MONEY BACK RECURRING DEPOSITS (MAKES YOUR DREAMS COME TRUE)

It is a long term Recurring Deposit scheme with intermediate withdrawal facility. Deposits are to be made every month, and the maturity period is after 120 months. You will be having two options :

• You may opt to have one intermediate withdrawal at the end of 60 months and get the final payment at the end of 120 months, or

• You may withdraw immediately at the end of 36 months and 72 months, and get the maturity amount at the end of 120 months.

The scheme meets your long term monetary requirements.

REVISED SYLLABUS FOR JAIIB

JAIIB Subjects

1) Principles of Banking

2) Accounting & Finance for Bankers

3) Legal Aspects of Banking

Objective: To provide basic knowledge in Banking and Financial

Systems and to help the student in developing an extensive

understanding of all aspects of banking.

Level: At par with Graduation from any University in India.

Question pattern: Objective type

Eligibility: Members of the Institute

PAPER 1- PRINCIPLES OF BANKING

Candidates would be able to acquire an in-depth knowledge of

l the legal and regulatory framework of the Banking system.

l the principles and importance of Credit, documentation, monitoring

and control.

l a broad understanding of other functions associated with banking.

l An insight into marketing of banking services and banking

technology

Module A – Indian Financial System

Introduction to the financial system: ; evolution of financial

systems; recent developments in the INDIAN financial system; market

structure and financial innovation. Role and Functions of banks-

Regulatory provisions/enactments governing banks-RBI Major

functions

Retail banking: Wholesale and international banking: the nature

of wholesale banking; off-balance sheet business; international banking

Financial Services Role and functions of Capital markets -

Regulation thereof /Role and Functions of Mutual Funds-SEBI, AMFI

ETC/Role and Functions of Insurance Companies-IRDA Bancassurance,

Factoring, Securitisation etc

Module B-Functions of banks

Deposits ;

Banker –Customer relation-Know your Customer[KYC] –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- socities-Govet and public bodies

Credit :

Principles of lending-various credit facilities -working capital and term

loans -Credit Appraisal Techniques -Approach to lending; -credit

management – credit monitoring –NPA- Recommendations of various

Committees in the area of Credit-Different types of documents;

Documentation Procedures; Stamping of documents

Priority Sector Lending-sectors-targets-issues/problems-current

guidelines-Bank’s performance-recent developments

New Products & Services –Securitisation, Bancassurance, Mutual Funds

etc.

Module C – Banking Technology

Different approaches to bank mechanisation – Core Banking Solutions

-Stand alone computer systems - Wide area and local area networks -

local processing and batch concepts; on-line systems - Mini computers

and Main Frame networking systems.

Electronic Payment systems - Teller Machines at the Bank Counters -

Cash dispensers - ATMs - Anywhere Anytime Banking - Home banking

(Corporate and personal) - 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

upgradation - 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-

Audit trails - Rangarajan, Saraf and Shere Committee

Recommendations.

Module D –Support Services –Marketing

MARKETING OF BANKING SERVICES

a) Marketing Management -Meaning, Importance and Functions -

Marketing of Services -

b) Production Planning -Product Research & Development -Test

marketing - Product Life Cycle -Product Modification -New

Product Development - Elimination -Packaging and Branding -

Diversification

c) Pricing -Objectives, Strategies and Methods -Factors Influencing

the Pricing Decisions, Importance of Pricing.

d) Distribution -Factors Influencing -Direct and Indirect Channels -

Physical Distribution -Channel Functions and Services.

e) Promotion -Promotion Mix and Role of Promotion in Marketing -

Marketing Information Systems.

PAPER 2- ACCOUNTING & FINANCE FOR

BANKERS

Objective:

· To introduce the candidates to Basics of Financial Mathematics

and Basics of Accountancy and develop an understanding in the

basic financial concepts

Module A – Basics of Business Mathematics

1. Calculation of simple Interest – Bank Discount-Compound

Interest-Ordinary Annuities – Other Annuities-Amortization and

Sinking Funds.

2. Bonds-Calculation of YTM-Duration-Bond Pricing-Premium and

Discount

3. Capital Budgeting – Discounted cash flow-net present value-pay

back methods

4. Depreciation-different types-methods of calculation

Module B

1 Definition & Scope and Accounting Standards

Nature and purpose of accounting; historical perspectives – Origins

of accounting principles- accounting standards and its definition

and Scope.

2 Basic Accountancy Procedures

Concepts of accountancy – entity going concern – double entry

systems, Principles of conservatism – revenue recognition and

realization – accrual and cash basis.

