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. 

CAIIB Syllabus 2021
Exam conducting BodyIndian Institute of Banking and Finance 
Exam Name CAIIB 2021
CategorySyllabus
Exam LevelNational Level
Mode of ExamOnline
Types of QuestionsMultiple Choice Type
Number of Papers3 Papers
No. of Questions 100 each paper
Official Websitewww.iibf.org.in

CAIIB Exam Pattern 2021

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:

  1. The CAIIB examination is conducted in Online Mode only.
  2. Each paper carries 100 multiple choice questions of 100 marks.
  3. The time duration allotted to complete each paper is 2 hours.
  4. The exam paper will be bilingual i.e. both in English and Hindi Language.
PapersQuestionsMarksDuration
Advanced Bank Management1001002 hours
Bank Financial Management1001002 hours
Elective paper100100l2 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:

  1. Module A- Economic Analysis
  2. Module B- Business Mathematics
  3. Module C- HRM in banks
  4. 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 
  1. Microeconomics & Macroeconomics in brief 
  2. Types of economies - Market, Command and Mixed Economies 
  3. Macroeconomics: Business cycles, Money and banking, Unemployment & inflation, Interest rate determination, and various types of interest rates.
Indian Economy
  1. Overview of the Indian economy including recent reforms
  2. Interaction between fiscal, monetary & exchange rate policies in India 
Financial Markets 
  1. Money Market
  2. Capital Market
  3. Foreign Exchange Market
  4. Globalization and its impact
  5. Challenges ahead 
  6. Banking & Finance 
  7. Current issues
Module - B: Business Mathematics
Concept of Time Value of Money
  1. Net Present Value
  2.  Discounted Cash Flow
  3. Sampling methods
  4. Presentation of data
  5. Analysis and interpretation of sample data
  6. hypothesis-testing
Time series analysis
  1. Mean/ standard deviation
  2. Co-relation
  3. Regression
  4. Covariance and volatility
  5. Probability distribution
Confidence interval analysis
  1. Estimating parameters of the distribution 
Bond valuation
  1. Duration 
  2. Modified duration. 
Linear programming
  1. Decision making
  2. Simulation
  3. Statistical analysis using spreadsheets
Features of Spreadsheet 
  1. Macros
  2. Pivot table
  3. Statistical and mathematical formulae.
Module- C: HRM in banks
HRM
  1. Fundamentals of HRM
  2. Development of HRM in India
  3. Relationship between HRM and HRD
  4. Structure and functions of HRD, Role of HR professional
Human implications of organizations
  1. Training and development, attitude and soft skills development
  2. Role and impact of training
  3. Career path planning and counseling
  4. Employee behavior
  5. Theories of motivation and their practical implications
  6. Role concepts and analysis, self-development
Performance Management and Appraisal Systems
  1. Reward/ punishment and compensation systems
  2. HRM and Information Technology
  3. Information and data management
  4. Knowledge management
Module - D: Credit Management
Credit Management: Overview
  1. Principles of Credit Management Credit Appraisal
  2. Analyzing Financial Performance
  3. Relationship between items in Balance Sheet and Profit and Loss Account
  4. Trend Analysis, Comparative Statement
  5. Common Size Statement, Preparation of projected Financial Statements
Ratio Analysis
  1. Interpretation and analysis of different Ratios
  2. Limitation of the use of ratios
  3. Statement of Sources and Applications of Funds.
Structuring a Credit Proposal 
  1. Working Capital Concept and Management Appraisal techniques for different constituents
  2. Trade cycle, credit rating, Technical and economic feasibility studies
Credit Rating 
  1. Rating Methodology
  2. Objectives and benefits of rating 
Term Lending
  1. Debt Service Coverage Ratio
  2. Cash Flow Analysis
  3. Cash Budget
  4. Bill Finance
  5. Deferred Payment Guarantee
  6. Credit Scoring
  7. Credit Delivery System
  8. Documentation 
  9.  Post sanction supervision
  10.  Control and monitoring of credit
  11.  Consortium finance
  12.  Multiple banking
  13.  Syndication of loans
  14.  Infrastructure financing
Dealing with credit defaults
  1. Stressed assets
  2. Corporate Debt restructuring
  3. SARFAESI, NPAs, recovery options, write-off. 
Disclosure of the list of defaulter’s
  1. Objectives and procedure
  2. 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:

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

The detailed syllabus of Paper-2 is given below in the table: 

