CAIIB Syllabus 2021, Detailed Exam Pattern & Syllabus PDF
CAIIB Syllabus 2021: Indian Institute of Banking and Finance (IIBF) issues the syllabus of Certified Associate of Indian Institute of Bankers (CAIIB) and conducts the CAIIB exam biannually i.e. twice a year. The objective of the CAIIB exam is to provide advanced knowledge to the candidates necessary for better decision-making covering Credit Management, International Banking, Balance Sheet Management, Risk Management, Treasury Management, Economic Analysis, etc. Bookmark this page, and refer to the CAIIB Syllabus 2021 given on this page.
CAIIB Syllabus 2021- Overview
CAIIB 2021 is scheduled from 30th January to 12th February 2022, it's high time for the candidates to begin with their preparation with detailed CAIIB Syllabus Indian Institute of Banking and Finance to conduct CAIIB Examination for Promotion of those Banking Employees, who are already qualified in the JAIIB Examination. CAIIB passed bankers are benefited with additional increments at every scale. Here we have summarized the brief information about the CAIIB Examination.
The CAIIB exam consists of three papers, in which two papers are compulsory and one paper is elective. The key points of the CAIIB exam pattern are as follows:
The CAIIB examination is conducted in Online Mode only.
Each paper carries 100 multiple choice questions of 100 marks.
The time duration allotted to complete each paper is 2 hours.
The exam paper will be bilingual i.e. both in English and Hindi Language.
Papers
Questions
Marks
Duration
Advanced Bank Management
100
100
2 hours
Bank Financial Management
100
100
2 hours
Elective paper
100
100l
2 hours
CAIIB Syllabus 2021
The CAIIB Syllabus 2021 syllabus consists of 3 papers, in which 2 papers are compulsory and one paper is elective. All three papers are divided into Modules. Candidates have the choice to choose any one of the papers among 11 Elective Papers. Candidates are advised to choose elementary papers wisely and prepare all the topics. We have given a detailed CAIIB Syllabus 2021 in the table below:
Paper 1- Advanced Bank Management
Paper-1 consists of four modules, these four modules are as follows:
Module A- Economic Analysis
Module B- Business Mathematics
Module C- HRM in banks
Module D- Credit Management
The detailed syllabus of Paper-1 is given below in the table:
Compulsory Paper 1- Advanced Bank Management
Chapters
Topics
Module A- Economic Analysis
The fundamentals of Economics: Scarcity and Efficiency
Microeconomics & Macroeconomics in brief
Types of economies - Market, Command and Mixed Economies
Macroeconomics: Business cycles, Money and banking, Unemployment & inflation, Interest rate determination, and various types of interest rates.
Indian Economy
Overview of the Indian economy including recent reforms
Interaction between fiscal, monetary & exchange rate policies in India
Financial Markets
Money Market
Capital Market
Foreign Exchange Market
Globalization and its impact
Challenges ahead
Banking & Finance
Current issues
Module - B: Business Mathematics
Concept of Time Value of Money
Net Present Value
Discounted Cash Flow
Sampling methods
Presentation of data
Analysis and interpretation of sample data
hypothesis-testing
Time series analysis
Mean/ standard deviation
Co-relation
Regression
Covariance and volatility
Probability distribution
Confidence interval analysis
Estimating parameters of the distribution
Bond valuation
Duration
Modified duration.
Linear programming
Decision making
Simulation
Statistical analysis using spreadsheets
Features of Spreadsheet
Macros
Pivot table
Statistical and mathematical formulae.
Module- C: HRM in banks
HRM
Fundamentals of HRM
Development of HRM in India
Relationship between HRM and HRD
Structure and functions of HRD, Role of HR professional
Human implications of organizations
Training and development, attitude and soft skills development
Role and impact of training
Career path planning and counseling
Employee behavior
Theories of motivation and their practical implications
Role concepts and analysis, self-development
Performance Management and Appraisal Systems
Reward/ punishment and compensation systems
HRM and Information Technology
Information and data management
Knowledge management
Module - D: Credit Management
Credit Management: Overview
Principles of Credit Management Credit Appraisal
Analyzing Financial Performance
Relationship between items in Balance Sheet and Profit and Loss Account
Trend Analysis, Comparative Statement
Common Size Statement, Preparation of projected Financial Statements
Ratio Analysis
Interpretation and analysis of different Ratios
Limitation of the use of ratios
Statement of Sources and Applications of Funds.
