INDIAN INSTITUTE OF BANKING & FINANCE

(An ISO 9001 - 2008 CERTIFIED ORGANISATION)

Kohinoor City, Commercial-II, Tower-1, 2nd Floor, Kirol Road, Kurla (West), Mumbai - 400 070

Web-site : www.iibf.org.in

CAIIB- ELECTIVE SUBJECTS Rules & Syllabus

OBJECTIVE The CAIIB holders are allowed to take the Certificate Examinations in 11 elective subjects in order to enhance their knowledge and skill in specialised areas as a part of Continuing Development Program. ELIGIBILITY Candidates must have completed CAIIB or PART-II of the Associate Examination, and their membership subscription should not be in arrears. Since the examination of all elective papers will be conducted in a single day, candidates can apply for only one elective paper at a time. SUBJECT OF EXAMINATION 1. 2. 3. 4. 5. 6. Corporate Banking Rural Banking International Banking Retail Banking Co-operative Banking Financial advising 7. 8. 9. Human Resources Management Information Technology Risk Management

10. Central Banking 11. Treasury Management

Candidates may choose the elective in the area they are currently working or in the area they would like to work in future. It is suggested that the candidates may choose the elective in the area they are currently working and later move to other elective as this will enable appropriate skills / build up for handling different banking verticals. EXAMINATION FEES First attempts Second attempts * Inclusive of 12.36% Service Tax. MEDIUM OF EXAMINATION Candidates are allowed to attempt the examination either in Hindi or English, and should clearly fill in their choice of medium in the Examination Application Form. In any case change of medium will not be allowed at a later stage PATTERN OF EXAMINATION (i) Each Question Paper will contain approximately 100 objective type 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. There will NOT be negative marking for wrong answers. `1,124/- * `1,124/- *

(ii) Examination will be conducted under paper and pencil system / offline mode only on a Sunday. Questions for the examination will be asked for : (i) Knowledge testing (ii) Conceptual grasp (iii) Analytical / logical exposition (iv) Problem solving (v) Case analysis 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. 1

DURATION OF EXAMINATION The duration of the examination will be of 2 hours. PERIODICITY AND EXAMINATION CENTRES (i) The examination will be conducted normally twice a year in May / June and November / December on Sundays. The schedule of the examination will be announced by the Institute at least 3 months before the examination.

(ii) A list of Examination Centres will be available in the online examination Application Form. PASSING CRITERIA i) Pass : Minimum marks for pass in every subject - 50 out of 100 marks. PROCEDURE FOR APPLYING FOR EXAMINATION Application for examination should be made online from the Institute's website www.iibf.org.in. No physical form will be accepted by the Institute with effect from 1st January, 2013. STUDY MATERIAL / WORKBOOK The Institute has published courseware to facilitate study and they will be available at outlets / showrooms / distributors of M/s. Macmillan India Pvt. Ltd. (Please visit iibf web-site www.iibf.org.in for details). TUTORIAL / CONTACT PROGRAMMES Tutorial / Contact programmes will be organized by the Institute at various centres. For details in this regard candidates may get in touch with Zonal Office or logon to the Institute's website www.iibf.org.in. SYLLABUS CENTRAL BANKING Module - A : Rationale and Functions of Central Bank 1. 2. Evolution and Functions of Central Banking : Evolutions of Theory and Practice of Central Banking, Development of Central Banks in Developed and Developing countries. Functions of a Central Bank : Banker to Government, Banker to Banks, Monetary policy Functions, Currency Issue and Management, Payment system function, Maintaining Internal and External values of currency, Regulation, Facilitation and supervision of Financial System, Promotional Functions to support growth and other National objectives, Development of Financial Markets, Institutions and communication policies. Contemporary Issues : Desirability, Autonomy and independence, Credibility, accountability and transparency of a Central Bank, conflict with fiscal policies. Reserve Bank of India : Organisational evolution, Constitution and Governance, Major organizational and Functional Developments over time, Recent Developments, RBI Act. India Specific Issues : Banking Regulation Act, FEMA, Banking Ombudsman Scheme, Financial Sector reforms, other financial regulators and division of functions. Institutions set up by RBI; NABARD, IDBI, DFHI, IRBI, UTI. Glossary of Central Banking Terms. Monetary Policy : Objectives, Reconciling dual objectives, The Taylor Rule, Indicators of Policy, instruments of policy (Bank Rate, OMO, CRR, SLR etc.), policy Transmission mechanism and channels, transparency of policies, Lags in policy. Credit Policy : Objectives, Theory and Practice, Instruments. An over view of Fiscal Policy : Importance of Budgets, Union Budget, State Budget, Finances of Union and State Governments, Finance Commission. Striking balance between inflation and growth through monetary and fiscal policies. Indian Financial System : Constituents of Indian Financial Markets and their Regulation. Evolution of Bank Regulation and supervision. Financial Stability : Financial Development Vs Financial stability, Risks to Financial stability, Early warning signals and remedial action, Liquidity Management, Regulation 2