Compulsory Paper - 2: Bank Financial Management 
ChapterTopics
Module - A: International Banking
Forex Business
  1. Factors determining exchange rates
  2. Direct and indirect quotations
  3. Spot/ forward rates, premium, and discount
  4. Cross rates, Basics of forex derivatives
  5. Forward exchange rate contracts
  6. Options, Swaps. Correspondent banking
  7. NRI accounts
Documentary Letters of Credit 
  1. UCPDC 600, various facilities to exporters and importers
  2. Risks in foreign trade, the role of ECGC, types of insurance and guarantee covers or ECGC
  3. Role of Exim Bank - Role of RBI and exchange control
  4. Regulations in India, Role, and rules of FEDAI
  5. Role of FEMA and its rules 
Module - B: Risk Management
Risk Management: Overview
  1. Risk-Concept, Risk in Banks
  2. Risk Management Framework
  3. Organizational Structure
  4. Risk Identification
  5. Risk Measurement
  6. Sensitivity
  7. Basis Point Value (BPV), Duration, Downside Potential
  8. Value at Risk
  9. Back Testing, tress Testing
  10.  Risk Monitoring and Control
  11.  Risk Reporting 
  12.  Market Risk identification

 

Module - C: Treasury Management
Treasury Management
  1. Risk rating methodology
  2. Risk weights, eligible collateral for mitigation, guarantees
  3. Credit ratings, transition matrices, default probabilities, Credit risk spreads
  4. Risk migration and credit metrics, Counterparty risk. Credit exposures
  5. Recovery rates, risk mitigation techniques
  6. Operational and Integrated Risk Management
  7. Risk management and capital management
  8. ‘Basel Norms - Current guidelines on risk management 
 
Concepts and function
  1. Instruments in the treasury market
  2. Development of new financial products
  3. Control and supervision of treasury management
  4. Linkage of domestic operations with foreign operations
Risk Management 
  1. Interest rate risk
  2. Interest rate futures
  3. Mix/ Pricing of Assets, Liabilities 
  4. On-Balance Sheet Investment and Funding Strategies
  5. Stock options, debt instruments, bond portfolio strategy, risk control, and hedging instruments
Investments
  1. Treasury bills, money market instruments such as CDs, CPs
  2. IBPs Securitisation, and Forfaiting Refinance and rediscounting facilities
  3. Derivatives - Credit Default Swaps/ Options 
Module - D: Balance Sheet Management 
Prudential norms Capital Adequacy
Implementation of ‘Basel Norm’s guidelines
  1. RBI guidelines
  2. Banks Balance Sheet
  3. Components of assets/ Liabilities/ ALM Implementation
  4. RBI Guidelines
  5. Gap Analysis
  6. Mechanics, Assumptions, and Limitations
  7. Illustrations of Actual Gap Reports
  8. The Relationship Between Gap and Income Statement
  9. Funding Liquidity
  10. Trading/ Managing Liquidity 
Contingency Funding and Business Strategies
  1. Profit and profitability analysis
  2. Asset Classification
  3. Provisioning - effect of NPA on profitability, Shareholder value maximization & EVA
  4. Profit planning measures to improve profitability
  5. Disclosure guidelines 

Elective Paper 1  - Central Banking

Elective paper-1 consists of  four modules, these four modules are as follows:

  1. Module A-  Rationale and Functions of Central Bank
  2. Module B-  Central banking in India
  3. Module C-  Monetary Policy and Credit Policy
  4. Module D-  Supervision and Financial Stability

The detailed syllabus of Elective paper-1 is given below in the table: 

Elective Paper - 1: Central Banking
ChaptersTopics
Module - A: Rationale and Functions of Central Bank
Evolution and Functions of Central Banking
  1. Evolutions of Theory and Practice of Central Banking
  2. Development of Central Banks in Developed and Developing countries.
Functions of a Central Bank
  1. Banker to Government, Banker to Banks, Monetary policy Functions
  2. Currency Issue and Management, Payment system function
  3. Maintaining internal and External values of currency, Regulation
  4. Facilitation and supervision of Financial System
  5. Promotional Functions to support growth and other National objectives
  6. Development of Financial Markets, Institutions, and communication policies.
Contemporary Issues
  1. Desirability, Autonomy and independence, Credibility
  2. Accountability and transparency of a Central Bank
  3. Conflict with fiscal policies.
Module - B: Central banking in India
Reserve Bank of India
  1. Organizational evolution, Constitution and Governance
  2. Major organizational and Functional Developments over time
  3. Recent Developments, RBI Act. 
India Specific Issues: 
  1. Banking Regulation Act, FEMA, Banking Ombudsman Scheme
  2. Financial Sector reforms
  3. Other financial regulators and division of functions. Institutions set up by RBI
  4. NABARD, IDBI, DFHI, IRBI, UTI
  5. Glossary of Central Banking Terms.
Module - C: Monetary Policy and Credit Policy
Monetary Policy
  1. Objectives, Reconciling dual objectives
  2. The Taylor Rule, Indicators of Policy, instruments of policy (Bank Rate, OMO, CRR, SLR, etc.)
  3. Policy Transmission mechanism and channels, transparency of policies
  4. Lags in the policy. 
Credit Policy
  1. Objectives, Theory, and Practice, Instruments.
An overview of Fiscal Policy
  1. Importance of Budgets, Union Budget, State Budget, Finances of Union and State Governments, Finance Commission. 
  2. Striking balance between inflation and growth through monetary and fiscal policies.
Module - D: Supervision and Financial Stability
Indian Financial System
  1. Constituents of Indian Financial Markets and their Regulation
  2. Evolution of Bank Regulation and supervision
Financial Stability
  1. Financial Development Vs Financial stability
  2. Risks to Financial stability, Early warning signals, and remedial action
  3. Liquidity Management, Regulation, and Supervision of Banks
  4. Risk Management in Banks
  5. The Basel Norms, Prudential Norms, Effect of liberalization and Globalization on Financial Stability
  6. Linkage to International Financial Stability
  7. International standards and codes
  8. Role of Supervisor under Basel Norms. 