Structuring a Credit Proposal
Working Capital Concept and Management Appraisal techniques for different constituents
Trade cycle, credit rating, Technical and economic feasibility studies
Credit Rating
Rating Methodology
Objectives and benefits of rating
Term Lending
Debt Service Coverage Ratio
Cash Flow Analysis
Cash Budget
Bill Finance
Deferred Payment Guarantee
Credit Scoring
Credit Delivery System
Documentation
Post sanction supervision
Control and monitoring of credit
Consortium finance
Multiple banking
Syndication of loans
Infrastructure financing
Dealing with credit defaults
Stressed assets
Corporate Debt restructuring
SARFAESI, NPAs, recovery options, write-off.
Disclosure of the list of defaulter’s
Objectives and procedure
Appraisal methodology for different types of clients/ products.
Paper 2 - Bank Financial Management
Paper-2 consists of four modules, these four modules are as follows:
Module A- International Banking
Module B- Risk Management
Module C- Treasury Management
Module D- Balance Sheet Management
The detailed syllabus of Paper-2 is given below in the table:
Compulsory Paper - 2: Bank Financial Management
Chapter
Topics
Module - A: International Banking
Forex Business
Factors determining exchange rates
Direct and indirect quotations
Spot/ forward rates, premium, and discount
Cross rates, Basics of forex derivatives
Forward exchange rate contracts
Options, Swaps. Correspondent banking
NRI accounts
Documentary Letters of Credit
UCPDC 600, various facilities to exporters and importers
Risks in foreign trade, the role of ECGC, types of insurance and guarantee covers or ECGC
Role of Exim Bank - Role of RBI and exchange control
Regulations in India, Role, and rules of FEDAI
Role of FEMA and its rules
Module - B: Risk Management
Risk Management: Overview
Risk-Concept, Risk in Banks
Risk Management Framework
Organizational Structure
Risk Identification
Risk Measurement
Sensitivity
Basis Point Value (BPV), Duration, Downside Potential
Value at Risk
Back Testing, tress Testing
Risk Monitoring and Control
Risk Reporting
Market Risk identification
Module - C: Treasury Management
Treasury Management
Risk rating methodology
Risk weights, eligible collateral for mitigation, guarantees
International Financial Institutions: IMF, IBRD, BIS, IFC, ADB
Legal and regulatory aspects
Risk Management
International Finance
Fundamental Principles of Lending to MNCs, documentation, and Monitoring
International Credit Policy Agencies and Global Capital Markets
Raising resources: Availability features and risks of various Equity and debt products like ECBs, ADRs, ECCBs and other types of Bonds, etc., Syndication of loans
Project and Infrastructure Finance: Investments both in India (FII & FDI) and abroad, Joint ventures abroad by Indian Corporates. Investment opportunities abroad for resident Indians.
Financing of mergers and acquisitions
Module - B: Foreign Exchange Business
-
Foreign Exchange Management Act (FEMA) and its philosophy
Different types of Exchange Rates
RBI and FEDAI: their role in regulating Foreign Exchange Business of Banks/ other Authorized Dealers.
Rules regarding rate structure, cover operations, dealing room activities, and risk management principles, including correspondent Bank arrangements.
NRI customers and various banking and investment products available to them under FEMA.
Remittance facilities
Module - C: International Trade
Regulations covering international trade
Various Aspects of International Trade, Government policies, DGFT and their schemes, Customs procedures, Banks' role in implementing these policies and schemes
WTO - its impact
Balance of payment, the balance of trade, Current account, and capital account convertibility.
Documents used in Trade: bill of exchange, invoice, Bill of lading, Airways bill, Insurance policy, etc
Role of Banks in Foreign Trade
Letters of credit; importance in international trade, various types of LCs, settlement of disputes, UCP 600, INCOTERMS.
Exchange control relating to foreign trade. Returns required to be submitted to RBI
Import/ Export Finance
Laws governing trade finance i.e. FEMA, NI Act, Indian Stamp Act, EXIM policy, RBI/ FEDAI guideline
Role of Banks, including EXIM Bank, in financing Foreign Trade, various facilities to Exporters and importers including project finance, Forfaiting, and Factoring
Risks involved in foreign trade finance: Country risk, Currency risk, Exchange risk, legal risk, etc., Role of ECGC.
Module - D: Derivatives
-
Treasury operations of banks and corporates
Derivatives as hedging instruments, types of instruments available in the Indian Market.
RBI rules and guidelines regarding derivatives
Mathematics of derivative valuation and pricing
Risk assessment of derivatives, Lessons from the recent crisis in the derivatives market.