3.

Module - B : Central banking in India 1.

2.

3. 1.

Module - C : Monetary Policy and Credit Policy

2. 3. 4. 1. 2.

Module - D : Supervision and Financial Stability

and supervision of Banks, Risk Management in Banks, The Basle Norms, Prudential Norms, Effect of liberalisation and Globalisation on Financial Stability, Linkage to International Financial Stability, International standards and codes. Role of Supervisor under Basel-II. INTERNATIONAL BANKING Module - A : International Banking and Finance 1) International Banking i) ii) iii) v) Global Trends and developments in International Banking International Financial Centres, Offshore Banking Units, SEZs. Profitability of International Banking operations Investment Banking, Wholesale Banking, Retail Banking, Merchant Banking

iv) Correspondent Banking and inter - Bank Banking vi) International Financial Institutions : IMF, IBRD, BIS, IFC, ADB vii) Legal and regulatory aspects viii) Risk Management 2) International Finance i) ii) iii) 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

iv) Project and infrastructure Finance : Investments both in India (FII & FDI) and abroad, Joint ventures abroad by Indian Corporates. Investment opportunities abroad for resident Indians. v) i) ii) iii) 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 Authorised Dealers.

iv) Rules regarding rate structure, cover operations, dealing room activities and risk management principles, including correspondent Bank arrangements. v) NRI customers and various banking and investment products available to them under FEMA. vi) Remittance facilities Module - C : International Trade 1) Regulations covering international trade i) ii) iii) 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, balance of trade, Current account and capital account convertibility.

iv) Documents used in Trade : bill of exchange, invoice, Bill of lading, Airways bill, Insurance policy etc. v) Role of Banks in foreign Trade vi) Letters of credit; importance in international trade, various types of LCs, settlement of disputes, UCP 600, INCOTERMS. vii) Exchange control relating to foreign trade. Returns required to be submitted to RBI 2) Import / Export Finance i) ii) iii) Laws governing trade finance viz, FEMA, NIAct, Indian stamp Act, EXIM policy, RBI / FEDAI guidelines 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. 3

Module - D : Derivatives 1. 2. 3. 4. 5. Treasury operations of banks and corporates Derivatives as hedging instruments, types of instruments available in Indian Market. RBI rules and guidelines regarding derivatives Mathematics of derivative valuation and pricing Risk assessment of derivatives, Lessons from recent crisis in derivatives market.