Elective Paper 2  - International Banking

Elective paper-2 consists of  four modules, these four modules are as follows:

  1. Module A-  International Banking and Finance
  2. Module B-  Foreign Exchange Business
  3. Module C-  International Trade
  4. Module D-  Derivatives

The detailed syllabus of Elective paper-2 is given below in the table: 

Elective Paper - 2: International Banking
ChaptersTopics
Module - A: International Banking and Finance
International Banking
  1. Global Trends and Developments in International Banking
  2. International Financial Centres, Offshore Banking Units, SEZs
  3. Profitability of International Banking operations
  4. Correspondent Banking and inter - Bank Banking
  5. Investment Banking, Wholesale Banking, Retail Banking, Merchant Banking
  6. International Financial Institutions: IMF, IBRD, BIS, IFC, ADB
  7. Legal and regulatory aspects
  8. Risk Management 
International Finance 
  1. Fundamental Principles of Lending to MNCs, documentation, and Monitoring
  2. International Credit Policy Agencies and Global Capital Markets 
  3. 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
  4. Project and Infrastructure Finance: Investments both in India (FII & FDI) and abroad, Joint ventures abroad by Indian Corporates. Investment opportunities abroad for resident Indians.
  5. Financing of mergers and acquisitions
Module - B: Foreign Exchange Business
-
  1. Foreign Exchange Management Act (FEMA) and its philosophy
  2. Different types of Exchange Rates
  3. RBI and FEDAI: their role in regulating Foreign Exchange Business of Banks/ other Authorized Dealers.
  4. Rules regarding rate structure, cover operations, dealing room activities, and risk management principles, including correspondent Bank arrangements.
  5. NRI customers and various banking and investment products available to them under FEMA.
  6. Remittance facilities
Module - C: International Trade
Regulations covering international trade
  1. Various Aspects of International Trade, Government policies, DGFT and their schemes, Customs procedures, Banks' role in implementing these policies and schemes
  2. WTO - its impact
  3. Balance of payment, the balance of trade, Current account, and capital account convertibility.
  4. Documents used in Trade: bill of exchange, invoice, Bill of lading, Airways bill, Insurance policy, etc 
  5. Role of Banks in Foreign Trade 
  6. Letters of credit; importance in international trade, various types of LCs, settlement of disputes, UCP 600, INCOTERMS.
  7.  Exchange control relating to foreign trade. Returns required to be submitted to RBI
Import/ Export Finance
  1. Laws governing trade finance i.e. FEMA, NI Act, Indian Stamp Act, EXIM policy, RBI/ FEDAI guideline
  2. Role of Banks, including EXIM Bank, in financing Foreign Trade, various facilities to Exporters and importers including project finance, Forfaiting, and Factoring
  3. Risks involved in foreign trade finance: Country risk, Currency risk, Exchange risk, legal risk, etc., Role of ECGC. 
Module - D: Derivatives
-
  1. Treasury operations of banks and corporates
  2. Derivatives as hedging instruments, types of instruments available in the Indian Market.
  3. RBI rules and guidelines regarding derivatives
  4. Mathematics of derivative valuation and pricing
  5. 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:

  1. Module A- A Rural India
  2. Module B- Financing Rural Development
  3. Module C- Priority Sector Financing and Government initiatives
  4. 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
ChaptersTopics
Module - A: Rural India
Demographic feature
  1. Population, occupation, literacy, socio-economic development indicators
  2. Health, nutrition, and education, - urban migration.
Characteristics of Rural Society
  1. Caste and power structure - rural social stratification, Economic Features
  2. The economic life of rural people, share in National income
  3. Trends in per capita income, rural money markets, rural indebtedness, rural poverty
  4. Main causes and methods of measuring rural poverty.
Rural infrastructure
  1. Transport, Power, Markets and other services. Agriculture Economy
  2. Structure and characteristics of Indian agriculture, Role of agriculture in economic development, agriculture
  3. Industry linkages, Resources and technical changes in agriculture, constraints to agriculture development, Emerging issues in
  4. Indian Agriculture. Rural Development Policy: Govt. policies and programs for rural farm and non-farm sectors
  5. Economic reforms and their impact on the rural economy.
Rural Issues
  1. Development issues, Management Issues, Marketing issues, Pricing issues
Module - B: Financing Rural Development
Regulation of Rural Financial Services
  1. Function and policies of RBI in Rural Banking, NABARD Main functions
  2. The role, refinance support. Lead bank approach
  3. State-level and District Level Credit committees
Rural Credit Institutions
  1. Co-operative Credit Societies and Banks, Land Development Banks, Regional Rural Banks, Commercial Banks
  2. Role of Information and communication technologies in rural Banking-Models
  3. Financial inclusion & inclusive growth for rural development banking
  4. Rural insurance micro-insurance scheme, the concept of Business Facilitators and Business Correspondents in rural financing
Financing agriculture/ allied activities
  1. Crop Loans Assessment, Sanction, Disbursement, replacement
  2. Term loans for irrigation, farm mechanization, Godowns/ cold-storage facilities, etc
  3. Financing allied agriculture activities like Horticulture, Fisheries, Social forestry, etc
  4. Finance against Warehouse/ cold storage receipts
Financing Rural Non-Farm Sector (RNFS)
  1. Importance of RNFS, Segments in RNFS
  2. Role of Development and Promotional Institutions in RNFS
SME Finance
  1. Definition of SME. Importance to the Indian economy
  2. Financing of SME and small enterprise Refinance from SIDBI
  3. Project funding techniques and requirement assessment
  4. Cluster-based approach and joint finance with SIDBI
  5. MSMED Act 2006, CGTMSE, Working capital assessment of SMEs
  6. Risk rating of SME proposals, the role of rating agencies, and rating methodology
  7. Revival of sick units; revival package and implementation, Stressed assets under rehabilitation
  8. Debt restructuring mechanism for SMEs.
Module - C: Priority Sector Financing and Government initiatives
-
  1. Components of priority sector
  2. RBI guidelines.
Government initiatives
  1. Poverty alleviation programs/ Employment programs/ Production oriented programs-rationale and philosophy, progress and impact, problems and deficiencies
  2. 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
  1. Problems of Rural branches of Commercial banks - transaction costs and risk costs. Technology-based Financial Inclusion.
  2. 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:

  1. Module A- Introduction to Financial Advising
  2. Module B- Financing Planning
  3. Module C- Financial Investment Products
  4. Module D- Taxation

The detailed syllabus of Elective paper-4 is given below in the table: 

Elective Paper - 4: Financial Advising
ChaptersTopics
Module - A: Introduction to Financial Advising
Introduction to Financial Advising
  1. Indian financial and investment industry, participants in the Indian finance system
  2. Indian economic and social environment, Role of Regulators viz., RBI, SEBI, etc.
Financial counseling
  1. Essentials in financial counseling, Profile of effective counselor, Basic communication principles
  2. Elements of non-verbal behavior, Attending and Listening skills, Counselor leading responses, understanding and meeting client's needs through financial planning
  3. The evolution of financial planning as a profession. Marketing of financial services.
  4. Fundamental Investment concepts, The Time Value of Money, Risk-Reward Trade-Off, Diversification -Spreading Risk, Investment Timing
  5. Direct Investment - What Are They and Who Uses Them?
Module - B: Financial Planning
Financial Planning
  1. Role of a Financial planner, Fundamental investment concepts, Asset classes, Asset allocation towards a financial plan
  2. Working with clients, gathering initial/ additional information from the client, understanding investor's risk appetite
  3. Meeting the client's objectives, Asset Allocation, Good practices in financial planning
  4. Content of a comprehensive financial plan, Recommending financial planning strategies to investors
Asset allocation is the strategic tool 
  1. Selection of Investment and Insurance Products, Implementation, Ongoing Service
  2. Using stop-loss, understanding market behavior.
Module - C: Financial Investment Products
Financial investment products
  1. Portfolio analysis & selection, Efficient markets, Securities markets - Primary market, Secondary market
  2. Depository & investment process, regulatory framework, fundamental and technical analysis-basic philosophies, and underlying assumptions
  3. Bond and Money markets, Indian debt markets - Securities traded in the debt market, Commodities Market
  4. Insurance products, Pension products, Mutual fund industry products & services, Banking products, Investment in Real estate
  5. Cash generation and return on investment
  6. Statutory provisions regarding starting of business/ industrial units by NRIs/ MNCs.
Module - D: Taxation 
Taxation
  1. Income Tax law, important definitions-person, Assess, Agriculture income, capital/ Revenue receipts/ expenditure
  2. Gross total income, Total income, residential status
  3. Heads of income viz salaries, income from house property, profits and gains of business or profession
  4. Capital gains, income from other sources, Income exempt from tax
  5. Permissible deductions from gross total income, income tax return, tax deducted at source
Tax planning strategies
  1. Housewife, Salaried person, Businessman, persons having income from more than one source
  2. Retirement planning and taxation, Tax triggered investments Estate Planning, Will
  3. Administration of an estate, Passing of an asset, Tax planning through wills and trusts
  4. Taxation of Terminal benefits.

