CAIIB

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CAIIB OBJECTIVE

CAIIB aims at providing advanced knowledge necessary for better decision making covering
Treasury Management, Risk Management, Balance Sheet Management, Credit Management,
Financial Management, International Banking, Economic Analysis, Business Laws etc.

ELIGIBILITY:

Members who have completed JAIIB or PART 1 of the Associate Examination, and their
membership subscription should not be in arrears.

SUBJECTS OF EXAMINATION:

I. Compulsory Papers

1. Advanced Bank Management
2. Bank Financial Management
3. Advanced Business & Financial Management
4. Banking Regulations and Business Laws
   II. Elective Papers (Candidates to choose any one of their Choice)
5. Rural Banking
6. Human Resources Management
7. Information Technology & Digital Banking
8. Risk Management
9. Central Banking

There is no exemption in any of the subject/s for prior qualification/s.

The Institute has introduced electives to give opportunities for candidates to specialize in the
vertical of their choice. Candidates may choose the elective in the area they are currently
working or in the area they would like to work in future. It is suggested that the candidates may
choose the elective in the area they are currently working and later move to other elective as
this will enable appropriate skills/ build up for handling different banking verticals.
Candidates will also have the choice to change their CAIIB elective subject in any attempt.

PASSING CRITERIA:

1. Minimum marks for pass in the subject is 50 out of 100.
2. Candidates securing at least 45 marks in each subject with an aggregate of 50% marks in
   all subjects of examination in a single attempt will also be declared as having completed
   the Examination.
3. Candidates will be allowed to retain credits for the subject they have passed in an attempt
   till the expiry of the time limit for passing the examination .

Papers	No. of Questions	Total Marks	Duration
Advanced Bank Management	100	100	2hrs
Bank Financial Management	100	100	2hrs
Advanced Business & Financial Management	100	100	2hrs
Banking Regulations and Business Laws	100	100	2hrs
Elective Papers	100	100	2hrs

PROCEDURE FOR APPLYING FOR EXAMINATION:

Application for examination should be registered online from the Institute’s website
www.iibf.org.in. The schedule of examination and dates for registration will be published on IIBF
website.

Get the complete CAIIB 2025 Syllabus and Exam Pattern PDF – Download Now!

Compulsory Paper I: Advance Bank Management

MODULE A: STATISTICS

Definition of Statistics, Importance & Limitations & Data Collection, Classification & Tabulation
Importance of Statistics; Functions of Statistics; Limitation or Demerits of Statistics; Definitions;
Collection of Data; Classification and Tabulation; Frequency Distribution
Sampling Techniques
Random Sampling; Sampling Distributions; Sampling from Normal Populations; Sampling from NonNormal Populations; Central Limit Theorem; Finite Population Multiplier
Measures of Central Tendency & Dispersion, Skewness, Kurtosis
Arithmetic Mean; Combined Arithmetic Mean; Geometric Mean; Harmonic Mean; Median and
Quartiles; Mode; Introduction to Measures of Dispersion; Range and Coefficient of Range; Quartile
Deviation and Coefficient of Quartile Deviation; Standard Deviation and Coefficient of Variation;
Skewness and Kurtosis
Correlation and Regression
Scatter Diagrams; Correlation; Regression; Standard Error of Estimate
Time Series
Variations in Time Series; Trend Analysis; Cyclical Variation; Seasonal Variation; Irregular Variation;
Forecasting Techniques
Theory of Probability
Mathematical Definition of Probability; Conditional Probability; Random Variable; Probability
Distribution of Random Variable; Expectation and Standard Deviation; Binomial Distribution; Poisson
Distribution; Normal Distribution; Credit Risk; Value at Risk; Option Valuation
Estimation
Estimates; Estimator and Estimates; Point Estimates; Interval Estimates; Interval Estimates and
Confidence Intervals; Interval Estimates of the Mean from Large Samples; Interval Estimates of the
Proportion from Large Samples
Linear Programming
Graphic Approach; Simplex Method
Simulation
Simulation Exercise; Simulation Methodology

MODULE B: HUMAN RESOURCE MANAGEMENT

Fundamentals of Human Resource Management
The Perspective; Relationship between HRM & HRD and their Structure and Functions; Role of HR
Professionals; Strategic HRM; Development of HR Functions in India
Development of Human Resources
HRD and its Subsystems; Learning and Development – Role and Impact of Learning; Attitude
Development; Career Path Planning; Self-Development; Talent Management; Succession Planning
Human Implications of Organisations
Human Behaviour and Individual Differences; Employees Behaviour at Work; Diversity at Workplace and
Gender Issues; Theories of Motivation and their Practical Implications; ‘Role’ : Its Concept & Analysis
Employees’ Feedback and Reward System
Employees’ Feedback; Reward and Compensation System
Performance Management
Appraisal Systems; Performance Review and Feedback; Counselling; Competency Mapping and
Assessment of Competencies; Assessment Centres; Behavioural Event Interview (BEI)
Conflict Management and Negotiation
Conflict: Concept & Definition; Characteristics of Conflict; Types of Conflicts; Reasons for Conflict;
Different Phases of Conflict; Conflict Resolution; Conflict Management; Negotiation Skills for Resolution
of Conflicts
HRM and Information Technology
Role of Information Technology in HRM; HR Information and Database Management; Human Resource
Information System (HRIS); Human Resource Management System (HRMS); e–HRM; HR Research;
Knowledge Management; Technology in Training; HR Analytics

MODULE C: CREDIT MANAGEMENT

Overview of Credit Management
Importance of Credit; Historical Background of Credit in India; Principles of Credit; Types of Borrowers;
Types of Credit; Components of Credit Management; Role of RBI Guidelines in Bank’s Credit
Management
Analysis of Financial Statements
Which are the Financial Statements; Users of Financial Statements; Basic Concepts Used in Preparation
of Financial Statements; Accounting Standards (AS); Legal Position Regarding Financial Statements;
Balance Sheet; Profit and Loss Account; Cash Flow Statement; Funds Flow Statement; Projected
Financial Statements; Purpose of Analysis of Financial Statements by Bankers; Rearranging the Financial
Statements for Analysis; Techniques used in Analysis of Financial Statements; Creative Accounting;
Related Party Transactions
Working Capital Finance
Concept of Working Capital; Working Capital Cycle; Importance of Liquidity Ratios; Methods of
Assessment of Bank Finance; Working Capital Finance to Information Technology and Software Industry;
Bills/Receivables Finance by the Banks; Guidelines of RBI for Discounting/Rediscounting of Bills by
Banks; Trade Receivables Discounting System (TReDS); Non-Fund Based Working Capital Limits; Other
Issues Related to Working Capital Finance
Term Loans
Important Points about Term Loans; Deferred Payment Guarantees (DPGs); Difference between Term
Loan Appraisal and Project Appraisal; Project Appraisal; Appraisal and Financing of Infrastructure
Projects
Credit Delivery and Straight Through Processing
Documentation; Third-Party Guarantees; Charge over Securities; Possession of Security; Disbursal of
Loans; Lending under Consortium/Multiple Banking Arrangements; Syndication of Loans; StraightThrough Loan Processing or Credit Underwriting Engines
Credit Control and Monitoring
Importance and Purpose; Available Tools for Credit Monitoring/Loan Review Mechanism (LRM)
Risk Management and Credit Rating
Meaning of Credit Risk; Factors Affecting Credit Risk; Steps taken to Mitigate Credit Risks; Credit Ratings;
Internal and External Ratings; Methodology of Credit Rating; Use of Credit Derivatives for Risk
Management; RBI guidelines on Credit Risk Management; Credit Information System
Restructuring/Rehabilitation and Recovery
Credit Default/Stressed Assets/NPAs; Wilful Defaulters; Non-cooperative borrowers; Options Available
to Banks for Stressed Assets; RBI Guidelines on Restructuring of Advances by Banks; Available
Frameworks for Restructuring of Assets; Sale of Financial Assets
Resolution of Stressed Assets under Insolvency and Bankruptcy Code 2016
Definition of Insolvency and Bankruptcy; To Whom the Code is Applicable; Legal Elements of the Code;
Paradigm Shift; Corporate Insolvency Resolution Process; Liquidation process; Pre-packed Insolvency
Resolution Process for stressed MSMEs

MODULE D: COMPLIANCE IN BANKS & CORPORATE GOVERNANCE

Compliance Function in Banks
Compliance Policy; Compliance Principles, Process and Procedures; Compliance Programme; Scope of
Compliance Function; Role & Responsibilities of Chief Compliance Officer (CCO)
Compliance Audit
Role of Risk Based Internal Audit and Inspection; Reporting Framework and Monitoring Compliance;
Disclosure Requirements; Accounting Standards; Disclosures under Listing Regulations of SEBI
Compliance Governance Structure
Organisational Structure; Responsibility of the Board and Senior Management; Compliance Structure at
the Corporate Office; Functional Departments; Compliance Structure at Field Levels; Internal Controls
and its Importance
Framework for Identification of Compliance Issues and Compliance Risks
Compliance Issues; Compliance Risk; Inherent Risk and Control Risk; Independent Testing and Effective
Audit Programme; Reporting Framework and Monitoring Compliance; Role of Inspection and Audit;
Loan Review Mechanism/Credit Audit; What is Good Compliance
Compliance Culture and GRC Framework
How to Create Compliance Culture Across the Organisation; Governance, Risk and Compliance – GRC
Framework; Benefits of an Integrated GRC Approach; Whistle-blower Policy; The Components of a
Whistle-blower Policy; Reasons for Compliance Failures
Compliance Function and Role of Chief Compliance Officer in NBFCs
Framework for Scale Based Regulation for Non-Banking Financial Companies; Transition Path;
Framework for Compliance Function and Role of Chief Compliance Officer in Non-Banking Financial
Companies in Upper Layer and Middle Layer (NBFC-UL & NBFC-ML)
Fraud and Vigilance in Banks
Definition of Fraud; Definition of Forgery; Areas in which Frauds are committed in Banks; Banking and
Cyber Frauds; Fraud Reporting and Monitoring System; Vigilance Function in Banks; RBI Guidelines for
Private Sector and Foreign

