Cracking the JAIIB Exam not only helps candidates enhance their knowledge and expertise, but also provides them better pay and they get priority in promotions. Candidates who are preparing for the JAIIB PPB exam must first have good understanding of Jthe AIIB PPB Syllabus 2026. With only few months left before the exam, candidates must go through the entire module-wise syllabus to know which topics to pay more attention to. We are providing the complete JAIIB Principles & Practices of Banking Syllabus 2026 here.
JAIIB PPB Syllabus 2026
The Principles & Practices of Banking (PPB) paper is one of the four core subjects in the JAIIB Exam. This paper consists of 100 multiple-choice questions, carrying a total of 100 marks. Candidates will be given a total of 2 hours (120 minutes) to complete the exam. Each question carries 1 mark, and there is no negative marking, allowing candidates to attempt all questions.
For effective preparation, we have provided the module-wise JAIIB PPB Syllabus below. This detailed breakdown will help candidates understand what to study in each section and focus on the most important topics for scoring well in the exam.
JAIIB PPB Exam Pattern 2026
The JAIIB PPB exam is an objective-type online exam and it tests candidates’ understanding of banking operations, functions, technology, and ethics. There is no negative marking and duration is 2 hours. Check the exam pattern here.
| Exam Mode | Modules | Total Questions | Total Marks | Duration | Medium | Negative Marking | Passing Marks |
| Online |
|
100 | 100 | 2 Hours | English/ Hindi | No |
50 out of 100 (or 45 with 50% in each subject)
|
JAIIB PPB Chapter-wise Syllabus
The JAIIB PPB Module-wise syllabus is divided into multiple chapters to help candidates prepare systematically and track their progress topic by topic. A chapter-wise approach makes revision easier and improves concept clarity. The detailed chapter-wise syllabus is provided below to help candidates plan their preparation effectively.
Module A: General Banking Operations
| 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 or 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 Prevention of Money Laundering Act (PMLA) • Risk Management • International Obligations • FATF-Identified Jurisdictions • Correspondent Banking • Reporting under FATCA / CRS • Reporting Obligations • Implications of Non-compliance • 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 – Definition
• Power of Attorney (POA) – Definition • Banker’s Lien • Right of Set-off • Right of Appropriation |
| Foreign Exchange Remittance Facilities |
• Evolution of Foreign Exchange Management Act (FEMA)
• Definitions • Bringing in and Taking out Foreign Exchange • Inward Remittances • 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
• Foreign Currency Accounts in India • Accounts Outside India • Remittance of Assets by Foreign Nationals • Foreign Contribution (Regulation) Act, 2010 |
| Cash Management Services (CMS) |
• Developments in Cash Management Services
• Importance of CMS • Types of Cash Management Services • Challenges and Issues |
| Negotiable Instruments |
• Negotiable Instruments Act
• Payment of Cheques • Payment in Due Course • Endorsement of Cheques • Crossing of Cheques • Forged Instruments • Dishonour of Cheques • Cheque Truncation System |
| Responsibility of Paying Bank |
• Liability under Negotiable Instruments Act
• Forged Signatures • Payment in Due Course • Payment in Good Faith • Payment under Mistake • Cheque Truncation |
| Responsibility of Collecting Bank |
• Statutory Protection to Collecting Bank
• Duties of the Collecting Bank |
| Ancillary Services |
• Demand Drafts (DD) and Banker’s Cheques (BC)
• Mail Transfer (MT) and Telegraphic Transfer (TT) • National Electronic Funds Transfer (NEFT) • Real Time Gross Settlement (RTGS) • Electronic Benefit Transfer (EBT) • 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
| 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 • Other Credit Facilities |
| Appraisal and Assessment of Credit Facilities |
• Credit Appraisal
• Credit Appraisal Techniques • Methods of Loan Assessment • Assessment of Working Capital • Assessment of Term Loans |
| Operational Aspects of Loan Accounts |
• Interest Rates on Loans
• Credit Management and Monitoring • Common Operational Terms in Loans • Loan Processing and Sanction Procedure • Accounting Aspects of Loan Products • Operating Instructions on Loans and Advances • 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 Policies • Advances Against Shares and Debentures • Loans Against Book Debts and 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 Advances • Gross NPA and Net NPA • Asset Classification • Provisioning Norms • Writing Off NPAs • Resolution of Stressed Assets • Restructuring Norms |
| 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 • Enforceability of Indemnity Contracts • Application of Indemnity in Banking |
| Contracts of Guarantee & Bank Guarantee |
• Parties to the Contract
• Liability of Surety • Continuing Guarantee • Revocation of Guarantee • Discharge of Surety • Rights of Surety • Types of Bank Guarantees • Banker’s Obligation to Honour Guarantees • Precautions in Issuance and Payment |
