Eligibility

• Any person who is a graduate (in any discipline of study, including Arts, Science,Commerce, Engineering, Technology or Management) or above from any University recognized by UGC or students appearing for final year graduation will be eligible to enroll for the examination.

• (For the final year graduate students, the Diploma in Banking & Finance Certificate will be issued only on successful completion of the graduation course and production of Graduation Certificate)

 Medium of Examination

• The examination will be conducted in English medium only.

Pattern of Examination

• Each Question Paper will contain approximately 120 objective types multiple choice questions, carrying 100 marks including questions based on case study/case lets. The Institute may, however, vary the number of questions to be asked for a subject.

• Negative marking will be applied in case of wrong answers at half of inverse proportion to the number of choices given in the question. For example, 1 mark question with 4 choices will have 1/8 as negative mark, if answered wrongly.

Questions for the Examination will be asked calling for:

1. Knowledge Testing

2. Conceptual Grasp

3. Analytical / Logical Exposition

4. Problem Solving

5. Case Analysis

Examination will be held in offline mode only. Examination will be conducted on two consecutive Sundays (two papers on first Sunday and one paper on second Sunday).

Duration of Examination:

• The duration of the examination will be of 2 hours. Before the commencement of the examination, there will be briefing about how to write the examination.

Periodicity and Examination Centres

1. The examination will be conducted normally twice a year in May/June and November/December on Sundays.

2. A list of Examination centers will be provided along with the Examination Application Form.

3. The list of examination centers will be amended every half year.

Passing Criteria:

• Pass: Minimum 50% or more marks in aggregate with 45% or more in individual subjects in a single attempt.

• First Class: 70% or more marks in first attempt.

• First Class with Distinction: 80% or more marks in the first attempt.

Time Limit for Passing the Examination

1. Candidates will be required to pass the examination within a time limit of 1 year (i.e. 2 consecutive attempts). Initially a candidate will have to pay course fee which includes registration fee, CBS learning and First attempt examination fee. In case a candidate is not able to pass examination in the first attempt, candidate should necessarily submit the examination application form for the second attempt, without any gap on payment of requisite examination fee. If they do not submit the examination form immediately after exhausting the first attempt, the examination conducted will be counted as second attempt for the purpose of time limit for passing.

2. Candidates not able to pass examination within the stipulated time period of one year are required to re-enroll themselves afresh by submitting a fresh Examination Application Form. Such candidates will not be granted credit/s for subject/s passed, if any, earlier.

3. Attempts will be counted from the date of application irrespective of whether a candidate appears at any examination or otherwise.

The Institute also reserves to itself the right to vary the syllabus / rules / fee structure from time to time. Any alterations made will be notified from time to time. Further, questions based on current developments in banking and finance may be asked.

Candidates are advised to refer to financial news papers / periodicals more particularly "IIBF VISION" and "BANK QUEST" published by the Institute.

PAPER 1 - PRINCIPLES & PRACTICES OF BANKING

The candidates would be able to acquire knowledge in the following:

• Various functions associated with banking.
• Practice and procedures relating to deposit and credit, documentation, monitoring and control.
• An insight into marketing of banking services and banking technology.

Module A - Indian Financial System.

Recent developments in the Indian Financial system; market structure and financial innovation. RBI, SEBI, IRDA etc. their major functions Role and Functions of banks - Regulatory provisions/enactments governing banks Retail banking: Approach, products, marketing etc Wholesale Banking; international banking; Role and functions of Capital markets Role and Functions of Mutual Funds Role and Functions of Insurance Companies - Bancassurance Importance of risk management in banks-types of risk-impact and management Factoring & Forfaiting Alliances/mergers/consolidation ADR/GDR/Off Balance sheet items Participatory Notes Credit Information Bureau Ltd Fair Practices for Debt Collection Basel II Banking Codes and Standard Boards.

Module B - Functions of Banks

Deposits:

Banker-Customer Relations - Know your Customer[KYC] guidelines-Different Deposit Products - services rendered by Banks - Mandate and Power of attorney;Banker's lien - right of set off - garnishee order - Income tax attachment order etc.