COMPULSORY PAPER II: BANK FINANCIAL MANAGEMENT

MODULE A: INTERNATIONAL BANKING

Exchange Rates and Forex Business
Foreign Exchange – Definition and Markets; Factors Determining Exchange Rates; Exchange Rate
Mechanism; Foreign Exchange Dealing Room Operations; Derivative Products; RBI / FEDAI Guidelines;
Foreign Exchange Arithmetic – Concepts and Examples
Liberalised Remittance Scheme (LRS) and other Remittance Facilities for Residents
Capital Account Transactions and Current Account Transactions; Key Sections under FEMA vis-à-vis
Liberalized Remittance Scheme; Permissible/Non-permissible Remittances under LRS; Operational
Guidelines; Remittances under LRS for Current Account Transactions; Tax Collected at Source (TCS); LRS
vis-à-vis Capital Account Transactions; Reporting Requirements under LRS
Correspondent Banking and NRI Accounts
Correspondent Banking – Accounts and other Services; Nostro, Vostro and Loro Accounts; Electronic
Modes of Transmission/Payment Gateways – SWIFT, CHIPS, CHAPS, RTGS, etc.; NRI Banking; NRI
accounts – Rupee and Foreign Currency Accounts; Facilities to NRIs; Advances to Non-Residents against
Non-Resident Deposits; Housing Loans to Non-Resident Indians
Documentary Letters of Credit
Definition of Letter of Credit; Types of Letters of Credit; Operations of Letter of Credit; UCP 600 and
Important Articles; Liabilities, Responsibilities and Rights of the Parties; Documents under LC – Scrutiny,
Crystallization, Follow-up for Bills under LC and Safeguards for Banks; Risks Relating to LC Transactions;
Standby Letter of Credit (Similar to Guarantees); Uniform Rules for Bank-to-Bank Reimbursements
(URR–725); International Standard Banking Practice – 745 (ISBP 745); Incoterms; Case Studies
Facilities for Exporters and Importers
Exchange and Trade Control Guidelines for Exporters; Facilities for Exporters;; Export Finance; Gold Card
Scheme for Exporters; Export Data Processing and Monitoring System (EDPMS); Factoring and
Forfaiting; Exchange and Trade Control Guidelines for Importers; Import Finance; Import Data
Processing and Monitoring System (IDPMS); Trade Credit – Supplier’s Credit and Buyer’s Credit; Case
Study on Export Finance
External Commercial Borrowings and Foreign Investments in India
External Commercial Borrowings – Concepts; ECBs – Other Operational Concepts; Reporting
Requirements; Conversion of ECB into Equity; Foreign Investments; Key Concepts; Eligible Foreign
Investors; Eligible Investee Entities; Eligible Investment Instruments; Prohibited Sectors; Rules
Governing Pledge of Shares; Operational Guidelines; Snap Shot of Non-Debt Instruments (NDI) Rules;
List of Documents for Obtention of Foreign Investments; List of Documents for Refund of Foreign
Investments
Risks in Foreign Trade – Role of ECGC
Definition of Risk and Risks in International Trade; Country Risk; Export Credit Insurance in International
Trade; ECGC Role and Products; ECGC Policies; ECGC’s Products for Banks; Other Aspects Relating to
ECGC Policies and Guarantees; Some of the Common “To Do Points” under ECGC Policies; Claims
Role of EXIM Bank, Reserve Bank of India, Exchange Control in India – FEMA,
FEDAI and Others
EXIM Bank – Role, Functions and Facilities; Reserve Bank of India – Role and Exchange Control
Regulations in India; Foreign Exchange Management Act (FEMA) 1999; Role of FEDAI and FEDAI Rules;
Short Notes on Other Topics: ECB and ADR/GDRs and FCCB;
International Financial Service Centres (IFSC), GIFTCity
Scope of IFSC in India; Opportunities at Gift City; Guidelines relating to setting up of IFSC Banking Units
(IBUs); Role of IFSCA ; Regulatory Framework; Permissible Activities at IBUs; Relaxations for the FPI
(Foreign Portfolio Investors) Entities at GIFT City
Technology in International Banking
Introduction to Digitization in International Banking – An Overview, Evolution of Technology in
International Banking; Benefits and Limitations of Technology in International Banking; Digital Platforms
in International Banking; FINTECH and evolution of FINTECH in International Banking; Delivery channels
under FINTECH in International Banking; Sample process of International Trade Using Blockchain
Technology; Challenges in FINTECH

MODULE B: RISK MANAGEMENT

Risk and Basic Risk Management Framework
What is Risk?, Linkages among Risk, Capital and Return; Why Risk Management?; Basic Risk
Management Framework
Risks in Banking Business
Risk Identification in Banking Business; The Banking Book; The Trading Book; Off-Balance Sheet
Exposures; Banking Risks – Definitions
Risk Regulations in Banking Industry
Regulation of Banking Industries – Necessities and Goals; The Need for Risk-based Regulation in a
Changed World Environment; Basel I: The Basel Capital Accord; 1996 Amendment to Include Market
Risk; Basel II Accord – Need and Goals; Basel II Accord; Towards Basel III; Capital Charge for Credit Risk;
Credit Risk Mitigation; Capital Charge for Market Risk; Capital Charge for Operational Risk; Pillar 2 –
Supervisory Review Process; Pillar 3 – Market Discipline; Capital Conservation Buffer; Leverage Ratio;
Countercyclical Capital Buffer; Systemically Important Financial Institutions (SIFIs); Risk Based
Supervision (RBS)
Market Risk
Market Risk – Concept; Market Risk in Banks; Market Risk Management Framework; Organisation
Structure; Risk Identification; Risk Measurement; Risk Monitoring and Control; Risk Reporting;
Managing Trading Liquidity; Risk Mitigation
Credit Risk
General; Credit Risk Management Framework; Organisation Structure; Risk Identification; Risk
Measurement; Credit Risk Control and Monitoring; Credit Risk Policies and Guidelines at Transaction
Level; Credit Control and Monitoring at Portfolio Level; Active Credit Portfolio Management; Controlling
Credit Risk through Loan Review Mechanism (LRM); Credit Risk Mitigation; Securitisation; Credit
Derivatives (CDs)
Operational Risk and Integrated Risk Management
Operational Risk – General; Operational Risk – Classification; Operational Risk Classification by Event
Type – Definitions; Operational Risk Management Practices; Management Overview and Organisational
Structure; Processes and Framework; Risk Monitoring and Control Practices; Operational Risk
Qualification; Operational Risk Mitigation; Scenario Analysis; Integrated Risk Management; The
Necessity of Integrated Risk Management; Integrated Risk Management – Challenges; Integrated Risk
Management – Approach
Liquidity Risk Management
Liquidity Risk Management – Need & Importance; Potential Liquidity Risk Drivers; Types of Liquidity
Risk; Principles for Sound Liquidity Risk Management; Governance of Liquidity Risk Management;
Liquidity Risk Management Policy, Strategies and Practices; Management of Liquidity Risk; Ratios in
respect of Liquidity Risk Management; Stress Testing; Contingency Funding Plan; Overseas Operations
of the Indian Banks’ Branches and Subsidiaries and Branches of Foreign Banks in India; Broad Norms in
Respect Of Liquidity Management; Liquidity Across Currencies; Management Information System;
Reporting to the Reserve Bank of India; Internal Controls
Basel III Framework on Liquidity Standards
Liquidity Coverage Ratio; Liquidity Risk Monitoring Tools; Net Stable Funding Ratio

MODULE C: TREASURY MANAGEMENT

Introduction to Treasury Management
The Concept; Functions of Integrated Treasury; The Process of Globalisation; Evolving Role of Treasury
as Profit Centre; Organisation of Treasury
Treasury Products
Products of Foreign Exchange Markets; Money Market Products; Securities Market Products; Domestic
and Global Markets
International Equity and Debt Products
Regulatory Environment; Global Depository Receipts; Indian Depository Receipts; External Commercial
Borrowings; Trade Credits; Rupee Denominated Bonds
Funding and Regulatory Aspects
Reserve Assets: CRR and SLR; The Liquidity Adjustment Facility (LAF); Payment and Settlement Systems
Treasury Risk Management
Supervision and Control of Treasury; Market Risk and Credit Risk; Risk Measures: VaR and Duration; Use
of Derivatives in Risk Management
Derivative Products
Derivatives and the Treasury; OTC and Exchange Traded Products; Forwards, Options, Futures and
Swaps; Interest Rate and Currency Swaps; Developments in Indian Markets and RBI Guidelines on Risk
Exposure
Treasury and Asset-Liability Management
Meaning of Asset-Liability Management (ALM), Liquidity Risk and Interest Rate Risk, Role of treasury in
ALM, Use of derivatives in ALM, Credit risks and Credit Derivatives, Transfer pricing, Policy Environment

MODULE D: BALANCE SHEET MANAGEMENT

Components of Assets and Liabilities in Bank’s Balance Sheet and their Management
Components of a Bank’s Balance Sheet; What is Asset Liability Management?; Significance of Asset
Liability Management; Purpose and Objectives of Asset Liability Management; ALM as Co-ordinated
Balance Sheet Management
Capital Adequacy – Basel Norms
Scope of Application; Pillar-1 – Minimum Capital Requirements; Pillar 2- Supervisory Review Process;
Pillar 3 – Market Discipline;
Asset Classification and Provisioning Norms
Asset Classification; Provisioning Norms
Liquidity Management
Definition; Dimensions and Role of Liquidity Risk Management; Measuring and Managing Liquidity Risk
Interest Rate Risk Management
Essentials of Interest Rate Risk; Sources of Interest Rate Risk; Effects of Interest Rate Risk; Measurement
of Interest Rate Risk; Interest Rate Risk Measurement Techniques; Strategies for Controlling Interest
Rate Risk; Controls and Supervision of Interest Rate Risk Management; Sound Interest Rate Risk
Management Practices; RBI’s Draft Guidelines on Interest Rate Risk in Banking Book
RAROC and Profit Planning
Profit Planning; Risk Aggregation and Capital Allocation; Economic Capital and RAROC