| Letters of Credit (LC) |
• Meaning of Letters of Credit
• Parties to an LC • Types of Letters of Credit • Documents under LC • Uniform Customs and Practice for Documentary Credits (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 • Guidelines for Priority Sector Loans |
| Agricultural Finance |
• Short-Term and Long-Term Loans
• Crop Loans • Kisan Credit Card (KCC) Scheme • Agricultural Activities Financing • 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 |
• Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
• Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (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
| 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 of Transactions in CBS • Accounting of Transactions in CBS • Begin of Day (BOD) Operations • End of Day (EOD) Operations • Password Control • Parameter and Master File Maintenance • Logical Access Control • Security Controls in CBS • Role and Responsibilities of Banks under CBS |
| Alternate Delivery Channels – Digital Banking |
• Alternate Delivery Channels
• Automated Teller Machines (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
• Network Scenario in India – Major Networks • Emerging Trends in Banking Communication • Evolution of Electronic Funds Transfer (EFT) Systems • SWIFT – Structured Financial Messaging • Automated Clearing Systems • Two-Level Funds Transfer System • Emergence of Electronic Payment Systems in India |
| Digital Payment Systems – NPCI |
• Electronic Clearing Systems in India
• National Payments Corporation of India (NPCI) • Digital Payment Initiatives by Government of India |
| Impact of Technology Adoption in Banking |
• Trends in Technology Development
• Role of Technology Upgradation • Global Trends in Banking Systems • Impact of Information Technology on Banks • Emerging Technology Trends in Banking |
| Security Considerations & Mitigation Measures |
• Risk Concern Areas in Banks
• Types of Cyber Threats • Control Mechanisms • Computer Audit • Information System Audit (IS Audit) • Information System Security (IS Security) • Online Fraud Modus Operandi • Cyber Security Awareness • IT Resource Evaluation • Disaster Recovery Management Objectives • Information Technology Act • G. Gopalakrishnan Committee Report • Cyber Security Framework in Banks • 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
| Section/Area | Subtopics |
| 1. Ethics, Business Ethics & Banking: An Integrated Perspective |
• Values and Ethics
• Ethics and Business Values • Business Ethics – Definition, Principles and Practice • An Ethical Crisis: Is Business Ethics an Oxymoron? • Ethical Foundation of Banking: Finance Depends on Trust • Ethical Foundation of Being a Professional • Banking Ethics in Global Context: Enron and Its Lesson • Global Financial Crisis • Ethics in Indian Context: Satyam and Its Lessons • An Indian Bank Case Study |
| 2. Ethics at the Individual Level |
• Values, Norms, Beliefs and Their Role
• Core Values: The Value of a Value • Morality and Personal Values • Value – Conflicts: How Should I Live? • Personal Ethics and Business Ethics: Individual Integrity and Responsibility • The Golden Rule • Understanding Right and Wrong: Doing the Right Thing • Ethical Reasoning and Real-World Application • Ethical Dilemmas: Resolving Ethical Dilemmas • A Framework of Ethical Decision-Making |
| 3. Ethical Dimensions: Employees |
• Abuse of Official Position: Insider Trading, Proprietary Data, Bribes, etc.
• Obligations to Third Parties • Job Discrimination • Sexual Harassment • Managing Conflict of Interests • Fair Accounting Practices: Related Party Transactions • HRM Ethics • Principles of Representation and Work Environment • Employees as Ethics Ambassadors & Managers as Ethical Leaders |
| 4. Work Ethics and the Workplace |
• What Is Work Ethics? Something Bigger Than the Self
• Ethical Behaviour at The Workplace: Benefits • Recognising Ethical Workplaces • Unethical Behaviours: Causes and Remedies • Conducting Personal Business During Office Time • Taking Credit for Others’ Work • Ethical Lapses and Organizational Culture • Ethics of a Banker • Whistleblowing in Banks • Whistleblowing Law in India |
| 5. Banking Ethics: Changing Dynamics |
• Ethics and Technology
• Data Security and Privacy • Intellectual Property Rights • Patents and Proprietary Rights • Ethics of Information Security |
How to Prepare for JAIIB PPB Paper?
To prepare for the Principles & Practices of Banking paper of the JAIIB Exam, follow the tips that will actually help you. Now that the exam is due in May 2026, starting now is a great idea.
- Start with the High-Weightage Modules that contributed most of the questions in the previous years. This is why do not forget to go through the previous year’s questions asked in the exam.
- Stick to the official IIBF study material and good-quality PDF notes or cheat sheets that summarise key points. The study material is available at www.iibf.org.in.
- Solve a large number of MCQs chapter-wise and take module tests.
- After each mock test, analyse mistakes carefully to avoid repeating them. Focusing on weak areas helps steadily improve your score.
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