JAIIB AND DB&F Paper 1 Syllabus: Principles & Practices of Banking

Dear Readers,

So, in the previous articles, we read and discussed about JAIIB/DB&F, exam pattern, Eligibility, Schedule, Registration fees and some other introduction about the same.

Now, in this article, we will be discussing about the JAIIB/DB&F Subjects and Syllabus of PAPER I subject in details.

SUBJECTS OF EXAMINATION:

(1) Principles & Practices of Banking, (Paper 1)

(2) Accounting & Finance for Bankers, (Paper 2)

(3) Legal & Regulatory Aspects of Banking (Paper 3)

PAPER I – PRINCIPLES & PRACTICE OF BANKING

This Paper 1 Subject is divided into four Parts (A,B,C and D)

PART A – INDIAN FINANCIAL SYSTEM

Indian Financial System – An Overview

Role of RBI, Commercial Banks, NBFCs, PDs, FIs, Cooperative Banks, CRR, SLR; Equity & Debt Market; IRDA

Banking Regulation

Constitution, Objectives, Functions of RBI; Tools of Monetary Control; Regulatory Restrictions on Lending

Retail Banking, Wholesale and International Banking

Retail Banking- Products, Opportunities; Wholesale Banking, Products; International Banking, Requirements of Importers & Exporters, Remittance Services; Universal Banking; ADRs; GDRs; Participatory Notes.

Role of Money Markets, Debt Markets & Forex Market

Types of Money & Debt Market Instruments incl. G-Secs; ADs, FEMA, LIBOR, MIBOR, etc.

Role and Functions of Capital Markets, SEBI

Overview of Capital Market; Stock Exchange; Commonly used Terms; Types of Capital Issues; Financial Products / Instruments including ASBA, QIP; SEBI; Registration of Stock Brokers, Sub-brokers, Share Transfer Agents, etc QIBs

Mutual Funds & Insurance Companies, Bancassurance & IRDA

Types of Mutual Funds, its Management & its Role; Role & Functions of Insurance Companies; Bancassurance; IRDA

Factoring, Forfaiting Services and Off-Balance Sheet items

Types & advantages of Factoring & forfaiting services; Types of off balance sheet items

Risk Management, Basel Accords

Introduction to Risk Management; Basel I, II & III Accords

CIBIL, Fair Practices Code for Debt Collection, BCSBI

Role and Functions of CIBIL; Fair Practices Code for Debt Collection; Codes of BCSBI

Recent Developments in the Financial System

Structure, Reforms in the Indian Financial System; recent developments in Money, Debt, Forex Markets; Regulatory Framework; Payments and Settlement System

PART B – FUNCTIONS OF BANKS

Banker Customer Relationship

Types; Different Deposit Products & Services; Services to Customers & Investors

KYC / AML / CFT norms

PMLA Act; KYC Norms

Bankers’ Special Relationship

Mandate; POA; Garnishee Orders; Banker’s Lien; Right of Set off

Consumer Protection - COPRA, Banking Ombudsman Scheme

Operational Aspects of COPRA Act & Banking Ombudsman Scheme

Payment and Collection of Cheques and Other Negotiable Instruments

NI Act; Role & Duties of Paying & Collecting Banks; Endorsements; Forged Instruments; Bouncing of Cheques; Its Implications; Return of Cheques; Cheque Truncation System

Opening accounts of various types of customers

Operational Aspects of opening and Maintaining Accounts of Different Types of Customers including Aadhaar, SB Rate Deregulation

Ancillary Services

Remittances; Safe Deposit Lockers; Govt. Business; EBT

Cash Operations

Cash Management Services and its Importance

Principles of lending, Working Capital Assessment and Credit Monitoring

Cardinal Principles; Non-fund Based Limits; WC; Term Loans; Credit Appraisal Techniques; Sources of WC Funds & its Estimation; Operating Cycle; Projected Net WC; Turnover Method; Cash Budget; Credit Monitoring & Its Management; Base Rate

Priority Sector Advances

Targets; Sub-Targets; Recent Developments

Agricultural Finance

Types of Agricultural Loans; Risk Mitigation in agriculture (NAIS, MSP etc.)