RURAL BANKING Module - A : Rural India Demographic features; 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; 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 programmes for rural farm and non-farm sectors. Economic reforms and its impact on 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, 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, concept of Business Facilitators and Business Correspondents in rural financing. Financing agriculture / allied activities; Crop Loans-Assessment, Sanction, Disbursement, rephasement. 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 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, 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 Govt initiatives Components of priority sector. RBI guidelines. Government initiatives; Poverty alleviation programmes / Employment programmes / Production oriented programmes-rationale and philosophy, progress and impact, problems and deficiencies. Rural housing and Urban housing schemes under priority sector, their 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 bankable opportunity, Micro Credit, Self Help Groups / NGOs, linkages with banking, latest guidelines of GOI and RBI. FINANCIAL ADVISING MODULE - A : 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, 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 the strategic tool - Selection of Investment and Insurance Products, Implementation, ongoing Service, Using stop loss, understanding market behaviour. MODULE - C : FINANCIAL INVESTMENT PRODUCTS Financial investment products - Portfolio analysis & selection, Efficient markets, Securities markets - Primary market, Secondary market, Depository & investment process, regulatory framework, fundamental and technical analysis-basic philosophies and underlying assumptions - Bond and Money markets, Indian debt markets - Securities traded in debt market, Commodities Market, Insurance products, Pension products, Mutual fund industry-products & services, Banking products, Investment in Real estate. Cash generation and return on investment. Statutory provisions regarding starting of business / industrial units by NRIs / MNCs. MODULE - D : TAXATION Income Tax law, important definitions-person, Assessee, Agriculture income, capital / Revenue receipts / expenditure, Gross total income, Total income, residential status, Heads of income viz. salaries, income from house property, profits and gains of business or profession, Capital gains, income from other sources, Income exempt from tax, Permissible deductions from gross total income , income tax return, tax deducted at source Tax planning strategies- House wife, Salaried person, Businessman, persons having income from more than one source, Retirement planning and taxation, Tax triggered investments Estate Planning, Will, Administration of an estate, Passing of an asset, Tax planning through wills and trusts, Taxation of Terminal benefits. CORPORATE BANKING MODULE - A : Corporate Banking and Finance Corporate Banking : Meaning and importance, various services provided viz., Cash Management, Salary Payment, Debt Management, Factoring and Forfaiting, Trusteeship, Custodial services, Business advisory, Off shore services, Trade services, Forex Management, etc. Corporate Deposits : Importance of Institutional deposits vis-a-vis retail deposits Corporate Finance : Working capital finance, Fund and Non fund based limits and ImportExport finance. Corporate Debt Restructuring. MODULE - B : Investment Banking 1) 2) Meaning and scope of Investment Banking, Evolution, overview of current state of Investment Banking in India. Merchant Banking : Advisory services for equity / debt issues, Management, placement and distribution of equity / debt. 5

3) 4)

Mergers and Acquisitions, Divestitures : Identification, Structuring, Negotiation and Execution, arranging finances etc. Corporate advisory services : Capital restructuring, Project advisory, Private equity and Venture capital, Loan Syndication etc.

MODULE - C : Project and Infrastructure Finance Characteristics of Project Finance - Technology selection, Assessment of technical collaborator - Market Analysis : International competitiveness and SWOT analysis Assessing the project cost - Means of financing projects - Estimation of project cash flows Use of free and equity cash flow valuation for assessing projects - Financial Analysis : Breakeven point analysis, Decision tree, Scenario analysis and Internal Rate of Return, Sensitivity analysis Common risks in projects - Risk mitigation methodologies in projects - Securitisation as a tool for risk mitigation - Project planning - Network techniques for project implementation Disbursement, supervision and follow up of project by lender - Infrastructure financing cash flow deal agreement with parties involved - SPV - Monitoring and follow-up of the project RETAIL BANKING MODULE - A : Introduction 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, Approval process for retail loans, Credit scoring. Important Asset Products Home Loans - Eligibility, Purpose, Amounts, Margin, Security, Disbursement, Moratorium, Prepayment issues, Repayments / Collection. Auto / Vehicle Loans - Eligibility, Purpose, Amounts, Margin, Security, Disbursement, Moratorium, Prepayment issues, Repayments / Collection. Personal Loans Eligibility, Purpose, Amounts, Security, Disbursement, Moratorium, Prepayment issues, Repayments / Collection. Educational Loans Eligibility, Purpose, Amounts, Security, Disbursement, Moratorium, Prepayment issues, Repayments. Credit / Debit Cards - 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 / Authorised 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. 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 Securitisation, mortgage based securities. Trends in retailing - New products like Insurance, Demat services, online / Phone Banking, Property services, Investment advisory / Wealth management, Reverse Mortgage - Growth of e-banking, Cross selling opportunities. Recovery of Retail Loans - Defaults, Rescheduling, recovery process. SARAFAESI Act, DRT Act, use of Lok Adalat forum. Recovery Agents - RBI guidelines.