Payment and Collection of Cheque - duties and responsibilities of paying and collecting banker-protection available to paying and collecting banker under NI Act - endorsements - forged instruments - bouncing of cheques and their implications

Opening of accounts for various types of customers - minors - joint account holders - HUF - firms - companies - trusts - societies - Govt. and public bodies Importance of AML

Credit:

Principles of lending - various credit Products/ Facilities - working capital and term loans - Credit Appraisal Techniques - Approach to lending; - credit management - credit monitoring -NPA Management - Different types of documents; Documentation Procedures; Stamping of documents Securities - Different modes of charging - types of collaterals and their characteristics Priority Sector Lending - sectors - targets - issues/problems - recent developments - Financial Inclusion Agriculture/SMEs/SHGs/SSI/Tiny Sector financing New Products & Services -Factoring, Securitisation, bancassurance, Mutual Funds etc Credit Cards/Home Loans/Personal Loans/Consumer Loans-Brief outline of procedures and practices Ancillary Services: Remittances, Safe Deposit lockers etc.

Module C: Banking Technology

Electronic Banking- Core Banking - Electronic products - Core Banking Banking Technology - Distribution channels- - Teller Machines at the Bank Counters - Cash dispensers - ATMs - Anywhere Anytime Banking - Home banking (Corporate and personal) Electronic Payment systems On line Banking - Online enquiry and update facilities - Personal identification numbers and their use in conjunction with magnetic cards of both credit and debit cards, smart cards, signature storage and display by electronic means, cheque truncation, microfiche, note and coin counting devices.

Electronic funds transfer systems - plain messages (Telex or data communication) - structured messages (SWIFT, etc...) - RTGS Information Technology - Current trends - Banknet, RBI net, Datanet, Nicnet, I-net, Internet, E-mail, etc...- Role and uses of technology up gradation - Global developments in Banking Technology - Information Technology in finance and service delivery Impact of Technology on Banks - Protecting the confidentiality and secrecy of data - effect on customers and service quality - Computer Audit -Information System Audit Information System Security and Disaster Management.

Module D -Support Services - Marketing of Banking Services/Products.

Marketing Management - Meaning, Importance and Functions - Marketing of Services - Product Research & Development - Test marketing of bank products - Product Life Cycle - Product Modification - New Product Development - Packaging and Branding of bank products - Diversification - Pricing of bank products and services - Objectives, Strategies and Methods - Factors Influencing the Pricing Decisions, Importance of Pricing. Distribution - Factors Influencing - Direct and Indirect Channels of bank products - Physical Distribution - Channel Functions and Services - Promotion - Promotion Mix and Role of Promotion in Marketing - Marketing Information Systems.

Role of DSA/DMA in Bank Marketing Channel Management Selling function in a bank Portfolio and Wealth Management Tele marketing/Mobile Phone banking.

PAPER 2: ACCOUNTING & FINANCE FOR BANKERS

Objective:

The candidate would be able to acquire the knowledge of the basics of financial mathematics and basics of accountancy and develop an understanding of the basic financial concepts.

Accounting & Finance for Bankers provides the basic Knowledge necessary to understand accounting principles and practices of different entities with special focus on banks and apply these numerical and accounting skills to aid decision making.

The unit/chapter on Priority Sector Advances would give an overview of the rural economy and the special needs of the rural sector and the poorer sections of the society including Financial Inclusion. Micro Finance/SMEs/SHGs/Agriculture /SSI are also covered. The ways of meeting the financial needs of these sectors with innovative products and delivery methodologies are emphasized.

Module A - Basics of Business Mathematics

Calculation of Simple Interest and Compound Interest-Fixed and Floating Interest Rates - calculation of EMIs - Calculation of front end and back end interest -Calculation of Annuities - Calculation of provisions for NPA and risk weights for Basel II - Interest calculation using products /balances.

Amortization and Sinking Funds Bonds - Calculation of YTM - Duration - Bond Pricing - Premium and Discount - Bond valuation rules preliminary method, definition of debt, rules on compounding in respect of loan accounts, penal interest etc. Capital Budgeting - Discounted cash flow - net present value - pay back methods Depreciation - different types - methods of calculation Foreign Exchange Arithmetic for beginners

Module B - Accounting in Banks/Branches

Definition & Scope and Accounting Standards - Nature and purpose of accounting; historical perspectives - Origins of accounting principles - accounting standards and its definition and Scope. Generally Accepted Accounting Principles - USA Transfer Price mechanism.

