CAIIB Syllabus & Exam Pattern

An examination like CAIIB promises a great potential for candidates seeking early progression in career as well as interesting work opportunities.  

While, the CAIIB examination can be taken only by the candidates who successfully passed in the JAIIB exam.  

There are many benefits that come along with clearing the CAIIB exam even including non – monetary benefits and job promotions which include additional roles and responsibilities in the banking field.  

Apart from these facilities, an important aspect behind conducting the CAIIB examination is to impart the advanced knowledge of the banking and finance sector which will help the candidates in better decision making and thereby ensure effective execution of day-to-day banking operations.  

Therefore, the CAIIB exam is a level tougher compared to JAIIB in terms of the knowledge tested of the candidates.  

So, before you begin preparing for the exam, it is very important for candidates to be thorough with the syllabus and the exam pattern of CAIIB.  

In reference to this, I will be discussing in detail all the aspects regarding the CAIIB syllabus and exam pattern, CAIIB marking scheme and passing criteria in a simplified manner.  

On this note, let’s get started! 

CAIIB Exam Pattern 2024 

To understand better about the nature of the examination, knowing the exam pattern in detail becomes very important.  

In this section, I have provided all the details regarding the CAIIB exam pattern 2024. Going through it, you will get an overall idea about the examination.  

There are four compulsory papers given in the syllabus which are Advanced Bank Management, Bank Financial Management, Advanced Business and Financial Management, Banking Regulations and Business Laws. 

In addition to the compulsory papers, the candidates are required to choose a subject for elective paper from given list of subjects – Rural Banking, Human Resources Management, Information Technology & Digital Marketing, Risk Management and Central Banking.  

The CAIIB examination will be conducted through online mode and the time duration allotted for each paper is of 2 hours.  

Likewise, the case for JAIIB exam, there will be no negative marking for attempting wrong answers in CAIIB examination.  

Each subject shall contain 100 objective type multiple choice-based questions including questions on case studies. However, the questions asked in the paper may vary depending on the subject.  

Also, while the nature of the CAIIB exam is objective, the questions asked in some of the subjects will be numerical based where no options will be given.  Therefore, such questions will not be included in the MCQs and the answers for which must be typed in by the candidate.  

As per the official website, the purpose of these questions asked in the examination is to test the candidate on the following factors:

• Knowledge testing 
• Conceptual grasp  
• Analytical/ logical exposition 
• Problem-solving  
• Case analysis  

Apart from these factors, it is crucial for candidates to check the eligibility criteria for CAIIB exam to ensure their successful registration for the same.

To simplify the details mentioned above regarding CAIIB Exam pattern 2024, I have provided all the related information about the same in a table form below: 

*Note: – The question paper for 4 compulsory papers of CAIIB exam – will contain some numerical questions which will be “Questions without option”. Since these questions are not in MCQ format, the candidate is required to type in the answers using keys from the virtual keyboard in the form of sign/ number.

To know more about the new guidelines introduced for CAIIB exam, you can check this detailed notification provided by the IIBF.  

Now that I have mentioned the 4 compulsory papers given in the CAIIB syllabus.  

In the table below, I have provided the details regarding the Elective Paper for which the candidates are required to choose any one out of given list of subjects: 

Now, that I have explained the exam pattern, it’s time to move on to CAIIB syllabus.

CAIIB Syllabus 2024 

Knowing the syllabus thoroughly is considered as a first step in right direction when it comes to preparing for any exam.  

To begin with, the syllabus sheds light on the total number of topics from which questions are asked in the paper and going through the syllabus multiple times will imprint on your mind the list of important themes that need to be covered to clear the exam. 

As it is mentioned above, the CAIIB new syllabus consists of 4 compulsory papers which are – Advanced Bank Management, Bank Financial Management, Advanced Business and Financial Management, Banking Regulations and Business Laws.  

Along with these papers, there is one subject that candidates must choose for the elective paper out of given subjects like Rural Banking, Human Resources Management, Information Technology & Digital Marketing, Risk Management and Central Banking. 

The syllabus for each paper contains within itself the modules which divide the paper into main sections, classifying the topics given for the syllabus in each section. 

 Also, the candidates are expected to be updated with the latest developments for the said topics mentioned in the syllabus as well as the current happenings in the banking and finance sector for which they can refer to newspapers or periodicals.  

In the section below, I have provided the detailed CAIIB syllabus as per the official website which is as follows:

Compulsory Paper I – Advanced Bank Management

There are 4 modules given in the Paper 1 of the CAIIB syllabus and these are as follows:

1. Module A – Statistics 
2. Module B – Human Resource Management 
3. Module C – Credit Management 
4. Module D – Compliance in Banks & Corporate Governance 

Module A: Statistics  

Definition of Statistics, Importance & Limitations & Data Collection, Classification & Tabulation  

• Importance of Statistics 
• Functions of Statistics 
• Limitation or Demerits of Statistics 
• Definitions 
• Collection of Data 
• Classification and Tabulation 
• Frequency Distribution

Sampling Techniques  

• Random Sampling 
• Sampling Distributions  
• Sampling from Normal Populations 
• Sampling from Non-Normal Populations 
• Central Limit Theorem 
• Finite Population Multiplier

Measures of Central Tendency & Dispersion, Skewness, Kurtosis

• Arithmetic Mean 
• Combined Arithmetic Mean 
• Geometric Mean 
• Harmonic Mean 
• Median and Quartiles 
• Mode 
• Introduction to Measures of Dispersion 
• Range and Coefficient of Range 
• Quartile Deviation and Coefficient of Quartile Deviation 
• Standard Deviation and Coefficient of Variation 
• Skewness and Kurtosis

Correlation and Regression  

• Scatter Diagrams 
• Correlation 
• Regression 
• Standard Error of Estimate

Time Series

• Variations in Time Series 
• Trend Analysis 
• Cyclical Variation 
• Seasonal Variation 
• Irregular Variation 
• Forecasting Techniques

Theory of Probability

• Mathematical Definition of Probability 
• Conditional Probability 
• Random Variable 
• Probability Distribution of Random Variable 
• Expectation and Standard Deviation 
• Binomial Distribution 
• Poisson Distribution 
• Normal Distribution 
• Credit Risk 
• Value at Risk 
• Option Valuation

Estimation

• Estimates 
• Estimator and Estimates 
• Point Estimates 
• Interval Estimates 
• Interval Estimates and Confidence Intervals 
• Interval Estimates of the Mean from Large Samples 
• Interval Estimates of the Proportion from Large Samples  

Linear Programming

• Graphic Approach 
• Simplex Method

Simulation

• Simulation Exercise 
• Simulation Methodology

Module B: Human Resource Management

Fundamentals of Human Resource Management  

• The Perspective 
• Relationship between HRM & HRD and their Structure and Functions;  
• Role of HR Professionals 
• Strategic HRM 
• Development of HR Functions in India  

Development of Human Resources

• HRD and its Subsystems 
• Learning and Development – Role and Impact of Learning 
• Attitude Development 
• Career Path Planning 
• Self-Development 
• Talent Management 
• Succession Planning

Human Implications of Organisations

• Human Behaviour and Individual Differences;  
• Employees Behaviour at Work;  
• Diversity at Workplace and Gender Issues;  
• Theories of Motivation and their Practical Implications;  
• ‘Role’: Its Concept & Analysis  