Elective Paper 5  - Corporate Banking

Elective paper-5 consists of  three modules, these three modules are as follows:

  1. Module A- Corporate Banking and Finance
  2. Module B-  Investment Banking 
  3. Module C- Project and Infrastructure Finance

The detailed syllabus of the Elective paper-5 is given below in the table: 

Elective Paper - 5: Corporate Banking
ChaptersTopics
Module - A: Corporate Banking and Finance
Corporate Banking
  1. Meaning and importance, various services provided viz., Cash Management, Salary Payment
  2. Debt Management, Factoring, and Forfaiting, Trusteeship, Custodial services, Business advisory
  3.  Offshore services, Trade services, Forex Management, etc.
Corporate Deposits
  1. Importance of Institutional deposits vis-a-vis retail deposits 
Corporate Finance
  1. Working capital finance, Fund, and Non fund based limits, and ImportExport finance. Corporate Debt Restructuring.
Module - B: Investment Banking
-
  1. Meaning and scope of Investment Banking, Evolution, an overview of the current state of Investment Banking in India.
Merchant Banking
  1. Advisory services for equity/ debt issues, Management, placement, and distribution of equity/ debt
Mergers and Acquisitions, Divestitures
  1. Identification, Structuring, Negotiation, and Execution, arranging finances, etc.
Corporate advisory services
  1. Capital restructuring, Project advisory, Private equity, and Venture capital, Loan Syndication, etc.
Module - C: Project and Infrastructure Finance
Characteristics of Project Finance
  1. Technology selection, Assessment of technical collaborator
Market Analysis
  1. International competitiveness and SWOT analysis - Assessing the project cost
  2. Means of financing projects, Estimation of project cash flows - Use of free and equity cash flow valuation for assessing projects 
Financial Analysis 
  1. Break-even point analysis, Decision tree, Scenario analysis and Internal Rate of Return, Sensitivity analysis Common risks in projects
  2. Risk mitigation methodologies in projects, Securitization as a tool for risk mitigation
  3. Project planning, Network techniques for project implementation
  4. Disbursement, supervision, and follow-up of the project by the lender
  5. Infrastructure financing cash flow deal agreement with parties involved - SPV
  6. Monitoring, and follow-up of the project.

Elective Paper 6  - Retail Banking

Elective paper-6 consists of  four modules, these four modules are as follows:

  1. Module A- Introduction 
  2. Module B- Retail Products
  3. Module C- Marketing/ Selling of retail products, MIS and Accounting
  4. 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
ChaptersTopics
Introduction to Retail Banking
  1. 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
  1. Customer requirements, Products development process, Liabilities and Assets Products/ Description of Liability products
  2. Description of Asset Products, the Approval process for retail loans, credit scoring.
Important Asset Product
  1. Home Loans - Eligibility, Purpose, Amounts, Margin, Security, Disbursement, Moratorium, Prepayment issues, Repayments/ Collection
  2. Auto/ Vehicle Loans - Eligibility, Purpose, Amounts, Margin, Security, Disbursement, Moratorium, Prepayment issues, Repayments/ Collection
  3. Personal Loans Eligibility, Purpose, Amounts, Security, Disbursement, Moratorium, Prepayment issues, Repayments/ Collection
  4. Educational Loans Eligibility, Purpose, Amounts, Security, Disbursement, Moratorium, Prepayment issues, Repayments. 
Credit/ Debit Cards
  1. Credit Vs Debit Cards, Eligibility, Purpose, Amounts, Margin, Security, Process of using the cards, Billing Cycle, Credit Points.
  2. Other Products/ Remittances/ Funds Transfer
Module - C: Marketing/ Selling of retail products, MIS and Accounting
Retail StrategiesTie-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
  1. Branch, Extension counters, ATMs, POS, Internet Banking, M-Banking.
  2. Selling Process in retail products - Direct Selling Agents
  3. Customer Relationship Management - Role and impact of customer relationship management
  4. Stages in customer relationship management process.
Regulations and compliance
  1. Technology for Retail Banking - Static information, Account opening, basic loan origination data, etc. 
  2. The updated information like income details at different frequencies. Transaction information from disbursement till final settlement of the loan amount. Analytics/ Alerts. 
  3. Accounting entries - Loan process and the relevant accounting including EMI Computation.
Module - D: Other issues related to Retail Banking
Securitization, mortgage-based securities
  1. Trends in retailing - New products like Insurance, Demat services, online/ Phone Banking, Property services
  2.  Investment advisory/ Wealth management, Reverse Mortgage - Growth of e-banking, Cross-selling opportunities.
Recovery of Retail Loans
  1. - Defaults, Rescheduling, recovery process. SARAFAESI Act, DRT Act, use of Lok Adalat forum. 
  2. Recovery Agents - RBI guidelines.