COMPULSORY PAPER III: ADVANCED BUSINESS & FINANCIAL MANAGEMENT

MODULE A: THE MANAGEMENT PROCESS
Basics of Management
Definition of Management, The Management Process, Functions of Management, Importance of
Management, Management Thoughts & Approaches, Management Challenges & Opportunities,
Introduction to Strategic Management, Business Environment Analysis
Planning
Fundamentals of Planning, Steps in Planning, Importance of Planning, Advantages and disadvantages of
planning, Management by Objectives, Plan Components, Contingency planning, Forecasting & Decision
Making
Organizing
Introduction and Fundamentals of Organizing, Importance of Organisation, Stages in Organising
Process, The Organising Process, Principles of organizing, Types of Organisations, Organisation
structure, Organisation charts and manuals, The Organisation culture, Authority & Responsibility, Key
Issues in Organisation Structure, Organisational Change, Conflict Dynamics
Staffing
Functions of Staffing, Objectives of staffing, Nature of staffing, Facets of staffing, Significance of staffing,
System approach to staffing, Recruitment, Selection, Training, Retention and development, Knowledge
and learning management,Performance Appraisal, Human Resource Development
Directing
Characteristics of directing, Importance of directing, Elements of directing, Leadership, Motivation,
Communication, Supervision
Controlling
Basics of Controlling, Characteristics of controlling, Advantages of controlling, Limitations of controlling,
Types of control management, Control process, Relation between planning and control, Control
Techniques, Control technique and Information Technology
MODULE B: ADVANCED CONCEPTS OF FINANCIAL MANAGEMENT
Sources of Finance and Financial Strategies
Equity Capital, Internal Accruals, Preference Capital, Term Loans, Debentures, Alternative Financing
Strategies in the Context of Regulatory Requirements
Financial and Operating Leverages
Financial Leverage, Degree of Financial Leverage and its Behaviour, Operating Leverage, Degree of
Operating Leverage and its Behaviour, Combined or Total Leverage
Capital Investment Decisions
Objective of capital investment decisions, Estimation of project cash flows, Forecasting and its relation
to regulation of capital for short, medium and long term periods, Relationship between sales,
production and other functional budgets, Cash Forecasts, Cost analysis for projects, Methods of
Investment appraisal;Social Cost Benefit Analysis
Capital Budgeting for International Project Investment Decisions
Foreign Investment Analysis, Special Considerations-Foreign & Home Currency Cash Flows, Foreign
Currency Discount Rates Computation, International Portfolio Investment and Institutional Constraints,
Direct and Indirect Channels for International Portfolio Investment, Exchange and Country Risk, Return
and Risk of Foreign Investment, Capital asset pricing model, Arbitrage pricing theory; International
Capital Budgeting Issues involved in overseas projects, Approaches for evaluation of overseas projects,
Evaluation methods, , Impact of transfer pricing
Adjustment of Risk and Uncertainty in Capital Budgeting Decision
Sources & Perspectives on Risk, Sensitivity Analysis, Scenario Analysis, Hillier Model, Simulation
Analysis, Decision Tree Analysis, Corporate Risk Analysis, Managing Risk, Project Selection Under Risk,
Risk Analysis in Practice
Decision Making
Decision Making using Cost-Volume-Profit (CVP) Analysis, Decision Making using Relevant Cost
Concepts, Decision Making using Activity Based Costing, Ethical and Non-Financial Considerations
Relevant to Decision Making
MODULE C: VALUATION, MERGERS & ACQUISITIONS
Corporate Valuations
Approaches to Corporate Valuation, Adjusted Book Value Approach, Stock and Debt Approach, Direct
Comparison Approach, Discounted Cash Flow Approach, Steps involved in valuation using DCF
Approach,
Discounted Cash Flow Valuation
Estimating Inputs, Approaches to Discounted Cash Flow Models, Various discounted Cash Flow Models,
Dividend Discount Model, Applicability of the Dividend Discount Model,
Other Non-DCF valuation models
Relative valuation model, Equity Valuation Multiples Model, , Enterprise value multiples Model,
Choosing the right multiples,
Book value approach Model, Stock and debt approach
Special cases of valuation
Intangibles –Brand, Human valuation etc., Real estate Firms, Start-up firms, Firms with negative or low
earnings, Financial Service companies, Distressed firms, Valuation of cash and cross holdings, Warrants
and convertibles, Cyclical & non-cyclical companies, Holding companies, E-commerce firms
Mergers, Acquisitions and Restructuring
Types of Transactions, Reasons for Merger, Mechanics of a Merger, Costs and Benefits of a Merger,
Exchange Ratio in a Merger, Purchase of a Division / Plant, Takeovers, Leveraged Buyouts, Acquisition
Financing, Business Alliances, Managing Acquisitions, Divestitures, Holding Company, Demergers
Dealstructuring and financialstrategies
Negotiations, Payment and legal considerations, Tax and accounting considerations, Tax reliefs and
benefits in case of Amalgamation in India, Financial reporting of business combinations, Deal Financing,
Financing of cross border acquisitions in India
MODULE D: EMERGING BUSINESS SOLUTIONS
Hybrid Finance
Advantages and disadvantages of Hybrid securities, Types of hybrid securities, Preference Share Capital,
Features of Warrants, Features of Convertible Debentures, Differences between Warrants and
Convertible debentures, Valuation of Warrants, Valuation of Compulsorily Convertible (Partly or fully)
Debentures, Objective of issuing Warrants and Convertible debentures, Features of Foreign Currency
Convertible Bond (FCCB), Mezzanine Financing, Innovative Hybrids
Start-up Finance
Benefits to startup under the Startup Plan, Startup definition in India, Challenges faced by Startups,
State Startup Policy, Pitch Presentation, Programmes and competitions for startups, Tax exemptions,
Funding, Investor’s outlook in Startups, Funding schemes and programmes, International challenges
and bridges
Private Equity and Venture Capital
Characteristics of Venture Capital Investments, Characteristics shared by Private Equity and Venture
Capital as well as their key distinctions, Financing options available through Venture Capital, Investment
in Private equity, Benefits obtained through private equity, Drawbacks to the practice of private equity,
, Due diligence, Exit Strategies
Artificial Intelligence
History of Artificial Intelligence, Applicability of Artificial Intelligence, Artificial Intelligence in Banking
and Finance, The future scope of Artificial Intelligence, Neural Networks, Control Theory and
Cybernetics, Rational Agents, Motion and Manipulation, Tools and Techniques of Artificial Intelligence,
Artificial Intelligence and Morality
Business Analytics as Management Tool
Essentials of Business analytics, Types of Analytics, Elements of Business Analytics, Big Data Analytics,
Web and Mobile Analytics, Comparing web Vs Mobile Analytics, Importance of Business Analytics
Green and Sustainable Financing
ISO Standards for Green Finance, Building Green Finance, International Best Practices towards Green
Finance, Public Policy in India, Progress of Green Finance in India, Challenges and way forward, Growth
of Regulatory Framework, National Efforts towards Green and Sustainable Financing, RBI Views on
Climate Risk and Sustainable Finance
Special Purpose Acquisition Company
Advantages of SPAC, Disadvantages of SPAC, SPAC Formation and Timelines, The SPAC Merger,
Stakeholders, Characteristics of SPACs, Process, SPAC Capital Structure, Trust Account, Warrants,
Forward Purchase, IPO Agreements, De-SPAC Process