Employees’ Feedback and Reward System  

• Employees’ Feedback 
• Reward and Compensation System  

Performance Management

• Appraisal Systems; Performance Review and Feedback 
• Counselling 
• Competency Mapping and Assessment of Competencies 
• Assessment Centres 
• Behavioural Event Interview (BEI)  

Conflict Management and Negotiation

• Conflict: Concept & Definition 
• Characteristics of Conflict 
• Types of Conflicts 
• Reasons for Conflict 
• Different Phases of Conflict 
• Conflict Resolution 
• Conflict Management 
• Negotiation Skills for Resolution of Conflicts

HRM and Information Technology

• Role of Information Technology in HRM 
• HR Information and Database Management 
• Human Resource Information System (HRIS) 
• Human Resource Management System (HRMS) 
• e–HRM 
• HR Research 
• Knowledge Management 
• Technology in Training 
• HR Analytics

Module C: Credit Management 

Overview of Credit Management

• Importance of Credit 
• Historical Background of Credit in India 
• Principles of Credit 
• Types of Borrowers 
• Types of Credit 
• Components of Credit Management 
• Role of RBI Guidelines in Bank’s Credit Management

Analysis of Financial Statements

• Which are the Financial Statements 
• Users of Financial Statements 
• Basic Concepts Used in Preparation of Financial Statements 
• Accounting Standards (AS) 
• Legal Position Regarding Financial Statements 
• Balance Sheet 
• Profit and Loss Account 
• Cash Flow Statement 
• Funds Flow Statement 
• Projected Financial Statements 
• Purpose of Analysis of Financial Statements by Bankers 
• Rearranging the Financial Statements for Analysis 
• Techniques used in Analysis of Financial Statements 
• Creative Accounting 
• Related Party Transactions

Working Capital Finance

• Concept of Working Capital 
• Working Capital Cycle 
• Importance of Liquidity Ratios 
• Methods of Assessment of Bank Finance 
• Working Capital Finance to Information Technology and Software Industry 
• Bills/Receivables Finance by the Banks 
• Guidelines of RBI for Discounting/Rediscounting of Bills by Banks 
• Trade Receivables Discounting System (TReDS) 
• Non-Fund Based Working Capital Limits 
• Other Issues Related to Working Capital Finance 

Term Loans

• Important Points about Term Loans 
• Deferred Payment Guarantees (DPGs) 
• Difference between Term Loan Appraisal and Project Appraisal;  
• Project Appraisal 
• Appraisal and Financing of Infrastructure Projects

Credit Delivery and Straight Through Processing

• Documentation 
• Third-Party Guarantees  
• Charge over Securities  
• Possession of Security  
• Disbursal of Loans 
• Lending under Consortium/Multiple Banking Arrangements  
• Syndication of Loans 
• Straight Through Loan Processing or Credit Underwriting Engines

Credit Control and Monitoring

• Importance and Purpose 
• Available Tools for Credit Monitoring/Loan Review Mechanism (LRM)

Risk Management and Credit Rating

• Meaning of Credit Risk 
• Factors Affecting Credit Risk 
• Steps taken to Mitigate Credit Risks  
• Credit Ratings 
• Internal and External Ratings 
• Methodology of Credit Rating 
• Use of Credit Derivatives for Risk Management 
• RBI guidelines on Credit Risk Management 
• Credit Information System

Restructuring/Rehabilitation and Recovery

• Credit Default/Stressed Assets/NPAs 
• Wilful Defaulters 
• Non-cooperative borrowers 
• Options Available to Banks for Stressed Assets 
• RBI Guidelines on Restructuring of Advances by Banks 
• Available Frameworks for Restructuring of Assets 
• Sale of Financial Assets

Resolution of Stressed Assets under Insolvency and Bankruptcy Code 2016

• Definition of Insolvency and Bankruptcy 
• To Whom the Code is Applicable 
• Legal Elements of the Code 
• Paradigm Shift 
• Corporate Insolvency Resolution Process 
• Liquidation process 
• Pre-packed Insolvency Resolution Process for stressed MSMEs

Module D: Compliance In Banks & Corporate Governance  

Compliance Function in Banks

• Compliance Policy 
• Compliance Principles 
• Process and Procedures 
• Compliance Programme 
• Scope of Compliance Function 
• Role & Responsibilities of Chief Compliance Officer (CCO)

Compliance Audit

• Role of Risk Based Internal Audit and Inspection 
• Reporting Framework and Monitoring Compliance 
• Disclosure Requirements 
• Accounting Standards 
• Disclosures under Listing Regulations of SEBI

Compliance Governance Structure

• Organisational Structure 
• Responsibility of the Board and Senior Management 
• Compliance Structure at the Corporate Office 
• Functional Departments 
• Compliance Structure at Field Levels 
• Internal Controls and its Importance

Framework for Identification of Compliance Issues and Compliance Risks

• Compliance Issues 
• Compliance Risk 
• Inherent Risk and Control Risk 
• Independent Testing and Effective Audit Programme 
• Reporting Framework and Monitoring Compliance 
• Role of Inspection and Audit 
• Loan Review Mechanism/Credit Audit 
• What is Good Compliance 

Compliance Culture and GRC Framework

• How to Create Compliance Culture Across the Organisation 
• Governance 
• Risk and Compliance – GRC Framework 
• Benefits of an Integrated GRC Approach 
• Whistle-blower Policy 
• The Components of a Whistle-blower Policy 
• Reasons for Compliance Failures

Compliance Function and Role of Chief Compliance Officer in NBFCs

• Framework for Scale Based Regulation for Non-Banking Financial Companies 
• Transition Path 
• Framework for Compliance Function and Role of Chief Compliance Officer in Non-Banking Financial Companies in Upper Layer and Middle Layer (NBFC-UL & NBFC-ML)

Fraud and Vigilance in Banks

• Definition of Fraud 
• Definition of Forgery 
• Areas in which Frauds are committed in Banks 
• Banking and Cyber Frauds 
• Fraud Reporting and Monitoring System 
• Vigilance Function in Banks 
• RBI Guidelines for Private Sector and Foreign 

Now, let us look at the syllabus for Paper II of CAIIB syllabus.

Compulsory Paper II: Bank Financial Management

For Paper II – Bank Finance Management, there are four modules mentioned in the CAIIB new syllabus which are as follows:
 

1. Module A – International Banking 
2. Module B – Risk Management 
3. Module C – Treasury Management 
4. Module D – Balance Sheet Management 

Module A: International Banking  

Exchange Rates and Forex Business

• Foreign Exchange – Definition and Markets 
• Factors Determining Exchange Rates 
• Exchange Rate Mechanism 
• Foreign Exchange Dealing Room Operations 
• Derivative Products 
• RBI / FEDAI Guidelines 
• Foreign Exchange Arithmetic – Concepts and Examples

Liberalised Remittance Scheme (LRS) and other Remittance Facilities for Residents

• Capital Account Transactions and Current Account Transactions 
• Key Sections under FEMA vis-à-vis Liberalized Remittance Scheme 
• Permissible/Non-permissible Remittances under LRS 
• Operational Guidelines 
• Remittances under LRS for Current Account Transactions 
• Tax Collected at Source (TCS) 
• LRS vis-à-vis Capital Account Transactions 
• Reporting Requirements under LRS 