Elective Paper 3 - Rural Banking
Elective paper-3 consists of four modules, these four modules are as follows:
Module A- A Rural India
Module B- Financing Rural Development
Module C- Priority Sector Financing and Government initiatives
Module D- Problems and prospects in Rural Banking
The detailed syllabus of Elective paper-3 is given below in the table:
Elective Paper - 3: Rural Banking
Chapters
Topics
Module - A: Rural India
Demographic feature
Population, occupation, literacy, socio-economic development indicators
Health, nutrition, and education, - urban migration.
Characteristics of Rural Society
Caste and power structure - rural social stratification, Economic Features
The economic life of rural people, share in National income
Trends in per capita income, rural money markets, rural indebtedness, rural poverty
Main causes and methods of measuring rural poverty.
Rural infrastructure
Transport, Power, Markets and other services. Agriculture Economy
Structure and characteristics of Indian agriculture, Role of agriculture in economic development, agriculture
Industry linkages, Resources and technical changes in agriculture, constraints to agriculture development, Emerging issues in
Indian Agriculture. Rural Development Policy: Govt. policies and programs for rural farm and non-farm sectors
Economic reforms and their impact on the rural economy.
Rural Issues
Development issues, Management Issues, Marketing issues, Pricing issues
Module - B: Financing Rural Development
Regulation of Rural Financial Services
Function and policies of RBI in Rural Banking, NABARD Main functions
The role, refinance support. Lead bank approach
State-level and District Level Credit committees
Rural Credit Institutions
Co-operative Credit Societies and Banks, Land Development Banks, Regional Rural Banks, Commercial Banks
Role of Information and communication technologies in rural Banking-Models
Financial inclusion & inclusive growth for rural development banking
Rural insurance micro-insurance scheme, the concept of Business Facilitators and Business Correspondents in rural financing
Term loans for irrigation, farm mechanization, Godowns/ cold-storage facilities, etc
Financing allied agriculture activities like Horticulture, Fisheries, Social forestry, etc
Finance against Warehouse/ cold storage receipts
Financing Rural Non-Farm Sector (RNFS)
Importance of RNFS, Segments in RNFS
Role of Development and Promotional Institutions in RNFS
SME Finance
Definition of SME. Importance to the Indian economy
Financing of SME and small enterprise Refinance from SIDBI
Project funding techniques and requirement assessment
Cluster-based approach and joint finance with SIDBI
MSMED Act 2006, CGTMSE, Working capital assessment of SMEs
Risk rating of SME proposals, the role of rating agencies, and rating methodology
Revival of sick units; revival package and implementation, Stressed assets under rehabilitation
Debt restructuring mechanism for SMEs.
Module - C: Priority Sector Financing and Government initiatives
-
Components of priority sector
RBI guidelines.
Government initiatives
Poverty alleviation programs/ Employment programs/ Production oriented programs-rationale and philosophy, progress and impact, problems and deficiencies
Rural housing and Urban housing schemes under priority sector, they’re equity refinance, Educational loans
Module - D: Problems and prospects in Rural Banking
Role of rural banking
Problems of Rural branches of Commercial banks - transaction costs and risk costs. Technology-based Financial Inclusion.
Emerging trends in rural banking-financing poor as a bankable opportunity, Micro Credit, Self Help Groups/ NGOs, linkages with banking, latest guidelines of GOI and RBI.
Elective Paper 4 - Financial Advising
Elective paper-4 consists of four modules, these four modules are as follows:
Module A- Introduction to Financial Advising
Module B- Financing Planning
Module C- Financial Investment Products
Module D- Taxation
The detailed syllabus of Elective paper-4 is given below in the table:
Elective Paper - 4: Financial Advising
Chapters
Topics
Module - A: Introduction to Financial Advising
Introduction to Financial Advising
Indian financial and investment industry, participants in the Indian finance system
Indian economic and social environment, Role of Regulators viz., RBI, SEBI, etc.
Financial counseling
Essentials in financial counseling, Profile of effective counselor, Basic communication principles
Elements of non-verbal behavior, Attending and Listening skills, Counselor leading responses, understanding and meeting client's needs through financial planning
The evolution of financial planning as a profession. Marketing of financial services.
Fundamental Investment concepts, The Time Value of Money, Risk-Reward Trade-Off, Diversification -Spreading Risk, Investment Timing
Direct Investment - What Are They and Who Uses Them?
