JAIIB PPB Syllabus 2026 – Exam Pattern & Topics PDF

About the JAIIB PPB Syllabus 2026

The JAIIB PPB Syllabus 2026 provides a detailed outline for the Principles & Practices of Banking paper, one of the four core subjects in the Junior Associate of the Indian Institute of Bankers (JAIIB) examination. This paper, conducted by the Indian Institute of Banking and Finance (IIBF), assesses candidates on their understanding of general banking operations, functions of banks, banking technology, and ethical practices within financial institutions. Understanding this syllabus is crucial for effective preparation.

JAIIB PPB Exam Overview

The Principles & Practices of Banking (PPB) paper is designed to test a candidate's comprehensive knowledge of the banking sector. It is an objective-type online examination with no negative marking.

Particulars	Details
Exam Name	JAIIB Principles & Practices of Banking (PPB)
Conducting Body	Indian Institute of Banking and Finance (IIBF)
Paper Type	One of four core papers of the JAIIB Exam
Exam Mode	Online, objective type (MCQ)
Total Questions	100
Total Marks	100
Duration	2 Hours (120 minutes)
Number of Modules	4 (Module A, B, C, D)
Medium of Exam	English / Hindi
Negative Marking	No
Passing Marks	50 out of 100 (or 45 with minimum 50% in each module)

JAIIB PPB Exam Pattern 2026

The JAIIB PPB examination follows an online, objective-type format. Candidates should attempt all 100 questions as there is no penalty for incorrect answers.

Exam Mode	Modules Covered	Total Questions	Total Marks	Duration	Medium	Negative Marking	Passing Marks
Online	General Banking Operations, Functions of Banks, Banking Technology, Ethics in Banks and Financial Institutions	100	100	2 Hours	English / Hindi	No	50 out of 100 (or 45 with a minimum of 50% in each subject/module)

JAIIB PPB Module-Wise Syllabus 2026

The JAIIB PPB syllabus is structured into four distinct modules, each covering specific aspects of banking. A detailed breakdown of topics within each module is provided below to aid in systematic preparation.

Module A: General Banking Operations

This module focuses on the fundamental aspects of banking and the relationship between a banker and customer.

Subject/Area	Topics Covered
Banker-Customer Relationship	Requirements to be called a bank; banker-customer relationship; bank as a trustee; bailee-bailor relationship; agent-principal relationship; lessor and lessee; indemnifier and indemnified; different deposit products/services; services to customers and investors
AML-KYC Guidelines	Money laundering and financing of terrorism risks; Anti-Money Laundering (AML) framework in India; Know Your Customer (KYC) policy; organisational set-up for AML; obligations under PMLA; risk management; international obligations; FATF-identified jurisdictions; correspondent banking; reporting under FATCA/CRS; secrecy obligations
Operational Aspects of KYC	KYC norms; wire transfers; other operational regulations; Central KYC Records Registry (CKYCR); monitoring of transactions
Opening of Accounts	Personal accounts; accounts of other customers; norms for opening current accounts; obtaining photographs of account holders; Legal Entity Identifier (LEI)
Operational Aspects of Deposit Accounts	Salient features of deposit accounts; interest on deposit accounts; prohibitions and exemptions; inoperative accounts and unclaimed deposits; joint account operations; nomination facility; attachment orders; submission of records to statutory authorities
Clearing, Collection & Cash Handling	Cheque Truncation System (CTS); RBI guidelines on collection of instruments; cash handling and custody; security arrangements at branches and ATMs
Banker's Special Relationship	Mandate; Power of Attorney (POA); banker's lien; right of set-off; right of appropriation
Foreign Exchange Remittance Facilities	Evolution of FEMA; definitions; bringing in/taking out foreign exchange; inward and outward remittances; Indo-Nepal remittance scheme
Operational Aspects of NRI Business	Accounts permitted for NRIs and PIOs; accounts of foreign nationals visiting India; Special Non-Resident Rupee (SNRR) account; remittance of assets; property transactions by NRIs; investments by NRIs/PIOs
Foreign Currency Accounts	Types of foreign currency accounts; accounts in India and outside India; remittance of assets by foreign nationals; Foreign Contribution (Regulation) Act, 2010
Cash Management Services (CMS)	Developments in CMS; importance of CMS; types of cash management services; challenges and issues
Negotiable Instruments	Negotiable Instruments Act; payment of cheques; payment in due course; endorsement and crossing of cheques; forged instruments; dishonour of cheques; Cheque Truncation System
Responsibility of Paying Bank	Liability under the Negotiable Instruments Act; forged signatures; payment in due course/good faith; payment under mistake; cheque truncation
Responsibility of Collecting Bank	Statutory protection to the collecting bank; duties of the collecting bank
Ancillary Services	Demand Drafts (DD) and Banker's Cheques (BC); Mail Transfer and Telegraphic Transfer; NEFT; RTGS; Electronic Benefit Transfer; mobile and digital banking; safe deposit lockers; merchant banking; government business
Financial Inclusion & Literacy	Extension of banking services; use of digital tools; financial literacy initiatives; Rural Self Employment Training Institutes (RSETI)
Customer Service Guidelines	Customer service in banks; branch management policies; ATM operations; security and risk mitigation; counter services; special customer facilities
Grievance Redressal & Legal Framework	Model Grievance Redressal Policy; RBI Integrated Ombudsman Scheme, 2021; Consumer Protection Act, 2019; Right to Information Act, 2005