Correspondent Banking and NRI Accounts

• Correspondent Banking – Accounts and other Services 
• Nostro, Vostro and Loro Accounts 
• Electronic Modes of Transmission/Payment Gateways – SWIFT, CHIPS, CHAPS, RTGS, etc. 
• NRI Banking 
• NRI accounts – Rupee and Foreign Currency Accounts 
• Facilities to NRIs 
• Advances to Non-Residents against Non-Resident Deposits 
• Housing Loans to Non-Resident Indians

Documentary Letters of Credit

• Definition of Letter of Credit 
• Types of Letters of Credit 
• Operations of Letter of Credit 
• UCP 600 and Important Articles 
• Liabilities, Responsibilities and Rights of the Parties 
• Documents under LC – Scrutiny, Crystallization 
• Follow-up for Bills under LC and Safeguards for Banks 
• Risks Relating to LC Transactions 
• Standby Letter of Credit (Similar to Guarantees) 
• Uniform Rules for Bank-to-Bank Reimbursements (URR–725) 
• International Standard Banking Practice – 745 (ISBP 745) 
• Incoterms 
• Case Studies

Facilities for Exporters and Importers

• Exchange and Trade Control Guidelines for Exporters 
• Facilities for Exporters 
• Export Finance 
• Gold Card Scheme for Exporters 
• Export Data Processing and Monitoring System (EDPMS) 
• Factoring and Forfaiting 
• Exchange and Trade Control Guidelines for Importers 
• Import Finance 
• Import Data Processing and Monitoring System (IDPMS) 
• Trade Credit – Supplier’s Credit and Buyer’s Credit 
• Case Study on Export Finance

External Commercial Borrowings and Foreign Investments in India

• External Commercial Borrowings – Concepts 
• ECBs – Other Operational Concepts 
• Reporting Requirements 
• Conversion of ECB into Equity 
• Foreign Investments  
• Key Concepts 
• Eligible Foreign Investors  
• Eligible Investee Entities 
• Eligible Investment Instruments 
• Prohibited Sectors 
• Rules Governing Pledge of Shares 
• Operational Guidelines 
• Snap Shot of Non-Debt Instruments (NDI) Rules 
• List of Documents for Obtention of Foreign Investments 
• List of Documents for Refund of Foreign Investments Risks in Foreign Trade – Role of ECGC  
• Definition of Risk and Risks in International Trade 
• Country Risk; Export Credit Insurance in International Trade 
• ECGC Role and Products 
• ECGC Policies 
• ECGC’s Products for Banks 
• Other Aspects Relating to ECGC Policies and Guarantees 
• Some of the Common “To Do Points” under ECGC Policies 
• Claims 

Role of EXIM Bank, Reserve Bank of India, Exchange Control in India – FEMA, FEDAI and Others

• EXIM Bank – Role, Functions and Facilities 
• Reserve Bank of India – Role and Exchange Control Regulations in India 
• Foreign Exchange Management Act (FEMA) 1999 
• Role of FEDAI and FEDAI Rules 
• Short Notes on Other Topics: ECB and ADR/GDRs and FCCB 

International Financial Service Centres (IFSC), GIFTCity

• Scope of IFSC in India 
• Opportunities at Gift City 
• Guidelines relating to setting up of IFSC Banking Units (IBUs) 
• Role of IFSCA 
• Regulatory Framework 
• Permissible Activities at IBUs 
• Relaxations for the FPI (Foreign Portfolio Investors) Entities at GIFT City 

Technology in International Banking

• Introduction to Digitization in International Banking – An Overview, Evolution of Technology in International Banking 
• Benefits and Limitations of Technology in International Banking; Digital Platforms in International Banking 
• FINTECH and evolution of FINTECH in International Banking 
• Delivery channels under FINTECH in International Banking 
• Sample process of International Trade Using Blockchain Technology 
• Challenges in FINTECH

Module B: Risk Management  

Risk and Basic Risk Management Framework

• What is Risk? 
• Linkages among Risk 
• Capital and Return 
• Why Risk Management? 
• Basic Risk Management Framework

Risks in Banking Business

• Risk Identification in Banking Business 
• The Banking Book 
• The Trading Book 
• Off-Balance Sheet Exposures 
• Banking Risks – Definitions

Risk Regulations in Banking Industry

• Regulation of Banking Industries – Necessities and Goals 
• The Need for Risk-based Regulation in a Changed World Environment 
• Basel I: The Basel Capital Accord 
• 1996 Amendment to Include Market Risk 
• Basel II Accord – Need and Goals 
• Basel II Accord; Towards Basel III 
• Capital Charge for Credit Risk 
• Credit Risk Mitigation 
• Capital Charge for Market Risk 
• Capital Charge for Operational Risk 
• Pillar 2 – Supervisory Review Process 
• Pillar 3 – Market Discipline 
• Capital Conservation Buffer 
• Leverage Ratio 
• Countercyclical Capital Buffer 
• Systemically Important Financial Institutions (SIFIs) 
• Risk Based Supervision (RBS)

Market Risk

• Market Risk – Concept 
• Market Risk in Banks 
• Market Risk Management Framework 
• Organisation Structure 
• Risk Identification 
• Risk Measurement 
• Risk Monitoring and Control 
• Risk Reporting 
• Managing Trading Liquidity 
• Risk Mitigation

Credit Risk

• General 
• Credit Risk Management Framework 
• Organisation Structure 
• Risk Identification 
• Risk Measurement 
• Credit Risk Control and Monitoring  
• Credit Risk Policies and Guidelines at Transaction Level 
• Credit Control and Monitoring at Portfolio Level 
• Active Credit Portfolio Management 
• Controlling Credit Risk through Loan Review Mechanism (LRM) 
• Credit Risk Mitigation 
• Securitisation 
• Credit Derivatives (CDs)

Operational Risk and Integrated Risk Management

• Operational Risk – General 
• Operational Risk – Classification 
• Operational Risk Classification by Event Type – Definitions 
• Operational Risk Management Practices 
• Management Overview and Organisational Structure  
• Processes and Framework 
• Risk Monitoring and Control Practices  
• Operational Risk Qualification 
• Operational Risk Mitigation 
• Scenario Analysis 
• Integrated Risk Management 
• The Necessity of Integrated Risk Management 
• Integrated Risk Management – Challenges 
• Integrated Risk Management – Approach

Liquidity Risk Management Liquidity Risk

• Management – Need & Importance 
• Potential Liquidity Risk Drivers  
• Types of Liquidity Risk 
• Principles for Sound Liquidity Risk Management 
• Governance of Liquidity Risk Management 
• Liquidity Risk Management Policy 
• Strategies and Practices 
• Management of Liquidity Risk 
• Ratios in respect of Liquidity Risk Management 
• Stress Testing 
• Contingency Funding Plan 
• Overseas Operations of the Indian Banks’ Branches and Subsidiaries and Branches of Foreign Banks in India 
• Broad Norms in Respect Of Liquidity Management 
• Liquidity Across Currencies 
• Management Information System 
• Reporting to the Reserve Bank of India 
• Internal Controls

Basel III Framework on Liquidity Standards

• Liquidity Coverage Ratio 
• Liquidity Risk Monitoring Tools 
• Net Stable Funding Ratio

Module C: Treasury Management  

Introduction to Treasury Management  

• The Concept 
• Functions of Integrated Treasury 
• The Process of Globalisation 
• Evolving Role of Treasury as Profit Centre 
• Organisation of Treasury  