Micro, Small and Medium Enterprises

MSMED Act, 2006 Policy Package for MSMEs; Performance and Credit Rating Scheme; Latest Developments

Government Sponsored Schemes

SGSY; SJSRY; PMRY; SLRS

Self Help Groups

Need for & Functions of SHGs; Role of NGOs in Indirect Finance to SHGs; SHGs & SGSY Scheme; Capacity Building

Credit Cards, Home Loans, Personal Loans, Consumer Loans

Operational Aspects, Advantages, Disadvantages & Guidelines of Credit Cards; Procedure and Practices for Home Loans, Personal Loans and Consumer Loans

Documentation

Types of Documents; Procedure; Stamping; Securitisation

Different Modes of Charging Securities

Assignment; Lien; Set-off; Hypothecation; Pledge; Mortgage

Types of collaterals and their characteristics

Land & Buildings; Goods; Documents of Title to Goods; Advances against Insurance Policies, Shares, Book Debts, Term Deposits, Gold, etc; Supply Bills

Non Performing Assets

Definition; Income Recognition; Asset Classification; Provisioning Norms; CDR

Financial Inclusion

BC; BF; Role of ICT in Financial Inclusion, Mobile based transactions, R SETI

Financial Literacy

Importance of financial literacy, customer awareness

PART C – BANKING TECHNOLOGY

Essentials of Bank Computerization

Computer Systems; LANs; WANs; UPS; Core Banking

Payment Systems and Electronic Banking

ATMs; HWAK; PIN; Electromagnetic Cards; Electronic Banking; Signature Storage & Retrieval System; CTS; Note & Coin Counting Machines; Microfiche;

NPC; RUPAY

Data Communication Network and EFT systems

Components & Modes of Transmission; Major Networks in India; Emerging Trends in Communication Networks for Banking; Evolution of EFT System; SWIFT; Automated Clearing Systems; Funds Transfer Systems; Recent Developments in India

Role of Technology Upgradation and its impact on Banks

Trends in Technology Developments; Role & Uses of Technology Upgradation; Global Trends; Impact of IT on Banks

Security Considerations

Risk Concern Areas; Types of Threats; Control Mechanism; Computer Audit; IS Security; IS Audit; Evaluation Requirements

Overview of IT Act

Gopalakrishna Committee Recommendations

Preventive Vigilance in Electronic Banking

Phishing; Customer Education; Safety Checks; Precautions

PART D – SUPPORT SERVICES - MARKETING OF BANKING SERVICES / PRODUCTS

Marketing – An Introduction

Concept; Management; Products & Services; Marketing Mix; Brand Image

Social Marketing / Networking

Evolution, Importance & Relevance of Social Marketing / Networking

Consumer Behaviour and Product

Consumer Behaviour; Product Planning, Development, Strategies, etc; CRM

Pricing

Importance, Objectives, Factors, Methods, Strategies of Pricing; Bank Pricing

Distribution

Distribution Channels; Channels for Banking Services; Net Banking; Mobile Banking

Channel Management

Meaning, Levels, Dynamics, Advantages

Promotion

Role of Promotion in Marketing; Promotion Mix

Role of Direct Selling Agent / Direct Marketing Agent in a bank

Definition; Relevance; Banker as DSA / DMA; Delivery Channels in Banks; Benefits

Marketing Information Systems – a longitudinal analysis

Functions & Components of MKIS; MKIS Model; Use of Computers & Decision Models; Performance of MKIS; Advantages

On the very next upcoming Articles, we will be discussing about the Syllabus of Paper 2 in detail, about thesubjects and how to plan for it, study for it, and finally we together will start the preparation for these.

We want our readers to be on the top of every profession specially our Banking aspirants and bankers who think that there is no way to stop where you are and there is never a stop to your growth. And believe us You can’t miss these courses. It is not mandatory but yes it is very very important for your knowledge and growth in any banking or financial institution.

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