Module - B: Financial Planning
Financial Planning
Role of a Financial planner, Fundamental investment concepts, Asset classes, Asset allocation towards a financial plan
Working with clients, gathering initial/ additional information from the client, understanding investor's risk appetite
Meeting the client's objectives, Asset Allocation, Good practices in financial planning
Content of a comprehensive financial plan, Recommending financial planning strategies to investors
Asset allocation is the strategic tool
Selection of Investment and Insurance Products, Implementation, Ongoing Service
Elective paper-6 consists of four modules, these four modules are as follows:
Module A- Introduction
Module B- Retail Products
Module C- Marketing/ Selling of retail products, MIS and Accounting
Module D- Other issues related to Retail Banking
The detailed syllabus of the Elective paper-6 is given below in the table:
Elective Paper - 6: Retail Banking
Module - A: Introduction
Chapters
Topics
Introduction to Retail Banking
History and definition, role within the bank operations, Applicability of retailing concepts distinction between Retail and Corporate/ Wholesale Banking
Module - B: Retail Products
Retail Products Overview
Customer requirements, Products development process, Liabilities and Assets Products/ Description of Liability products
Description of Asset Products, the Approval process for retail loans, credit scoring.
Credit Vs Debit Cards, Eligibility, Purpose, Amounts, Margin, Security, Process of using the cards, Billing Cycle, Credit Points.
Other Products/ Remittances/ Funds Transfer
Module - C: Marketing/ Selling of retail products, MIS and Accounting
Retail Strategies
Tie-up with Institutions for Personal loans/ Credit cards/ Educational loans, with OEMs/ Authorized Dealers for Auto/ Vehicle loans, and with Builders/ Developers for Home loans
Delivery Channels
Branch, Extension counters, ATMs, POS, Internet Banking, M-Banking.
Selling Process in retail products - Direct Selling Agents
Customer Relationship Management - Role and impact of customer relationship management
Stages in customer relationship management process.
Regulations and compliance
Technology for Retail Banking - Static information, Account opening, basic loan origination data, etc.
The updated information like income details at different frequencies. Transaction information from disbursement till final settlement of the loan amount. Analytics/ Alerts.
Accounting entries - Loan process and the relevant accounting including EMI Computation.
Module - D: Other issues related to Retail Banking
Securitization, mortgage-based securities
Trends in retailing - New products like Insurance, Demat services, online/ Phone Banking, Property services
Basel Norms - Profit and Profitability - Approach of Banks to profitability
Effects of NPA on profitability - A profitability model
Module- D: Supervisory and Regulatory aspects
Banking Regulation Act (As applicable to Co-op. Banks)
Role of R.B.I. -Supervision, and control - Branch licensing - Inspection/ Audit - Statutory/ Reserve requirements
R.B.I. guidelines on Deposits, Advance, Priority sector lending, Weaker section lending, Control Returns
Recommendations of Marathe Committee, Madhav Rao Committee, and Vaidyanathan committee
Role of Directors and Corporate Governance Best Practices - Management Information System.
Elective Paper 8 - Human Resource Management
Elective paper-8 consists of four modules, these four modules are as follows:
Module A- Human Resources Management
Module B- Building an HR strategy
Module C- Motivation, Training and Skill Development
Module D- Personnel Management and Industrial Relations
The detailed syllabus of the Elective paper-8 is given below in the table:
Elective Paper - 8: Human Resource Management
Chapters
Topics
Module - A: Human Resources Management
Concepts, Policies, and Practices
Fundamentals of HRM; Importance of Human Capital, Management of transformation
New insights into HR Management and contemporary issues, Relationship between HRM and HRD
Structure and Functions, Policies and Practices, Role of HRD professional, Development of HRM in India.
Behavioral Dynamics in organizations
Person - Job Fit, Group Dynamics, Group Problem Solving and effectiveness, Leadership and Teambuilding, Change Management, Human Response
Implications of benchmarking; TQM, BPR, ISO 9000 Series and other techniques for Organizational improvement and Management of Service Industry
Quality Circles. Six Sigma and its implication in organizational development.
Organizational Change and Development
Responsibility Charting, Conditions for Optimal Success, Role of Change Agent and Managing Change.
HRM in Banks
Traditional Role of Human Resources Department in Banks
Expectations from HR Department, Conflict of new initiatives with work culture and capacity
Major HRM challenges facing Banks, Core Banking and HR challenges
Knowledge management in Banks
Need for Knowledge Management Officer, Role in the Banks, HRM and Information Technology
Information and Database Management, Preparation and updation of Manuals and job cards
Linkage with Educational Institutions.