COMPULSORY SUBJECT IV: BANKING REGULATIONS AND BUSINESS LAWS
MODULE A: REGULATIONS AND COMPLIANCE
Legal Framework of Regulation of Banks
Business of Banking, Constitution of Banks, Reserve Bank of India Act, 1934, Banking Regulation Act,
1949, Reserve Bank as a Central Bank and Regulator of Non-Banking Financial Institutions/Banks,
Government as a Regulator of Banks, Control over Co-operative Banks, Regulation by Other Authorities
Control over Organisation of Banks
Licensing of Banking Companies including RBI Licencing Policy for Universal Banks and Small Finance
Banks/Branch Licensing, Paid-up Capital and Reserves, Shareholding in Banking Companies, Subsidiaries
of Banking Companies, Board of Directors, Chairman of Banking Company, Appointment of Additional
Directors, Restrictions on Employment, Controls over Management, Corporate Governance, Directors
and Corporate Governance
Regulation of Banking Business
Power to Issue Directions, Acceptance of Deposits, Nomination, Loans and Advances, Regulation of
Interest Rates, Regulation of Payment Systems, Internet Banking Guidelines, Regulation of Money
Market Instruments, Banking Ombudsman, Regulation to Strengthen Financial Stability
Returns, Inspection, Winding Up, Mergers & Acquisitions
Annual Accounts and Balance Sheet, Audit and Auditors, Submission of Returns, Preservation of Records
and Return of Paid Instruments, Special Audit, Inspection and Scrutiny, Board for Financial Supervision,
Acquisition of Undertakings, Amalgamation of Banks, Winding up of Banks, Penalties for Offences
Public Sector Banks, Private Sector Banks, Regional Rural Banks, Differentiated Banks and Co-operative
Banks, Local Area Banks
State Bank of India, Regional Rural Banks, Other Public Sector Banks, Application of Banking Regulation
Act to Public Sector Banks, Disinvestment of Shares by Government, Co-operative Banks, Private Sector
Banks, Differentiated Banks, Local Area Banks
Non-Banking Financial Companies (NBFCs)
Regulators of NBFCs, Role of NBFC in promoting Inclusive Growth, Registration, Revised Scale Based
Regulatory Structure, Nomenclature and Regulatory Norms, Capital Guidelines, Prudential Guidelines,
Corporate Governance, Fair Practices Code for applicable NBFC, Bank Finance to NBFCs registered/not
requiring registration with RBI, Co-Lending by banks and NBFCs to PSA
Financial Sector Legislative Reforms and Financial Stability and Development Council
Narasimham Committees 1/2, Banking Sector Reforms, Reforms in Monetary Policy, Reforms in
Financial Markets, Reforms in Forex Market, Financial Sector Development Council (FSDC), Function of
the FSDC, Wings of FSDC
MODULE B: IMPORTANT ACTS/LAWS & LEGAL ASPECTS OF BANKING OPERATIONS –
PART A
The Prevention of Money Laundering Act, 2002
Offence of Money Laundering, Punishment for Money Laundering, Obligations of Banking Companies,
Financial Institutions and Intermediaries, Enhanced Due Diligence, Rules Framed, Records to be
Maintained, Information Contained in the Records, Procedure for Maintaining Information, Procedure
for Furnishing Information to the Director, Verification of Records of the Identity of Clients,
Maintenance of Records of Identity of Clients, Some Cases pertaining to the Act
Negotiable Instruments Act, 1881
Negotiable Instruments, Types and Characteristics, Drawer/Acceptor, Payment of Cheques – Protection
to Bankers’ /Customers’, Material Alteration, Where Alteration is not apparent, Protection to the
Collecting Banker
Foreign Exchange Management Act, 1999
Meaning of Certain Important Terms Used in FEMA, Regulation and Management of Foreign Exchange,
Powers of RBI with Respect to Authorized Persons, Contravention, Penalties, Adjudication and Appeals,
Directorate of Enforcement, Special Provisions relating to Assets held outside India
Payment & Settlement Systems Act, 2007
Definitions, Designated Authority/Authorization, Regulation and Supervision by the RBI, Settlement and
Netting, Power of RBI to make regulations
Law Relating to Securities and Modes of Charge – I
Mortgage, Document of Title to Immoveable Property – Meaning, Copy of Document of Title to
Immoveable Property Where Acceptable
Law Relating to Securities and Modes of Charge – II
Appropriation, Assignment, Pledge, Hypothecation, Bankers lien, Set-off
Creation/Registration and Satisfaction of Charges
What is a Charge?, Procedure for Registration of Charge, Effect of Registration of Charges, Effect of Nonregistration of Charges, Provisions of Companies Act 2013 Relating to Registration of Charges
MODULE C: IMPORTANT ACTS/LAWS & LEGAL ASPECTS OF BANKING OPERATIONS –
PART B
Reserve Bank – Integrated Ombudsman Scheme, 2021
Coverage and Definitions, Ombudsman–Appointment/Location of Offices/Establishment of a
Centralized Receipt and Processing Centre, Procedure for Redressal of Grievance, Procedure for Filing a
Complaint / its Initial Scrutiny and Resolution, Passing of an Award and Right to Prefer to Appeal,
Suspension of the Scheme
The Micro, Small and Medium Enterprises Development Act, 2006
Coverage and Definitions, Summary of Regulation, National Board for Micro, Small and Medium
Enterprises (NBMSME)/Advisory Committee, Memorandum of Micro, Small and Medium Enterprises,
Delayed Payments to Micro and Small Enterprises, Micro and Small Enterprises Facilitation Council and
Reference to the Council in case of Disputes, Disclosures and Penalty for Contravention of the Provisions
of the Statute
Introduction to Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 ( SARFAESI Act, 2002)
Constitutional Validity of the Act
Definitions Under SARFAESI Act, 2002
Preamble, Appellate Tribunal, Asset Reconstruction, Bank, Board, Borrower, Central Registry, Debt
Recovery Tribunal, Default, Financial Assistance, Financial Asset, Financial Institution, Hypothecation,
Non-performing Asset, Originator, Obligor, Property, Qualified Institutional Buyer, Scheme,
Securitization, Security Agreement, Secured Asset, Secured Creditor, Secured Debt, Security Interest,
Security Receipt, Sponsor
Regulation of Securitisation and Reconstruction of Financial Assets of Banks and Financial
Institutions
Registration of Asset Reconstruction Company, Cancellation of Certificate of Registration, Acquisition of
Rights of Interest in Financial Assets, Notices to Obligor and Discharge of Obligation of Such Obligor,
Issue of Security Receipts and Raising of Funds by Securitization or Reconstruction Company, Exemption
from
Registration of Security Receipt, Measures of Assets Reconstruction, Other Functions of the
Securitization Company or Reconstruction Company, Resolution of Dispute, Powers Available with RBI
Enforcement of Security Interest
Enforcement of Security Interest, Chief Metropolitan Magistrate or District Magistrate’s Assistance for
Taking Possession of Secured Asset, Manner and Effect of Takeover of Management, No Compensation
to Directors for Loss of Office, Application against Measures to Recover Secured Debt, Appeal to
Appellate Authority, Right of the Borrower for Compensation and Costs
Central Registry
Central Registry, Central Registrar, Register of Securitization, Reconstruction and Security Interest
Transactions, Filing of Transactions of Securitization, Reconstruction and Creation of Security Interest,
Modification of Security Interest Registered, Satisfaction of Security Interest, Right to Inspect Particulars
of Securitization, Reconstruction of Security Interest Transactions
Offences and Penalties
Penalties, Penalties for Non-compliance of Directions of Reserve Bank of India, Offences, Cognizance of
Offences, Power of Adjudicating Authority to Impose Penalty/Appeals against Penalty and Adjudicating
Appellate Authority
Miscellaneous Provisions
Non-Applicability of the Provisions of the SARFAESI Act in Certain Cases, Exemption of Certain Classes
of Banks /Financial Institutions, Protection of Action Taken in Good Faith, Offences by Companies, Civil
Court not to have Jurisdiction, Overriding Effect on Other Laws, Limitation, Power of the Central
Government to Make Rules, Amendments to Certain Other Enactments
Registration of Security Interest by Secured Creditors and Other Creditors/ Rectification
by Central Government in Some Cases
Registration by Secured Creditors and Other Creditors, Rectification by Central Government in Matters
of Registration, Effect of the Registration of Transactions, Right of Enforcement of Securities and Priority
Allowed to Secured Creditors
The Recovery of Debts and Bankruptcy Act, 1993
Constitutional Validity of the Act, Extent, Commencement, Application and Definitions
Establishment of Tribunal and Appellate Tribunal
Establishment of Tribunal, Composition of Tribunal, Qualification for Appointment as Presiding Officer
and Termof Office, Staff of Tribunal, Establishment and Composition of Appellate Tribunal,Qualification
for Appointment as Chairperson of the Appellate Tribunal and Term of Office, Filling up of Vacancies at
Tribunal and Appellate Tribunal, Finality of Orders Constituting Tribunal or an Appellate Tribunal
Jurisdiction, Powers & Authority of Tribunals
Jurisdiction, Powers and Authority of Tribunals, Bar of Jurisdiction of Civil Courts
Procedure of Tribunals
Application to the Tribunal, Appeal to the Appellate Tribunal, Deposit of Amount of Debt Due for Filing
Appeal, Procedure and Powers of the Tribunal and the Appellate Tribunal, Limitation
Recovery of Debts Determined by Tribunal and Miscellaneous Provisions
Modes of Recovery of Debts, Validity of Recovery Certificate and Amendment Thereof, Stay and
Amendment for Recovery Proceeding and Certificate, Other Modes of Recovery, Application of Certain
Provisions of the Income Tax Act, Appeal against the Order of Recovery Officer, Transfer of Pending
Cases, Power of Tribunal to Issue Certificate of Recovery in Case of Decree or Order, Chairperson,
Presiding Officer and Staff of Appellate Tribunal and Tribunal Public Servants, Protection of Action Taken
in Good Faith, Overriding Effect of the Act, Powers to Make Rule
Introduction to the Insolvency and Bankruptcy Code, 2016
Definitions, Coverage, Pillars of IBC, 2016, The Insolvency Resolution Process for Companies and Limited
Liability Entities, Corporate Insolvency Resolution Process (CIRP), Initiation of Corporate Insolvency
Resolution Process by a Financial Creditor , Suspension of Initiation of CIRP, Persons not Entitled to
Make Application, Time – Limit for completion of Insolvency Resolution Process and withdrawal of
application admitted under the Code, Declaration of Moratorium and Public Announcement by the
Adjudicating Authority, Appointment/Tenure of the Interim Resolution Professional, Committee of
Creditors, Appointment of Resolution Professional, Liquidation, Order of Priority of Payment of Debts ,
Fast Track Insolvency Resolution Process, Voluntary Liquidation of Corporate Person
The Bankers’ Books Evidence Act, 1891
Applicability and Definitions, Conditions in the Printout, Mode of Proof of Certain Entries in Bankers’
Books, Case in which Officer of Bank not Compellable to Produce Books, Inspection of Books by Order
of Court or Judge, Costs of Application
The Legal Services Authorities Act, 1987: Lok Adalats
Organization of Lok Adalats, Jurisdiction of Lok Adalats, Cognizance of Cases by Lok Adalats, Disposal of
Cases by Lok Adalats, Nature of Award of the Lok Adalats and Powers
The Consumer Protection Act, 2019
Definitions, Unfair Contract and Unfair Trade Practice, Central, State and District Consumer Protection
Councils, Central Consumer Protection Authority, District, State and National Consumer Disputes
Redressal Commission, Ministry of Consumer Affairs, Food and Public Distribution (Department of
Consumer Affairs) Notification dated 30th December, 2021, Finality of Orders and Limitation Period,
Consumer Mediation Cell
The Law of Limitation
Definitions, Limitation and Its Computation, Computation of the Period of Limitation, Acts Giving Rise
to Fresh Period of Limitation, Certain Important Provisions in Schedule to the Limitation Act
Tax Laws
Income Tax, Commodity Transaction Tax, Goods and Services Tax
MODULE D: COMMERCIAL & OTHER LAWS WITH REFERENCE TO BANKING OPERATIONS
Meaning and Essentials of a Contract
Meaning of Contract, Key Components to Form a Contract Essentials of a Valid Contract, Contract Act
and Banking
Contracts of Indemnity
Rights of Indemnity Holder, Implied Indemnity, Enforceability of Contract of Indemnity
Contracts of Guarantee
Parties to the Contract, Basic Principles of Contract to be complied, Consideration, The Liability of the
Surety, Continuing Guarantee, Death of Surety, Variance in Terms of the Contract, Discharge of Principal
Debtor, Forbearance to Sue, Release of One Co-surety does not Discharge Other, Surety can Claim His
Dues from the Principal Debtor, Security, Misrepresentation made by the Creditor, Implied Promise by
the Principal Debtor to Indemnify the Surety, Co-sureties for the Same Debt, Revocation of a Continuing
Guarantee
Contract of Bailment
Meaning of Bailment, Essential Features of Bailment, Bailor Bound to Disclose to the Bailee, Bailee to
take care of Goods, Effects of mixing of Goods and Expenses, Duties of the Bailee with regard to Goods,
Bailee’s Lien
Contract of Pledge
Ingredients of Pledge, Nature of Pledge, Pledge by Way of Hypothecation, Pledge by Pledgee
Contract of Agency
Definition, Contract of Agency, Essential Characteristics of a Contract of Agency, Rules of Agency, Types
of Agents, Rights and Duties of the Agent and Principal
Meaning and Essentials of a Contract of Sale
Meaning of some of the Important Terms Defined Under the Sale of Goods Act, 1930, Meaning of
Contract of Sale of Goods, Features of Contract of Sale of Goods, Sale and Agreement to Sell, Distinction
between a Sale and an Agreement to Sell
Conditions and Warranties
Meaning of Condition and Warranty, Implied Conditions and Warranties
Unpaid Seller
Rights of an Unpaid Seller
Definition, Meaning and Nature of a Partnership
Meaning and Definition of Partnership, Essential Characteristics, Types of Partnership, Limited Liability
Partnership (LLP)
Relations of Partners to One Another
General Duties of Partners, Duty to Indemnify the Loss caused by Fraud, Determination of Rights and
Duties of Partners by Contract between the Partners, The Conduct of the Business, Mutual Rights and
Liabilities, The Property of the Firm, Profits Earned by Partners, Rights and Duties of Partners
Relations of Partners to Third Parties
Partner is an Agent of the Firm, Implied Authority of Partner as Agent of the Firm, Extension and
Restriction of Partner’s Implied Authority, Partner’s Authority in an Emergency, Mode of Action to Bind
Firm, Liability of a Partner for Acts of the Firm, Liability of the Firm for Wrongful Acts of a Partner,
Liability of Firm for Misapplication by Partners, Holding Out, Rights of Transferee of a Partner’s Interest
Minor Admitted to the Benefit of a Partnership
Minor cannot be a Partner, Legal position after the Minor attains majority, Retirement of a Partner,
Insolvency of a Partner
Dissolution of a Firm
Dissolution, Dissolution by Agreement, Compulsory Dissolution, Dissolution on the Happening of Certain
Contingencies, Dissolution by the Court, Liability for Acts of Partners Done after Dissolution
Effect of Non-Registration
Registration
Definition and Features of a Company
Definition of a Company, Features of a Company, Distinction between a Company and Partnership
Types of Companies
Classifications of Companies on the basis of mode of Incorporation, Classifications of Companies on the
basis of Liability, Classifications of Companies on the basis of Public Interest, Holding and Subsidiary
Companies
Memorandum of Association and Articles of Association
Memorandum of Association, Articles of Association, Effect of Memorandum and Articles, Distinction
between the Memorandum of Association and Articles of Association
Doctrines of Ultra Vires/ Constructive Notice/ Indoor Management
Doctrine of Ultra Vires, Effects of Ultra Vires Transaction, Constructive Notice of Memorandum of
Association
and Articles of Association, Effect of the Doctrine of Constructive Notice, Doctrine of Indoor
Management
Membership of Company
Who is a Member of a Company? Various Modes of Becoming Member of a Company, Who can be
Members of a Company?, Cessation of Membership in a Company, Register of Members, Place of
Keeping and Inspection of Register of Members, Rights and Duties (Liabilities) of Members of a
Company, Rights of Members
Prospectus
What is a Prospectus? Compliance with Respect to Prospectus, Mis-statements in a Prospectus and
Remedies
Directors
Minimum Number of Directors, Appointment of Directors and Proportion of those who are to Retire by
Rotation, Ascertainment of Directors Retiring by Rotation and Filing of Vacancies, Right of Persons other
than Retiring Directors to stand for Directorship, Additional Directors, Filling of Casual Vacancies among
Directors, Consent to the Company, Consent to be filed with Registrar of Companies, Whole-time
Director, Qualification Shares, Maximum Number of Directorships, Vacation of Office by Directors,
Certain Powers can be exercised only at Meetings of the Board, Restrictions on Powers of Board, Loan
to Director, Contracts in which Directors are Interested, Alternate Director, Compensation for Loss of
Office.
Limited Liability Partnership Act, 2008
Definitions, A Body Corporate, Partner/Designated Partner, Liabilities of and changes in Designated
Partners, Incorporation of a Limited Liability Partnership, Partners and their Relations, Conversion
Transfer of Property Act, 1882
Sale of Immoveable Property, Mortgage of Immoveable Property, Types of Mortgage, Sale without
Court Intervention, Enforcement of Mortgages through Court, Leases of Immoveable Property,
Actionable Claims
The Right to Information Act, 2005
Applicability, Definitions
Right to Information and Obligations of Public Authorities
Obligations of Public Authorities, Procedure for obtaining Information, Disposal of Request, Appeal,
Orders in Appeal, Penalties
Information Technology Act, 2000
Definitions, Electronic Governance, Certifying Authorities, Digital Signature Certificates, Penalties,
Appeal, Investigation, Critical Information Infrastructure –Protected System, Application of the Act to
Electronic Cheque and Truncated Cheque,
Prevention of Corruption Act, 1988
Definitions, Special Judges, Offences and Penalties, Fixing of Fine, Persons authorized to investigate,
Powers to inspect ‘Bankers Books’, Appeal and Revision
APPENDIX
Important Provisions / Sections of certain Acts
ELECTIVE PAPER I: RURAL BANKING
MODULE A: RURAL INDIA
Demographic Features
Population; Literacy; Sixth Economic Census; Agriculture Census; Socio Economic Development
Indicators; Health; Nutrition; Education; Rural-Urban Migration
Characteristics of Rural Society
Social Stratification; Local Institutions; National Institute of Rural Development and Panchayati Raj
(NIRD & PR)
Economic Features
Agriculture; Non-Farm Activities; Gross Domestic Product and Gross Value Added; Rural Money Markets
– Formal and Informal Rural Money Markets; Rural Indebtedness; Rural Poverty; Different Methods of
Measuring Poverty Line; Sustainable Development Goals
Infrastructure
Infrastructure in India; Transport; Markets; Rural Electrification; Other Services
Agriculture Economy
Structure and Characteristics of Indian Agriculture; Role of Agriculture in Economic Development;
Agriculture-Industry Linkage; Issues in Economic Development; Resources in Agriculture; Technical
Change in Agriculture; Constraints in Agricultural Development; Emerging Issues in Agriculture; National
Mission for Sustainable Agriculture (NMSA)
Rural Development Policies
Rural Development Schemes; Skill Development and Entrepreneurship Initiatives; Shyama Prasad
Mukherji Rurban Mission (SPMRM); Programs for Development of Backward Areas; Power Supply to
Rural India Program; Development of Dryland Farming; Soil and Water Conservation; Rural
Infrastructure Development Fund; Economic Reforms; Financial Sector Reforms; Impact of Reform in
Rural Economy; Reforms after 1998-99
Issues Concerning Rural Areas
Components of Rural Development; Approaches to Rural Development since Independence;
Sustainable Rural Development; Necessity for Rural Development; Measures for Development; Rural
Development and Rural Management; Key Issues Concerning Rural Management; Marketing
Management; Importance of Agricultural Prices

