Candidates preparing for the JAIIB Exam 2026 must have a clear understanding of the JAIIB PPB Syllabus 2026 before they start their preparation. Principles & Practices of Banking (PPB) is one of the four core papers of the JAIIB exam conducted by the Indian Institute of Banking and Finance (IIBF). This article covers the complete module-wise JAIIB PPB syllabus, exam pattern, marking scheme, and preparation tips based on the official syllabus breakdown, so candidates can plan their study schedule effectively.
JAIIB PPB Syllabus 2026 - Quick Overview
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The Principles & Practices of Banking (PPB) paper tests a candidate's understanding of banking operations, functions of banks, banking technology, and ethics in banking. The paper is objective in nature, has no negative marking, and is divided into four modules covering the entire scope of day-to-day and specialized banking knowledge.
| Particulars | Details |
|---|---|
| Exam Name | JAIIB Principles & Practices of Banking (PPB) |
| Conducting Body | Indian Institute of Banking and Finance (IIBF) |
| Paper Type | One of the 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 exam is conducted in online, objective-type format. Since there is no negative marking, candidates are advised to attempt all 100 questions. The table below summarises the exam pattern.
| 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 divided into four modules. Each module is further broken down into chapters and detailed sub-topics so candidates can prepare systematically and track progress topic by topic.
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/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
| 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
| 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
| 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
- The paper carries 100 marks for 100 questions, with each question worth 1 mark.
- There is no negative marking, so candidates should attempt every question.
- To pass, a candidate needs a minimum of 50 marks out of 100 overall, or 45 marks with at least 50% marks in each of the four modules.
How to Prepare for the JAIIB PPB Paper?
The following preparation strategy is recommended for the JAIIB PPB paper:
- Focus on high-weightage modules first. Identify the modules that have contributed the most questions in previous years and prioritise them early in your preparation.
- Go through previous year questions. Reviewing past papers helps you understand the pattern and recurring topics within each module.
- Rely on official study material. Use the official IIBF study material along with good-quality notes or cheat sheets that summarise key points. Official material is available at www.iibf.org.in.
- Practice a large number of MCQs. Solve chapter-wise questions and take full module tests to build accuracy and speed.
- Analyse mistakes after every mock test. Identify weak areas and revise them specifically rather than re-reading everything equally.