CAIIB Subject

The Indian Institute of Banking and Finance conducts a biannual premium exam known as the CAIIB (Certified Association of India Institute of Bankers). It is carried out with the intention of imparting advanced knowledge to banking personnel.

The registration for CAIIB opened on 1st December 2021 before ending on 21st December 2021. The exam is slated to take place on January 30, February 6th and February 12, 2022.

The CAIIB Exam has many advanced subjects related to the finance and banking industry, which will be highlighted in this article.

Candidates preparing for the Government Exams can find the following like useful:

List of Subjects and Topics for CAIIB

The CAIIB consists of two papers: Compulsory and Elective. The subjects for both are as follows:

Compulsory Paper

  1. Advanced Bank Management
  2. Bank Financial Management

Elective Papers

  1. Rural Banking
  2. Retail Banking
  3. Human Resources Management
  4. Information Technology
  5. Risk Management
  6. Central Banking

The table below will broadly cover some of the topics that are featured in both the Compulsory and Elective papers:

Topics Covered in CAIIB Subjects
Advanced Bank Management
  • The fundamentals of Economics: Scarcity and Efficiency – Microeconomics &
  • Macroeconomics in brief 
  • Types of economies – Market, Command and Mixed Economies 
  • Macroeconomics: Business cycles – Money and banking – Unemployment & inflation, interest rate determination and various types of interest rates.
  • Indian Economy (a) Overview of the Indian economy including recent reforms (b) Interaction Between fiscal, monetary & exchange rate policies in India
  • Financial Markets (i) Money Market (ii) Capital Market (iii) Foreign Exchange Market – globalization and its impact –
  • Challenges ahead – Banking & Finance – current issues
Bank Financial Management
  • Forex Business; factors determining exchange rates, Direct and indirect quotations, spot/forward rates, premium and discount, cross rates.
  • Basics of forex derivatives; forward exchange rate contracts, Options, Swaps. 
  • Correspondent banking NRI accounts
  • Documentary letters of Credit – UCPDC 600, various facilities to exporters and importers.
  • Risks in foreign trade, role of ECGC, types of insurance and guarantee covers or ECGC.
  • Role of Exim Bank – Role of RBI and exchange control – Regulations in India, Role and rules of FEDAI – Role of FEMA and its rules
Elective Paper I – Central Banking
  • Evolution and Functions of Central Banking: Evolutions of Theory and Practice of Central
  • Banking, Development of Central Banks in Developed and Developing countries.
  • Functions of a Central Bank: Banker to Government, Banker to Banks, Monetary policy
  • Functions, Currency Issue and Management, Payment system function, Maintaining
  • Internal and External values of currency, Regulation, Facilitation and supervision of Financial System, Promotional Functions to support growth and other National objectives
  • Development of Financial Markets, Institutions and communication policies
  • Contemporary Issues: Desirability, Autonomy and independence, Credibility, accountability and transparency of a Central Bank, conflict with fiscal policies.
Elective Paper II – Rural Banking
  • Demographic features: Population, occupation, literacy, socio-economic development indicators, health, nutrition and education, – urban migration.
  • Characteristics of Rural Society: Caste and power structure – rural social stratification
  • Economic Features: Economic life of rural people, share in National income -Trends in per capita income, rural money markets, rural indebtedness, rural poverty – main causes and methods of measuring rural poverty.
Elective Paper III – Retail Banking
  • Retail Products Overview – Customer requirements, Products development process, Liabilities and Assets Products/ Description of Liability products, Description of Asset Products, Approval
  • process for retail loans, Credit scoring
  • Important Asset Products -Home Loans – Eligibility, Purpose, Amounts, Margin, Security, Disbursement, Moratorium,
  • Prepayment issues, Repayments/ Collection.
  • Auto/ Vehicle Loans – Eligibility, Purpose, Amounts, Margin, Security, Disbursement
  • Moratorium, Prepayment issues, Repayments/ Collection
Elective Paper IV – Human Resources Management
  • Concepts, Policies and Practices: Fundamentals of HRM; Importance of Human Capital
  • Management of transformation, New insights into HR Management and contemporary
  • Issues
  • Relationship between HRM and HRD; Structure and Functions, Policies and
  • Practices, Role of HRD professional
  • Development of HRM in India.
  • Behavioral Dynamics in organizations; Person – Job Fit, Group Dynamics, Group Problem
  • Solving and effectiveness, Leadership and Team building, Change Management, Human
  • Response – Implications of benchmarking;
  • TQM, BPR, ISO 9000 Series and other techniques for Organizational improvement and Management of Service Industry Quality Circles. 
  • Six Sigma and its implication in organizational development.
Elective Paper V – Information Technology
  • Impact of IT on Banking: Changing Financial Environment and IT as a Strategic Response
  • Hardware (H/ W) – Software: (S/ W)
  • System Software: Operating Systems (Desktop OS/ Server OS) Windows (Desktop/ Server)/ UNIX (H. P. Unix,Sun Solaris, Linux, IBMAIX) computer Languages – 1st Generation Languages (Assembly), 2nd Generation (FORTRAN,
  • ALGOL, COBOL), 3rd Generation (C, C++, C# and JAVA etc.) and 4th Generation Languages (Clipper, Powerbuilder, SQL etc.) and 5th Generation Languages (Logic Programming Languages)
  • Database Management System and Relational Database Management Systems (Oracle10g,MS SQL-2005, MySQL
Elective Paper VI – Risk Management 1) Risk definition/ policies

i) Risk Process-Risk Organization

ii) Key risks – Credit risk, market risk, operational risk, liquidity risk, legal risk, interest rate risk and currency risk

2) Asset Liability Management

i) ALM Concept

ii) ALM organization

iii) ALCO techniques/ tools

iv) Simulation, Gap, Duration analysis, Linear and other statistical methods of control

3) Risk measurement & Control

i) Calculation

ii) Risk exposure analysis

iii) Risk management/ mitigation policy

iv) Risk immunization policy/ strategy for fixing exposure limits

v) Risk management policy and procedure

vi) Risk adjusted return on capital

vii) Capital adequacy norms

4) Risk management

i) Capital adequacy norms

ii) Prudential norms

iii) Exposure norms

iv) Concept of Mid office

v) Forwards

vi) Futures

vii) Options

viii) Strategies and Arbitrage opportunities

ix) Regulatory prescriptions of risk management

To know more in detail about other topics, be sure to visit the CAIIB Syllabus

*Note: In order to make the syllabi of the CAIIB more in line with contemporary trends, the IIBF has restructured it. The CAIIB examinations under the revised syllabi are tentatively proposed to be held from November/December 2022 onwards or latest from May / June 2023 onwards, in any case. 

The last exams under CAIIB as per the old syllabi (present syllabi) will be held during November/December 2022 after which, it will be discontinued. 
Bank Exams 2022

Frequently Asked Questions about CAIIB Subjects

How many papers are in CAIIB?

There are three papers in the CAIIB exam, 2 compulsory papers for all candidates i.e. Advanced Bank Management and Bank Financial Management and 1 elective paper (comprising 11 subjects) of their choice. All the three papers (individually) will be carrying 100 multiple choice questions of 100 marks.

Is CAIIB tougher than JAIIB?

CAIIB is a little tougher than JAIIB and so requires a deeper understanding of concepts and more practical application. This is because the areas covered under CAIIB are very dynamic like International banking, Risk management, Economics, Credit Management which are always subject to frequent changes.

To know more about other IIBF exams, visit the linked article.

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