CO-OPERATIVE BANKING MODULE - A : Principles and Laws of co-operative Banking Law and rules relating to Co-op Banks Principles of Co-operation - brief overview of structure of co-operative credit institutions Membership - Legal aspects of banking operations - Banking related laws - Provisions of Bankers Book Evidence Act - Special features of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 -Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002-The Consumer Protection Act, 1986 - Banking Ombudsman MODULE - B : Co-operative Banking Operations Deposits, Credit & Investment Management Different Deposit Products - Deposit Policy - Credit Management Loans and advances Priority sector lending - MSME financing - Personal Finance - Banker - Customer relations Garnishee orders and Attachment orders, Bankers' right of lien, set-off and appropriation Indemnities and Bank Guarantees; Loan Policy - Management of NPA - Investment Management - CRR / SLR Management - Financial Markets - guidelines of RBI / NABARD in regard to investment - Money Market - Call money - Repos and Reverse Repos - Foreign Exchange Market - Debt market - Bancassurance - Meaning and Scope of Investment Policy MODULE- C : Technology, Risk management Technology Banking - Electronic Payment systems / core banking solutions - Electronic funds transfer systems - RTGS - Risk Management - Exposure limits-Asset Liability Management Capital Adequacy - Basel-II - 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. HUMAN RESOURCES MANAGEMENT Module - A : Human Resources Management 1) 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. Behavioural Dynamics in organizations; Person - Job Fit, Group Dynamics, Group Problem Solving and effectiveness, Leadership and Team building, 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. Strategy Formulation and implementation; Need for a distinctive HR strategy, Formulating the strategy; connecting strategy to organization, aligning HR Systems with decision framework, Relationship between Sustainable strategic success and performance of the organization, Execution of strategy : Role of CEO, Executive 7

2)

3) 4)

5)

Module - B : Building an HR strategy 1)

team, and line Managers, Succession Planning, HRD Audit, Effectiveness of HRD, Best HR practices in banks. 2) 3) Organizational Communication; Barriers to Communications, Steps for effective communication in the organisation 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 P A S, Emerging Trends, 360 degree performance Appraisal, Appraisal Vs Feedback, Competency Mapping, Key Performance Areas (KPA) Human implications of Organisations; Learning and instructions, Learning Processes, Employee Behaviour, 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. 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 Indian banking industry.

4)

Module - C : Motivation, Training and Skill Development 1)

2)

3)

Module - D : Personnel Management and Industrial Relations 1)

2)

3)

INFORMATION TECHNOLOGY 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, WebSheare ) Web Servers (IIS, Apachi 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, Intranet, Extranet, Internet, 8