Module B: Functions of Banks

This module covers the core functions of banks, including lending, credit management, and various financial instruments.

Subject/Area	Topics Covered
Principles of Lending & Credit Facilities	Principles of lending; types of borrowers; types of credit facilities; fund-based working capital facilities; term loans and demand loans; non-fund based facilities
Appraisal and Assessment of Credit Facilities	Credit appraisal and appraisal techniques; methods of loan assessment; assessment of working capital and term loans
Operational Aspects of Loan Accounts	Interest rates on loans; credit management and monitoring; loan processing and sanction procedure; accounting aspects of loan products; recovery agents guidelines; Fair Practices Code for lenders
Types of Collaterals and Securities	Effectiveness of securities; secured and unsecured loans; land and buildings; goods and documents of title; advances against life insurance, shares, debentures, book debts, term deposits; gold loans; supply bills and vehicle finance
Modes of Charging Securities	Meaning and essentials of a contract; contract of agency; contract of bailment; types of charges; registration of charges
Documentation	Types of loan documents; documentation procedure
Non-Performing Assets (NPA) / Stressed Assets	Definition of NPAs; income recognition norms; gross and net NPA; asset classification; provisioning norms; writing off NPAs; resolution and restructuring of stressed assets
Laws Relating to Recovery of Dues	Recovery of Debts and Bankruptcy Act, 1993; SARFAESI Act; Insolvency and Bankruptcy Code (IBC); Legal Services Authorities Act; Law of Limitation
Contracts of Indemnity	Definition of contract of indemnity; difference between indemnity and guarantee; rights of indemnity holder; implied indemnity; application of indemnity in banking
Contracts of Guarantee & Bank Guarantee	Parties to the contract; liability of surety; continuing guarantee; revocation and discharge of surety; rights of surety; types of bank guarantees; precautions in issuance and payment
Letters of Credit (LC)	Meaning and parties to an LC; types of letters of credit; documents under LC; UCPDC 600; bank's obligations under LC
Deferred Payment Guarantee (DPG)	Purpose of deferred payment guarantee; method of payment
Bills Finance	Classes of bills; laws governing bills; types of bill finance; legal position of banker in bill finance
Retail Loans & Credit Cards	Credit cards; home loans; personal loans; consumer loans
Priority Sector Advances	Applicability of priority sector lending; targets and sub-targets; categories under priority sector; non-achievement of targets
Agricultural Finance	Short-term and long-term loans; crop loans; Kisan Credit Card (KCC) scheme; Minimum Support Price scheme; Pradhan Mantri Fasal Bima Yojana (PMFBY)
Finance to MFIs & NBFCs	Bank finance to NBFCs; on-lending by NBFCs; NBFC-MFI model; co-lending to priority sector; Scale-Based Regulation (SBR) framework
Micro, Small and Medium Enterprises (MSME)	MSME Development Act; credit support to MSMEs; delayed payment provisions; Trade Receivables Discounting System (TReDS); Credit Guarantee Fund Scheme; cluster-based financing
Government Sponsored Schemes	DAY-NRLM; DAY-NULM; Pradhan Mantri Jan Dhan Yojana (PMJDY); MUDRA loans; Khadi and Village Industries Commission (KVIC)
Self-Help Groups (SHG)	Definition and need of SHGs; formation of SHGs; SHGs under DAY-NRLM/DAY-NULM; SHG-Bank Linkage Programme

Module C: Banking Technology

This module explores the role of technology in modern banking, including computerization, digital payment systems, and cybersecurity.

