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 2017

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. Corporate Banking 7. Human Resources Management
2. Rural Banking 8. Information Technology
3. International Banking 9. Risk Management
4. Retail Banking 10. Central Banking
5. Co-operative Banking 11. Treasury Management
6. Financial advising
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.
PASSING CRITERIA:
Minimum marks for pass in the subject is 50 out of 100.
EXAMINATION FEES

First attempt `1,000/- *

Subsequent attempt `1,000/- *
* Plus Service Tax as applicable (Reg. No. AAATT3309DSD002)
MEDIUM OF EXAMINATION
Candidates are allowed to attempt the examination either in Hindi or English, and should clearly
fill in their choice of medium at the time of registration of application. In any case change of
medium will not be allowed at a later stage
PATTERN OF EXAMINATION
(i) Question Paper will contain 100 objective type multiple choice questions for 100 marks
including questions based on case studies / case lets. The Institute may however vary the
number of questions to be asked for a subject.
(ii) The examination will be held in Online Mode only
(iii) There will NOT be negative marking for wrong answers.
(iv) Examination will be conducted under online 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

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DURATION OF EXAMINATION:
The duration of the examination will be of 2 hours.
PERIODICITY AND EXAMINATION CENTRES:
a) Examination will be conducted on pre-announced dates published on IIBF Web Site. Institute
conducts examination on half yearly basis, however periodicity of the examination may be
changed depending upon the requirement of banking industry.
b) List of Examination centers will be available on the website. (Institute will conduct examination
in those centers where there are 20 or more candidates.)
PROCEDURE FOR APPLYING FOR EXAMINATION
Application for examination should be registered online from the Institutes website www.iibf.org.in.
The schedule of examination and dates for registration will be published on IIBF website.
STUDY MATERIAL / COURSEWARE
The Institute has developed a courseware to cover the syllabus. The courseware
(book) for the subject/s will be available at outlets of publisher/s. Please visit IIBF website
www.iibf.org.in under the menu Exam Related for details of book/s and address of publisher/s
outlets. Candidates are advised to make full use of the courseware. However, as banking
and finance fields are dynamic, rules and regulations witness rapid changes. Therefore, the
courseware should not be considered as the only source of information while preparing for
the examinations. Candidates are advised to go through the updates put on the IIBF website
from time to time and go through Master Circulars / Master Directions issued by RBI and
publications of IIBF like IIBF Vision, Bank Quest, etc. All these sources are important from
the examination point of view. Candidates are also to visit the websites of organizations like
RBI, SEBI, BIS, IRDAI, FEDAI etc. besides going through other books & publications covering
the subject / exam concerned etc. Questions based on current developments relating to the
subject / exam may also be asked.
Cut-off Date of Guidelines / Important Developments for Examinations
The Institute has a practice of asking questions in each exam about the recent developments /
guidelines issued by the regulator(s) in order to test if the candidates keep themselves abreast of
the current developments. However, there could be changes in the developments / guidelines
from the date the question papers are prepared and the dates of the actual examinations.
In order to address these issues effectively, it has been decided that:
(i) In respect of the examinations to be conducted by the Institute for the period February to
July of a calendar year, instructions / guidelines issued by the regulator(s) and important
developments in banking and finance up to 31st December will only be considered for the
purpose of inclusion in the question papers".
(ii) In respect of the examinations to be conducted by the Institute for the period August to
January of a calendar year, instructions / guidelines issued by the regulator(s) and important
developments in banking and finance up to 30th June will only be considered for the purpose
of inclusion in the question papers.
The table given below further clarifies the situation.

Particulars Cut-off Date of Guidelines / Important

Developments for Examination/s Developments for Examination/s
For the examinations to be conducted by 31st December 2016
the Institute for the period February 2017
to July 2017
For the examinations to be conducted by 30th June 2017
the Institute for the period August 2017 to
January 2018

TUTORIAL / CONTACT PROGRAMMES

Tutorial / Contact programmes may be organized by the Institute at various centres. For details in
this regard candidates may visit Institute's website www.iibf.org.in.
E-LEARNING:
Institute facilitates e-learning to all the CAIIB papers to enhance the understanding of the
concepts. Candidates can access the e-learning (From Desktops and Laptops only) through our
website www.iibf.org.in at their convenience and from their place of choice. The user id and

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password will be sent to all the candidates registered for the examination at their registered email
id with the Institute.
DISCLAIMER:
The above said facility of e-learning offered to the candidates is solely at the discretion of the
Institute and subject to such terms / conditions as may be deemed fit by the institute from time to
time. Hence no candidate has any right/claim whatsoever against the institute by reason of any
technical glitches or any shortcomings as the case may be and the decision of the institute in the
event of any dispute there-under will be final and conclusive.
SYLLABUS
The details of the prescribed syllabus which is indicative are furnished in the booklet. However,
keeping in view the professional nature of examinations, all matters falling within the realm of the
subject concerned will have to be studied by the candidate as questions can be asked on all
relevant matters under the subject. Candidates appearing for the examination should particularly
prepare themselves for answering questions that may be asked on the latest developments
taking place under the various subject/s of the said examination although those topics may not
have been specifically included in the syllabus. 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.
CENTRAL BANKING
Module - A: Rationale and Functions of Central Bank
1. Evolution and Functions of Central Banking : Evolutions of Theory and Practice of Central
Banking, Development of Central Banks in Developed and Developing countries.
2. 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.
3. Contemporary Issues : Desirability, Autonomy and independence, Credibility, accountability
and transparency of a Central Bank, conflict with fiscal policies.
Module - B : Central banking in India
1. Reserve Bank of India : Organisational evolution, Constitution and Governance, Major
organizational and Functional Developments over time, Recent Developments, RBI Act.
2. 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.
3. Glossary of Central Banking Terms.
Module - C : Monetary Policy and Credit Policy
1. 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.
2. Credit Policy : Objectives, Theory and Practice, Instruments.
3. An over view of Fiscal Policy : Importance of Budgets, Union Budget, State Budget,
Finances of Union and State Governments, Finance Commission.
4. Striking balance between inflation and growth through monetary and fiscal policies.
Module - D : Supervision and Financial Stability
1. Indian Financial System : Constituents of Indian Financial Markets and their Regulation.
Evolution of Bank Regulation and supervision.
2. Financial Stability : Financial Development Vs Financial stability, Risks to Financial
stability, Early warning signals and remedial action, Liquidity Management, Regulation
and supervision of Banks, Risk Management in Banks, The Basel 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 Norms.

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INTERNATIONAL BANKING
Module - A: International Banking and Finance
1) International Banking
i) Global Trends and developments in International Banking
ii) International Financial Centres, Offshore Banking Units, SEZs.
iii) Profitability of International Banking operations
iv) Correspondent Banking and inter - Bank Banking
v) Investment Banking, Wholesale Banking, Retail Banking, Merchant Banking
vi) International Financial Institutions : IMF, IBRD, BIS, IFC, ADB
vii) Legal and regulatory aspects
viii) Risk Management
2) International Finance
i) Fundamental Principles of Lending to MNCs, documentation and Monitoring
ii) International Credit Policy Agencies and Global Capital Markets
iii) 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) Financing of mergers and acquisitions
Module - B : Foreign Exchange Business
i) Foreign Exchange Management Act (FEMA) and its philosophy
ii) Different types of Exchange Rates
iii) 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) Various Aspects of International Trade, Government policies, DGFT and their schemes,
Customs procedures, Banks' role in implementing these policies and schemes
ii) WTO- its impact
iii) 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) Laws governing trade finance viz, FEMA, NIAct, Indian stamp Act, EXIM policy, RBI /
FEDAI guidelines
ii) Role of Banks, including EXIM Bank, in financing Foreign Trade, various facilities to
Exporters and importers including project finance, Forfaiting and Factoring
iii) 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 Indian Market.
3. RBI rules and guidelines regarding derivatives

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4. Mathematics of derivative valuation and pricing
5. 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.

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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 Import-
Export finance. Corporate Debt Restructuring.
MODULE - B : Investment Banking
1) Meaning and scope of Investment Banking, Evolution, overview of current state of
Investment Banking in India.
2) Merchant Banking : Advisory services for equity / debt issues, Management, placement
and distribution of equity / debt.
3) Mergers and Acquisitions, Divestitures : Identification, Structuring, Negotiation and
Execution, arranging finances etc.
4) 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 -

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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 : Break- even 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

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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 Norms - Profit and Profitability - Approach of Banks to profitability -
Effects of NPAon 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.
2) 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.
3) Organizational Change and Development; Responsibility Charting, Conditions for
Optimal Success, Role of Change Agent and Managing Change.
4) 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,
5) Knowledge management in Banks; Need for Knowledge Management Officer,
Role in the Banks, HRM and Information Technology, Information and Database
Management, Preparation and updation of Manuals and job cards, Linkage with
Educational Institutions.
Module - B : Building an HR strategy
1) 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 team,
and line Managers, Succession Planning, HRD Audit, Effectiveness of HRD, Best HR
practices in banks.
2) Organizational Communication; Barriers to Communications, Steps for effective
communication in the organisation
3) 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.

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4) 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)
Module - C : Motivation, Training and Skill Development
1) 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.
2) 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.
3) Training Methodology; subject matters of Training, Training infrastructure in Banks,
outsourcing of Training, On - the job training, Management of conflict between Training
and operations due to manpower constraints, Development of soft skills and
communications. Developing competencies through e-learning, virtual learning and self
directed learning. Training measurement and impact.
Module - D : Personnel Management and Industrial Relations
1) 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.
2) 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.
3) Workers' Participation in Management, Experience of Employee Participation in Indian
banking industry.
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, IBMAIX)
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,
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)

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Software Development Life Cycle (SDLC) - Various phases of SDLC, In-house / Out-sourcing,
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, Non-
repudiation 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. Financial markets
2. Treasury
- Objectives of Treasury
- Structure and organization
- Functions of a Treasurer
- Responsibility of a Treasurer
Module - B : Treasury operations
1. Liquidity Management - CRR / CCIL / RTGS
- Objectives, sources and deployment
- Internal control, Netting
2. Cost centre / Profit centre, integrated treasury, Planning & control, Risk analysis
3. Treasury instruments
Module - C : Treasury & International Banking
- Global scenario and treasury operations
- Exchange rate mechanism
- Dealing and trading operations : control and orderly conduct, moral and ethical
codes, checks and balances

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 - Revaluation : Mark to market and profit calculations, VaR (Value at risk)
- Components of multi-currency balance sheet
Module - D : Risk Management
- Treasury and investment policy
- Structure : Front office, Back office and Mid office
- Accounting, valuation and exposure norms
A. Role of information technology in treasury management
B. Regulation and compliance
C. Internal & External audit
Risk Management
Module - A: An overview
a) Risk definition / policies
- Risk Process-Risk Organization
- Key risks-Credit risk, market risk, operational risk, liquidity risk, legal risk, interest
rate risk and currency risk
b) Asset Liability Management
- ALM Concept
- ALM organization
- ALCO techniques / tools
- Simulation, Gap, Duration analysis, Linear and other statistical methods of control
c) Risk measurement & 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
d) Risk management
- Capital adequacy norms
- Prudential norms
- Exposure norms
- Concept of Mid office
- Forwards
- Futures
- Options
- Strategies and Arbitrage opportunities
- Regulatory prescriptions of risk management
Module - B : Credit Risk Management
- Introduction
- Basel Norms
- Three pillars of Basel 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)

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 - Introduction to structured products
Module - C : Operational Risk
- Introduction, Basel Norms
- 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
Module - D : Market risk
- Introduction and definition
- Prescriptions of Basel Norms
- Liquidity risk
- Interest rate risk
- foreign exchange risk
- Price risk (Equity)
- Commodity risk
- Treatment of market risk under Basel
a) Standardized duration method
b) Internal measurement approach - VaR
Module - E : Risk Organization and Policy
- Risk Management Policy
- Inter - linkages to - Treasury
- Credit
- ALCO
IMPORTANT RULES / INFORMATION FOR CANDIDATES
1. ADMIT LETTER OF EXAMINATIONS :
a. Admit letter to all eligible candidates will be emailed to the candidates in
their email id registered with the Institute, 10 days before the examination
date.
b. Admit letter of all eligible candidates will be hosted on Institute's website
www.iibf.org.in under the menu 'Exam Related', 1 week before the examination
date.
c. For downloading and printing of admit letter from the above mentioned website,
candidates will have to enter the following:
i. Membership or registration number as login id
ii. Edit profile password.
iii. If candidates do not remember their Edit profile password, they have to
click on the 'Forgot password / Get Password' button after entering the
Membership or Registration number. On clicking fresh edit profile password
will be sent to their registered email id.
d. Candidates are required to produce printed copy of admit letter along
with Membership identity card or any other valid photo ID card (Aadhaar
card / Employer's card / PAN Card / Driving License / Election voter's
card / Passport etc.) at the examination venue.
e. In the absence of printed copy of Admit Letter and Photo Identity Card,
candidates will be denied permission to write Examination.
2. Mobile Phones
a. Mobile phones and other electronic / smart gadgets (except calculator
as permissible) are not allowed in the examination hall. It is clarified that
mere possession of mobile phone and other electronic / smart gadgets in the

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 examination hall whether in switch off mode or silent mode shall also be
deemed to be resorting to adoption of unfair means in the examination.
3. Use of calculator
a. Candidates will be allowed to use battery operated portable calculator
in the examination. The calculator can be of any type up to 6 functions,
12 digits.
b. Attempt to use any other type of calculator not complying with the specifications
indicated above or having more features than mentioned above shall tantamount
to use of unfair means. Scientific calculator is not allowed.
4. Other Rules / Information
a. Candidates should ensure that they sign the Attendance Sheet.
b. Candidates are advised to reach the Examination Venue at least 30 minutes before
commencement of the examination.
c. No candidate will be permitted to enter the Examination Venue / hall after expiry
of 15 minutes and to leave the hall in the first 30 minutes from the scheduled
commencement of the examination.
d. Candidates would be able to login to the system only with the password mentioned in
this Admit Letter. This password should not be disclosed to others. Keep it safe to
avoid the possible misuse.
e. If the examination could not commence on scheduled time or there is delay due to
Failure of power, Technical snag of whatsoever nature or for any such reason having
bearing upon the conduct of examination; candidates have to :-
i. Wait till resumption of power supply / solving of technical snag.
ii. Take-up the examination at other venue arranged by the examination
conducting authority.
iii. Follow instructions given by the examination conducting authority.
f. Candidates are required to strictly follow all the instructions given by the
examination conducting authority during the examination and adhere to Rules
of the examination.
g. Violation of any of the Rules / Instructions, misuse of the Admit Letter will
be considered to be an act of serious misconduct and the Institute will take action
as per the Rules of the examination, which will also be reported to the employer
of the candidate.
5. Rules, Penalities for Misconduct / Unfair Practices :
a. Communication of any sort between candidates or with outsiders is not permitted
and complete silence should be maintained during the examination.
b. Copying answers from other candidates / other printed / Electronic material
or permitting others to copy or consultation of any kind will attract the rules
relating to unfair practices in the examination.
c. No candidate shall impersonate others or allow others to impersonate himself /
herself at the examination.
d. No candidate shall misbehave / argue with the Examination Conducting Authorities
at the centre.
e. Candidates have to compulsory return any papers given including that given for
rough work to invigilator.
f. Candidates should not possess and / or use books, notes, periodicals, etc.
in the examination hall at the time of examination / or use mathematical tables,
slide rules, stencils etc. during the examination.
If any candidate violates any of the above rules, it will be considered to be an act of
misconduct and he/she will be liable for punishment.
PLEASE REFER INSTITUTE'S WEBSITE UNDER THE MENU EXAM RELATED
FOR DETAILS OF DEBARMENT PERIOD FOR UNFAIR PRACTICES ADOPTED BY
CANDIDATES DURING CONDUCT OF INSTITUTE'S EXAMINATIONS.
6. Result Advice / Consolidated Marksheet / Final Certificate
a. Result Advice of candidates will be hosted on Institute's website on declaration
of result, which can be downloaded by the candidates.

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 b. Consolidated mark sheet for candidates completing examination having more
than one subject, will be available on the Institute's website after the declaration
of results. Candidates can download the same after entering login credentials
using their membership number and edit profile password.
c. Final certificates will be sent by speed post within 2 months after the declaration
of result.

CONTACT DETAILS :
Register your queries through website www.iibf.org.in > Members / Candidates
Support
Services (Help)
or
Email all your queries to [email protected]
Member Support Service Office :
Indian Institute of Banking & Finance
191-F, Maker Towers, 19th Floor,
Cuffe Parade, Mumbai - 400 005
Tel. : 022-2218 3302 / 2218 5134
For training / contact classes related queries contact :
Leadership Centre
Indian Institute of Banking & Finance
Kohinoor City, Commercial-II, Tower-I, 3rd Floor,
Kirol Road, Off L.B.S.Marg, Kurla West, Mumbai 400 070.
Tel. : 022 25039746 / 9604 / 9907
E-mail : [email protected]
PROFESSIONAL DEVELOPMENT CENTRES :

South Zone North Zone East Zone

Indian Institute of Banking & Indian Institute of Banking & Indian Institute of Banking &
Finance Finance Finance
No. 94, Jawaharlal Nehru Road, 102-113, Vikrant Towers, Hindusthan Building (Annexe),
(100 Feet Road), Opp. Hotel 1st Floor, 4 Rajendra Place, 7th Floor, 4, C. R. Avenue,
Ambica Empire, Vadapalani, New Delhi 110 008. Kolkatta 700 072.
Chennai 600 026. Tel. : 011-2575 2191 / 92 Tel. : 033-2212 4992
Tel. : 044-2472 2990 / 2472 7961 E-mail : [email protected] E-mail : [email protected]
E-mail : [email protected]

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
Quality Printers (I) Ph. 24922297

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