Treasury Products  

• Products of Foreign Exchange Markets 
• Money Market Products  
• Securities Market Products 
• Domestic and Global Markets  

International Equity and Debt Products  

• Regulatory Environment 
• Global Depository Receipts 
• Indian Depository Receipts 
• External Commercial Borrowings 
• Trade Credits 
• Rupee Denominated Bonds  

Funding and Regulatory Aspects  

• Reserve Assets: CRR and SLR 
• The Liquidity Adjustment Facility (LAF) 
• Payment and Settlement Systems  

Treasury Risk Management  

• Supervision and Control of Treasury 
• Market Risk and Credit Risk 
• Risk Measures: VaR and Duration 
• Use of Derivatives in Risk Management  

Derivative Products  

• Derivatives and the Treasury 
• OTC and Exchange Traded Products 
• Forwards, Options, Futures and Swaps 
• Interest Rate and Currency Swaps 
• Developments in Indian Markets and RBI Guidelines on Risk Exposure

Treasury and Asset-Liability Management

• Meaning of Asset-Liability Management (ALM) 
• Liquidity Risk and Interest Rate Risk 
• Role of treasury in ALM 
• Use of derivatives in ALM 
• Credit risks and Credit Derivatives  
• Transfer pricing 
• Policy Environment

Module D: Balance Sheet Management  

Components of Assets and Liabilities in Bank’s Balance Sheet and their Management 

• Components of a Bank’s Balance Sheet 
• What is Asset Liability Management? 
• Significance of Asset Liability Management 
• Purpose and Objectives of Asset Liability Management 
• ALM as Co-ordinated Balance Sheet Management  

Capital Adequacy – Basel Norms  

• Scope of Application 
• Pillar-1 – Minimum Capital Requirements 
• Pillar 2- Supervisory Review Process 
• Pillar 3 – Market Discipline 

Asset Classification and Provisioning Norms  

• Asset Classification 
• Provisioning Norms  

Liquidity Management  

• Definition 
• Dimensions and Role of Liquidity Risk Management 
• Measuring and Managing Liquidity Risk  

Interest Rate Risk Management  

• Essentials of Interest Rate Risk 
• Sources of Interest Rate Risk 
• Effects of Interest Rate Risk 
• Measurement of Interest Rate Risk 
• Interest Rate Risk Measurement Techniques 
• Strategies for Controlling Interest Rate Risk 
• Controls and Supervision of Interest Rate Risk Management 
• Sound Interest Rate Risk Management Practices 
• RBI’s Draft Guidelines on Interest Rate Risk in Banking Book  

RAROC and Profit Planning  

• Profit Planning 
• Risk Aggregation and Capital Allocation 
• Economic Capital and RAROC 

Let’s move on to the next subject of CAIIB syllabus.

Compulsory Paper III: Advanced Business & Financial Management 

There are four modules in the Paper III – Advanced Business and Financial Management which are as follows: 

1. Module A: The Management Process 
2. Module B: Advanced concepts of Financial Management 
3. Module C: Valuations, Mergers and Acquisitions 
4. Module D: Emerging Business Solutions

Module A: The Management Process  

Basics of Management  

• Definition of Management 
• The Management Process 
• Functions of Management 
• Importance of Management 
• Management Thoughts & Approaches 
• Management Challenges & Opportunities 
• Introduction to Strategic Management 
• Business Environment Analysis  

Planning  

• Fundamentals of Planning 
• Steps in Planning 
• Importance of Planning 
• Advantages and disadvantages of planning 
• Management by Objectives 
• Plan Components 
• Contingency planning 
• Forecasting & Decision Making  

Organizing  

• Introduction and Fundamentals of Organizing 
• Importance of Organisation 
• Stages in Organising Process  
• The Organising Process 
• Principles of organizing  
• Types of Organisations  
• Organisation structure 
• Organisation charts and manuals 
• The Organisation culture  
• Authority & Responsibility 
• Key Issues in Organisation Structure 
• Organisational Change 
• Conflict Dynamics    

Staffing  

• Functions of Staffing 
• Objectives of staffing 
• Nature of staffing 
• Facets of staffing 
• Significance of staffing 
• System approach to staffing 
• Recruitment 
• Selection 
• Training 
• Retention and development 
• Knowledge and learning management 
• Performance Appraisal 
• Human Resource Development  

Directing  

• Characteristics of directing 
• Importance of directing 
• Elements of directing 
• Leadership 
• Motivation 
• Communication 
• Supervision  

Controlling  

• Basics of Controlling 
• Characteristics of controlling 
• Advantages of controlling 
• Limitations of controlling 
• Types of control management 
• Control process 
• Relation between planning and control 
• Control Techniques 
• Control technique and Information Technology

Module B: Advanced Concepts Of Financial Management  

Sources of Finance and Financial Strategies  

• Equity Capital 
• Internal Accruals 
• Preference Capital 
• Term Loans 
• Debentures 
• Alternative Financing Strategies in the Context of Regulatory Requirements  

Financial and Operating Leverages  

• Financial Leverage 
• Degree of Financial Leverage and its Behaviour 
• Operating Leverage 
• Degree of Operating Leverage and its Behaviour 
• Combined or Total Leverage  

Capital Investment Decisions  

• Objective of capital investment decisions 
• Estimation of project cash flows 
• Forecasting and its relation to regulation of capital for short, medium and long term periods 
• Relationship between sales 
• production and other functional budgets 
• Cash Forecasts 
• Cost analysis for projects 
• Methods of Investment appraisal 
• Social Cost Benefit Analysis  

Capital Budgeting for International Project Investment Decisions  

• Foreign Investment Analysis,  
• Special Considerations-Foreign & Home Currency Cash Flows 
• Foreign Currency Discount Rates Computation 
• International Portfolio Investment and Institutional Constraints 
• Direct and Indirect Channels for International Portfolio Investment 
• Exchange and Country Risk 
• Return and Risk of Foreign Investment 
• Capital asset pricing model  
• Arbitrage pricing theory 
• International Capital Budgeting Issues involved in overseas projects 
• Approaches for evaluation of overseas projects 
• Evaluation methods 
• Impact of transfer pricing   

Adjustment of Risk and Uncertainty in Capital Budgeting Decision  

• Sources & Perspectives on Risk 
• Sensitivity Analysis 
• Scenario Analysis 
• Hillier Model 
• Simulation Analysis 
• Decision Tree Analysis 
• Corporate Risk Analysis  
• Managing Risk 
• Project Selection Under Risk 
• Risk Analysis in Practice

Decision Making  

• Decision Making using Cost-Volume-Profit (CVP) Analysis 
• Decision Making using Relevant Cost Concepts 
• Decision Making using Activity Based Costing 
• Ethical and Non-Financial Considerations Relevant to Decision Making

Module C: Valuation, Mergers & Acquisitions  

Corporate Valuations  

• Approaches to Corporate Valuation 
• Adjusted Book Value Approach 
• Stock and Debt Approach 
• Direct Comparison Approach 
• Discounted Cash Flow Approach 
• Steps involved in valuation using DCF Approach 

Discounted Cash Flow Valuation  

• Estimating Inputs 
• Approaches to Discounted Cash Flow Models  
• Various discounted Cash Flow Models  
• Dividend Discount Model 
• Applicability of the Dividend Discount Model 