Network Equipments : Cables (BNC, Twisted Pair, Fibre Optics), Connectors, I/Os, Patch Panel, Jack Panels, Network Racks. Data Communication : CLL, Leased Lines, MPLS, VPNS, ISDN, Satellite Links, Wi Fi, Wi Max., Network / Security Equipments: Modems, Hubs, Switches, Bridges, Routers, Firewalls, NIDS, HIDS, IPS Module - B : Systems and Design Systems Design & Analysis(Data modeling, Entity Relationships, Generic Data Modeling, Semantic Data modeling Normalization( from 1st to 3rd and BCNF, 4th & 5th level of normalization) Software Development Life Cycle (SDLC) - Various phases of SDLC, In-house / Outsourcing, Software Project Management, Computer Aided Software Engineering (CASE) Tools. System Architecture : Clients (Hardware / Software), Servers (Hardware / Software). Client Server Architecture, 3 Tier Architecture, N-Tier Architecture etc. Data Warehousing - Data Mining tools MIS and Organization Support Systems - DSS, EIS, GDSS, Groupware and Multimedia Business Intelligence - Expert Systems, Artificial Neural Networks (ANN) Grid Computing, Virtualization and Consolidation. Module - C : Applications in Banking Centralized Banking System / Core Banking System / System Administration, Database Administration, Application Server and Application Administration, Network Administration, Domains, ISPS, Hosting, Data Downloads / Uploads, Band widths, Data Centre, Data Storage Devices, Data Backups / Restoration, Disaster Recovery Centre Delivery Channels - ATM, EFTPOS, Phone Banking, Internet Banking, SMS Banking, Mobile Banking, Credit / Debit Cards, Smart Cards E-Mails, SMS alerts E-Commerce - Secure Electronic Transfer (SET), Payment Gateways (Credit card / Debit cards), Authentication of payments etc. PKI - CCA, CA, RA, Digital Certificate, Digital Signature, Non-repudiation of Origin, Nonrepudiation of Receipt. Service - Level Agreement Module - D : Security, Controls and Guidelines Threats to Information System : i) Physical (Insiders / outsiders) ii) Viruses, Worms, Trojan horse, Malwares, Software bombs, Phishing, Spoofing, Spamming, denial of service attacks etc. Information System Security Measures, Policy, controls, ISO, 17799, BS7799, IS4477, IS Audit, BCP / DRP, IT Act 2000, Basel guidelines for E-banking, Various RBI Committee Reports on Information Systems. IT Service Delivery & Support : Service level management practices, Operations management - work load scheduling, network services management, Preventive maintenance, Systems performance monitoring process tools, techniques, Functionality of hardware, software, data base. Drafting of RFP, system specifications, SLAs, Capacity planning & monitoring, Change management processes / scheduled, emergency in 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. Treasury Management Module - A : An overview 1. 2. Financial markets Treasury Objectives of Treasury Structure and organization Functions of a Treasurer Responsibility of a Treasurer 9

Module - B : Treasury operations 1. Liquidity Management - CRR / CCIL / RTGS 2. 3. Objectives, sources and deployment Internal control, Netting

Cost centre / Profit centre, integrated treasury, Planning & control, Risk analysis Treasury instruments Global scenario and treasury operations Exchange rate mechanism Dealing and trading operations : control and orderly conduct, moral and ethical codes, checks and balances Revaluation : Mark to market and profit calculations, VaR (Value at risk) Components of multi-currency balance sheet Treasury and investment policy Structure : Front office, Back office and Mid office Accounting, valuation and exposure norms A. B. C. Role of information technology in treasury management Regulation and compliance Internal & External audit

Module - C : Treasury & International Banking

Module - D : Risk Management

Risk Management Module - A : An overview a) Risk definition / policies b) Risk Process-Risk Organization Key risks-Credit risk, market risk, operational risk, liquidity risk, legal risk, interest rate risk and currency risk ALM Concept ALM organization ALCO techniques / tools Simulation, Gap, Duration analysis, Linear and other statistical methods of control Calculation Risk exposure analysis Risk management / mitigation policy Risk immunization policy / strategy for fixing exposure limits Risk management policy and procedure Risk adjusted return on capital Capital adequacy norms Capital adequacy norms Prudential norms Exposure norms Concept of Mid office Forwards Futures Options Strategies and Arbitrage opportunities Regulatory prescriptions of risk management

Asset Liability Management -

c)

Risk measurement & Control -

d)

Risk management -

10

Module - B : Credit Risk Management Introduction Basel-I Three pillars of Basel-II and Capital for Operational risk Frame work for risk management RBI guidelines on risk management Risk rating and risk pricing Methods for estimating capital requirements Credit risk - standardized approach Credit risk - advanced approach Credit rating / credit scoring and rating system design Credit Bureaus Stress test and sensitivity analysis Internal Capital Adequacy Assessment Process (ICAAP) Introduction to structured products Introduction, Basel-I & II RBI guidelines Likely forms of operational risk and causes for significant increase in operational risk Sound Principles of Operational Risk Management (SPOR) SPOR - organizational set up and key responsibilities of ORM SPOR - policy requirements and strategic approach for ORM SPOR identification, measurement, control / mitigation of pperational risks Capital allocation for operational risk, methodology, qualifying criteria for banks for the adoption of the methods Computation of capital charge for operational risk Introduction and definition Prescriptions of Basel-I & II Liquidity risk Interest rate risk foreign exchange risk Price risk (Equity) Commodity risk Treatment of market risk under Basel a) b) Standardized duration method Internal measurement approach - VaR

Module - C : Operational Risk

Module - D : Market risk

Module - E : Risk Organization and Policy Risk Management Policy Inter - linkages to - Treasury Credit ALCO

11

ADDRESSES OF STUDY MATERIAL PUBLISHERS Addresses of Macmillan Publishers India Pvt. Ltd. Branches & Showrooms for English Medium Books New Delhi 2/10 Ansari Road, Daryaganj, New Delhi-110002 Phone : (011) 23273624 / 23273814 / 47972200 E-mail : [email protected] Kolkata Unit No 302, L&T Chambers, (3rd Floor), 16 Camac Street, Kolkata-700017 Phone : (033) 22834481-5 E-mail : [email protected] Chennai 21 Patullos Road, Chennai-600002 Phone : (044) 28520646 / 30915100 E-mail : [email protected] Bhopal 76 Malviya Nagar, TT Nagar, Bhopal-462003 Phone : (0755) 2553895 / 2576029 E-mail : [email protected] Chandigarh First Floor, SCO 91, Sector 44 C, Chandigarh-160047 Phone : (0172) 2611561/ 5088291 Email : [email protected] Cuttack Maitree Vihar, Link Road, Cuttack-753012 Phone : (0671) 2311979 / 2331979 E-mail : [email protected] Guwahati S. C. Goswami Road, Pan Bazar, Guwahati-781001 Phone : (0361) 2516564 / 2633529 E-mail : [email protected] Jaipur B-48 Sahkar Marg, Opp. Imliwala Phatak, Lai Kothi Scheme, Jaipur - 302015 Phone : (0141) 2741308 E-mail : [email protected] Lucknow 17/1, Mudra Building, Madan Mohan Malviya Marg, Lucknow-226001 Phone : (0522) 2209780 / 2208810 E-mail : [email protected] Mumbai 404, Antariksh, Makwana Road, Off. Marol Maroshi Road, Marol, Andheri East, Mumbai-400059 Phone : (022) 42152803/ 04 E-mail : [email protected] Mumbai Mercantile House, Magazine Street, Reay Road (East), Mumbai-400010 Phone : (022) 23724401 / 23726017 / 23741423 Nagpur G9-11, Achraj Towers- II, Chhaoni, Nagpur-440013 Phone : (0712) 2593103 / 2552595 E-mail : [email protected] Patna Sinha Kothi, Sinha Library Road, Patna-001 Phone : (0612) 2232550 / 2224348 E-mail : [email protected] Pune Plot no.17, 1st floor, Swastishree Co-op Hsg. Society Ltd., Ganesh Nagar, Karve Nagar, Pune-411052 Phone : (020) 25420321 / 22 E-mail : [email protected] Bangalore Jaico Publishing House, 14/1, 1st Main Road, 6th Cross, Gandhi Nagar, Bangalore-560009 Phone : 080-22267016 / 22257083 E-mail : [email protected] The BOOKWORM - Good Books Great Prices No. 80/1, Shrunghar Shopping Complex, M. G. Road, Bangalore-560001 Phone : (080) 40913205, Mob. 9854076757 E-mail : [email protected] The BOOKWORM - Good Books Great Prices No. 32 Basement, Brigade Road, Cross Brigade Rd., Below Prabhu Digitals, Bangalore-560001 Phone : (080) 41126755, Mob. 9845076757 E-mail : [email protected] E. R. Manoharan UBS Publisher's & Distributors Pvt. Ltd., No. 148, Mysore Road, Bangalore-560026 Phone : (080) 26756671-73 E-mail : [email protected] Madurai M/s. Selvi Book, Shop. 92, Nethaji Road, Near New Arya Bhavan Signal, Madurai-625001. Phone : (0452) 4380169 / 2343510 E-mail : [email protected] Trichy M/s. Golden Book House, No. 5, First Floor, Vignesh Aparna, New Bishop Heber Colleg, Vayalur Road, Puthoor, Trichy-620017 E-mail : [email protected] Tanjore M/s. Sri Murugan Publications, Raja Rajan Vanigga Valaga Arangam, Southrampet, Tanjore-613001 Phone : (04362) 272922 / 272168 Palayamkottai M/s. Eagle Book Centre, 168 Trivandrum Road, Opp to VOC Ground, Palayamkottai-627002 Phone : (0462) 2578899 Trichy M/s. International Books, 76, Nandhi Koil Street, Trichy-620002 Phone : (0431) 2703743 E-mail : [email protected], [email protected] 12

COURSES OF IIBF Flagship Courses  JAIIB  CAIIB  Diploma in Banking & Finance B. Specialised Post Graduate Diploma Courses (for Member* and Non-Members**)  Diploma in Treasury, Investment and Risk Management  Diploma in Banking Technology  Diploma in International Banking and Finance  Diploma in Urban Co-operative Bank  Diploma in Commodity Derivatives for Bankers  Diploma for Micro Finance Professionals in collaboration with Sa-Dhan  Advanced Wealth Management Course  Diploma in Home Loan Advising C. Specialised Certificate Courses (for Member* and Non-Members**)  Certificate in Trade Finance  Certified Information System Banker  Certificate in Anti-Money Laundering / Know Your Customer  Certificate in Quantitative Methods for Bankers  Certificate in Credit Cards for Bankers  Certificate Examination in Banking Oriented Paper in Hindi  Certificate Examination in SME Finance for Bankers  Certificate Examination in Customer Service & Banking Codes and Standards  Certificate Examination in Basics of Banking / Credit Cards for employee of IT Companies  Certificate Course for Business Correspondents / Business Facilitators  Certificate Examination for Debt Recovery Agents  Certificate Examination in IT Security  Certificate Examination in Rural Banking Operations for RRB Staff  Certificate Examination in Prevention of Cyber Crimes and Fraud Management  Certificate Examination in Foreign Exchange Facilities for Individuals  Certificate Examination in Microfinance D. Management Courses  Advanced Management Program in collaboration with SIES - Mumbai, WelingkarMumbai, IMI-Delhi, IPE-Hyderabad.  Project Finance Management Blended Course with IFMR, Chennai  CAIIB linked MBA with IGNOU. Educational support :  Publishing specific courseware for each paper / examination and Workbooks etc.  Tutorials through Accredited Institutions, Virtual Classes, e-learning through Portal, Contact Classes or Campus Training - Model Questions and subject updates on the net Other activities :  Research, Seminars, Conferences, Lectures, etc.  Publications of books, Daily e-newsletter, monthly newsletter and quarterly journal  Training & Consultancy and Financial Education * Members are employees of Banks and Financial Institutions who have enrolled as members of IIBF. ** Non-Members are eligible candidates for each course / examination without IIBF Membership. The Syllabi, Rules / Regulations, Examination Forms and other information pertaining to the examinations are available with Institute's Offices at Mumbai, Chennai, New Delhi, Kolkata and also at such other centers / offices as may be notified from time to time. The same is also available at our website www.iibf.org.in. A. 13

MEMBERS OF THE GOVERNING COUNCIL (As on 01/07/2012) PRESIDENT Shri M. D. Mallya, Chairman & Managing Director, Bank of Baroda VICE PRESIDENTS Shri K. R. Kamath, Chairman & Managing Director, Punjab National Bank Shri Rana Kapoor, Managing Director & Chief Executive Officer, YES Bank Representing Reserve Bank of India Shri S. Karuppasamy, Executive Director Representing State Bank of India and its Associate Banks Shri Pratip Chaudhuri, Chairman, State Bank of India Smt. Arundhati Bhattacharya, Deputy Managing Director & CDO, State Bank of India Representing Public Sector Banks Shri A. K. Misra, Chairman & Managing Director, Bank of India Shri S. Raman, Chairman & Managing Director, Canara Bank Shri M. V. Tanksale, Chairman & Managing Director, Central Bank of India Shri J. P. Dua, Chairman & Managing Director, Allahabad Bank Shri Arun Kaul, Chairman & Managing Director, UCO Bank Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank Shri T. M. Bhasin, Chairman & Managing Director, Indian Bank Representing Financial Institutions Shri T. C. A. Ranganathan, Chairman & Managing Director, Export -Import Bank of India Representing Private Sector Banks Shri Ananthakrishna , Chairman, Karnataka Bank Ltd. Representing Co-operative Banks Shri S. K. Banerji, Managing Director, The Saraswat Co-op. Bank Ltd. Representing other Bodies / Experts Shri M. Balachandran, Director, Institute of Banking Personnel Selection Prof. Y. K. Bhushan, Senior Advisor, ICFAI Business School Shri Allen C. A. Pereira, Director, National Institute of Bank Management (NIBM) Dr. K. Ramakrishnan, Chief Executive, Indian Banks Association (IBA) From IIBF Dr. R. Bhaskaran, Chief Executive Officer

ADDRESSES FOR CONTACT Corporate Office : Indian Institute of Banking & Finance Kohinoor City, Commercial-II, Tower-1, 2nd Floor, Kirol Road, Kurla (West), Mumbai - 400 070 Tel : 022-2503 9746 / 9604 / 9907 Fax : 022-2503 7332 E-mail : [email protected] Northern Zonal Office : Indian Institute of Banking & Finance 109-113, Vikrant Towers, 1st Floor, 4, Rajendra Place, New Delhi - 110 008 Tel. : 91-011-2575 2191/92 Fax : 91-011-2575 2193 E-mail : [email protected] Southern Zonal Office : Indian Institute of Banking & Finance No.94, Jawaharlal Nehru Road, (100 Feet Road), Opp. Hotel Ambica Empire, Vadapalani, Chennai - 600 026 Tel. : 044-2472 2990/2472 7961 Fax : 044-2472 6966 E-mail : [email protected] 14 Western Zonal Office : Indian Institute of Banking & Finance 191-F, Maker Towers, 19th Floor, Cuffe Parade, Mumbai - 400 005 Tel. : 022-2218 3302 / 2218 5134 Fax : 022-2218 0845 E-mail : [email protected] Eastern Zonal Office : Indian Institute of Banking & Finance 408, 'Anandlok', 'A' Block, 4th Floor, 227, Acharya J. C. Bose Road, Kolkata - 700 020 Tel. : 033-2280 9681/82/83 Fax : 033-2280 9680 E-mail : [email protected]
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