MODULE B: FINANCING RURAL DEVELOPMENT

Regulation of Rural Financial Services
Overall Set Up of Rural Financial Institutions (RFIs); Function and Policies of RBI in Rural Banking; Role
and Functions of NABARD; Lead Bank Scheme
Rural Credit Institutions
Cooperative Credit System; Regional Rural Banks; Commercial Banks and Rural Financing; Other
Financial Institutions Catering to Rural Areas; Initiatives for Augmenting Credit Flow; Role of Information
and Communication Technologies in Rural Banking; Rural Development Banking – Initiatives for
Inclusive Growth; Rural Insurance and Micro Insurance; Micro Finance Institutions; Concept of Business
Facilitators and Business Correspondents in Rural Banking
Financing Agriculture and Allied Activities
Crop Loans – Production Credit; Features of Kisan Credit Card Scheme; Basic Features of NABARD
Refinance Support to Cooperative Banks and RRBs for Crop Production activities; Bank’s Role in
Provision of Relief in Areas Affected by Natural Calamities; Term-Loans for Agriculture and Allied
Activities; Features of Major Sectors for which Opportunities are Available for Provision of term Credit
by Banks; Advance against Gold Ornaments
Financing Rural Non-Farm Sector
Rural Non-Farm Sector – Facilitative Set Up, Importance, Structure and Growth, Strength and Issues
Concerning the Sector; Promotion of Traditional Industries; Raw Material Supply – Arrangements;
Marketing Assistance; Institutional Finance; Technology Development and Training
SME Finance
Definition of SME; Importance of the sector to the Indian Economy; Arrangements for provision of credit
to the MSME sector; Appraisal of MSME loan proposals – techniques and Requirement assessment of
Projects for term loans; SIDBI’s assistance to the MSME Sector and its development role; Policy
prescriptions of RBI for the growth of MSME Sector; Initiatives taken by GOI for the development of
MSME Sector; Problems faced by MSMEs; Delayed Payments to Micro and Small Enterprises under the
Micro Small and Medium Enterprises Development (MSMED) Act, 2006; Performance and Credit Rating
Scheme (PCRS); Framework for Revival and Rehabilitation of MSMEs
Concepts of Project, Aspects of Project Formulation & Appraisal & Model Bankable
Projects
Aspects of Project Preparation; The Project Cycle; Minor Irrigation Schemes; Lift Irrigation; Financing
Micro Irrigation Structures; Land Development Schemes; Farm Mechanization; Financing Plantation and
Horticulture; Dairy Development Schemes; Poultry Farming; Sheep Breeding; Goat Rearing; Pisciculture;
Bee Keeping; Financing Rural Godowns; Financing Sericulture; Financing Mushroom Cultivation

MODULE C: PRIORITY SECTOR FINANCING AND GOVT.

INITIATIVES Priority Sector Lending
Evolution of Priority Sector Lending; Guidelines on Priority Sector Lending – Categories; NonAchievement of Priority Sector Targets; Common Guidelines for Priority Sector Loans; Priority Sector
Credit Achievement
Poverty Alleviation Programs
Poverty Assessment and Way Forward; Initiatives of the Government – Features of the Schemes
Implemented for Poverty Reduction; Welfare Schemes
Rural Housing and Education Loans
Rural Housing an Introduction; Pradhan Mantri Awas Yojana (Grameen); Education Loan
Initiatives of R.BI under Financial Inclusion & Financial Education Programs and
implementation of various Poverty Reduction Programs
National Strategy for Financial Inclusion; National Strategy for Financial Education; Direct Benefit
Transfer; Guidelines Issued by RBI under NRLM/NULM; Relief Measures by Banks in areas Affected by
Natural Calamity-RBI Guidelines to Banks; Credit Facilities to SCs/STs; Credit Facilities to Minority
Communities; Poverty Alleviation/Employment Generation Programs

MODULE D: PROBLEMS AND PROSPECTS IN RURAL BANKING

Role of Banking – Emerging Trends in Rural Banking Characteristics of Rural Society
Present Scenario; Areas of Concern and Actions Pursued; Present Focus on Banking in Rural Areas;
Inclusive Banking Activities
Role of Technology in Financial Inclusion and Rural Development
Transformational Role of Digital Technologies; Technology for Adoption of Improved Agricultural
Practices; Scope for Using Digital Technology for Growth in Agriculture; Modern Management of
Agriculture – Possible Technological Components; Benefits of Usage of Technology in Agriculture for the
Society and the Nation; Common IOT Devices/Equipment in Agriculture for Agri-Solutions; Technology
and Value Chain Operations; Progress of IOT in World Agriculture; Progress of IOT in Indian Agriculture;
Other Initiatives for Development of Rural Areas; Financial Technology in Financial Inclusion Space
Financing Poor as Bankable Opportunities: Micro Credit and Self Help Groups
Microcredit Delivery Models; SHG-Bank Linkage Program (SBLP) Approach; Micro Finance Institutions
(MFIs); Role of NABARD as Microfinance Facilitator; SIDBI & Micro Credit; Initiatives by RBI and GOI

ELECTIVE PAPER II: HUMAN RESOURCE MANAGEMENT

Module A: Human Resource Management

Fundamentals of HRM
Fundamentals of HRM; New Insights into HR Management; Ethics in Human Resource Management
(HRM)
Organisational Behaviour
Behavioural Dynamics in Organisations; The Person – Job Fit; Group Dynamics; Leadership and Team
Effectiveness; Some Contemporary Approaches to Leadership; Transformational Leadership; Human
Resource Implications of Benchmarking; Quality Initiatives in Organisations; ‘Quality Circle’: A HR
Strategy to Quality Improvement; ‘Six Sigma’: A Model for Improving in Business Processes; Positive
Attitude: The Core Behavioural Capital of Organisations; Stress Management; Business Etiquettes
Organisational Change
Change and Development; Change Agent; Managing Change; John P Kotter’s eight step to successful
change; ‘Responsibility Charting’
HRM in Indian Banks
Traditional Role of HRM in Indian Banks; Expectations from HR Department; Changing Profile of ‘HRM’
in Banks; Major HRM Challenges Facing Banks; Core Banking and People Challenges
Knowledge Management
Concept of Knowledge Management (KM); Significant Features of Knowledge Management; Knowledge
Management in Banks; IT & Database Management