Elective Paper 7  - Co-operative Banking

Elective paper-7 consists of  four modules, these four modules are as follows:

  1. Module A- Principles and Laws of co-operative Banking Law and rules relating to Co-op Banks
  2. Module B- Co-operative Banking Operations
  3. Module C- Technology, Risk management
  4. Module D- Supervisory and Regulatory aspects

The detailed syllabus of the Elective paper-7 is given below in the table: 

Elective Paper - 7: Co-operative Banking
Chapters Topics
Module - A: Principles and Laws of co-operative Banking Law and rules relating to Co-op Banks
Principles of Co-operation
  1. A brief overview of the structure of co-operative credit institutions - Membership
  2. Legal aspects of banking operations - Banking related laws - Provisions of Bankers Book Evidence Act
  3. Special features of Recovery of Debts Due to Banks and Financial Institutions Act, 1993
  4. Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
  5. The Consumer Protection Act, 1986 - Banking Ombudsman 
Module - B: Co-operative Banking Operations
Deposits, Credit & Investment Management 
  1. Different Deposit Products - Deposit Policy - Credit Management Loans and advances
  2. Priority sector lending - MSME financing - Personal Finance - Banker - Customer relations
  3. Garnishee orders and Attachment orders, Bankers' right of lien, set-off, and appropriation
  4. Indemnities and Bank Guarantees; Loan Policy - Management of NPA - Investment Management
  5.  CRR/ SLR Management - Financial Markets - guidelines of RBI/ NABARD regarding investment
  6. Money Market - Call money - Repos and Reverse Repos - Foreign Exchange Market
  7. Debt market - Bancassurance - Meaning and Scope of Investment Policy 
Module- C: Technology, Risk management
Technology Banking
  1. Electronic Payment systems/ core banking solutions - Electronic funds transfer systems 
  2. RTGS - Risk Management - Exposure limits - Asset Liability Management - Capital Adequacy
  3. Basel Norms - Profit and Profitability - Approach of Banks to profitability
  4. Effects of NPA on profitability - A profitability model 
Module- D: Supervisory and Regulatory aspects
Banking Regulation Act (As applicable to Co-op. Banks)
  1. Role of R.B.I. -Supervision, and control - Branch licensing - Inspection/ Audit - Statutory/ Reserve requirements
  2. R.B.I. guidelines on Deposits, Advance, Priority sector lending, Weaker section lending, Control Returns
  3. Recommendations of Marathe Committee, Madhav Rao Committee, and Vaidyanathan committee
  4. 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:

  1. Module A- Human Resources Management
  2. Module B- Building an HR strategy
  3. Module C- Motivation, Training and Skill Development 
  4. 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
ChaptersTopics
Module - A: Human Resources Management
Concepts, Policies, and Practices
  1. Fundamentals of HRM; Importance of Human Capital, Management of transformation
  2. New insights into HR Management and contemporary issues, Relationship between HRM and HRD
  3. Structure and Functions, Policies and Practices, Role of HRD professional, Development of HRM in India.
Behavioral Dynamics in organizations
  1. Person - Job Fit, Group Dynamics, Group Problem Solving and effectiveness, Leadership and Teambuilding, Change Management, Human Response
  2. Implications of benchmarking; TQM, BPR, ISO 9000 Series and other techniques for Organizational improvement and Management of Service Industry
  3. Quality Circles. Six Sigma and its implication in organizational development. 
Organizational Change and Development
  1. Responsibility Charting, Conditions for Optimal Success, Role of Change Agent and Managing Change.
HRM in Banks
  1. Traditional Role of Human Resources Department in Banks
  2. Expectations from HR Department, Conflict of new initiatives with work culture and capacity
  3. Major HRM challenges facing Banks, Core Banking and HR challenges
Knowledge management in Banks
  1. Need for Knowledge Management Officer, Role in the Banks, HRM and Information Technology
  2. Information and Database Management, Preparation and updation of Manuals and job cards
  3. Linkage with Educational Institutions.
Module - B: Building an HR strategy
Strategy Formulation and implementation
  1. 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
  2. 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
  1. Barriers to Communications, Steps for effective communication in the organization 
Manpower Planning
  1. Recruitment, Selection, Placement, and Promotion. 
  2. Recruitment Vs Outsourcing: Concept and Feasibility of Outsourcing, advantages, disadvantages and constraints, Compensation
  3.  Incentive system linked to productivity, dealing with attrition. 
Performance Management and Appraisal Systems
  1. Performance Appraisal System, Role of PAS, Emerging Trends, 360-degree performance Appraisal
  2. Appraisal Vs Feedback, Competency Mapping, Key Performance Areas (KPA) 
Module - C: Motivation, Training and Skill Development
Human implications of Organizations
  1. Learning and instructions, Learning Processes, Employee Behavior, Theories of Motivation and their practical implications
  2. Motivational strategies, Reward and Incentive schemes, job enrichment, job rotation
  3. Employee Development Strategies and Techniques. 
Training and Development
  1. Attitude development, Role,, and impact of training
  2. Career Path Planning and Counseling, Changing face of Banking
  3. Future of Bank Education, Identification of Training Needs
Training Methodology
  1. Subject matters of Training, Training infrastructure in Banks, outsourcing of Training
  2. On - the job training, Management of conflict between Training and operations due to manpower constraints, Development of soft skills and communications
  3. 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
  1. Legal aspects of personnel functions, trade unionism, and Industrial Relations
  2. Industrial Relations and Negotiations in the Indian Banking Industry, Collective Bargaining Concepts
  3. Bipartite Settlements in Banking, Employee Welfare
  4. Policies and Schemes. 
Grievance Redressal and Discipline
  1. Mechanism and Processes, Discipline Management including Domestic Enquiry
  2. Role of Management and Functions, Conflict Management and Resolution, Frauds in Banks, Risks attached to Delegation of Financial Powers
  3. Precautions and Controls need for a vigilance Dept. in Banks, Diversity and Gender Issues, Dealing with the cases of Sexual harassment
  4. 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:

  1. Module A- Introduction to Information Technology
  2. Module B- Systems and Design
  3. Module C- Applications in Banking
  4. 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
ChaptersTopics
Module - A: Introduction to Information Technology
Impact of IT on Banking
  1. Changing Financial Environment and IT as a Strategic Response Hardware (H/ W) 
  2. Software: (S/ W) 
System Software
  1. Operating Systems (Desktop OS/ Server OS) Windows (Desktop/ Server)/ UNIX (H. P. Unix, Sun Solaris, Linux, IBM AIX)
Computer Languages
  1. 1st Generation Languages (Assembly), 2nd Generation (FORTRAN, ALGOL, COBOL)
  2. 3rd Generation (C, C++, C# and JAVA, etc.) and 4th Generation Languages (Clipper, Power Builder, SQL, etc.) and 5th Generation Languages (Logic Programming Languages)
  3. Database Management System and Relational Database Management Systems (Oracle10g, MS SQL-2005, MySQL) Application Servers (Oracle 10AS, BeWeblogic, WebShare ) Web Servers (IIS, Apache, etc.) 
  4. Web Browsers (IE 7.0, Firefox, etc.)
Application Software
  1. Packaged Software, Custom-built Software, etc. Computer Networks
  2. Equipment & Data Communication
Computer Networks
  1. Network Layers, Topologies, Protocols, IP Address Mechanisms, LAN, WAN, VLAN
  2. Intranet, Extranet, Internet, Network Equipment: Cables (BNC, Twisted Pair, Fibre Optics)
  3. Connectors, I/Os, Patch Panel, Jack Panels, Network Racks.
Module - B: Systems and Design
Systems and Design
  1. Systems Design & Analysis Data modeling, Entity Relationships, Generic Data Modeling
  2. Semantic Data Modeling Normalization (from 1st to 3rd and BCNF, 4th & 5th level of normalization) Software Development Life Cycle (SDLC)
  3. Various phases of SDLC, In-house/ Out-sourcing, Software Project Management, Computer-Aided Software Engineering (CASE) Tools. 
  4. System Architecture: Clients (Hardware/ Software), Servers (Hardware/ Software)
  5. Client-Server Architecture, 3 Tier Architecture, N-Tier Architecture, etc.
  6. Data Warehousing - Data Mining tools
MIS and Organization Support Systems
  1. DSS, EIS, GDSS, Groupware, and Multimedia Business Intelligence
  2. Expert Systems, Artificial Neural Networks (ANN) Grid Computing, Virtualization and Consolidation
Module - C: Applications in Banking
Applications in Banking
  1. Centralized Banking System/ Core Banking System/ System Administration, Database Administration
  2. Application Server and Application Administration, Network Administration, Domains, ISPS, Hosting, Data Downloads/ Uploads
  3. Bandwidths, Data Centre, Data Storage Devices, Data Backups/ Restoration
  4. Disaster Recovery Centre Delivery Channels - ATM, EFTPOS, Phone Banking, Internet Banking, SMS Banking
  5. Mobile Banking, Credit/ Debit Cards, Smart Cards E-Mails, SMS alerts 
E-Commerce 
  1. Secure Electronic Transfer (SET), Payment Gateways (Credit card/ Debit cards), Authentication of payments, etc. 
  2. PKI - CCA, CA, RA, Digital Certificate, Digital Signature, Non-repudiation of Origin, Nonrepudiation of Receipt
  3. Service - Level Agreement
Module - D: Security, Controls, and Guidelines
Threats to Information System
  1. Physical (Insiders/ outsiders) ii) Viruses, Worms, Trojan horse, Malware, Software bombs, Phishing, Spoofing, Spamming, denial of service attacks, etc
  2. Information System Security Measures, Policy, controls, ISO, 17799, BS7799, IS4477, IS Audit, BCP/ DRP, IT Act 2000
  3. Basel guidelines for E-banking, Various RBI Committee Reports on Information Systems.
IT Service Delivery & Support
  1. Service level management practices, Operations management - workload scheduling, network services management
  2. Preventive maintenance, Systems performance monitoring process tools, techniques, Functionality of hardware, software, database.
  3. Drafting of RFP, system specifications, SLAs, Capacity planning & monitoring
  4. Change management processes/ scheduled, emergency in the configuration of production systems, application of patches, releases, etc.
  5. 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:

  1. Module A- An overview
  2. Module B- Treasury operations
  3. Module C- Treasury & International Banking
  4. Module D- Risk Management 

The detailed syllabus of the Elective paper-10 is given below in the table: 

Elective Paper - 10: Treasury Management 
Module - A: An overview
Chapters Topics
Financial markets
Treasury
  1. Objectives of Treasury 
  2. Structure and organization 
  3. Functions of a Treasurer 
  4. Responsibility of a Treasurer
Module - B: Treasury operations
Liquidity Management - CRR/ CCIL/ RTGS
  1. Objectives, sources and deployment
  2. Internal control, Netting 
Cost centre/ Profit centre, integrated treasury, Planning & Control, Risk analysis -
Treasury instruments-
Module - C: Treasury & International Banking
Treasury & International Banking
  1. Global scenario and treasury operations
  2. Exchange rate mechanism
  3. Dealing and trading operations: control and orderly conduct, moral and ethical codes, checks and balances
  4. Revaluation: Mark to market and profit calculations, VaR (Value at Risk)
  5. Components of multi-currency balance sheet
Module - D: Risk Management
Risk Management 
  1. Treasury and investment policy
  2. Structure: Front office, Back office, and Mid office
  3. Accounting, valuation, and exposure norms
  4. Role of information technology in treasury management
  5. Regulation and compliance
  6. Internal & External audit 

Elective Paper 11  - Risk Management 

Elective paper-11 consists of  five modules, these five modules are as follows:

  1. Module A- An overview
  2. Module B- Credit Risk Management
  3. Module C- Operational Risk
  4. Module D- Market risk
  5. Module E- Risk Organization and Policy

The detailed syllabus of the Elective paper-11 is given below in the table: 

Elective Paper - 11: Risk Management
ChaptersTopics
Module - A: An overview
Risk definition/ policies
  1. Risk Process-Risk Organization
  2. Key risks - Credit risk, market risk, operational risk, liquidity risk, legal risk, interest rate risk, and currency risk 
Asset Liability Management 
  1. ALM Concept
  2. ALM organization
  3. ALCO techniques/ tools
  4. Simulation, Gap, Duration analysis, Linear and other statistical methods of control
Risk measurement & Control 
  1. Calculation
  2. Risk exposure analysis
  3. Risk management/ mitigation policy 
  4. Risk immunization policy/ strategy for fixing exposure limits
  5. Risk management policy and procedure
  6. Risk-adjusted return on capital
  7. Capital adequacy norms 
Risk management
  1. Capital adequacy norms
  2. Prudential norms
  3. Exposure norms
  4. Concept of Mid office
  5. Forwards
  6. Futures 
  7. Options
  8. Strategies and Arbitrage opportunities
  9. Regulatory prescriptions of risk management
Module - B: Credit Risk Management
Credit Risk Management
  1. Introduction
  2. Basel Norms
  3. Three pillars of Basel and Capital for Operational risk
  4. Framework for risk management
  5. RBI guidelines on risk management
  6. Risk rating and risk pricing
  7. Methods for estimating capital requirements
  8. Credit risk - standardized approach
  9. Credit risk - an advanced approach 
  10.  Credit rating/ credit scoring and rating system design 
  11.  Credit Bureaus
  12.  Stress test and sensitivity analysis
  13.  Internal Capital Adequacy Assessment Process (ICAAP)
  14.  Introduction to structured products
Module - C: Operational Risk
Operational Risk
  1. Introduction, Basel Norms
  2. RBI guidelines 
  3. Likely forms of operational risk and causes for a significant increase in operational risk
  4. Sound Principles of Operational Risk Management (SPOR)
  5. SPOR - organizational setup and key responsibilities of ORM
  6. SPOR - policy requirements and strategic approach for ORM
  7.  SPOR identification, measurement, control/ mitigation of operational risks 
  8. Capital allocation for operational risk, methodology, qualifying criteria for banks for the adoption of the methods
  9. Computation of capital charge for operational risk
Module - D: Market Risk
Market Risk 
  1. Introduction and definition
  2. Prescriptions of Basel Norms
  3. Liquidity risk
  4. Interest rate risk
  5. foreign exchange risk
  6. Price risk (Equity)
  7. Commodity risk 
Treatment of market risk under Basel
  1. Standardized duration method 
  2. Internal measurement approach - VaR 
Module - E: Risk Organization and Policy
Risk Organization and Policy
  1. Risk Management Policy 
  2. Inter - linkages to - Treasury
  3. Credit
  4. ALCO

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CAIIB Syllabus 2021: FAQs

Q. Is there a negative marking in the CAIIB exam?

Ans. No, there is no negative marking in the CAIIB exam.

Q. How many subjects are there in the CAIIB exam?

Ans. There are three subjects in the CAIIB exam. In which two subjects are compulsory and one subject is elective.

Q. Which organisation conducts the CAIIB exam?

Ans. Indian Institute of Banking and Finance conducts the CAIIB exam twice a year.