Other Non-DCF valuation models  

• Relative valuation model 
• Equity Valuation Multiples Model 
• Enterprise value multiples Model  
• Choosing the right multiples  
• Book value approach Model 
• Stock and debt approach  

Special cases of valuation  

• Intangibles –Brand, Human valuation etc. 
• Real estate Firms, Start-up firms 
• Firms with negative or low earnings  
• Financial Service companies 
• Distressed firms 
• Valuation of cash and cross holdings 
• Warrants and convertibles  
• Cyclical & non-cyclical companies 
• Holding companies 
• E-commerce firms

Mergers, Acquisitions and Restructuring  

• Types of Transactions 
• Reasons for Merger 
• Mechanics of a Merger 
• Costs and Benefits of a Merger 
• Exchange Ratio in a Merger 
• Purchase of a Division / Plant 
• Takeovers 
• Leveraged Buyouts 
• Acquisition Financing  
• Business Alliances 
• Managing Acquisitions 
• Divestitures 
• Holding Company 
• Demergers Deal structuring and financial strategies Negotiations 
• Payment and legal considerations 
• Tax and accounting considerations 
• Tax reliefs and benefits in case of Amalgamation in India  
• Financial reporting of business combinations 
• Deal Financing 
• Financing of cross border acquisitions in India  

Module D: Emerging Business Solutions  

Hybrid Finance  

• Advantages and disadvantages of Hybrid securities,  
• Types of hybrid securities,  
• Preference Share Capital,  
• Features of Warrants,  
• Features of Convertible Debentures,  
• Differences between Warrants and Convertible debentures,  
• Valuation of Warrants,  
• Valuation of Compulsorily Convertible (Partly or fully) Debentures,  
• Objective of issuing Warrants and Convertible debentures,  
• Features of Foreign Currency Convertible Bond (FCCB),  
• Mezzanine Financing 
• Innovative Hybrids  

Start-up Finance  

• Benefits to startup under the Startup Plan 
• Startup definition in India 
• Challenges faced by Startups 
• State Startup Policy 
• Pitch Presentation 
• Programmes and competitions for startups 
• Tax exemptions 
• Funding 
• Investor’s outlook in Startups 
• Funding schemes and programmes 
• International challenges and bridges  

Private Equity and Venture Capital  

• Characteristics of Venture Capital Investments  
• Characteristics shared by Private Equity and Venture Capital as well as their key distinctions Financing options available through Venture Capital 
• Investment in Private equity 
• Benefits obtained through private equity 
• Drawbacks to the practice of private equity 
• Due diligence 
• Exit Strategies  

Artificial Intelligence  

• History of Artificial Intelligence 
• Applicability of Artificial Intelligence 
• Artificial Intelligence in Banking and Finance 
• The future scope of Artificial Intelligence 
• Neural Networks 
• Control Theory and Cybernetics 
• Rational Agents 
• Motion and Manipulation 
• Tools and Techniques of Artificial Intelligence 
• Artificial Intelligence and Morality  

Business Analytics as Management Tool  

• Essentials of Business analytics 
• Types of Analytics 
• Elements of Business Analytics 
• Big Data Analytics 
• Web and Mobile Analytics 
• Comparing web Vs Mobile Analytics 
• Importance of Business Analytics  

Green and Sustainable Financing  

• ISO Standards for Green Finance 
• Building Green Finance 
• International Best Practices towards Green Finance 
• Public Policy in India 
• Progress of Green Finance in India 
• Challenges and way forward 
• Growth of Regulatory Framework 
• National Efforts towards Green and Sustainable Financing 
• RBI Views on Climate Risk and Sustainable Finance

Special Purpose Acquisition Company  

• Advantages of SPAC 
• Disadvantages of SPAC 
• SPAC Formation and Timelines 
• The SPAC Merger 
• Stakeholders 
• Characteristics of SPACs 
• Process 
• SPAC Capital Structure 
• Trust Account 
• Warrants 
• Forward Purchase 
• IPO Agreements 
• De-SPAC Process 

Now, we let us discuss the last paper of compulsory subject for CAIIB exam.

Compulsory Paper IV: Banking Regulation 

For Paper IV of compulsory subject – Banking Regulations, there are four modules which are as follows: 

1. Module A: Regulation and Compliance 
2. Module B: Important Acts/Laws & Legal Aspects of Banking Operations – Part A 
3. Module C: Important Acts/Laws & Legal Aspects of Banking Operations – Part B 
4. Module D: Commercial & Other Laws with reference to Banking Operations 

Module A: Regulations And Compliance

Legal Framework of Regulation of Banks  

• Business of Banking 
• Constitution of Banks 
• Reserve Bank of India Act, 1934 
• Banking Regulation Act, 1949 
• Reserve Bank as a Central Bank and Regulator of Non-Banking Financial Institutions/Banks  
• Government as a Regulator of Bank 
• Control over Co-operative Banks 
• Regulation by Other Authorities  

Control over Organisation of Banks  

• Licensing of Banking Companies including RBI Licencing Policy for Universal Banks and Small Finance Banks/Branch Licensing  
• Paid-up Capital and Reserves 
• Shareholding in Banking Companies 
• Subsidiaries of Banking Companies 
• Board of Directors 
• Chairman of Banking Company 
• Appointment of Additional Directors 
• Restrictions on Employment 
• Controls over Management 
• Corporate Governance 
• Directors and Corporate Governance  

Regulation of Banking Business  

• Power to Issue Directions 
• Acceptance of Deposits 
• Nomination, Loans and Advances 
• Regulation of Interest Rates 
• Regulation of Payment Systems 
• Internet Banking Guidelines 
• Regulation of Money Market Instruments 
• Banking Ombudsman 
• Regulation to Strengthen Financial Stability  

Returns, Inspection, Winding Up, Mergers & Acquisitions  

• Annual Accounts and Balance Sheet 
• Audit and Auditors 
• Submission of Returns 
• Preservation of Records and Return of Paid Instruments 
• Special Audit 
• Inspection and Scrutiny 
• Board for Financial Supervision 
• Acquisition of Undertakings 
• Amalgamation of Banks 
• Winding up of Banks 
• Penalties for Offences Public Sector Banks 
• Private Sector Banks, Regional Rural Banks 
• Differentiated Banks and Co-operative Banks 
• Local Area Banks State Bank of India  
• Regional Rural Banks 
• Other Public Sector Banks 
• Application of Banking Regulation Act to Public Sector Banks 
• Disinvestment of Shares by Government 
• Co-operative Banks 
• Private Sector Banks 
• Differentiated Banks
• Local Area Banks

Non-Banking Financial Companies (NBFCs

• Regulators of NBFCs 
• Role of NBFC in promoting Inclusive Growth 
• Registration 
• Revised Scale Based Regulatory Structure 
• Nomenclature and Regulatory Norms 
• Capital Guidelines 
• Prudential Guidelines 
• Corporate Governance 
• Fair Practices Code for applicable NBFC 
• Bank Finance to NBFCs registered/not requiring registration with RBI 
• Co-Lending by banks and NBFCs to PSA Financial Sector Legislative Reforms and Financial Stability and Development Council Narasimham Committees 1/2 
• Banking Sector Reforms 
• Reforms in Monetary Policy 
• Reforms in Financial Markets 
• Reforms in Forex Market 
• Financial Sector Development Council (FSDC) 
• Function of the FSDC 
• Wings of FSDC  