3 Maintenance of Cash/ Subsidiary books and Ledger

Record keeping basics –account categories – debit and credit

concepts – account and columnar accounting mechanics –

journalizing – writing cash books

Module C

1 Bank reconciliation statement – Trial Balance – Adjusting and

Closing entries.

2 Capital & Revenue Expenditure/Depreciation/Inventory Valuation/

Bill of Exchange / Consignment Joint Venture

3 Special accounts – Leasing and Hire-Purchase Company accounts

– Accounts of Non-Trading Concerns – Receipts and Payments.

Module D

Balance Sheet Structure – accounts – categories –Assets, Liabilities

and Net Worth Components./Partnership accounts – partner’s fixed

capital accounts – Current accounts – loan accounts – treatment of

intangibles like goodwill – admission / retirement / death of partner –

sleeping/ quasi and Limited partnership./Company accounts –

Partnership vs. Limited Liability Company accounts – classes of Share

Capital – issue/ forfeiture of Shares – non-voting shares – issue of Bonus

Shares

Preparation of Final Accounts – Final Accounts of Banking Companies-

Accounting in a computerised environment-methods-proceduressecurity-

rectification

PAPER 3-LEGAL ASPECTS OF BANKING

OPERATIONS

Objectives:

The candidates would be able to acquire knowledge in

l the legal & regulatory framework of the banking system

l and the various laws and enactments affecting day to day banking

operations

Module A- Regulations and Compliance:

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

problems

A. Provisions of RBI Act 1935 ,Banking Regulation Act 1949

Banking Companies [Acquisition and transfer of undertakings

Act 1970 & 1980]

B. 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

2 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 Payment Guarantees-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

3 Module C- Banking related laws

Provisions of Bankers Book Evidence Act

Special features of Recovery of Debts Due to Banks and Financial

Institutions Act, 1993

The Securitisation and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, 2002

The Consumer Protection Act, 1986 Definition, Consumer Protection

Councils Chapter II (Sections 4-8) Consumer Disputes Redressal

Agencies (Sections 9-15) District Forums, State Commission and

National Commission, their powers etc

Banking Ombudsman

4 Module D – Commercial Laws with reference to banking

operations

Indian Contract Act, 1872 Chapters VII, IX and X: (Indemnity,

Guarantee, Bailment, Pledge and Agency)

The sale of Goods Act, 1930 (Sale and Agreement to Sell, Definitions,

Conditions and Warranties, Express and Implied, Right of unpaid Seller)

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 (Section

18 to 29) Minor admitted to the benefits of Partnership (Section 30)

Dissolution of firm (Section 39 to 45) Effect of non-registration (Section

69) Transfer of property act FEMA 2000.

RECOMMENDED READING

“The Institute has prepared comprehensive study material in the

form of kits modelled on IGNOU pattern to facilitate preparation for

the examination without intervention of teacher. Attempt has been made

to cover fully in the write-ups the syllabus prescribed for each subject/

paper. The presentation of topics in the self study material may not

always be in the same sequence as given in the syllabus. The said course

material can be purchased by members from Zonal Offices. The same

will be also available at Macmillan outlets. Candidates are also expected

to take note of all the latest developments relating to the subjects covered

in the syllabus by referring to Economic Journals, Financial Papers,

latest books and publications on the subjects concerned.”

PASSING CRITERIA

a) Pass: Minimum 50% or more marks in each subjects

b) First Class with Distinction: 75% or more marks in any individual

subject and 60% or more marks in the aggregate and pass in all

subjects in the first attempt.

c) First Class: 60% or more marks in aggregate and pass in all the

subjects in the first attempt.

d) Candidates will be allowed to retain credits for the subject he/she

has passed in one attempt till the expiry of the time limit.

e) First Class / First Class with Distinction will not be applicable to

the candidate availing the facility of credit transfer as they would

not be passing the examination in first attempt.

PENALITIES FOR MISCONDUCT / UNFAIR PRACTICES

The Institute shall have the right to impose penalties on any

member for committing an act of misconduct/ unfair practice in respect

of any matter affecting the Institute or at or in respect of any examination

conducted by the Institute or disqualifying any candidate who, they

have reason to believe has received or given unfair assistance at the

examination and

a) to cancel the result of such candidate in all or any of the subjects

of the examination at which he/she may have appeared

b) to exclude him/her from future examinations either permanently

or for a specified number of examinations;

c) to report his/her name to his/her employer and

d) to take such other action against him/her as the Institute shall in

their sole discretion deem fit and the decision of the Institute shall

be final and binding on the candidate concerned.

The Institute shall also have a right to cancel the results of any

subsequent examination at which the candidate may have appeared if

such examination falls within the exclusion period in the penalty, as by

reason of imposition of such a penalty of exclusion from the future

examination, the candidate would not have been eligible to appear at

such subsequent examinations.

In case any member including former member, desires to institute

any legal proceedings against the Institute in respect of anything done

or proposed to be done by the Institute in relation to him/her such legal

proceedings shall be instituted only in the courts at Chennai, Kolkata,

New Delhi and Mumbai in whose jurisdiction the application is

submitted by him/her and not in any other court.

CONDUCT & DISCIPLINE IN THE EXAMINATION HALL

1. No candidate shall be permitted to enter the examination hall after

the expiry of 15 minutes from the commencement of the

examination and no candidate shall be permitted to leave the hall

before the expiry of one hour from the commencement of the

examination. Candidates should be present at the examination

venue at least 15 minutes before the commencement of the

examination.

2. Candidates should ensure that he/she signs the Attendance Sheet.

3. Candidates should not possess and/or use books, notes, periodicals

etc. in the examination hall at the time of the examination /or use

mathematical tables, slide rules, stencils etc. during the examination

except for the examination for which such use is expressly

permitted. A candidate found in possession of such unauthorised

material during the examination is liable to be proceeded against

for adoption of unfair means in the examination in addition to

reporting the matter to his/her employer for disciplinary

proceedings for the misconduct. They should hand them over to

the Hall Superintendent before the commencement of the

examination. Generally candidates appearing for Accounting and

Finance for Bankers, Financial Management will be permitted to

use calculators while appearing for the Associate Examination

subject to the following:

Calculators should:

a) be pocket size and fully portable

b) be silent while operation

c) be battery operated

d) not be capable of being programmed by the insertion of tapes

or otherwise.

e) Not have print out facilities

f) be of the type upto 6 functions and 12 digits.

g) not be capable of retaining/storing data in memory when

the calculator is switched off.

Calculators which do not comply with the above conditions and

found in possession of candidate during the examination will be

confiscated by the Examination Supervisors and returned to the

candidate at the end of the examination. In case a candidate is

found using the calculator not complying with the above conditions

in the course of the examination it will amount to adoption of

unfair practice at the examination by the candidate concerned and

the Institute shall take such action against the candidate as may be

deemed appropriate.

4. Communication of any sort between candidates or with outsiders

is not permitted and complete silence should be maintained during

the examination.

5. Copying the answers from the answer books of other candidates

or permitting others to copy from one’s answer book will attract

the rules relating to unfair practices in the examination.

6. No candidate should leave the examination hall without handing

over the answer books to the Hall Supervisor / Invigilator. Once

the answer book is handed over to the Supervisor / Invigilator the

same cannot be taken back by the candidate.

7. No candidate shall impersonate others or allow others to

impersonate himself at the examination.

8. Candidates are not permitted to carry mobile phone in the

examination hall.

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

mentioned in next post.

PROCEDURE FOR APPLYING FOR EXAMINATION & ADMIT CARD

Examination Application Forms will be available on the Institute’s

web site at www.iibf.org.in which could be downloaded and filled

in. The applications will be available at the Institute’s zonal offices,

Corporate Office and also at such other centres/offices as may be

notified from time to time. Examination Application Forms duly

filled in (for the detailed instructions refer the Examination

Application Form) alongwith requisite examination fee should be

submitted to the respective zonal office at Mumbai, Chennai, New

Delhi, Kolkata or at such other centres/offices as may be notified

from time to time. The Institute accepts no responsibility for delay

or inconvenience arising from the candidate’s failure to reach the

Examination Application Form in time or if the form is incomplete

or failure to furnish all the essential information about himself/

herself and the details of his/her examination.

ADMIT CARD

On-line Examination

1) The Institute will issue Examination Admit Card for every

examination containing details of venue and time of the

examination as well as User id, password to be used while

appearing at the examination.

2) The Examination Admit Card along with the Permanent

Membership Identity Card should be produced to the Examination

Authority each time in the examination hall for identification.

3) In absence of the Admit Card / Permanent Membership Identity

Card the candidate is liable to be denied permission in the

examination venue.

4) Permanent Membership Identity Card is issued by the respective

Zonal Office at the time of admission as a member or renewal of

membership or on receipt of examination application form

whichever is earlier.

5) Candidates will have to appear at the Centre which they choose

while applying for the examination first time and for the subsequent

examinations also. The venue for the examination will be advised

while issuing the Examination Admit Card. In case of any change

in centre due to transfer or any other valid reason, the candidate

should inform the Institute well in advance (at least one and half

month before the commencement of the examination) to enable

the Institute to intimate the changed venue.

6) The Institute reserves a right to close any of the existing centres

on account of less number of candidates appearing from that

centre or any other reason which it may think fit. In such case

candidates will be advised to appear from the nearest available

centre.

Off-line Examination

Institute’s zonal offices will send ‘Examination Admit Cards/Hall

Tickets’ containing the Examination dates, venue details, examination

time etc.

MEDIUM OF EXAMINATION

1) Candidates are allowed to write the examination either in Hindi

or English. They should fill in the Examination Application Form

in his/her own hand under his/her signature and indicate the choice

of medium as Hindi or English for answering the question paper.

In the absence of a clear indication about the medium opted by the

candidate, English will be presumed as the medium. In any case

change of medium will not be allowed at a later stage.

2) Answers to all questions in all subjects of an examination should

be written through chosen medium only, and it should be the

medium opted by the candidate in the Examination Application

Form for the examination. The candidates are not permitted to

answer different subjects in the same examination in different

mediums.

TIME LIMIT FOR PASSING THE EXAMINATION

a) A Candidate will be allowed to take up the first examination only

after 4 months from the date of registration for the examination

i.e. after submission of the Examination Application Form.

b) Candidates will be required to pass the examination within a time

limit of 2 years (i.e. 4 attempts). Initially a candidate will have to

pay examination fee for a block of one year i.e. for two attempts.

In case a candidate is not able to pass JAIIB / CAIIB Examination

within a time limit of one year, he can appear for a further period

of one year i.e. two attempts on payment of requisite fee.

c) Candidates not able to pass JAIIB / CAIIB Examination in the

stipulated time period of 2 years are required to enrol themselves

afresh by submitting a fresh Examination Application Form after

a cooling period of one year from the last attempt. Such candidates

will not be granted credit/s for subject/s passed if any earlier.

However, they will continue to be granted exemption in certain

subject/s based on the qualifications acquired by them earlier.

d) Attempts will be counted from the date of application irrespective

of whether a candidate appears at any examination or otherwise.

ELIGIBILITY

1. The Examination is open only to the ordinary members of the

Institute who are in employment of the Institutions which are

Institutional Members of the Institute provided individual and

institutional subscription is not in arrears.

2. New members are advised of the examination for which they are

eligible to appear while intimating their respective membership

numbers.

3. a) Candidates must have passed the matriculation examination

or its equivalent.

b) The Institute may, however at its discretion, allow any

candidate from clerical or supervisory staff cadre to appear

at the examination on the recommendation of the Manager

of the bank/ officer-in-charge of the bank’s office where the

candidate is working, even if he/she is not a matriculate or

its equivalent.

c) Subordinate staff of recognised Banking/Financial

Institutions in India, who are members of the Institute, are

eligible to appear at the examination, provided they have

passed the matriculation examination or its equivalent.

4. A candidate applying for CAIIB must have completed JAIIB or

Part I of the Associate examination under old syllabus.

5. The ex-employees of Banks/Financial Institutions who desire to

appear at and complete Associate Examination will be allowed to

appear for the Examination at the discretion of the Institute subject

to the following :

q The cessation of service is not due to reason of any

misconduct.

q The application is forwarded through the Institution in whose

employment the candidate was before ceasing to be in service

with their recommendations in the prescribed format, along

with a no objection certificate from the current employer.

Objectives & Syllabus & Subjects

OBJECTIVES:

JAIIB aims at providing maximum level of basic knowledge in

banking and financial systems, communication, and customer

relations, basic accountancy and legal aspects necessary for

carrying out day to day banking operation

SYLLABUS:

The details of the prescribed syllabus are furnished  in NEXT Post. 

Though a detailed syllabus has been prepared for all

the subjects, the same is only indicative and not exhaustive.

Keeping in view the professional nature of the 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 Associate Examination should particularly

prepare themselves for answering questions that may be asked

on the latest developments taking place under the various

subjects 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 from

time to time. Any alterations made will be notified from time

to time.

SUBJECTS:

JAIIB

1. Principles of Banking

2. Accounting and Finance for Bankers

3. Legal aspects of Banking