Syllabus of JAIIB Paper-1 Principles & Practices of Banking

Syllabus of JAIIB Paper-1 Principles & Practices of Banking

It Consist of 4 module:

MODULE 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, ADR, GDR and Participatory Notes -

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

Role of Money Markets, Fixed Income Markets and  Forex Markets, FEMA -

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

Role and Function of Capital Markets, SEBI -

Overview of Capital Market, Stock Exhange, 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

Alliance/Mergers/Consolidation

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

MODULE 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

MODULE 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 Up gradation 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

MODULE 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