Module B: Building an HR Strategy

HR as a Strategic Player
HR as a Strategic Player & Strategic HRM; HR Strategy Formulation and Implementation; Need for a
Distinctive HR Strategy; Creating Business Value Through HR Strategy; ‘Factor Analysis’ in HRM;
Connecting ‘Strategy’ to Organisations; Strategy Execution; Aligning HR System with Decision
Framework
CEO and his/her Team
Roles and Responsibilities of CEO; CEO and Talent Management; Executive and Line Managers;
Succession Planning; ‘Job Family’: An Integrated Model for sustained Succession Planning & Talent
Management; Human Resource Audit
Communication
Organisational Communication; Types of Communication; Barriers to Effective Communication; Steps
for Effective Communication; HR and Communication
HR Functions
Human Resource Planning (HRP); Recruitment and Selection; Impact of Technology on Critical HR
Functions; ‘Social Media Policy’ forOrganisations: Need and Contents thereof; Compensation; Incentive
Based Compensation; Attrition/Turnover Management; Employee Risk Assessment Systems in Banks
Performance Management
Performance Management System (PMS); Performance Appraisal System; 360-Degree Appraisal;
Competency Mapping; Key Result Areas (KRAs)

Module C: Motivation, Training and Skill Development

The Learning Process
Human Implications of Organisations; The Learning Theory; The Learning Process; Employee Behaviour
Employee Motivation
Types of Motivation; Motivational Theories; Employee Attitude Development; Practical Applications of
Motivation; Job Enrichment; Job Enlargement; Job Rotation; Job Satisfaction
Employee Development
Basic Objectives of ‘Training’; Training & Development: Its Need; Concepts and differences of ‘Training’,
‘Development’ and ‘Learning’; ‘Training Need’: Methods for Identification of Training Needs; Role and
Impact of Training; Changing Face of Banking in India; Future of Bank Education in India
Training Methodology
Subject Matter of Training: ‘Learning Organisations’; Training Methodology; Current Trends in Training;
Types of Training; Benefits of Training; Training & Career Development; Soft Skills Training; Challenges
in Training in Banks; Training Infrastructure in Banks; Talent Management; Creative Talents &
Dynamic Leadership: A Winning Combination; Strategies to hone up Leadership Skills;
Training for the New Generation; Return on Investment (RoI) on Training; Measuring the Success of
Training; Best Practices in Training to Help Organisations

Module D: Personnel Management and Industrial Relations

Industrial Relations (Part A)
Personnel Function; Legal Aspects of Personnel Function; Legislation on Working Conditions; Industrial
Relations Code 2020; Legislation on Wages; Legislation on Social Security; Legislation on Employment
and Training; The Changing Scenario
Industrial Relations (Part B)
Historical Background of Trade Union Movement; Trade Unions in Banks; Industrial Relations; Collective
Bargaining
Employee Discipline (Grievance Redressal and Discipline)
‘Grievance’: Concept and Definition; Causes & Effects of ‘Grievance’; Grievance Redressal Mechanism;
Conflict Management; Management Dilemma
Workers’ Participation in Management (WPM)
‘Participation’: Concept & Definition, Types; Methods of Participation; Indian Banking Experience on
Workers’ Participation in Management (WPM)
Employee Discipline (Discipline Management)
Discipline at Workplace; Discipline Management; Disciplinary Rules in Banks; Domestic Enquiry; Frauds
in Banks; The Risk Attached to Delegation of Financial Powers; Need for Vigilance Department in Banks;
Diversity and Gender Issues; Dealing with Cases of Sexual Harassment; The Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH ACT)

Module E: Emerging Scenario in HRM

Contemporary Practices in Employee Engagement
Concept and Definition of ‘Émployee Engagement’; Various features and characteristics of ‘Employee
Engagement’; Drivers of ‘Émployee Engagement’; Need for creative strategies for engaging Gen ‘Y’
Employees; Contemporary ‘Employee Engagement’ strategies; ‘Work From Home’: Emerging New
Normal in Organisations; Strategies to Keep Employees Engaged When They are Working From Home
(WFH); ‘Hybrid Model’ of working: Unifying the Physical and Virtual; ‘U-Work’ & ‘Ópen2u’: New and
Novel Employment Models; Legal Frame-Work in India to Regulate New Models of Work
Organisational Culture & Creativity: New Imperatives
Definition and Characteristics of ‘Individual Culture’ and ‘Organizational Culture’; Concept and Features
of ‘Individual Creativity’ and ‘Organisational Creativity’; Distinction between ‘Creativity’ & ‘Ínnovation’;
Impact of ‘Culture’ on ‘Creativity’ and Vice-Versa in Organisations; Essential Qualities of a ‘Creative
Leader/Manager’; Strategies to Create ‘Ethical Organizational Culture’
‘Corporate Sustainability’ & ‘Green HRM’: A Social & Environmental Approach to People
Management
Concept of ‘Corporate Sustainability’; Evolution from ‘Strategic HRM’ to ‘Sustainable HRM’; Various
Forms of ‘Sustainable HRM’; ‘Green HRM’: An Environmental Approach to HRM; ‘Green HRM’ Practices
in Banking Industry: Possibilities and Prospects; The Way Forward
‘HR Analytics’, ‘HR Entrepreneurship’ & ‘AI-Based HR Solutions’: New HR Trends for
Future
‘HR Analytics’: Conceptual Understanding; ‘HR Metrics’ vs ‘HR Analytics’; Advantages and Disadvantages
of ‘HR Analytics’; ‘HR Entrepreneurship’: The future Buzzword; Introduction to ‘Artificial Intelligence’;
Role of ‘Artificial Intelligence’ in HR Functions
Leading in a ‘VUCA’ & ‘BANI’ Scenarios: New Approaches in ‘Crisis Management’
‘Crisis’: Concept, Definition, Features & Sources; ‘Crisis Management’: Concept, Features & Need; FourLevels of ‘Uncertainty’: Strategies to Manage; ‘VUCA’: Gravity-Driven Approach to ‘Uncertainty’ and
‘Crisis Management’ in Organizations; Evolution of ‘BANI’ Approach in Crisis Management; ‘VUCA’ or
‘BANI’: Which is to be the Vision for Organisations to Deal with the Crisis?; Typical Models of ‘Crisis
Management’ Process; Role of HR in ‘Crisis Management’ Process; Leadership Role in ‘Crisis
Management’; Role of Employees in ‘Crisis Management’
‘Business Ethics’, ‘Corporate Governance’ & ‘Corporate Social Responsibility’: A Winning
Combination for Organisational Excellence
‘Business Ethics’: A Treasure of Trust; Areas of ‘Business Ethics’; Theories of ‘Business Ethics’;
Characteristics of an ‘Ethical Organisation’; ‘Corporate Governance’: Shareholders’ Primary; Major Best
Practices for Improving ‘Corporate Governance’; Ethical issues in ‘Corporate Governance’; ‘Corporate
Social Responsibility’(CSR): A Resolve Towards Commitment to ‘Business Ethics’ & ‘Social Wellbeing;
Various Models of ‘Corporate Social Responsibility’; ‘Corporate Social Responsibility’: Indian Experience

Elective Paper III: INFORMATION TECHNOLOGY & DIGITAL BANKING

MODULE A: INTRODUCTION TO INFORMATION TECHNOLOGY

Information Technology and its Implications
Impact of Information Technology, Strategic Issues and IT
Introduction to Computing
Introduction to Computer, Data Processing and methods, Computing Environments, Virtualization of
Servers
Introduction to Software
Computer Software, Open Source Software, Web Browsers
Networking Systems
Data Communications, Wan Technology Overview, TCP/IP & Internet
MODULE B: SYSTEMS AND DESIGN
Introduction to Information Systems
Introduction to Information Systems, Types of information systems, Management Information System
Structure, Decision Support System (DSS), Executive Information Systems (EIS), Group Decision Support
Systems (GDSS), Project Management, Capability Maturity Model (CMM), Building Data Centers
Database Management Systems
DBMS Concepts, Relational database, Normalization of a Database, Oracle
Data Warehousing and Data Mining
Need for Data Warehouse, A Data Warehouse Architecture, Data Warehouse Options, Developing Data
Warehouses, Business Intelligence – Expert Systems & Artificial Neural Networks, Data Mining ,
Emerging Trends in Data Warehousing & Analytics

MODULE C: BANKING TECHNOLOGY APPLICATIONS AND DIGITAL BANKING

E-Learning Environment
E-Learning, Standards, Design, Virtual Classroom, Emerging Trends in E-Learning and Impact of
Pandemic
Banking Software
Banking software, Integrated Banking System (IBS), Centralized banking solution, Features of an online
banking web site, Internet Service Providers/Hosting/Bandwidth/Data Download & Upload, Emerging
Trends in Banking Software, IT Services in Banking – Vendor selection and retention criteria
Electronic Clearing and Settlement Systems
Electronic clearing/settlement systems, MICR/OCR/CTS clearing system, Debit Clearing System, Credit
Clearing System, Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT), National
Payments Corporation Of India (NPCI) and its Products & Services, Structured Financial Messaging
System (SFMS)
Plastic Money
Credit Cards, Debit Cards, Smart Cards, CVV or CSC Number, RuPay Card, Payment Gateway & Secure
Electronic Transaction (SET), ATM & Point Of Sale (POS), Card Tokenization
Electronic Commerce and Banking
E-business, Electronic Commerce, E-Commerce Building Blocks, E-banking, Mobile Payments, SMS
Banking & Banking Alerts, The Call Center, EBPP, Emerging Trends in Digital Payments
IT Act 2000 / 2008
Introduction To IT Act 2000,Legal Definition of Computer Crime, Some Legal Issues, Gist of Offenses
Under IT Act 2000, Amendment To IT Act in 2008, Digital Rights Management (DRM), Latest
Developments
Emerging Technologies
Open Banking, APIS & Embedded Banking, Advanced & Big Data Analytics, Blockchain, Artificial
Intelligence (AI) & Machine Learning (ML), Cyber Security- Zero Trust Security Model, 5G Network,
Fintech & Cloud Computing, Digital Banking Units (DBUs), Central Bank Digital Currencies (CBDCs)

MODULE D: INFORMATION SYSTEM SECURITY CONTROLS AND AUDIT

Computer Security
Physical security, Logical security, Network security, Biometric security, ISO 27000 Series Standards &
Basel Recommendations on E-Banking, Computer Viruses and Frauds
Communication Security
Cryptography, Digital Signatures, Public-Key Infrastructure (PKI), Certification Authorities
Business Continuity and Disaster Recovery planning
Business Continuity Plan vs Disaster Recovery Plan, Business Continuity Planning, RBI Guidelines on
Business Continuity Planning, Disaster Avoidance, Disaster Recovery Planning
Information System Audit
The Concept, System Audit Procedures, System Audit – Security, IS Audit controls & Approaches, RBI
Guidelines on IS Audit
Competitive Bid Process – RFP and SLA
Competitive Bid Process – RFP, RFP Process, Evaluation of Proposals, Contract Co-Ordination, Service
Level Agreement (SLA), SLA Processes, Structuring an SLA, SLA Management, RBI Guidelines on IT
Services Outsourcing
RBI Guidelines on Cyber Security (2016) & Digital Payment Security (2021)
Difference Between Cyber Security and Information Security, RBI Guidelines on Cyber Security in Banks
– June 2016, Master Directions of RBI on Digital Payment Security Controls (Effective from August 2021)