Subject/Area	Topics Covered
Essentials of Bank Computerisation	Bank computerisation; networking technologies in banks; Uninterrupted Power System (UPS); Core Banking System (CBS); data warehousing; data mining
Operational Aspects of CBS Environment	Functions performed by CBS; flow and accounting of transactions in CBS; Begin of Day/End of Day operations; password control; logical access control; security controls in CBS
Alternate Delivery Channels - Digital Banking	ATMs; electromagnetic cards; electronic banking; customer protection in unauthorised electronic transactions; Turn Around Time (TAT) harmonisation; customer compensation for failed transactions
Data Communication Network & EFT Systems	Data communication networks; major networks in India; evolution of Electronic Funds Transfer (EFT) systems; SWIFT; automated clearing systems; two-level funds transfer system
Digital Payment Systems - NPCI	Electronic clearing systems in India; National Payments Corporation of India (NPCI); digital payment initiatives by the Government of India
Impact of Technology Adoption in Banking	Trends in technology development; role of technology upgradation; global trends in banking systems; impact of IT on banks
Security Considerations & Mitigation Measures	Risk concern areas in banks; types of cyber threats; computer audit; Information System Audit (IS Audit); online fraud modus operandi; cyber security awareness; Disaster Recovery Management objectives; Information Technology Act; RBI Integrated Ombudsman Scheme, 2021
Operational Aspects of Cyber Crime & Fraud Risk Management	Difference between fraud and crime; phases of an effective incident response plan
Technology Trends in Banking	e-RUPI; FinTech; RegTech; SupTech
Advanced Digital Banking Concepts	e-RUPI; FinTech/RegTech/SupTech; social media banking; hashtag banking; account aggregators; open banking

Module D: Ethics in Banks and Financial Institutions

This module addresses the ethical considerations and principles that govern banking and financial institutions.

Section/Area	Subtopics
Ethics, Business Ethics & Banking: An Integrated Perspective	Values and ethics; business ethics - definition, principles and practice; ethical foundation of banking; global financial crisis; Enron and Satyam case studies
Ethics at the Individual Level	Values, norms, beliefs and their role; core values; morality and personal values; the Golden Rule; ethical dilemmas and decision-making framework
Ethical Dimensions: Employees	Abuse of official position; insider trading; obligations to third parties; job discrimination; sexual harassment; conflict of interest; HRM ethics; employees as ethics ambassadors
Work Ethics and the Workplace	What is work ethics; benefits of ethical behaviour at the workplace; unethical behaviours - causes and remedies; ethics of a banker; whistleblowing in banks and whistleblowing law in India
Banking Ethics: Changing Dynamics	Ethics and technology; data security and privacy; intellectual property rights; patents and proprietary rights; ethics of information security

JAIIB PPB Marking Scheme and Passing Criteria

Candidates appearing for the JAIIB PPB paper should be aware of the following marking and passing rules:

• The paper consists of 100 multiple-choice questions, with each question carrying 1 mark, for a total of 100 marks.
• There is no negative marking for incorrect answers, encouraging candidates to attempt all questions.
• To pass the paper, candidates must secure a minimum of 50 marks out of 100. Alternatively, a candidate can pass with 45 marks if they achieve at least 50% marks in each of the four modules.

Effective Preparation Tips for JAIIB PPB

To succeed in the JAIIB Principles & Practices of Banking paper, consider the following preparation strategies:

1. Prioritize High-Weightage Modules: Start by identifying modules that frequently feature a higher number of questions in previous examinations and dedicate more study time to them initially.
2. Analyze Previous Year Questions: Regularly review past question papers to understand the exam pattern, question types, and frequently tested topics within each module.
3. Utilize Official Study Material: Rely primarily on the official IIBF study material. Supplement this with concise notes or cheat sheets that summarize key concepts and formulas.
4. Practice Extensive MCQs: Solve a large number of chapter-wise multiple-choice questions and take full-length module tests to enhance accuracy and speed.
5. Review Mock Test Performance: After each mock test, thoroughly analyze your mistakes. Identify weak areas and focus your revision efforts specifically on those topics rather than re-reading the entire syllabus.

Important Link

Candidates can find more information about the JAIIB PPB syllabus and other exam details on the official IIBF website.

• JAIIB Official Website