Module - B: Building an HR strategy
Strategy Formulation and implementation
Need for a distinctive HR strategy, Formulating the strategy; a connecting strategy to the organization, aligning HR Systems with decision framework, Relationship between Sustainable strategic success and performance of the organization
Execution of strategy: Role of CEO, Executive Team, and line Managers, Succession Planning, HRD Audit, Effectiveness of HRD, Best HR practices in banks.
Organizational Communication
Barriers to Communications, Steps for effective communication in the organization
Manpower Planning
Recruitment, Selection, Placement, and Promotion.
Recruitment Vs Outsourcing: Concept and Feasibility of Outsourcing, advantages, disadvantages and constraints, Compensation
Incentive system linked to productivity, dealing with attrition.
Performance Management and Appraisal Systems
Performance Appraisal System, Role of PAS, Emerging Trends, 360-degree performance Appraisal
Appraisal Vs Feedback, Competency Mapping, Key Performance Areas (KPA)
Module - C: Motivation, Training and Skill Development
Human implications of Organizations
Learning and instructions, Learning Processes, Employee Behavior, Theories of Motivation and their practical implications
Motivational strategies, Reward and Incentive schemes, job enrichment, job rotation
Employee Development Strategies and Techniques.
Training and Development
Attitude development, Role,, and impact of training
Career Path Planning and Counseling, Changing face of Banking
Future of Bank Education, Identification of Training Needs
Training Methodology
Subject matters of Training, Training infrastructure in Banks, outsourcing of Training
On - the job training, Management of conflict between Training and operations due to manpower constraints, Development of soft skills and communications
Developing competencies through e-learning, virtual learning, and self-directed learning. Training measurement and impact.
Module - D: Personnel Management and Industrial Relations
The personnel functions
Legal aspects of personnel functions, trade unionism, and Industrial Relations
Industrial Relations and Negotiations in the Indian Banking Industry, Collective Bargaining Concepts
Bipartite Settlements in Banking, Employee Welfare
Policies and Schemes.
Grievance Redressal and Discipline
Mechanism and Processes, Discipline Management including Domestic Enquiry
Role of Management and Functions, Conflict Management and Resolution, Frauds in Banks, Risks attached to Delegation of Financial Powers
Precautions and Controls need for a vigilance Dept. in Banks, Diversity and Gender Issues, Dealing with the cases of Sexual harassment
Workers' Participation in Management, Experience of Employee Participation in the Indian banking industry.
Elective Paper 9 - Information Technology
Elective paper-9 consists of four modules, these four modules are as follows:
Module A- Introduction to Information Technology
Module B- Systems and Design
Module C- Applications in Banking
Module D- Security, Controls, and Guidelines
The detailed syllabus of the Elective paper-9 is given below in the table:
Elective Paper - 9: Information Technology
Chapters
Topics
Module - A: Introduction to Information Technology
Impact of IT on Banking
Changing Financial Environment and IT as a Strategic Response Hardware (H/ W)
Software: (S/ W)
System Software
Operating Systems (Desktop OS/ Server OS) Windows (Desktop/ Server)/ UNIX (H. P. Unix, Sun Solaris, Linux, IBM AIX)
Computer Languages
1st Generation Languages (Assembly), 2nd Generation (FORTRAN, ALGOL, COBOL)
3rd Generation (C, C++, C# and JAVA, etc.) and 4th Generation Languages (Clipper, Power Builder, SQL, etc.) and 5th Generation Languages (Logic Programming Languages)
Database Management System and Relational Database Management Systems (Oracle10g, MS SQL-2005, MySQL) Application Servers (Oracle 10AS, BeWeblogic, WebShare ) Web Servers (IIS, Apache, etc.)
Web Browsers (IE 7.0, Firefox, etc.)
Application Software
Packaged Software, Custom-built Software, etc. Computer Networks
Equipment & Data Communication
Computer Networks
Network Layers, Topologies, Protocols, IP Address Mechanisms, LAN, WAN, VLAN
Preventive maintenance, Systems performance monitoring process tools, techniques, Functionality of hardware, software, database.
Drafting of RFP, system specifications, SLAs, Capacity planning & monitoring
Change management processes/ scheduled, emergency in the configuration of production systems, application of patches, releases, etc.
Incident & problem management practices, System resiliency tools, and techniques - fault tolerance, elimination of single point of failure, clustering.
Elective Paper 10 - Co-operative Banking
Elective paper-10 consists of four modules, these four modules are as follows:
Module A- An overview
Module B- Treasury operations
Module C- Treasury & International Banking
Module D- Risk Management
The detailed syllabus of the Elective paper-10 is given below in the table: