Caiib BFM strategy

BFM::;;

The strategy for the study of Bank Financial Management which many people finds difficult to clear. If you study properly, it is easy to clear the BFM. This subject also contains 4 modules, they are;

-International Banking

-Risk Management

-Treasury Management

-Balance Sheet Management

Many people do not correlate the syllabus of the subject with day to day banking activity. So they find it difficult to score and understand this subject. But this not true, this subject is very much important which will increase your knowledge regarding top management & middle management functioning of your bank as well as banking as a whole industry.

All the modules are equally important, but you may clear the paper with three modules study also. Module A & B are relatively easy and scoring as well. Let us discuss strategy for each module.

Module A-International Banking

Important topics are Exchange Rates and Forex Business, Basics for Forex Derivatives, Documentary LC, and Facilities for Exporters & Importers

Rapid reading or bullet point reading is quite useful for this module. Practice numerical again and again.

Many numerical/case studies are asked from this module which are quite easy as compared to Module B & Module D case studies. Refer the case studies from McMillan given at the end of the topic. Also N.S.Toor book has many numerical and case studies. Questions are asked on Exchange rates, Shipment Finance etc.

Module B-Risk Management

All chapters are equally important as they are interlinked to each other. Again focus more on case studies/numericals given in Apendix at the end of chapter. Maximum case studies are asked from this module. Though short notes are useful for this module I would suggest McMillan reading for this module because some questions are twisted type for which you require details of the concept which is hard to get from short notes. RBI website contains FAQs which are quite useful for this modules, you should read them at least once.

Module C- Treasury Management

Important topics are Introduction, Types of treasury products, Treasury Risk Management, Treasury and Asset-Liability Management.

Mostly questions asked on this module are theoretical type, so through reading of McMillan is important. If you don’t get time then you can skip this module or read short notes since the weighted of this module for exam point of view is low according to me as compared to Module A&B. But those who wish to make carrier or work in treasury department, this is the best module to learn.

Module-D Balance Sheet Management

Important chapters are Components of ALM in Bank’s Balance Sheet, Capital and banking Regulation,, Capital Adequacy, Asset Classification and Provisioning Norms, Interest rate Risk management.

Though McMillan book contain sufficient material but I would suggest you to refer RBI website for this module. In this module focus more on Case Studies as compared to theoretical questions. Do not skip this module as it is much important for exam as well as knowledge point of view. No need to read McMillan line by line.

Overall you have to keep balance between theoretical reading as well as case studies/numerical since the paper would contain 40-45% case studies. N.S.Toor book contains good case studies and MCQs. Also there are many resources available on the internet from where you will get case studies for this module. After giving this paper you will realized that BFM is easier as compared to ABM and no need to worry for BFM.

CAIIB ABM Strategy

CAIIB ABM Strategy

ABM is one of the compulsory subjects for CAIIB. Most of the people find difficult to clear this paper. Today, I will tell you how to study for ABM subject.

This subject also contains 4 modules

MODULE – A: Economic Analysis

MODULE – B : Business Mathematics

MODULE – C : HRM in banks

MODULE – D : Credit Management

As we are bank employees we get very less time for study, so how to decide which topics to be read, which topics to be skipped?

-As I had told you in my previous blog article that generally paper consists of 60% theoretical & 40% numerical or case studies, so choose the module to be study in deep so as to clear the paper easily depending upon your personal strength and weakness.

If you observed all the modules, you will realize that Module A and Module C are most scoring modules. Do not skip these modules. Module B contains Business Mathematics which many people find difficult to study as the level of mathematics is tough, especially for non-engineering background people. Those who works in Credit/Loan Department will find that Module D easy as well as interesting. Module D is most important not only exam point of view but also for your daily working in Credit Department. So do not skip Module D.

IMPORTANT TOPICS FROM EACH MODULE

Module A- Supply and Demand, Money Supply and Inflation, Business Cycles, GDP Concepts and Union Budget.

No need to read McMillan Book line by line for thise module, short notes will be quite useful for studying this module. Don’t read stats given in these chapters. In GDP Concepts and Union Budget chapters numerical are asked which are quite easy provided you know the components and formula.

Module B-Time Value of Money, Sampling Methods, Simulation, Bond Investment

Don’t go to deep for study this module as mathematical calculations are difficult to understand especially for non engineering background people. Practice the examples given in McMillan. Those who are not good at math can skip this module and focus more on remaining modules.

Module C-Development of Human Resources, Human Implications of Organisations, Performamce Management, HR & IT

You need to read thoroughly all the topics from this module from McMillan. It is quite easy and theoretical only. Repeatedly read MCQs from N.S. Toor book of this module.

Module D-Overview of Credit Management, Analysis of Financial Statement, Working Capital Finance, Credit Control and Monitoring, Rehabilitation and Recovery.

Read this module from McMillan book only. The chapters in this module are not lengthy as compared to other modules. Practice Numerical from Financial statement and balance sheet.

Overall, you have to study at least three modules in detail so as to achieve the 50 score. You can choose the modules to study more depending upon your strength. I would suggest that you can keep module B at last, just read formulas from this module, as this module is quite boring, lengthy and hard to understand.

Basics what is what? Banking terms

Basics what is what? Banking terms

What is FII?

FII (Foreign Institutional Investor) used to denote an investor, mostly in the form of an institution. An institution established outside India, which proposes to invest in Indian market, in other words buying Indian stocks. FII's generally buy in large volumes which has an impact on the stock markets. Institutional Investors includes pension funds, mutual funds, Insurance Companies, Banks, etc.

What is FDI?

FDI (Foreign Direct Investment) occurs with the purchase of the “physical assets or a significant amount of ownership (stock) of a company in another country in order to gain a measure of management control” (Or) A foreign company having a stake in a Indian Company.

What is IPO?

IPO is Initial Public Offering. This is the first offering of shares to the general public from a company wishes to list on the stock exchanges.

What is Disinvestment?

The Selling of the government stake in public sector undertakings.

What is Fiscal Deficit?

It is the difference between the government’s total receipts (excluding borrowings) and total expenditure.

What is Revenue deficit?

It defines that, where the net amount received (by taxes & other forms) fails to meet the predicted net amount to be received by the government.

What is GDP?

The Gross Domestic Product or GDP is a measure of all of the services and goods produced in a country over a specific period; classically a year.

What is GNP?

Gross National Product is measured as GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market.

What is National Income?

National Income is the money value of all goods and services produced in a country during the year.

What is Per Capita Income?

A: The national income of a country, or region, divided by its population. Per capita income is often used to measure a country's standard of living.

What is Vote on Account?

A vote-on account is basically a statement ,where the government presents an estimate of a sum required to meet the expenditure that it incurs during the first three to four months of an election financial year until a new government is in place, to keep the machinery running.

Difference between Vote on Account and Interim Budget?

Vote-on-account deals only with the expenditure side of the government's budget, an interim Budget is a complete set of accounts, including both expenditure and receipts.

What is SDR?

The SDR (Special Drawing Rights) is an artificial currency created by the IMF in 1969. SDRs are allocated to member countries and can be fully converted into international currencies so they

serve as a supplement to the official foreign reserves of member countries. Its value is based on a basket of key international currencies (U.S. dollar, euro, yen and pound sterling).

What is SEZ?

SEZ means Special Economic Zone is the one of the part of government’s policies in India. A special Economic zone is a geographical region that economic laws which are more liberal than the usual economic laws in the country. The basic motto behind this is to increase foreign investment, development of infrastructure, job opportunities and increase the income level of the people.

What is corporate governance?

The way in which a company is governed and how it deals with the various interests of its customers, shareholders, employees and society at large. Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Is defined as the general set of customs, regulations, habits, and laws that determine to what end a firm should be run.

Functions of RBI?

The Reserve Bank of India is the central bank of India, was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Reserve Bank of India was set up on the recommendations of the Hilton Young Commission. The commission submitted its report in the year 1926, though the bank was not set up for nine years. To regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker. Banker to banks: maintains banking accounts of all scheduled banks.

What is the dispute between the RBI and GOVT OF INDIA presently

What is monetary policy?

Monetary policy is the process by which the government, central bank, of a country controls (i) the supply of money, (ii) availability of money, and (iii) cost of money or rate of interest, in order to attain a set of objectives oriented towards the growth and stability of the economy.

What is Fiscal Policy?

Fiscal policy is the use of government spending and revenue collection to influence the economy. These policies affect tax rates, interest rates and government spending, in an effort to control the economy. Fiscal policy is an additional method to determine public revenue and public expenditure.

What is Core Banking Solutions?

Core banking is a general term used to describe the services provided by a group of networked bank branches. Bank customers may access their funds and other simple transactions from any of the member branch offices. It will cut down time, working simultaneously on different issues and increasing efficiency. The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions.

What is bank and its features and types?

A bank is a financial organization where people deposit their money to keep it safe. Banks play an important role in the financial system and the economy. As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner.

i. Regional Rural Banks were established with an objective to ensure sufficient. Institutional credit for agriculture and other rural sectors. The RRBs mobilize financial resources from rural / semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural labourers and rural artisans. The area of operation of RRBs is limited to the area as notified by GoI covering one or more districts in the State.

ii. Banking services for individual customers is known as retail banking.

iii. A bank that deals mostly in but international finance, long-term loans for companies and underwriting. Merchant banks do not provide regular banking services to the general public

iv. Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank.

v. Mobile Banking is a service that allows you to do banking transactions on your mobile phone without making a call , using the SMS facility. Is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone.

vi. Traditional banking is the normal bank accounts we have. Like, put your money in the bank and they act as a security and you will get only the normal interests (decided by RBI in our case, FED bank in US).

vii. Investment banking is entirely different. Here, people who are having so much money (money in excess which will yield only less interest if in Banks) will invest their money and get higher returns. For example, If i have more money instead of taking the pain of investing in share market, buying properties etc. I will give to investment banks and they will do the money management and give me higher returns when compared to traditional banks.

What is E-Governance?

E-Governance is the public sector’s use of information and communication technologies with the aim of improving information and service delivery, encouraging citizen participation in the decision making process and making government more accountable, transparent and effective.

Credit Rating Agencies in India?

The credit rating agencies in India mainly include ICRA and CRISIL. ICRA was formerly referred to the Investment Information and Credit Rating Agency of India Limited. Their main function is to grade the different sector and companies in terms of performance and offer solutions for up gradation. The credit rating agencies in India mainly include ICRA and CRISIL(Credit Rating Information Services of India Limited)

CODE OF BANK'S COMMITMENTS

Code of Bank's Commitments made to the individual customers during July 2006 is valid for three years. The code is voluntary which stresses minimum standard of banking practices to follow while dealing with the customers in their day-to-day operations. The code has been developed to promote minimum standards, to increase transparency, to achieve higher operating standards, to promote fair and cordial relationship between the banks and customers and to foster confidence in the banking system. The Code of Bank's Commitment includes all products and services,

whether they are provided by branches or subsidiaries across counters, over phone or through Internet. Customers can lodge complaints related to Internet banking and non-adherence to the provisions of the fair practices code for banks of the Banking Codes and Standards Board of India (BSCBI), as per amendment brought in by the RBI to the Banking Ombudsman Scheme in February 2009.

Help on any enquiry on the Code of Bank's Commitment is available at Indian Banks' Association, Mumbai. The monitoring agency on the implantation of Code of Bank's Commitment is Banking Codes and Standards Board of India, RBI.

Cash Budget Method :-

Cash Budget Method :-

Cash budget method is used for assessing WC finance for seasonal industries like sugar, tea, etc. and for construction activity. The cash budget analysis is also used for sanction of ad hoc WC limits. In these cases, the required finance is quantified from the projected cash flows and not from the projected values of current assets and current liabilities. Under this method of assessment, besides the cash budget other aspects of assessment like examination of funds flow, profitability, financial parameters, etc. will be carried out as per the PBS method. Cash Budget is usually forecast of receipts and payments of an enterprise, drawn at small intervals of time, say monthly, weekly etc. A cash Budget is therefore a projection into future as against cash flow statement that is usually historical in nature. The Cash budgeting technique helps a decision maker in situations especially where borrower need short term credit. A few example of this situations are (I) Opening of letter of credit. (ii) Providing adhoc/contingent working capital facility, (ii) bill financing, (iv) financing construction activities, and (V) financing activities with seasonal fluctuations. Etc.

Difference between company and partnership

Difference between company and partnership

Partnership and Company are the most familiar terms for the people who are pursuing business education or commerce education. Besides being very familiar, many of us can’t able to correctly differentiate these two forms of business. This article presents you the top differences between Partnership Firms and Companies.

PARTNERSHIP

Indian Partnership Act, 1932 defines Partnership as ” Partnership is a relationship between two or more persons who have agreed to share the profits of a business carried on by all partners or any one partner acting for all”. The members of the Partnership firm are called as Partners. There are different types of partners such as Active partner, Sleeping partner, Nominal partner, Minor partner, Etc.

Partnership Frim is created by agreement between two or more people by registering the partnership firm with Registrar of Firms according to Indian Partnership Act, 1936.

Registration of a partnership firm is very simple process and Application for registration of firm must contain the following details

✔ Name of the firm

✔ Names of the partners and their addresses

✔ location where the business is carried on.

✔ Partnership tenure between the partners

✔ The main office of the firm, etc.

COMPANY

Indian Companies Act, 2013 defines Company as ” A Company formed and registered under this Companies Act or under any previous company law”. A company is defined easily as an association of two or more persons which is formed for doing business collectively and registered with Registrar of Companies according to Indian Companies Act, 2013.There are different types of companies like One Person Company, Private company and Public Company, etc.

To get registered with Registrar of Companies, the promoters are required to submit the copies of Articles of Association and Memorandum of Association which consists of various information relating to internal management and external management of the company.

The company exhibits certain special characteristics, such as

✔ It have a Separate Legal Entity

✔ It contains Common Seal under its name

✔ It has limited liability

✔ It acts as an artificial person, Etc.

COMPARISON

PARTNERSHIP COMPANY

The members of the Partnership firm are called as Partners. The members of the company are called as shareholders of a company.

 Enacted by

Partnership Form of business is governed by "The Indian Partnership Act, 1932." Company Form of business is governed by "The Indian Companies Act, 2013”.

 Number of Members

Partnership firm must have Minimum of 2 partners and maximum of 20 partners. A Company must have Minimum of 2 and maximum of 200 in the case of private company. Minimum 7 and maximum is unlimited number of members in case of public company

 Created by

Partnership Firm is Created by Contract between two or more people. Company Firm is Created by Law i.e created by incorporation of a company under company law.

 Regulation Authority

It is regulated by the Registrar of Firms which comes under State Government. It is regulated by the Registrar of Companies which comes under Central Government.

 Registration procedure

The registration of a Partnership firm is Not Mandatory. The registration of Company with Registrar of Companies is Mandatory.

 Documents Required

Partnership Deed(Agreement Document) is the mandatory document for creation of a Partnership Firm. Memorandum of Association(MoA) and Articles of Association(AoA) are the main documents to the incorporation of the company.

 Separate Legal Entity

Partnership firm is not a separate legal entity from partners. The Partners of the firm are collectively referred as a Partnership firm. A company is a separate legal entity, It is a separate entity from its members, directors, promoters, etc.

 Liability of Members

The partners have Unlimited Liability in all the matters relating to Partnership Firm. The Shareholders and promoters have Limited liability to Capital of the company.

 Accounts and Audit

Partnership Firm has to maintain accounts as per the conditions stated in partnership deed. A Company should maintain accounts and auditing of accounts by certified Chartered Accountant are Compulsory.

 Common Seal

A Common Seal is not required for Partnership Firm. A Common Seal in the form of a stamp is required for the company for legal and functional purposes.

 Management

Management of the activities of a Partnership Firm is usually done by the working partners. Management of the activities of a Company is done by Board of Directors.

 Change of Name

The name of the Partnership Firm can be changed easily by having a discussion between partners. The name of the company cannot be changed easily and a prior approval of Central Government is required to change the name.

CONCLUSION

The Indian Partnership Act, 1932 laid down certain rules and regulations on matters relating to Rights of partners, Liabilities of Partners, Duties of Partners, etc. Indian Companies Act, 2013 laid down various principles relating to the functioning of companies to protect the shareholders and investors of companies. Both Partnership and Company form of businesses is very prevalent in the world.

Some Important Things to Remember PPB and Legal

Some Important Things to Remember PPB and Legal

✅Cheque truncation-Electronic Image

✅Notice of dishonour waived mentioned in an endorsement - Facultative endorsement

✅Endorsement without recourse-Sans recourse endorsement

✅In crossing where banks name is included-Special crossing

✅Not negotiable crossing indicates that payee has got a better title.

✅Difference in words and figures-Amount in words to be paid.

✅As per CTS 2010- Amount in words is called as legal amount and amount in figures is called as courtesy amount.

✅Cheque drawn in different inks-Pass the cheque

✅Cheque having impossible date like 31/11/2016 presented on 30/11/2016 pass the cheque.

✅Cheque dated prior to date of account opening – Pass the cheque.

✅Bearer cheques - Pass the cheque.

✅Validity of a Cheque - 3 months

✅Immediate credit of outstation cheques - Rs 15000

✅Minor becomes major at the age of 18, if guardian is appointed by court he becomes major at the age of 18.

✅Minor can endorse but will not be liable

✅Missing person-A person is presumed to be died only after of lapse of 7 years from date of report to be missing.

✅For individuals, Joint accounts(not survivor,if issued by survivor,pass the cheque), partnership-Death of individual/partner- Payment of the cheque to be stopped

✅For Trust, Company, POA-Death of Trustee, Director, Agent-Pass the cheque.

✅In joint account, Partnership account, any person, partner can give stop payment notice, but revocation to be done by all.

E or S, death of one amount to be paid to survivor.

✅In joint operation account, if any one dies then amount will be paid to legal heirs of the deceased plus survivor.

✅In former or survivor only former has got all the rights, survivor can’t give stop payment nor withd be signed by both.

✅In case of locker operated jointly, if any person dies then access will be given to survivors along with nominee. In case of E OR S, then articles will be taken by the survivor.

✅Banks will issue notice for operation or surrender if Locker is not operated for one year in high risk accounts Locker is not operated for three years for medium risk accounts.

✅Break open of lockers to be done in front of the Branch officials, locker hirer, and two independent witnesses.

✅Premature or closure of deposit accounts, nominations to be signed by all joint account holders-Note-Premature can be done if demanded by survivor provided the authorisation was given at the time of account opening by the joint account holders for premature closure if any one dies.

✅In HUF Senior male coparcener is Karta.

✅A blind person can open a current account but an illiterate cannot open a current account.

✅Inland bills-Drawn in India, Payable in India by a foreigner or resident, payable abroad by an Indian.

Foreign bill other than the above.

✅A bill presented on 15/05/2017 and accepted on 16/05/2017.Due date will be 2 months from the date of presentment. Due date?

✅Even though 2 months presentment is given only accepted date to be taken into account.

✅2 months from 16/05/2016 -16/07/2016 Add 3 days grace- 19/07/2016 (3rd day)

✅If the due date happens to be a holiday then the bill will be paid on previous or preceding working date

✅Issue of DD without indemnity/no payment advice-Rs 5000

Contract act

CONTRACT ACT

1. A mandate may not continue to be operative in cases of Death of agent, Lunacy of Agent,

Insolvency of Agent etc

2. The term ― Power of Attorney refers to An instrument by which one person i.e. Agent acts on

behalf of another i.e. Principal

3. Your customer Mr. Qureshi had executed a power of attorney in favour of Mr.Ahmed who operates

the account. You received a notice of death of Mr. Qureshi when a cheque signed by Mr. Ahmed is

presented for payment. Whether Cheque can be paid? Cheque should not be paid. (principal has died

– authority is derived from principal)

4. Mr. Modi maintains a current account in your branch which is operated by Mr. Jain in whose favour

Mr. Modi has executed a Power of Attorney. A notice about the death of Mr.Jain is received.

Subsequently a cheque signed by Mr. Jain is presented for payment. What action will be taken? May

be paid after clearance from Mr.Modi

5. A and B maintain a joint account which is operated independently. A serves a notice not to honour

any cheque drawn by B. Subsequently a cheque signed by B is presented for payment. Whether the

cheque can be paid? His cheque should not be paid

6. The current account of a minor is operated by his natural guardian. Whether the Bank can grant

an Overdraft? No.

7. A minor can be admitted to a firm as what? Beneficiary

8. If one of the defendants in a suit is a minor, whether he can be sued? He can be sued thro

his/her guardian

9. When customer hands over money to the bank for remittance, the relationship between customer

and banker is: Principal and agent

10. For recovering the dues the Bank can enforce the security by: Selling movable properties

pledged to it after giving due notice

11. Right of set off - It can be exercised even for time barred debts

12. What type of right available to a guarantor is not available to an Indemnifier? Right of

Subrogation.

13. The contract of insurance is a contract of Indemnity.

14. Right of lien/rights as pledge/right set off of a Banker are not barred by limitation.

15. The notice of assignment should be signed by Both by assignor and assignee

16. What is the consideration in the case of a guarantee? Any promise or act done for the benefit of

the principal debtor.

17. Government dues will have priority over pledged security. No. Pledge will prevail over

government dues provided there is no special act giving priority to government dues in that state.

18. The very important condition/feature of a pledge is: Prior notice of sale is a must in the case of

sale of pledged property

19. Do we have to exhaust all avenues against the Principal Debtor before proceeding against the

guarantor? No, we can proceed against any of them

20. Mr.X has given the guarantee on behalf of Mr.Y on 1/10/01. Your branch has invoked the

guarantee on 1/10/2003. The last date of filing suit is: 1-10-2006.

21. There are 2 loan accounts of the same borrower with different guarantors. To recover through

court of law- Two different suits should be filed.

22. The guarantor of defaulted account is navy personnel. What amount can be recovered from him?

Salary of Navy personnel is not attachable.

23. Guarantee is defined under which act? Contract Act.

24. Assignment to be valid legally Must be in writing

25. Whether the Bank can exercise its lien on the Credit balance in the loan account? YES.

26. The essence of the Right of Set Off is that Mutual claims of debtor and creditor can be merged

and only the remainder is Payable by the debtor/creditor

27. Whether the Creditor can proceed against the surety at his will? No.

28. Bank has got a right to take possession of movable securities hypothecated to us in the event of

default of the borrower on account of Hypothecation agreement

29. Can the Illiterates, Minors; Married Women are competent to endorse an instrument? YES.

30. The transactions relating to safe custody of articles are governed by The Indian Contract Act

31. The important requirement of a valid guarantee executed by Central/State government is that: It

should be executed on behalf of the President or Governor as the case may be

32. When the bank carries out standing instructions for paying insurance premia it acts as An agent

33.Actionable claim means A claim to any debt other than the debt secured by hypothecation, pledge

or mortgage.

34.Whether consideration is required in case of an assignment? Consideration is not essential in case

of an assignment.

35. Whether Claims of debt secured by mortgage can be assigned? No. Claims of debt secured by

mortgage can not be assigned.

36. Whether Assignment of a debt should be in writing? YES. It should be in writing.

37. Who can create a valid pledge? Owner of the goods and the Agent of the owner can create a

valid pledge.

38. When the bank takes possession of hypothecated goods, it is converted into Pledge.

39. Whether an agreement of Hypothecation or Pledge can be attested? No. It should not be

attested.

40. Whether the power to sell without the intervention of the court In case of a pledge/

hypothecation/an English mortgage is available?

YES. The power to sell without the intervention of the court is there even beyond limitation.

41. Whether we can proceed against either the borrower or the guarantor reserving the right to

proceed against the other subsequently?

YES. We can do so with the leave of the court under Order 2 Rule 2 of CPC

42. If court appoints a guardian then when shall a person attain majority? On completion of 18 years

of age

43. While computing the age of majority of a person domiciled in India which of the following shall be

taken into account.

The day on which he was born is to be included as a whole day and he shall be deemed to have

attained majority at the beginning of 18th anniversary of that day

Msme recollected

MSME FOR BANKERS (EXAM DATED 27.04.2019)

1. MSME represent ------- policies of Government of India which emphasized to use foreign exchange for imports etc (Ans: Socio Economic)

2. Objectives of MSME identification which among is not an objective (Page 4 of Text Book)

3. Limitations of MSME. Identify which among is correct (Page 4 of Text Book)

4. The MSME is made important subject in development in (Ans: Worldwide including countries like USA, Japan)

5. The classification of industries is based on different factors. Which among the following is wrong (Ans: Loan Amount)

6. Explanation of export oriented Unit (Ans: Industry that undertakes to export 30% of annual production at the end of third year)

7. Which among the following is not falls in Small Business (Ans: Wholesale Trade)

8. For the transport operator is categorized as MSE, if total vehicle owned does not exceed (Ans: 10)

9. The de reservation of items as per Sec 29 B of Industries act 1951. Find out wrong features (Page 10 of Text Book)

10. Micro Enterprises Manufacturing & service investment criteria (Ans. 25 Lacs & 10 lacs)

11. Which among the following is the example of indirect finance (Ans: MFI lending to co-operatives of producers)

12. Which among the following is not a feature of Sole Proprietary firm (Ans: Income is distinguished for taxation)

13. Mr. Ram a minor turned major on 01.02.2016, who was admitted to a partnership firm during his minority. What is the maximum time before which he can repudiate his liability (Ans: 6 months from date )

14. Which among the following is not a feature of partnership firm (Ans: A partnership firm can be a partner in another firm)

15. Which among the following is a feature of partnership firm (Ans: A partnership firm not require compulsory registration of deed)

16. The usage of common seal is explained in which document. (Ans: Articles of Association)

17. Maximum number of share holders in Private Limited Company is (Ans: 200)

18. Which among the following is not a feature of Public Limited Company (Ans: The shares are freely not transferrable)

19. For getting environmental clearance for the setting up of an enterprises one must (Ans: Obtain clearance from the pollution board)

20. If the ownership of any enterprise is individually or jointly hold by women above 51%, the same is termed as (Ans: Woman Enterprises)

21. The gender discrimination in Market is by (Ans: Differential wage for the same work)

22. Which among the following is not a classification of categories of Women Entrepreneurs (Ans: Literate and illiterate women)

23. Exclusive scheme to provide equity support to women entrepreneurs (Ans: Mahila Udhyam Nidhi)

24. Which among the following is not a supportive measures for Women’s economic activities (Ans: Refer Page ; 24 in text book)

25. MSME DO is earlier known as (Ans; Small industries Development Organization)

26. The development of MSME is a (Ans: State Subject )

27. An industrial undertaking, a company with interests in industry can invest up to _____ in a MSE unit (Ans; 24%)

28. Similarity features identification between LLP & a Private Limited Company (Ans: Refer Page ; 45 in text book)

29. TReDS full form (Ans: Trade Receivables Discounting system )

30. Which among the features pertains to Priority Sector Lending Certificates

31. CERSAI is formed as per the (Ans: SARFAESIA act of 2002)

32. Calculation for maximum CGTMSE coverage available for unit with Rs 30.00 Lacs fund based & 15 Lacs non fund based limit.

33. The current liability is 50000. The current ratio is 2.5. calculate Current asset

34. The CLSS scheme gives subsidy of ( 15% or 0.15)

35. Which among the given option is not a rating agency (Ans; NSIC)

36. Which among the following is give overall guidelines of SIDO (Ans; Directorate of industries)

37. Features of HUDCO. Select the one wrongly explained (Ans: Refer Page ; 61 in text book)

38. Activities of TCO. Which among is correct combination (Ans: Refer Page ; 62 in text book)

39. Which among the following is features of KVIC (Ans: Refer Page ; 63 in text book)

40. The credit limit up to 5 Lacs to be disposed in maximum of (Ans; 2 Weeks)

41. Which among the following is wrongly stated regarding the functions of SIDBI (Ans: Refer Page ; 70 in text book)

42. Major problems faced by MSME in the given option (Ans: Refer Page ; 92 in text book)

43. Which among the following is not a feature for commercial banks or promoting the MSE advance portfolio (Ans: Low NPA)

44. Identify which are the following is bill financing

45. Which among the following is example of post shipment finance (Ans: Refer Page ; 109 in text book)

46. RED Clause LC Feature (Ans: Refer Page ; 111 in text book)

47. Specialized MSME branch (Ans: if advance is 60% MSE portfolio)

48. BCSBI guidelines for MSE regarding acknowledgement of application & issuance of rejection letter with reason

49. Which among the given option is not associated with 5 Cs of the borrower (Ans: CIBIL score )

50. Identify and add the total assets from the given balance sheet component

51. What is the implication and effect in increase of Sundry Debtors or creditors (Ans; Refer Page ; 124 in text book)

52. Maximum Limit of loan that can be sanctioned under Turnover method (Ans: Rs 500.00 Lacs)

53. Factors affecting/determine the working capital limit (Ans: Refer Page ; 138 in text book)

54. Calculation using II method of lending (Ans; Refer Page ; 143 in text book)

55. Overview of Risk features , by way of match the following (Ans: Refer Page ; 145 in text book)

56. Features and requirement of credit rating (Ans: Refer Page ; 148 in text book)

57. Economic benefits of MSME. Identify the features (Ans: Refer Page ; 165 in text book)

58. The common parlance and practices of BDS is (Ans: Operational)

59. Identify the support by BDS (Ans: Refer Page ; 170 in text book)

60. Nature of deficiencies and remedial measures in cluster development (Ans; Refer Page ; 198 in text book)

61. Growth phase of MSE cluster features

62. Role of CDE in the cluster (Ans; Refer Page ; 209 in text book)

63. Why agricultural land is not taken as collateral security for securing the loan

64. Delayed payment of the bill raised by the MSE entrepreneur is compensated by (Ans: 3 times of bank rate announced by RBI)

65. RBI definition of Sick unit

66. Identify which among the following is external cause of sickness (Ans: Power Shortage)

67. When long term source is used for short term uses, the same is amounts to (Ans; Diversion of funds)

68. Feature of an enterprises tending towards sickness (Ans: Refer Page ; 242 in text book)

69. Symptoms of incipient sickness in activity (Ans; Refer Page ; 243 in text book)

70. Explanation of SICK GREY AREA

71. Hand holding stage features (Ans: Refer Page ; 253 in text book)

72. The account of NPA with dues of Rs 2.00 lacs, who will finalize the viability (Ans: Branch manager)

73. Viability criteria (Ans: Refer Page ; 256 in text book)

74. Primary purpose of secured creditors with NPA asset is (Ans; To sell off for the purpose of loan)

75. The 13(2) notice to be given as per SARFAESIA for how many days (Ans: 60 days )

76. Asset Reconstruction companies are registered with (Ans: RBI)

77. The reason for the existence of MFI (Ans: Refer Page ; 273 in text book)

78. Multiple lending and over indebtedness of MFI (Ans: Refer Page ; 276 in text book)

79. Primary Objectives of Mudra Bank (Ans: Refer Page ; 279 in text book)

80. Primary security & Collateral security features

81. Customer DNA means

82. Insolvency & Bankruptcy difference between two

83. Features of Bank’s Board Bureau

84. Impact of WTO agreements in domestic industry (Ans: Refer Page ; 305 in text book)

85. Which sector among the given option is contributing to exports (Ans: Textile)

86. Calculation of Plant & machineries value from given options (Ans: Not to include Jigs, generator sets etc)

87. Which among the following is not a participant of importance/much role in an LC? (Ans: Beneficiaries’ Bank)

88. Explanation of LC, which among the given options is correct

89. Which among is pre shipment finance?

90. Which among the following is not correct for loan sanction in MSME segment (Ans: Compulsory to give collateral free loan till 100 lacs)

FATF recommendations

FATF RECOMMENDATIONS. ::

Money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction are serious threats to security and the integrity of the financial system.

The FATF Standards have been revised to strengthen global safeguards and further protect the integrity of the financial system by providing governments with stronger tools to take action against financial crime. At the same time, these new standards will address new priority areas such as corruption and tax crimes.

The revision of the Recommendations aims at achieving a balance:

On the one hand, the requirements have been specifically strengthened in areas which are higher risk or where implementation could be enhanced. They have been expanded to deal with new threats such as the financing of proliferation of weapons of mass destruction, and to be clearer on transparency and tougher on corruption.

On the other, they are also better targeted – there is more flexibility for simplified measures to be applied in low risk areas. This risk-based approach will allow financial institutions and other designated sectors to apply their resources to higher risk areas.

The FATF Recommendations are the basis on which all countries should meet the shared objective of tackling money laundering, terrorist financing and the financing of proliferation. The FATF calls upon all countries to effectively implement these measures in their national systems.

FATF Recommendations 2012

A – AML/CFT POLICIES AND COORDINATION

1 - Assessing risks & applying a risk-based approach

2 - National cooperation and coordination

B – MONEY LAUNDERING AND CONFISCATION

3.Moneylaundering offence

4 - Confiscation and provisional measures

C – TERRORIST FINANCING AND FINANCING OF PROLIFERATION

5 - SRII Terrorist financing offence

6 - SRIII Targeted financial sanctions related to terrorism & terrorist financing

7 - Targeted financial sanctions related to proliferation

8 - Non-profit organisations

D – PREVENTIVE MEASURES

9 - Financial institution secrecy laws

Customer due diligence and record keeping

10 - Customer due diligence

11 - Record keeping

Additional measures for specific customers and activities

12 - Politically exposed persons

13 - Correspondent banking

14 - Money or value transfer services

15 - New technologies

16 - Wire transfers

Reliance, Controls and Financial Groups

17 - Reliance on third parties

18 - Internal controls and foreign branches and subsidiaries

19 - Higher-risk countries

Reporting of suspicious transactions

20 - Reporting of suspicious transactions

21 - Tipping-off and confidentiality

Designated non-financial Businesses and Professions (DNFBPs)

22 - DNFBPs: Customer due diligence

23 - DNFBPs: Other measures

E – TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS

24 - Transparency and beneficial ownership of legal persons

25 - Transparency and beneficial ownership of legal arrangements

F – POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES AND OTHER INSTITUTIONAL MEASURES

Regulation and Supervision

26 - Regulation and supervision of financial institutions

27 - Powers of supervisors

28 - Regulation and supervision of DNFBPs

Operational and Law Enforcement

29 - Financial intelligence units

30 - Responsibilities of law enforcement and investigative authorities

31 - Powers of law enforcement and investigative authorities

32 - Cash couriers

General Requirements

33 - Statistics

34 - Guidance and feedback

Sanctions

35 - Sanctions

G – INTERNATIONAL COOPERATION

36 - International instruments

37 - Mutual legal assistance

38 - Mutual legal assistance: freezing and confiscation

39 - Extradition

40 - Other forms of international cooperation

Forex important

FOREX
1. In LRS how much amount can be remitted for travel abroad: USD 2,50,000
2. How much amount of Foreign Currency coins be kept with us : No ceiling
3. On FCNR (B), how much amount of loan can be given : No ceiling, subject to normal margin requirements
4. How much Indian currency a person can take while travelling abroad other than Nepal and Bhutan: Ans: Rs.25,000/-
5. Crystallization of Import Bill: With in 10 days of date of receipt
6. FACTA signed with which country:USA
7. In FCNR B, how many days is considered as a year for interest calculation: Ans: 360 days
8. WHICH IS LATEST UCP- : UCP 600 (wef 01.07.2007 )
9. AMT ACCEPTED IN CASH BY AUTH DEALERS AGAINST SALE OF FOREIGN EXCH – UPTO Rs. 50,000
10.UNDER LRS AMT PERMITTED – USD 2.5 LAC
11.MAX TERM PERIOD FOR NRE DEPOSITS – 10 YRS
12.INT PAID FOR PREMATURE WITHDRAWAL OR PREMATURE EXTENSION OF NRE DEPOSITS : 1% Penalty ( upto one crore – Ref cir 108-
2015 )
13.FCNR (B) A/C HELD ONLY IN THE FORM OF – TERM DEPOSITS
14.IN EEFC A/C JOINT HOLDER CAN BE IN THE FORM OF – FORMER OR SURVIVOR with Close Relatives
15.R RETURNWHEN SUBMITTED TO RBI? : FORTNIGHTLY BASIS – 15th & Last day of the month
16.WHAT IS CONVERSION: FOREIGN CURRENCY INTO LOCAL CURRENCY ( SAY - INR )
17.RELEASE OF FOREIGN EXCHANGE NOT EXCEEDING IN 1 FINANCIALYR FOR ONE OR MORE PRIVATE VISITS (EXCEPT NEPAL N BHUTAN)?:
USD 10,000.00
18.RELEASE OF FOREIGN EXCHANGE NOT EXCEEDING FOR BUSINEES TRAVEL?: USD 25,000.00
19.CRYSTALLISATION MEANS?: CONVERTING FOREIGN LIABILITY INTO RUPEE LIABILITY ( DELINKING FOREIGN ELEMENTS FROM BILL &
CONVERTING TO INR )
20.LIMIT FOR SENDING REMITTANCES TO NEPAL BY NEFT...Rs. 50000/
21.MAXIMUM INDIAN CURRENCY THAT CAN BE TAKEN ABROAD BY RESIDENTS-Rs.25000 (export & import of INR)
22.WHAT ACCOUNTS FCNR B CAN BE OPENED AND INWHAT CURRENCIES....FREELY CONVERTIBLE CURRENCY
23.NRE DEPOSITS CAN BE OPENED FOR A MAXIMUM PERIOD OF...10 YEARS.
24.Interest Rate on FCNR(B) deposits should not exceed: Ans: LIBOR for concerned currency for corresponding maturity plus
200bps(Upto 3 year) and LIBOR +300bps (3-5 years).
25.Which of the following apex body and Regulator has asked banks to swap customer-related information so that the frauds and
defaults may be prevented in future? a)Bombay Stock Exchange (BSE) b)Indian Banks, Association (IBA) c)Securities & Exchange
Board of India (SEBI) d) Reserve Bank of India (RBI): Ans: d, (RBI)
26.Under UCPDC 600 what is maximum number of days allowed for examination of documents by issuing bank and negotiating bank?: 5
banking days each.
27.In FCNR (B) Exchange risk is borne by : Ans: Banks
28.As per Liberalised Remittance Scheme, Resident Individuals can remit upto USD 250000.00per financial year for any permitted Current
or Capital Transactions or both. Ans: $75,000
29.Unspent Foreign Exchange brought back by Resident is to be surrendered to Authorised Dealer with in ____ days: Ans: 180 days
30.FCNR(B) is opened in _____ currencies: Ans: 5 (USD,GBP,EURO,AUD,CAD)
31.Export Bills should be realized with in a period of_____ from the date of export. Ans: 9 months
32.What is the rate of Interest payable on EEFC account: Ans: No Interest. Only Current Account
33.Upto what percentage of export proceeds can be credited to EEFC account : Ans: 100%
34.An account of Foreign Correspondant Bank with a Bank in India in Indian Rupees is called as: ans: Vostro Account
35.Latest version of Exports & Imports guidelines. Ans: UCP 600
36.Import, Export rules governed by: Ans: FEMA
37.HOW MUCH REMITTANCE FOR MEDICAL TREATMENT ABROAD...UPTO USD 100000/
38.A RESIDENT CAN KEEP UPTO HOW MUCH USD WITH HIM --- USD 2000 & no limits for Coins
39.IF FOREIGN CURRENCY MORE THAN USD5000 OR F C AND TRAV CHQS MORE THAN USD 10000. : CURRENCY DECLARATION FUND IS
REQUIRED
40.Max time period of FCNR term deposit: Ans: 3 years (AUD, CAD)and 5 years (USD, GBP,Euro)
41.Why Selling rate of Foreign Currency is higher than Traveler Cheque : Ans: Holding cost of currency is high
42.What is Nostro Account: Ans: Account of an Indian Bank with Foreign Bank

Beautiful Mind

BEAUTIFUL MIND

How to have a beautiful mind comprises of topics such as:

· How To Agree

· How To Disagree

· How To Differ

· How To Be Interesting

· How To Respond

· How To Listen

· Questions

· Parallel Thinking

· Concepts

· Alternatives

· Emotions And Feelings

· Values

· Diversions And Off-Course

· Information And Knowledge

· Opinion

· Interruption

· Attitude

· Starting and Topics

· ConclusionWhat is beauty? Beauty is something that can be appreciated by others. The

beautiful mind described in this book is a mind that can be appreciated by others.

It is not the mind of a person who sits in a corner and solves very complex

puzzles. It is a mind that can be appreciated by others, usually through

conversation.

The beauty of your mind shows in our conversation. Just as people can look at

our physical beauty they can listen to the beauty of our mind. If we want to make

our mind more beautiful we can. It is only by how we use our mind.

How To Agree

Agree or not agree are one of the most important aspects of any discussion. One

should genuinely seek to find points of agreement in what the other person is

saying. There is no contribution if you simply agree with everything.

There are times when we disagree at every point, which is irritating and boring.

One should remove the ego from discussion and should focus on subject matter.

We should take a genuine delight in discovering point of agreement-even when

there is small disagreement. By changing the perception to look at things in a

different way is an important step in reaching possible agreement.

How to Disagree

There are different ways to disagree, one should not disagree for the sake of

disagreeing. We should not disagree just to show how clever we are or to boost our

ego. When we disagree, we should do so politely and gently rather than rudely and

aggressively.

One may need to point out errors of logic or to show that a conclusion does not

necessarily follow from what went before. Where emotions, prejudices and

stereotypes appear to be used, one should indicate these also.

It is important to challenge ‘certainty’ and to suggest ‘possibility’ instead.

Distinguishing between having a different opinion and disagreeing with an opinion

is very important.

How to Differ

There are times when only one of a different set of opinions can be right. This is

where ‘truth’ can be checked out. More often different opinions can all have their

own validity. Difference may arise from personal preference, taste or choice.

Difference may arise from different set of values, views and perspective.

Difference may arise from different perception even if from same point of view.

Difference may arise from different personal experience or differing knowledge. We

should seek to lay out as clearly as possible the nature of the difference and lay one

opinion alongside the different one.We should seek to explore and explain the reasons for the difference, and should

reconcile the differences and then agree to differ on what cannot be reconciled.

How to be Interesting

It is always important to get to the truth, but being interesting is more important than

winning an argument. You owe it to yourself and to others to be interesting. Interest

can also arise from how you conduct a conversation.

Looking out for possibilities and alternatives enriches the conversation.

By using a formal tool ‘Now that is interesting’. Be ready to apply this to anything

we hear. When someone else opens up an interesting line of thought, go along with

it and help to develop the interest further.

How To Respond

The overall objective in any conversation might be to agree, to disagree, to agree on

the difference- and to have an enjoyable and interesting discussion.

If we are in any doubt about what has been said, it is important to ask for

clarification. Misunderstanding and arguing at cross-purposes are a waste of time

and energy.

One may want to modify an idea to make it more acceptable to himself, stronger or

more practical. Once an idea has emerged it is no longer a matter of ‘your idea’ or

‘my idea’ but an idea to be improved and assessed. Instead of the usual ‘battle’ of

argument there should be joint effort to explore the subject.

How to Listen

The ability to listen and the enjoyment of listening is a key part of developing a

beautiful mind. A good listener pays attention and seeks to get the maximum value

from what is being said. There may be new insights and realizations that are

triggered by the speaker.

We may realize other alternative perceptions and learn the reasoning’s behind a

point of view.

One should use questions to check on facts and to ask for more details around point

of interest.

Questions

Questions are a key means of interaction in any conversation or discussion. A

listener should seek to mask questions. A question is a way of ‘direct attention’ to

some matter. A question is a polite way of demanding something.

Parallel ThinkingIn traditional argument each side prepares a case and then seeks to defend that case

and to attack the other case. Actual exploration of the subject is limited. Parallel

thinking replaces the battle of argument with a joint exploration of the subject as all

parties think in parallel at any moment.

Concepts

Concepts are a very important part of thinking and a key component of a beautiful

mind. Concepts are important in generating ideas and designing ways forward.

Where there is no routine available, concepts are essential.

Alternatives

Looking for alternatives is a very important activity of a beautiful mind. Without

alternatives we have rigidity and complacency. There can be alternative perceptions

or ways of looking at something. These can lead to different judgments or actions.

Thee can be alternative set of values determined by experience, culture and

personality.

Emotion and Feeling

Emotions and feelings are a very important part of thinking. Ultimately, choices and

decisions are based on emotions and feelings. In a very serious discussion you may

want to listen first, and ask questions, before showing your feeling. In a controversy

one should show his true position: one side or the other, or above it all.

Values

Values determine what we like or do not like, value determine our choices and

decisions. Fundamental (core) values are not changed by the circumstances. The

priority of other values is determined by the circumstances. There are different types

of values such as Ecology value, quality value, innovation value, negative values

etc.

Diversions and Off-Course

Humor is a very important ingredient and a key feature of the beautiful the mind.

Humor allows speculation and enables things to be put forward as half serious and

half humorous. Humor permits exaggeration and absurdity to make a serious point.

Conversation and discussion should be as enjoyable for the mind as sport is for the

body.

Information and KnowledgeWe do not need full and complete information about a subject in order to discuss

that subject. If the other person has more information than you do, listen

intelligently and ask questions. One can also pick out some point of interest and

have a two-way conversation around that particular point.

Opinion

An opinion arises from information, values, feelings and experiences put together in

a local culture. Opinions are based on a point of view, which is the set of

circumstances in which one is placed. An opinion may be changed by new

information. A beautiful mind is always ready to change opinions. This is a

characteristic of a beautiful mind.

Interruption

Interruptions are generally rude and break the flow of what is being said. So there

needs to be a very good reason for the interruption. One can interrupt to express

doubt. Interruptions are often ‘ego-driven’. Someone wants to be noticed or feel

important. Someone wants to show he or she is smarter than the speaker.

Attitude

Attitude is very much related to self- image. There is the ‘clever’ person who has to

be right and more clever than anyone else. There is the battle attitude of win-lose.

There is the ego power game where domination is the intention. The fun attitude

sees conversation as entertainment.

Starting and Topics

Greetings, the exchanges of personal news and social chitchat in general have a very

important role in themselves. When this has been done there is a need to move on

with a conversation. There may be current local topics known to everyone in the

community. A really skilled conversationalist can create interest from any topic

whatsoever.

Conclusion

Beautiful mind is one of the qualities that make us successful in every sphere of life.

A beautiful body and a beautiful face without a beautiful mind can be boring. A

beautiful mind without a beautiful body or a beautiful face can still be attractive.

Hence we should try to develop skills and sincerely work to make our mind

beautiful. As sports are enjoyable we should also enjoy each discussion and

conversation, and that is possible only through a Beautiful Mind.

Target Jaiib and it's Strategy

Target JAIIB and Its strategy

If you have just joined the banking Industry, you must have applied for JAIIB or if not yet, you’ll be applying soon. And one thing everyone wants to know is how to pass JAIIB in first attempt. The obvious reason for clearing JAIIB i.e., Junior Associate of Indian Institute of Bankers is to get an extra increment. So sooner you pass the JAIIB exam, earlier you get an extra increment. If you have joined as Scale – I Officer (P.O.), your initial basic salary would be Rs.23700 and if you clear JAIIB, you get one increment and your basic salary increase by Rs.970. So, if you miss it first time, your increment gets delayed by 6 months. That means loss of Rs.5820+DA. So it becomes important to clear the JAIIB in first attempt itself.

JAIIB exam is held twice a year (June and December) and around 1.50 lacs candidates appear for the exam. Only 22-25% candidates are able to clear the exam each time. So, does it mean that JAIIB is difficult to crack? What should be the strategy to clear the JAIIB in first attempt itself? How one should prepare for JAIIB.

Passing marks for JAIIB are 50% aggregate and 45% in each subject. If aggregate marks are less than 50% or marks in a particular paper are less than 45% but you score 50% or more in any subject, you do not qualify the exam but you need not give that particular paper in next attempt, in which you score 50% or more.  The best part of JAIIB exam is that result of each paper is shown to you immediately after you submit your online exam.

Simple steps to prepare for the JAIIB exam

Take off the burden from your mind, you are required to score only 50%, which is not very difficult. And the good thing is that there is no negative marking.

Here is a simple step by step guide which will help the bankers to be prepared for JAIIB.

If you come from finance or commerce background and have studied B.Com, MBA (Finance) etc., it is relatively easy to crack the JAIIB. Because you would have studied atleast 60% of the topics covered in JAIIB. If you are not from commerce or finance background, you need to make little extra efforts

Preparation strategy for JAIIB examination:

JAIIB exam needs some dedicated preparation to crack the exam, especially for the non commerce graduates. Many young bankers prepare for the exam only during the last week; Then they write one paper after getting low marks, they simply give up the attempt. Some take two days leave before the exam and prepare for it eventually they fail because of shortage of four or five marks. These strategies may work for few talent bankers but not for all.  After our busy working hours, daily we have to spend some time for preparation of the exam. Since most of us are very new to the banking industry and its concepts, we need regular revisions to familiarise with the concepts.So all it needs a self disciplined and determined mind to prepare for the exam.

Allocation of Study time:

Daily we need to spend at least 1 1/2 to 2 hours a day for preparation of the JAIIB exam. Cramming before the exam night or before two days won’t help for understanding the information. It may help for few direct questions but it won’t be useful for complex questions. Also we wont have enough time to complete the sy1llabus and will lead to anxiety & stress. Sacrificing our sleep before the exam night will also make us counterproductive so it better to study every day.

Importance of Studying daily:

Studying daily and revising regularly helps to familiarise with concepts. It also helps us to understand the information. Having a study routine is not only helpful for exam but also improves our reading habit which every banker needs, as our industry is very dynamic. In our hectic banking hours finding time for continuously 2 hrs a day is very hard. But having small sessions of 30 to 40 minutes thrice in a day is easy to find. In the era of smart phones, we can study anything at anywhere so when you find a spare time please use it.

Study Material:

For preparation, I strictly recommend the three comprehensive courseware developed by IIBF, published by MacMillan for each paper. These books are not only helpful for the exam but also for our Banking career. If you really want to pursue your career as banker then these books are must and fundamental. They act like a reference manual for us. So my humble request to all, please don’t prepare only for clearing the exam; Kindly prepare with the motive of improving knowledge in the banking field. Because the knowledge gathered during our JAIIB exam will also aid us during our day-to-day banking life.

Apart from the MacMillan books, the books and work books prepared by JAIIB coaching centres such as N S Noor, Deewan Banking Academy etc,. are also available in the market. Mostly they are good but not comprehensive and may not have clear explanation for some topics. All the books are about same cost, so I recommend the Macmillan books

They are many free study material is available in the facebook groups and in websites also. If possible get that too for your reference but my best suggestion is to buy Macmillan books. The amount spent is more than worthy, the book will be useful for our banking career.

For Latest developments & Current affairs related to Banking Industry:

Apart from the above syllabus we need to refer the following for full preparation of the JAIIB exam.

1. Current developments in Master Circulars/ Master revisions issued by RBI

2. Websites of RBI,  SEBI, BIS, IRDAI, FEDAI for reference and development in concerned subjects

3. IIBF Vision and Bank Quest published by IIBF for the members it is free and sent to email id.

4. Financial newspapers/publication can also be referred for current affairs.

5. New Government Schemes related to banking sector.

Nature of Questions:

Depending upon the complexity of the question, the marks of the question varies.

0.50 mark – Direct question which requires one word answers. Answer this questions with 100% accuracy. Most of these questions are from definitions, types or classification, abbreviation, simple explanations etc,. So at least read and go through all the topics in Macmillan Book twice.

Planning a study schedule:

Now we have allocated our time and purchased  & collected the necessary materials for preparation of JAIIB exam. Now, “What is next??;” Having a strategy/plan/routine schedule for preparation of JAIIB Exam. Strategic planning is important for any activity because it provides a sense of direction and evaluation of progress in our efforts towards goal. A goal without a plan is just a wish, so please make a plan and try to stick to it.

We have already seen the JAIIB syllabus here. In order to pass the JAIIB exam all we need to do is to get 50% of marks in each paper within four consecutive attempts. So we don’t need to study all modules deeper and do research on each topic. If we cover 75% of the syllabus for each paper is enough to get more than 50%.

The strategy and study plan I discuss below are just an example for understanding, viewers and readers are instructed to prepare their own schedule based on their level of knowledge and skills in each subjects.

Overlapped Topics:

Some topics of a paper is also a covered in other papers and questions can be asked in any of the paper. For example AML/KYC is also common for Accounting & Finance and Legal & Regulatory aspects of Banking. Since questions can be asked in any of three exams from this topics, prepare for the paper which has most topics & sub-topics in that particular subject. Also revise the same when you need to prepare for the overlapped topic.

Study Plan: Principles & Practices of Banking:

In my view this is the easiest subject to pass when compared to other papers. Because in this paper, all the topic are conceptual and mostly related to our day-to-day banking activities. Hence most of the topics (not all) are already familiar to us.

Module A: Indian Financial System

Read and understand all the topics and sub topics without any omission.

If possible take notes in the form of snippets this will help for revision of the topic. Since we all new to banking terms repeated revisions are required for this module.

We can expect 20 to 25 marks in this unit.

Question from current development is asked from this unit.

Prepare to score all the marks from this module.

Module B: Functions of Banks

This unit is also important and all the topics should be thoroughly studied.

We can expect 20 to 25 marks from this unit.

This unit is also needed repeated revision so taking notes while studying is recommended.

Question from current development is asked from this unit.

This is also the our scoring section, prepare in a way to get all the marks from this module.

Module C: Banking Technology

If your are techie, take full 6 hrs and study thoroughly.

For techies, this unit helps to surpass the minimum marks comfortably.

Others prepare in a way to answer the direct question from this module.

From this unit we can expect 15 to 20 marks.

We can expect question from latest development in Banking related to IT.

Module D: Support Services & Marketing of Banking Services/Products

If you are BBA or MBA and studied marketing related concepts in your graduation then take full 6 hrs and thoroughly study the unit.

Others prepare to answer for direct questions.

We can expect 10 to 15 marks from this unit.

Study Plan: Accounting & Finance for Bankers:

Many bankers treat the Accounting & Finance paper as tough. The main reason is cramming of information won’t work here like other papers. Since here we have to study, understand and apply the concepts, we need to study regularly and practice. So a good study routine is must and here all the modules are important for exam purpose as well as for our knowledge. So there is no skipping of modules in this paper and give importance to all topics.

Module A: Business Mathematics and Finance

This is a must read and must know module for all bankers. So don’t even skip a small topic.

Since these module is mathematical in nature, write down all the formulas and go thorough it daily.

Practice yourself with formulas by assuming different values from the exercise and solved examples.

Don’t ever fail to take notes and snippets for formula’s explanation & applicability.

We can expect 25 or more marks in this unit.

Understanding of calculation and concepts is must so that we can answer confidently if the questions are twisted.

Module B: Principles of Book Keeping and Accountancy

This unit is also important and all the topics should be thoroughly studied because if we are in bank we should know the accountancy.

We can expect 20 to 25 marks from this unit.

Understand the concept is key for this paper. Don’t mug-up; if you cannot understand a topic just ask your B.Com friend. Or ask him to simply explain the basics of accountancy.

This unit is also needed repeated revision so taking notes while studying is highly recommended.

This is also the our scoring section, prepare in a way to get all the marks from this module.

Module C: Final Accounts

This unit is the most important and very useful for our day-to-day activities.

This unit is conceptual as well mathematical.

So take notes for formulas and revise it.

B.Com friend is the best mentor for this module.

From this unit we can expect 20 to 25 marks.

Module D: Banking Operations and Accounting Functions

This unit is comparatively less important but good preparation of this unit will help to score the pass mark.

This unit will have many overlapped topics

Prepare to answer for direct questions.

We can expect 15 to 20 marks from this unit.

Question from latest development can be asked in this module.

Study Plan: Legal & Regulatory Aspects of Banking:

Many people underestimate the legal paper and say this exam is very easy to clear. This is purely a law oriented paper, so many of the legal terms used in the topics are new to us. In order to familiarise and to understand those topics, we have to spend more time for this paper. Also good memorization skill is required to remember the numbers & data. All the modules are about equally important, hence don’t skip a topic.

Module A: Regulation and Compliance

This is a less important but easier module compared to other modules of the paper.

This module is full of theory related to Banking Regulation and its compliance.

Don’t ever fail to take notes and snippets for explanation & applicability.

We can expect 15 to 20 marks in this unit.

Question from latest development can be asked in this unit.

Module B: Legal aspects of Banking Operations

This module is a foundation and must study.

Understand the concepts and definitions for legal terms

Take notes, Take notes, Take notes and revise it until having a clear picture about the topic.

This is a scoring module so prepare well.

20-30 marks can be expected from this unit.

Module C: Banking related laws

A toughest module and it is a must study for all

Repeated revision is required to remember the numbers & data.

This unit will consume more time and make us feel bore. So study the topics in different sessions of 30 mins.

We can expect 25 to 30 marks from this unit, so it is a mark scoring unit.

Question can be asked from current developments or amendments so update accordingly.

Module D: Commercial Laws with reference to banking operations

This module is conceptual and also requires memorization too.

Some of the topics are common with Module D of Paper 2: Accounting & Finance.

This also a scoring module we can expect 20 – 25 marks from this unit.

On the actual test day

Choose the easy questions first as they will give you an estimate of the score. Then come back to the questions which were missed. Also, there is no negative marking, so attempt all questions. If you stuck in a question, leave that by marking and go ahead.

We hope this will help you out to pass the JAIIB in first attempt. If you have any queries/ suggestions, please write in comment box below.

Conclusion:

The time period mentioned above are for studying those topics at least one time and indicative for understanding. It will vary depending upon personal capacity, skill and knowledge in the subjects. So prepare your own study schedule and stick with it. Remember a determined and self disciplined mind is key to the success. So whatever the strategy you follow for JAIIB examination make sure you are sticking with your plan and be true to yourself.