Module B: Important Acts/Laws & Legal Aspects Of Banking Operations – Part A    

The Prevention of Money Laundering Act, 2002  

• Offence of Money Laundering 
• Punishment for Money Laundering 
• Obligations of Banking Companies 
• Financial Institutions and Intermediaries 
• Enhanced Due Diligence 
• Rules Framed, Records to be Maintained 
• Information Contained in the Records 
• Procedure for Maintaining Information 
• Procedure for Furnishing Information to the Director 
• Verification of Records of the Identity of Clients 
• Maintenance of Records of Identity of Clients 
• Some Cases pertaining to the Act

Negotiable Instruments Act, 1881  

• Negotiable Instruments 
• Types and Characteristics 
• Drawer/Acceptor 
• Payment of Cheques – Protection to Bankers’ /Customers’ 
• Material Alteration 
• Where Alteration is not apparent 
• Protection to the Collecting Banker  

Foreign Exchange Management Act, 1999  

• Meaning of Certain Important Terms Used in FEMA 
• Regulation and Management of Foreign Exchange 
• Powers of RBI with Respect to Authorized Persons 
• Contravention 
• Penalties 
• Adjudication and Appeals 
• Directorate of Enforcement 
• Special Provisions relating to Assets held outside India  

Payment & Settlement Systems Act, 2007  

• Definitions 
• Designated Authority/Authorization 
• Regulation and Supervision by the RBI 
• Settlement and Netting 
• Power of RBI to make regulations  

Law Relating to Securities and Modes of Charge – I  

• Mortgage 
• Document of Title to Immoveable Property – Meaning,  
• Copy of Document of Title to Immoveable Property Where Acceptable  

Law Relating to Securities and Modes of Charge – II  

• Appropriation 
• Assignment 
• Pledge 
• Hypothecation  
• Bankers lien 
• Set-off  

Creation/Registration and Satisfaction of Charges  

• What is a Charge? 
• Procedure for Registration of Charge 
• Effect of Registration of Charges 
• Effect of Nonregistration of Charges 
• Provisions of Companies Act 2013 Relating to Registration of Charges

Module C: Important Acts/Laws & Legal Aspects Of Banking Operations – Part B  

Reserve Bank – Integrated Ombudsman Scheme, 2021  

• Coverage and Definitions 
• Ombudsman–Appointment/Location of Offices/Establishment of a Centralized Receipt and Processing Centre 
• Procedure for Redressal of Grievance 
• Procedure for Filing a Complaint / its Initial Scrutiny and Resolution 
• Passing of an Award and Right to Prefer to Appeal 
• Suspension of the Scheme  

The Micro, Small and Medium Enterprises Development Act, 2006  

• Coverage and Definitions 
• Summary of Regulation 
• National Board for Micro, Small and Medium Enterprises (NBMSME)/Advisory Committee 
• Memorandum of Micro, Small and Medium Enterprises 
• Delayed Payments to Micro and Small Enterprises 
• Micro and Small Enterprises Facilitation Council and Reference to the Council in case of Disputes 
• Disclosures and Penalty for Contravention of the Provisions of the Statute  

Introduction to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002)  

Constitutional Validity of the Act  

Definitions Under SARFAESI Act, 2002  

• Preamble 
• Appellate Tribunal 
• Asset Reconstruction 
• Bank 
• Board 
• Borrower 
• Central Registry 
• Debt Recovery Tribunal 
• Default 
• Financial Assistance 
• Financial Asset 
• Financial Institution 
• Hypothecation 
• Non-performing Asset 
• Originator 
• Obligor 
• Property 
• Qualified Institutional Buyer 
• Scheme 
• Securitization 
• Security Agreement 
• Secured Asset 
• Secured Creditor 
• Secured Debt 
• Security Interest 
• Security Receipt, Sponsor  

Regulation of Securitisation and Reconstruction of Financial Assets of Banks and Financial Institutions  

• Registration of Asset Reconstruction Company 
• Cancellation of Certificate of Registration 
• Acquisition of Rights of Interest in Financial Assets 
• Notices to Obligor and Discharge of Obligation of Such Obligor 
• Issue of Security Receipts and Raising of Funds by Securitization or Reconstruction Company 
• Exemption from Registration of Security Receipt 
• Measures of Assets Reconstruction 
• Other Functions of the Securitization Company or Reconstruction Company 
• Resolution of Dispute, Powers Available with RBI  

Enforcement of Security Interest  

• Enforcement of Security Interest 
• Chief Metropolitan Magistrate or District Magistrate’s Assistance for Taking Possession of Secured Asset 
• Manner and Effect of Takeover of Management 
• No Compensation to Directors for Loss of Office 
• Application against Measures to Recover Secured Debt 
• Appeal to Appellate Authority 
• Right of the Borrower for Compensation and Costs  

Central Registry  

• Central Registry 
• Central Registrar 
• Register of Securitization 
• Reconstruction and Security Interest Transactions 
• Filing of Transactions of Securitization 
• Reconstruction and Creation of Security Interest 
• Modification of Security Interest Registered 
• Satisfaction of Security Interest 
• Right to Inspect Particulars of Securitization 
• Reconstruction of Security Interest Transactions  

Offences and Penalties  

• Penalties 
• Penalties for Non-compliance of Directions of Reserve Bank of India 
• Offences 
• Cognizance of Offences 
• Power of Adjudicating Authority to Impose Penalty/Appeals against Penalty and Adjudicating Appellate Authority  

Miscellaneous Provisions  

• Non-Applicability of the Provisions of the SARFAESI Act in Certain Cases,  
• Exemption of Certain Classes of Banks /Financial Institutions,  
• Protection of Action Taken in Good Faith,  
• Offences by Companies,  
• Civil Court not to have Jurisdiction,  
• Overriding Effect on Other Laws,  
• Limitation,  
• Power of the Central Government to Make Rules,  
• Amendments to Certain Other Enactments 

Registration of Security Interest by Secured Creditors and Other Creditors/ Rectification by Central Government in Some Cases  

• Registration by Secured Creditors and Other Creditors 
• Rectification by Central Government in Matters of Registration 
• Effect of the Registration of Transactions 
• Right of Enforcement of Securities and Priority Allowed to Secured Creditors

The Recovery of Debts and Bankruptcy Act, 1993  

• Constitutional Validity of the Act 
• Extent 
• Commencement 
• Application and Definitions 

Establishment of Tribunal and Appellate Tribunal  

• Establishment of Tribunal 
• Composition of Tribunal 
• Qualification for Appointment as Presiding Officer and Term of Office 
• Staff of Tribunal 
• Establishment and Composition of Appellate Tribunal 
• Qualification for Appointment as Chairperson of the Appellate Tribunal and Term of Office 
• Filling up of Vacancies at Tribunal and Appellate Tribunal 
• Finality of Orders Constituting Tribunal or an Appellate Tribunal  

Jurisdiction, Powers & Authority of Tribunals  

• Jurisdiction 
• Powers and Authority of Tribunals 
• Bar of Jurisdiction of Civil Courts

Procedure of Tribunals  

• Application to the Tribunal 
• Appeal to the Appellate Tribunal 
• Deposit of Amount of Debt Due for Filing Appeal 
• Procedure and Powers of the Tribunal and the Appellate Tribunal 
• Limitation 