ELECTIVE PAPER IV: RISK MANAGEMENT

MODULE A: RISK AND RISK MANAGEMENT FRAMEWORK

Why Banks are Special
Functions Banks Perform, Bank’s Role in the Economy, Other Uniqueness of Banks
Risks and Risk Management in Banks
What is Risk?, Definition of Risk, Risk in Banks, Business Risk vs Control Risk, Financial Risk vs Non-Financial Risk, Interconnectedness Among Banking Risks, Recent Developments Connected with Risk
Management, Banking Reforms in India, New Trends in Indian Banking System, Risk Management Going
Ahead, Various Types of Risks Faced by a Bank, Non-Financial Risks
Risk Management Framework
Lessons from Crisis, Benefits of Risk Management, Risk Management Concept, Risk Management
Approach, Risk Culture, Risk Management Architecture, Elements of Risk Management Framework,
Organisational Structure, Risk Management Policy, Risk Appetite, Risk Limits, Risk Identification Process, Risk Measurement, Risk Mitigation, Risk Monitoring and Risk Control, Management Information
System, Enterprise Risk Management, Events-Risk and Opportunity, Enterprise Risk Management
Defined, Achievement of Objectives, Components of Enterprise Risk Management, Relationship of
Objectives and Components, Effectiveness, Encompasses Internal Control
Asset Liability Management and Interest Rate Risk in Banking Book
What is ALM?, Objectives of ALM, ALM Process, Interest Rate Risk, Duration GAP Analysis, Measurement System Reports, Stress Testing, Back Testing, Interest Rate Risk Mitigation
Liquidity Risk Management
What is liquidity?, Liquidity and solvency, Forms of liquidity risk, Liquidity Management, Factors
contributing to liquidity risk, Liquidity risk and Balance Sheet, Risk Management framework for Liquidity
Risk, Identification and measurement of liquidity risk

MODULE B: CREDIT RISK

Credit Risk Management Framework
What is Credit Risk?, Obligor (or) Borrower Level Risk vs Portfolio Risk, Systematic vs Unsystematic Risk,
Need for Credit Risk Management Framework, Credit Risk Culture, Building Blocks of Credit Risk
Management, Strategy, Financial Goals, Risk Appetite, Portfolio Risk and Reward, Loan Policy, Due
Diligence Process, Loan Approval Process, Limits on Aggregate Loans and Commitments., Underwriting
Criteria, Exceptions to Credit Policy, Organization Structure
Obligor/Borrower Risk
Business Risk (or) Operating Risk, Financial Risk, Interaction between Business Risk and Financial Risk,
Different Risk Levels, Sources of External Risk, Industry Risk Analysis, Entity Level Risk, Financial Risk
Credit Rating System
What is Credit Rating?, Usefulness of Rating System for Banks, Features of Internal Credit Rating System,
Rating Exercise and Rating Assignment, Rating by External Rating Agencies
Portfolio Credit Risk
Systematic Risk, Unsystematic/ idiosyncratic/Diversifiable Risk, Concentration Risk, Correlation Risks
Credit Risk Models
Uses of Credit Models, Types of Models
Measurement of Credit Risk
Probability of Default (PD), Methods for Estimating PD, Exposure at Default, Loss Given Default (LGD),
Portfolio Assessment of Credit Risk, Risk Adjusted Return on Capital (RAROC), Application of the
Concept of Economic Capital in RAROC Model, Uses of RAROC, Risk Based Pricing, Methods of RiskBased Pricing
Credit Derivatives
What is a Credit Derivative?, Protection Buyer, Protection Seller, Advantages to the Protection Buyer,
Advantages to the Protection Seller, Credit Events, Payout, Credit Default Swap, Total Return Swap
(TRS), Credit Options, Credit-Linked Notes

MODULE C: MARKET RISK

Market Risk
What is Market Risk?, Trading Portfolio in a Bank, Interest Rate Risk, Equity Price Risk, Foreign Ex- change
Risk, Commodity Price Risk, Liquidity Risk, Credit and Counterparty Risks, Model Risk, Market Risk
Management Framework, Organizational Structure to Manage Market Risk, Organizational Structure for
Trading Activity, Risk Management Strategy, Policies and Procedures
Fixed Income Securities
What is a Bond?, Government of India in the Bond Market, Bond Market in India, Bond Valuation
Measurement of Interest Rate Risk
Measurement of Interest Rate risk, Sensitivity approach, Price value of a Basis point method,
Computation of portfolio PVBP, Hedging using basis point value, Other uses of PVBP, Duration,
Definition of duration, Properties of duration, Portfolio duration, Modified Duration and Price elasticity
of interest rate, Price volatility characteristics of Bonds, Convexity, Bond portfolio management
Value at Risk
Historical background, Definitions of VaR, Assumptions for calculation of VaR, Building blocks of VaR,
VaR methodology, Comparison of different methodologies to compute VaR, Comparative advantages
and disadvantages of various methods to compute VaR, Limitations of VaR, Extreme Value Theory,
Stress Test, Back testing of VaR models

MODULE D: OPERATIONAL RISK

Operational Risk and Operational Risk Management Framework
Developments Giving Rise to Increasing Operational Risk, Peculiarity of Operational Risk, Definition of
Operational Risk, Operational Risk Culture, Operational Risk Organizational Framework, Policy Guidelines and Strategic Approach, Operational Risk Identification Process, Assessment of Operational Risk
Collection of Internal Loss Data and External Loss Data
Collection of Loss Data, Minimum Loss Data Standard, Specific Criteria on Loss Data Identification, Collection and Treatment, Near-Misses and Opportunity Costs, External Loss Data, Root-Cause Analysis
Risk and Control Self-Assessment (RCSA) & Key Risk Indicator (KRI)
RCSA Process, Defining Inherent Risk, Study of Effectiveness of Control, Computation of Risk Zone, Color-Coded Risk Levels, Key Risk Indicators, Various Forms of KRI, Selecting KRIs, Risk Appetite, Scenario
Analysis, Uses of KRIs
Technology Risk
Basic Principles of Information Security, Information Security Governance, Organizational Structure,
Roles and Responsibilities, Critical Components of Information Security, Security Measures Against
Malware, Patch Management, Change Management, Audit Trails, Information Security Reporting and
Metrics, In- formation Security and Critical Service Providers/Vendors, Network Security, Remote
Access, Distributed Denial of Service Attacks (DDoS/DoS), Implementation of ISO 27001 Information
Security Management System, Wireless Security, Business Continuity Considerations, Information
Security Assurance, General Information Regarding Delivery Channels, Emerging Technologies and
Information Security, Implementa tion of Recommendations of the Working Group on Information
Security,Electronic Banking, Technology Risk Management and Cyber Frauds
Corporate Governance
Corporate Governance Definition, Corporate Governance – Banking Industry Perspective, Basel
Commit- tee and Corporate Governance, Importance of Risk Management in Corporate Governance,
Benchmarking Risk Governance
Climate Risk and Sustainable Finance
Climate Situation in India, Basel Committee and Climate Risk, Climate Risk, Unique Characteristics of
Climate Change and Implication, Financial Risks Emerging from Climate Related Risk, Climate Risk
Management Framework, Green Finance for Sustainable Development

MODULE E: BASEL AND RBI GUIDELINES ON RISK MANAGEMENT

Why Do Banks Need Regulation?
Need for Regulation of Banks, Banking Regulation and Supervision, Banking Regulation and Supervision
in India, Global Banking Regulation, Basel Committee on Banking Supervision, The Concordat, Basel-I
Accord, Basel Committee Amendment 1996, Basel II Accord
Global Financial Crisis and Basel III
Regulatory Shortcomings and Regulatory Reform, Response of Basel Committee to Global Financial
Crisis
Regulatory Capital and Capital Adequacy
Bank Capital: An Accounting Residual, Why Bank Needs Capital, Should Regulator Prescribe Minimum
Capital for Banks?, Basel III Capital Regulation, Standardized Approach – Capital Charge for Credit Risk,
Off-Balance Sheet Items, Total Counterparty Risk, External Credit Assessments, Applicability of ‘Issue
Rating’ to Issuer/Other Claims, Credit Risk Mitigation, Internal Rating Based Approach
Capital Allocation Against Market Risk
Scope and Coverage of Capital Charge for Market Risks, Measurement of Capital Charge for Interest
Rate Risk
Capital Charge for Operational Risk
Definition of Operational Risk, The Measurement Methodologies, The Basic Indicator Approach, The
Standardized Approach, Advanced Measurement Approach, Shortcomings of Present Approaches for
Calculating Capital Requirement for Operational Risk, New Standardized Approach, Business Indicators,
Risk Weighted Assets, Technical Guidance Note on Minimum Capital Requirements for Operational Risk
Supervisory Review Process and Internal Capital Adequacy Assessment Process (ICAAP)
Objective of Pillar 2 Supervisory Process, ICAAP Principles, Definitions, Coverage by ICAAP, The
Structural Aspects of the ICAAP, Risk Appetite, Actual and Target Risk Structure, Identifying, Measuring,
Monitoring and Reporting of Risk, Internal Control, Submission of the Outcome of the ICAAP to the
Board and the RBI, ICAAP to be an Integral part of the Management and Decision-Making Culture, The
Principle of Proportionality, RegularIndependent Review and Validation, ICAAP to be a Forward-Looking
Process, ICAAP to Include Stress Tests and Scenario Analyses, Identifying and Measuring Material Risks
in ICAAP, Capital Planning, Capital Allocation
Stress Testing
Stress Testing Part of ICAAP, Objective, Stress Testing Process, Sensitivity Analyses, Scenario Analyses,
Reverse Stress Testing, Stress Testing Framework, Single Factor Stress Tests, Classification of Banks for
the Purpose of Stress Testing, Prompt Corrective Action (PCA) Framework for Scheduled Commercial
Banks, Criteria for PCA
Market Discipline
General, Definition, Achieving Appropriate Disclosure, Interaction with Accounting Disclosures, Validation, Materiality, Proprietary and Confidential Information, General Disclosure Principle, Regulatory
Disclosure Section
Basel III Buffers, Liquidity Ratios, Leverage Ratio
Objectives of Capital Buffers, Capital Conservation Buffer Framework, Counter – Cyclical Capital Buffer,
Domestic Systemically Important Banks, Leverage Ratio, Liquidity Standards, Net Stable Funding
Ratio
Risk Based Supervision
Background, Reserve Bank of India Initiatives, Bank Supervision Process in India, Supervisory Approach,
Features of an Effective bank Supervisory Framework, Benefits of Risk Based Supervision, Supervisory
Methods/Tools
Risk Based Internal Audit
What is Risk Based Auditing, Objective of Risk Based Internal Audit, Board and Management Oversight,
Audit Policy, Functional Independence, Identification of Auditable Units, Conduct Risk Assessment, Risk
Profile, Communication