Basic Accountancy Procedures - Concepts of accountancy - entity going concern - double entry systems, Principles of conservatism - revenue recognition and realization - accrual and cash basis. Record keeping basics -account categories - debit and credit concepts - journalizing - Maintenance of Cash/ Subsidiary books and Ledger -Trial Balance - Adjusting and Closing entries - Day Book and General Ledger Posting

Module C - Bank Accounting and Balance Sheet

Rules for bank accounts, cash/clearing/transfer vouchers/system - subsidiary book and main day book - General Ledger -Branch v/s Bank Accounts Bank Balance Sheet Structure - accounts - categories -Assets, Liabilities and Net Worth Components. Accounting for NPA /Provisioning/Suit Filed Accounts Preparation of Final Accounts - Final Accounts of Banking Companies - Disclosure Requirements.

Module D - Other Accounts

Partnership accounts - partner's fixed capital accounts - Current accounts - loan accounts - treatment of intangibles like goodwill - admission / retirement / death of partner - Company accounts - classes of Share Capital - issue/ forfeiture of Shares -issue of Bonus Shares Bank reconciliation statement - Capital & Revenue Expenditure/Depreciation/Inventory Valuation/Bill of Exchange / Consignment Account / Joint Venture - Special accounts - Leasing and Hire - Purchase Company accounts - Accounts of Non - Trading Concerns - Accounting from incomplete records - Receipts and Payments Account - Income and Expenditure Account. Ratio Analysis.

Module E - Computerized Accounting

Accounting in electronic environment - methods - procedures - security - rectification Core banking environment is to be highlighted. Standard books maintained for different accounts are to be shown as model.

PAPER 3: LEGAL & REGULATORY ASPECTS OF BANKING OPERATIONS

Objectives:

The candidates would be able to acquire knowledge in,

• the legal & regulatory framework of the banking system.
• and the various laws and enactments affecting day to day Banking Operations

Legal & Regulatory Aspects of Banking deals with related legal and regulatory aspects that has a bearing on Banking Operations and are woven in to the units/chapters to make their relevance easily understandable. Banking and Business laws in so far as they relate to day to day banking operations will also be covered at appropriate places. Case laws will be included, wherever appropriate.

Module A - Regulations and Compliance:

The questions in this section will be with reference to legal issues and problems.

• Provisions of RBI Act 1935 ,Banking Regulation Act 1949 Banking Companies [Acquisition and transfer of undertakings Act 1970 & 1980]
• Government and RBI's powers

- Opening of new banks and branch licensing - Constitution of board of directors and their rights - Banks share holders and their rights - CRR/SLR concepts - Cash/currency management - winding up - amalgamation and mergers - powers to control advances - selective credit control - monetary and credit policy - Audit and Inspection - supervision and control - board for financial supervision - its scope and role - disclosure of accounts and balance sheets - submission of returns to RBI etc Corporate Governance.

Module B - Legal aspects of banking operations

Case laws on responsibility of paying /collecting banker Indemnities/guarantees - scope and application - obligations of a banker - pre cautions and rights-laws relating to bill finance, LC and Deferred Payments - Laws relating to securities - valuation of securities - modes of charging securities - lien, pledge, mortgage, hypothecation etc - registration of firms/companies - creation of charge and satisfaction of charge.

Module C - Banking Related Laws

Law of limitation Provisions of Bankers Book Evidence Act Special features of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 TDS Banking Cash Transaction tax Service Tax Asset Reconstruction Companies The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 The Consumer Protection Act, 1986 Banking Ombudsman Lok Adalats Lender's Liability Act.

Module D - Commercial Laws with reference to banking operations

Indian Contract Act, 1872 (Indemnity, Guarantee, Bailment, Pledge and Agency etc) The Sale of Goods Act, 1930 (Sale and Agreement to Sell, Definitions, Conditions and Warranties, Express and Implied, Right of unpaid Seller etc) The Companies Act, 1956 Definition, features of company, Types of Companies, Memorandum, Articles of Association, Doctrines of Ultravires, indoor management and constructive notice, membership of company - acquisition - cessation, rights and duties of members and register of members. Prospects and directors.

Indian Partnership Act, 1932 Definition and types of partnership, relation of partners to one another - Relation of partners to third parties, Minor admitted to the benefits of Partnership, Dissolution of firm, Effect of non - registration Foreign Exchange Management Act 2000.Prevention of Money Laundering Act Right to Information Act Information Technology Act