Recovery of Debts Determined by Tribunal and Miscellaneous Provisions  

• Modes of Recovery of Debts 
• Validity of Recovery Certificate and Amendment Thereof 
• Stay and Amendment for Recovery Proceeding and Certificate 
• Other Modes of Recovery 
• Application of Certain Provisions of the Income Tax Act 
• Appeal against the Order of Recovery Officer 
• Transfer of Pending Cases 
• Power of Tribunal to Issue Certificate of Recovery in Case of Decree or Order 
• Chairperson,  
• Presiding Officer and Staff of Appellate Tribunal and Tribunal Public Servants,  
• Protection of Action Taken in Good Faith 
• Overriding Effect of the Act 
• Powers to Make Rule  

Introduction to the Insolvency and Bankruptcy Code, 2016  

• Definitions 
• Coverage 
• Pillars of IBC, 2016,  
• The Insolvency Resolution Process for Companies and Limited Liability Entities 
• Corporate Insolvency Resolution Process (CIRP) 
• Initiation of Corporate Insolvency Resolution Process by a Financial Creditor 
• Suspension of Initiation of CIRP 
• Persons not Entitled to Make Application 
• Time – Limit for completion of Insolvency Resolution Process and withdrawal of application admitted under the Code 
• Declaration of Moratorium and Public Announcement by the Adjudicating Authority,  
• Appointment/Tenure of the Interim Resolution Professional 
• Committee of Creditors 
• Appointment of Resolution Professional 
• Liquidation 
• Order of Priority of Payment of Debts 
• Fast Track Insolvency Resolution Process 
• Voluntary Liquidation of Corporate Person  

The Bankers’ Books Evidence Act, 1891  

• Applicability and Definitions 
• Conditions in the Printout  
• Mode of Proof of Certain Entries in Bankers’ Books 
• Case in which Officer of Bank not Compellable to Produce Books 
• Inspection of Books by Order of Court or Judge 
• Costs of Application  

The Legal Services Authorities Act, 1987: Lok Adalats  

• Organization of Lok Adalats 
• Jurisdiction of Lok Adalats  
• Cognizance of Cases by Lok Adalats 
• Disposal of Cases by Lok Adalats 
• Nature of Award of the Lok Adalats and Powers 

The Consumer Protection Act, 2019  

• Definitions,  
• Unfair Contract and Unfair Trade Practice 
• Central, State and District Consumer Protection Councils,  
• Central Consumer Protection Authority 
• District, State and National Consumer Disputes Redressal Commission 
• Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs) Notification dated 30th December, 2021,  
• Finality of Orders and Limitation Period 
• Consumer Mediation Cell

The Law of Limitation  

• Definitions  
• Limitation and Its Computation 
• Computation of the Period of Limitation 
• Acts Giving Rise to Fresh Period of Limitation 
• Certain Important Provisions in Schedule to the Limitation Act 

Tax Laws  

• Income Tax 
• Commodity Transaction Tax 
• Goods and Services Tax  

Module D: Commercial & Other Laws With Reference To Banking Operations

Meaning and Essentials of a Contract  

• Meaning of Contract,  
• Key Components to Form a Contract Essentials of a Valid Contract 
• Contract Act and Banking

Contracts of Indemnity  

• Rights of Indemnity Holder 
• Implied Indemnity 
• Enforceability of Contract of Indemnity  

Contracts of Guarantee  

• Parties to the Contract 
• Basic Principles of Contract to be complied 
• Consideration 
• The Liability of the Surety 
• Continuing Guarantee 
• Death of Surety 
• Variance in Terms of the Contract 
• Discharge of Principal Debtor 
• Forbearance to Sue 
• Release of One Co-surety does not Discharge Other 
• Surety can Claim His Dues from the Principal Debtor 
• Security, Misrepresentation made by the Creditor 
• Implied Promise by the Principal Debtor to Indemnify the Surety 
• Co-sureties for the Same Debt 
• Revocation of a Continuing Guarantee

Contract of Bailment  

• Meaning of Bailment 
• Essential Features of Bailment 
• Bailor Bound to Disclose to the Bailee 
• Bailee to take care of Goods 
• Effects of mixing of Goods and Expenses 
• Duties of the Bailee with regard to Goods 
• Bailee’s Lien

Contract of Pledge  

• Ingredients of Pledge 
• Nature of Pledge 
• Pledge by Way of Hypothecation 
• Pledge by Pledgee  

Contract of Agency  

• Definition, Contract of Agency 
• Essential Characteristics of a Contract of Agency 
• Rules of Agency 
• Types of Agents 
• Rights and Duties of the Agent and Principal  

Meaning and Essentials of a Contract of Sale  

• Meaning of some of the Important Terms Defined Under the Sale of Goods Act, 1930,  
• Meaning of Contract of Sale of Goods 
• Features of Contract of Sale of Goods 
• Sale and Agreement to Sell 
• Distinction between a Sale and an Agreement to Sell  

Conditions and Warranties  

• Meaning of Condition and Warranty 
• Implied Conditions and Warranties  

Unpaid Seller  

• Rights of an Unpaid Seller  

Definition, Meaning and Nature of a Partnership  

• Meaning and Definition of Partnership 
• Essential Characteristics 
• Types of Partnership 
• Limited Liability Partnership (LLP)  

Relations of Partners to One Another  

• General Duties of Partners 
• Duty to Indemnify the Loss caused by Fraud 
• Determination of Rights and Duties of Partners by Contract between the Partners  
• The Conduct of the Business  
• Mutual Rights and Liabilities  
• The Property of the Firm 
• Profits Earned by Partners 
• Rights and Duties of Partners  

Relations of Partners to Third Parties  

• Partner is an Agent of the Firm 
• Implied Authority of Partner as Agent of the Firm 
• Extension and Restriction of Partner’s Implied Authority 
• Partner’s Authority in an Emergency 
• Mode of Action to Bind Firm 
• Liability of a Partner for Acts of the Firm 
• Liability of the Firm for Wrongful Acts of a Partner 
• Liability of Firm for Misapplication by Partners 
• Holding Out 
• Rights of Transferee of a Partner’s Interest 

Minor Admitted to the Benefit of a Partnership  

• Minor cannot be a Partner 
• Legal position after the Minor attains majority 
• Retirement of a Partner 
• Insolvency of a Partner  

Dissolution of a Firm  

• Dissolution 
• Dissolution by Agreement  
• Compulsory Dissolution  
• Dissolution on the Happening of Certain Contingencies 
• Dissolution by the Court 
• Liability for Acts of Partners Done after Dissolution  

Effect of Non-Registration  

• Registration  

Definition and Features of a Company  

• Definition of a Company,  
• Features of a Company,  
• Distinction between a Company and Partnership  

Types of Companies  

• Classifications of Companies on the basis of mode of Incorporation 
• Classifications of Companies on the basis of Liability 
• Classifications of Companies on the basis of Public Interest 
• Holding and Subsidiary Companies

Memorandum of Association and Articles of Association  

• Memorandum of Association 
• Articles of Association 
• Effect of Memorandum and Articles 
• Distinction between the Memorandum of Association and Articles of Association  

Doctrines of Ultra Vires/ Constructive Notice/ Indoor Management  

• Doctrine of Ultra Vires,  
• Effects of Ultra Vires Transaction,  
• Constructive Notice of Memorandum of Association and Articles of Association,  
• Effect of the Doctrine of Constructive Notice,  
• Doctrine of Indoor Management

Membership of Company  

• Who is a Member of a Company?  
• Various Modes of Becoming Member of a Company,  
• Who can be Members of a Company? 
• Cessation of Membership in a Company 
• Register of Members, Place of Keeping and Inspection of Register of Members,  
• Rights and Duties (Liabilities) of Members of a Company,  
• Rights of Members  

Prospectus  

• What is a Prospectus?  
• Compliance with Respect to Prospectus 
• Mis-statements in a Prospectus and Remedies  

Directors  

• Minimum Number of Directors  
• Appointment of Directors and Proportion of those who are to Retire by Rotation 
• Ascertainment of Directors Retiring by Rotation and Filing of Vacancies 
• Right of Persons other than Retiring Directors to stand for Directorship 
• Additional Directors 
• Filling of Casual Vacancies among Directors 
• Consent to the Company 
• Consent to be filed with Registrar of Companies 
• Whole-time Director 
• Qualification Shares 
• Maximum Number of Directorships 
• Vacation of Office by Directors 
• Certain Powers can be exercised only at Meetings of the Board 
• Restrictions on Powers of Board 
• Loan to Director  
• Contracts in which Directors are Interested 
• Alternate Director 
• Compensation for Loss of Office 

Limited Liability Partnership Act, 2008  

• Definitions,  
• A Body Corporate,  
• Partner/Designated Partner,  
• Liabilities of and changes in Designated Partners,  
• Incorporation of a Limited Liability Partnership,  
• Partners and their Relations,  
• Conversion

Transfer of Property Act, 1882  

• Sale of Immoveable Property 
• Mortgage of Immoveable Property 
• Types of Mortgage 
• Sale without Court Intervention 
• Enforcement of Mortgages through Court 
• Leases of Immoveable Property 
• Actionable Claims  

The Right to Information Act, 2005  

• Applicability 
• Definitions  

Right to Information and Obligations of Public Authorities  

• Obligations of Public Authorities 
• Procedure for obtaining Information 
• Disposal of Request 
• Appeal 
• Orders in Appeal 
• Penalties

Information Technology Act, 2000  

• Definitions,  
• Electronic Governance,  
• Certifying Authorities,  
• Digital Signature Certificates,  
• Penalties, Appeal, Investigation,  
• Critical Information Infrastructure –Protected System,  
• Application of the Act to Electronic Cheque and Truncated Cheque.

Prevention of Corruption Act, 1988  

• Definitions,  
• Special Judges,  
• Offences and Penalties,  
• Fixing of Fine,  
• Persons authorized to investigate,  
• Powers to inspect ‘Bankers Books’,  
• Appeal and Revision  

APPENDIX  

• Important Provisions / Sections of certain Acts

Now, we will discuss in detail the syllabus of all Elective subjects of CAIIB exam, from which the candidate is expected to choose just one subject.

Elective Paper I: Rural Banking 

To begin with the Elective Paper I, there are four modules given which are as follows: 

1. Module A: Rural India 
2. Module B: Financing Rural Development 
3. Module C: Priority Sector Financing and Govt. Initiatives 
4. Module D: Problems and Prospects in Rural Banking 

If you have Paper I – Rural Banking as your elective subject, then you can check the CAIIB new syllabus 2024 pdf provided for the same.

Elective Paper II: Human Resource Management 

For Elective Paper II as well, there are four modules mentioned which are as follows: 

1. Module A: Human Resource Management 
2. Module B: Building an HR strategy 
3. Module C: Motivation, Training and Skill Development 
4. Module D: Personnel Management and Industrial Relations 

If you are preparing for the exam with Human resource Management as your elective subject, then you can access the detailed syllabus here. 

Elective Paper III: Information Technology & Digital Banking 

There are four modules provided in the syllabus of Elective Paper III, which are the following: 

1. Module A: Introduction to Information Technology 
2. Module B: Systems and Design 
3. Module C: Banking Technology Applications and Digital Banking 
4. Module D:  Information System Security Controls and Audit

To know all the topics mentioned in the Paper III syllabus of Information Technology and Digital Banking, you can check the linked page.

Elective Paper IV: Risk Management 

These are the following modules given in the syllabus for Elective Paper IV of Risk Management: 

1. Module A: Risk and Risk Management Framework 
2. Module B: Credit Risk  
3. Module C: Market Risk  
4. Module D: Operational Risk 
5. Module E: Basel and RBI Guidelines on Risk Management 
6. Module F: Derivatives and Risk Management 
7. Appendix: Statistical Measures 

You can check detailed CAIIB new syllabus 2024 Pdf for the syllabus of Risk Management, if you planning to choose Paper IV as your elective subject. 

Elective Paper V: Central Banking 

For the elective paper V- central banking, there are six modules given as follows: 

1. Module A: Rationale and Functions of Central Bank 
2. Module B: Central Banking in India 
3. Module C: Monetary and Credit Policies 
4. Module D: Management of Foreign Exchange Reserves and Constituents of Indian Financial Market 
5. Module E: Regulation, Supervision and Financial Stability 
6. Module F: Non – Banking Financial Companies and Primary Dealers 
7. Appendix  

To know all the topics mentioned in the subject of Central Banking, you can check the complete syllabus of Elective Paper V. 

Now, after going through the complete syllabus, you can check the list of recommended CAIIB books to help in your preparation for the examination.

With discussion on the detailed CAIIB new syllabus over, I will proceed to explain the marking scheme for CAIIB exam.  

CAIIB Marking Scheme

This section would be brief as I will explain the information regarding the marking scheme of the exam in a concise manner.  

Each paper constitutes 100 questions for a total of 100 marks which implies each question carries 1 mark for every correct answer given.  

Although the number of questions asked in each subject could vary, as per the official information on the website, there is no negative marking for attempting incorrect answers. 

To ensure you there are no errors in your registration for the exam, you can check the steps to fill in the CAIIB online application form that I have provided. 

Now, that I have summarized the marking scheme, let’s move on the next section of CAIIB Passing criteria.

CAIIB Passing Criteria  

As you must be knowing by now that there are a total of 5 papers for CAIIB syllabus comprising of 4 compulsory and 1 elective paper. All the papers consist of 100 marks each with multiple choice-based questions.  

Although there is no negative marking for attempting incorrect answers in the exam, there are few guidelines regarding the CAIIB Passing criteria given by the IIBF that I would like to discuss.  

• The minimum marks required to pass in each paper of CAIIB exam are 50 out of 100 marks. 
• If a candidate secures at least 45 marks in each subject with an aggregate of 50% marks in all the subjects of the exam in a single attempt, then he/she shall be considered as having passed the CAIIB examination.  
• In case a candidate is unable to clear all the papers in a single attempt, then he/she shall be allowed to retain credits for the subjects they have passed in an attempt until the time limit allotted for passing the exam is expired.

Before I proceed to conclusion, you can go through the salary structure for CAIIB selected candidates that I have explained to dispel your doubts regarding the topic.  

Conclusion 

Now that we have arrived to the conclusion, I hope you find this blog informative and straightforward. Till now we have discussed all the details with reference to CAIIB Syllabus and exam pattern. I am sure this elaborate discussion on the topic for your exam preparation will be worthwhile. With this, I now take your leave and wish you all good for your future! 

All the best!