MODULE F: DERIVATIVES AND RISK MANAGEMENT

Derivatives and Risk Management
What is Derivative?, Features of Derivatives, Over the Counter vs Exchange Traded Derivative, Uses of
Derivatives, Misuse of Derivative, Major Types of Derivatives, Long and Short Position, Derivative Markets in India
Forward Contract
Definition and Characteristics, Advantage of Entering Forward Contract, Problems Associated with
Forward Contract, Pay-off on a Forward Contract, Pricing the Underlying, Benefits and Costs of Holding
Assets, The Concept of Price and Value of a Forward Contract, Forward Rate Agreement
Futures
What is a Futures Contract?, Futures Contract vs Forward Contract, Performance of contract, The
Clearing House, Margin A/c, Relationship between Spot Price and Future Price, Delivery, Cash
Settlement, Pricing of Future Contracts, Contango vs Normal Backwardation, Interest Rate Future
Options
Definition, Option Terminology, Call Option, Put Option, Pricing of Option, Interest Rate Options
SWAP
Definition, Characteristics of SWAP, SWAP Terminology, Types of SWAP, Interest Rate Swap, Calculating
Interest Rate Swap Cash Flows, Uses of Interest Rate Swap, Swaptions
APPENDIX: STATISTICAL CONCEPTS
Statistical Measures
Frequency Distribution, Measures of Central Tendency, Measures of Dispersion, Measures of Skewness,
Measures of Kurtosis, Measures of Correlation, Measures of Regression, Expected Return, Average of
Ratios, Risk, Average Growth Rate, Portfolio Diversification, Beta, Performance Evaluation
Probability Theory
Probability, Conditional Probability, Random Variable, Distribution Function, Expectation and Standard
De- viation, Binomial Distribution, Poisson Distribution, Normal Distribution, Credit Risk, Value at Risk
(VaR), Option Valuation

ELECTIVE PAPER V: CENTRAL BANKING

MODULE A: RATIONALE AND FUNCTIONS OF CENTRAL BANK

Theory and Practice of Central Banking: Evolution
Global Evolution of Central Banks; Reasons for Proliferation of Central Banks; Conflicting Role and
Responsibilities of Central Banks; Development of Central Banks in Developed and Developing Countries
Functions of Central Banks
Banker to Government; Banker to Banks; Lender-of-Last-Resort; Monetary Policy Functions; Currency
Issue and Management; Payment and Settlement Systems; Maintaining Internal Value of Money;
Maintenance of the External Value of Currency; Regulation, Facilitation and Supervision of Financial
System; Financial Stability; Promotional Functions to Support Growth and Other National Objectives;
Development of Financial Markets and Institutions; Central Bank Communication Policies
Contemporary Issues in Central Banking
Autonomy and Independence of a Central Bank; Credibility of a Central Bank; Accountability of a Central
Bank; Transparency in Central Bank Operations; Conflict with Fiscal Policies

MODULE B: CENTRAL BANKING IN INDIA

Reserve Bank of India
Reserve Bank of India: Organizational Evolution; Reserve Bank of India: Structure and Governance;
Reserve Bank of India: Major Organizational and Functional Developments Over Time; RBI Act 1934:
Salient Features and Some Comments
Central Banking: Indian Specific Issues
Banking Regulation Act; Foreign Exchange Management Act (FEMA); The Banking Ombudsman Scheme,
2006; Financial Sector Reforms; Other Financial Regulators and Division of Functions; Institutions Set up
by RBI
Financial Inclusion and Development
Impediments in the process of achieving financial inclusion; Role of policy interventions: Mandates and
Subventions; On building an appropriate institutional and financial structure based on digital
technology; Focus on payment and settlementsystems vs Focus on extension of credit; Some Issues and
their possible resolution; Financial Inclusion; Financial Inclusion Plans

MODULE C: MONETARY AND CREDIT POLICIES

Monetary Policy
Monetary Policy: Theoretical Underpinnings; Objectives of Monetary Policy; Reconciling Dual
Objectives; Monetary Policy Rules; The Vexed Issue: Rules vs Discretion; Indicators of Policy;
Instruments of Policy; Statutory Liquidity Ratio (SLR); Selective Credit Controls; Policy Transmissions
Mechanisms and Channels; Transmission Channels; An Evaluation of the Transmission Channels;
Transparency of Policies; Lags in Policy; Process of Monetary Policy Formulation in India; Conduct of
Monetary Policy in the Wake of Net Large Capital Inflows during the 2000s; Recent Initiatives for Further
Strengthening Monetary Policy Formulation
Credit Policy
Theoretical Underpinnings; Credit Policy in Practice; Nominal versus Real Credit; Credit Allocation
Mechanisms; Instruments of Credit Control; Margin Requirements; Rationing of Credit (Credit Ceiling);
Credit Pricing (Setting Bank’s Lending Rates)
Fiscal-Monetary Relations
Monetary-Fiscal Relations: India; Striking Balance between Inflation and Growth: Recent Initiatives;
Finances of Central and State Governments: Recent Trends; Central Government Finances in 2020-21;
Central Government Finances in 2021-22; State Finances in 2021-22; Constitution of Finance
Commission; Recommendations of the Fifteenth Finance Commission; Grants-In-Aid; Fiscal
Roadmap/Rules; Fiscal Road Map Recommended by the 15th Finance Commission
Liquidity Management in the System
Theoretical Framework underlying LAF; Genesis and Evolution of Liquidity Adjustment Facility; Review
of LAF based on the Report of the Expert Committee to Revise and Strengthen Monetary Policy
Framework ; Revised Framework of LAF based on the recommendations of IWG; Operational Strategies
in Managing LAF; Underlying Instruments for the conduct of LAF; Guiding Principles for the conduct of
LAF; Structuring of Open Market Operations ; Other salient features of the Revised LAF; Liquidity
Management during Covid-19: Initiatives undertaken by Reserve Bank of India; Money Markets:
Liquidity conditions; Government Securities Market and the Risk-Free Curve; Corporate Bond Market:
Liquidity Conditions; Equity Markets: Liquidity Conditions; Severity of the Pandemic and the RBI
initiatives; Recent measures announced by RBI on 08 April, 2022 as part of Monetary Policy

MODULE D: MANAGEMENT OF FOREIGN EXCHANGE RESERVES AND CONSTITUENTS OF
INDIAN FINANCIAL MARKET

Management of Foreign Exchange Reserves
Legal Framework; Risk Management; Operational Risk and Control System; Transparency and
Disclosures; Recent Developments in the Movement of Foreign Exchange Reserves; Sources of Accretion
to Foreign Exchange Reserves; Adequacy of Reserves; Management of Gold Reserves; Investment
Pattern of the Foreign Currency Assets (FCA); Other Related Aspects
Constituents of Indian Financial System Structure
Genesis of Financial Market Development; Structure and Growth of Financial Markets in India; Money
Market; Government Securities Market; Foreign Exchange Market; Reform/Post-Reform Period (1990s
to 2010); Foreign Exchange Markets: Post Reform Period; Financial Benchmarks – Transparency &
Governance Framework; Roadmap for LIBOR Transition

MODULE E: REGULATION, SUPERVISION AND FINANCIAL STABILITY

Evolution of Regulation and Supervision
Genesis and Evolution of Regulation and Supervision: Some Theoretical Underpinnings; Global
Backdrop; Interactions of Monetary Policy and Regulatory and Supervisory Policies; Integration Vs
Separation of Monetary, Regulatory and Supervisory Functions – Recent Perspectives; Genesis of Bank
Regulation and Supervision in India; Conduct of Monetary Policy and Compatibility with Regulatory and
Supervisory Role: The Indian Perspective
Development, Regulation and Supervision and Recent Performance of Scheduled
Commercial Banks
Evolution and Development of Commercial Banks Initial Years (1950 to 1969); Strengthening and
Consolidation of Commercial Banks (1969-1991); Rapid Strides in the Development the Banking Sector
following the Financial Reforms Process Ushered in the 1990’s; Prudential Requirements for bank
supervision; Submission of Returns on Liquidity Risk, Interest Rate Risk, and Currency Risk; Risk
Management in Banks; Regulatory Policies for Scheduled Commercial Banks; Supervision of Scheduled
Commercial Banks; Recent Operations and Performance of Scheduled Commercial Banks;
Developments in the Banking Sector 2021 in Brief
Development, Regulation and Supervision of Co-Operative Banks;
Growth of Cooperative Banking System; Regulatory Framework for Co-operatives: Duality of Control;
Strengthening of the Financial Position of the UCBs; Strengthening of the Supervisory System Related
to UCBs; Cooperative Banks: Recent Developments; Implementation Status of Goals; Strengthening
Regulatory Framework; Major Developments;
Financial Stability
Global Economic Crisis and its implications for Central Banks, Financial Stability: An Overview, Risks to
Financial Stability, Early Warning Signals and Remedial action, Liquidity Management in Banks, The Basel
Norms for Bank supervision, Progress in the implementation of Basel II Norms, Progress in the
implementation of Basel III Norms, RBI Perspective on moving towards Basel III Implementation, Effect
of Liberalization and Globalization on Financial Stability, Conduct of monetary policy in the context of
Liberalisation and Globalization, Growing trend towards transparency, co-operation and best practices
in a globalized environment, Role of consultative approach, Linkage to International Financial Stability,
International Standards and Codes, Role of Supervisor under Basel II and Basel III

MODULE F: NON-BANKING FINANCIAL COMPANIES AND PRIMARY DEALERS

Non-Banking Financial Institutions: Development, Regulation and Supervision
Conditions for Companies to Register as NBFCs with the Reserve Bank of India; NBFCs Registered with
Other Regulatory Bodies; Classification of NBFCs under Broad Categories; Growth of NBFC Sector and
the Need for Prudence; The Role of the Reserve Bank of India in the Development of NBFCs; Regulatory
Policies for NBFCs: Scale-Based Regulatory Framework; Special Liquidity Scheme (SLS) for Non-Bank
Financial Companies (NBFCs) / Housing Finance Companies (HFCs); Aligning Regulatory Framework for
HFCs with NBFCs; Lowering of Secured Debt Limit for NBFCs under SARFAESI Act; Declaration of
Dividend by NBFCs; Supervisory Policies for NBFCs; Appointment of Auditors in Regulated Entities;
Prompt Corrective Action (PCA) Framework for NBFCs; Impact of Pandemic on NBFC Sector
Role of Primary Dealers in the Government Securities Market:
Development, Regulation and Supervision
Evolution of PDs; Eligibility Conditions for PDs; Role and Responsibilities of PDs; Liquidity Support from
RBI; Operations and Performance of PDs; Financial Performance of SPDs; Operational Guidelines,
Regulatory and Supervisory Provisions Governing Primary Dealers; Investment Guidelines; Capital
Adequacy and Risk Management
APPENDIX
Important Committees Set up by RBI, MajorInternational Financial Institutions: Genesis, Objectives and
Functions, A Note on Crypto Currencies & CBDC (Central Bank Digital Currency), RBI Discussion Paper /
Report on Sustainable Finance, Glossary of Central Banking Terms