Post Graduate Diploma in Treasury, American Bankers Association
intervention of teacher. An attempt has been made to cover fully in the write- Investment and Risk Management (JCABA)
ups the syllabus prescribed for each subject/paper. The presentation of topics (PGDTIRM) l Certificate Examination in Banking
l Post Graduate Diploma in Banking
in the self study material may not always be in the same sequence as given in Oriented Paper in Hindi (BOPH)
Technology (PGDBT) l Certificate Examination for DSA /
the syllabus. The study material is available at M/s. Macmillan Ltd. (English l Post Graduate Diploma in International
Medium) & M/s. Taxmann Ltd. (Hindi Medium) outlets. Candidates are also DMA
Banking and Finance (PGDIBF)
l Certificate Examination in Basics of
expected to take note of all the latest developments relating to the subjects l Post Graduate Diploma in Urban Co-
Banking for employees of IT
covered in the syllabus by referring to Economic Journals, Financial Papers, operative Bank (PGDUCB)
Companies
latest books and publications on the subjects concerned.” l Post Graduate Diploma in Commodity
Derivates for Bankers (PGDCDB) D. Specialised Diploma Course For Non-
Members **
l Post Graduate Diploma for Micro
l Diploma in Banking & Finance (DBF)
Finance Professionals in collaboration
with Sa-Dhan (PGDMFP) l Advanced Diploma in Banking
Educational support :
l Publishing specific courseware for each paper/examination and Workbooks etc.
l Tutorials through Accredited Institutions, Virtual Classes, e-learning through portal, Contact
classes or campus training
l Model Questions and subject updates on the net
Other activities :
l Research, Seminars, Conferences, Lectures, etc.
l Publications of books, Daily e-newsletter, monthly newsletter and quarterly journal
l Training and Consultancy and Financial Education
* Members are employees of Banks and Financial Institutions who have enrolled as
members of IIBF.
** Non-Members are eligible candidates for each course / examination without IIBF
Membership.
The Syllabi, Rules / Regulations, Examination forms and other information pertaining to the
examinations are available with Institute’s offices at Mumbai, Chennai, New Delhi, Kolkata and
also at such other centers / offices as may be notified from time to time. The same is also available at
our website www.iibf.org.in
Corporate Office :
Director of Examinations,
Indian Institute of Banking & Finance
The “Arcade”, World Trade Centre,
2nd Flr, E. Wing, Cuffe Parade,
Mumbai - 400 005
Tel : 2218 7003 / 4 / 5
Fax : 022-2218 5147 / 2215 5093
E-mail : iibgen@bom5.vsnl.net.in