CAIIB Syllabus 2025 and Exam Pattern, IIBF CAIIB Marking Scheme & Detailed Syllabus

CAIIB Syllabus 2025: The Indian Institute of Banking and Finance (IIBF) has defined the syllabus for the Certified Associate of Indian Institute of Bankers (CAIIB) Course. The CAIIB Syllabus 2025 has been recently updated to make the course more relevant and to emphasize a deeper understanding of concepts. The CAIIB 2025 Exam Schedule for both cycle for the Financial Year 2025-26 will be announced soon. Since the syllabus is an important resource for preparing effectively for the examination, we have provided a detailed breakdown of the CAIIB Syllabus 2025, module by module.

CAIIB Syllabus 2025

The updated CAIIB Syllabus 2025 was officially released on the IIBF website, and for the Nov-Dec you must go through the curriculum. The Revised CAIIB Syllabus includes four compulsory subjects and five elective papers. Among the five elective papers, candidates can choose one according to their preference. Here's a breakdown of the CAIIB Compulsory and Elective Subjects:

CAIIB Syllabus: CAIIB Compulsory Subjects:

1. Paper 1: Advanced Bank Management (ABM)
2. Paper 2: Bank Financial Management (BFM)
3. Paper 3: Advanced Business and Financial Management (ABFM)
4. Paper 4: Banking Regulations and Business Laws (BRBL)

CAIIB Syllabus: CAIIB Elective Subjects:

1. Rural Banking
2. Human Resources Management
3. Risk Management
4. Central Banking
5. Information Technology and Digital Banking

These subjects form the core of the CAIIB course, and candidates can select one elective subject that aligns with their interests and career goals.

CAIIB Syllabus 2025 Highlights

The CAIIB exam is conducted by the Indian Institute of Banking and Finance and is designed for the promotion of banking employees who have already cleared the JAIIB (Junior Associate of Indian Institute of Banking and Finance) exam.

Success in the CAIIB exam offers benefits to bankers, including additional increments at each scale of their career. Below, you’ll find a summarized overview of the CAIIB Examination.

CAIIB Syllabus 2025 Compulsory Papers

In the previous CAIIB curriculum, there were only two compulsory subjects. However, with the introduction of the updated CAIIB Syllabus, the number of compulsory subjects has been increased to four. The two newly added papers in this revised syllabus are Advanced Business and Financial Management (ABFM) and Banking Regulations and Business Laws (BRBL).

CAIIB Syllabus Paper 1: Advanced Bank Management(ABM)

CAIIB Syllabus Paper 1 Module A: Statistics

1. Definition of Statistics, Importance & Limitations & Data Collection, Classification & Tabulation:

• Importance of Statistics
• Functions of Statistics
• Limitations or Demerits of Statistics
• Definitions
• Collection of Data
• Classification and Tabulation
• Frequency Distribution

2. Sampling Techniques:

• Random Sampling
• Sampling Distributions
• Sampling from Normal Populations
• Sampling from Non-Normal Populations
• Central Limit Theorem
• Finite Population Multiplier

3. 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

4. Correlation and Regression:

• Scatter Diagrams
• Correlation
• Regression
• Standard Error of Estimate

5. Time Series:

• Variations in Time Series
• Trend Analysis
• Cyclical Variation
• Seasonal Variation
• Irregular Variation
• Forecasting Techniques

6. 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

7. 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

8. Linear Programming:

• Graphic Approach
• Simplex Method

9. Simulation:

• Simulation Exercise
• Simulation Methodology

CAIIB Syllabus Paper 1 Module B: Human Resource Management

CAIIB Syllabus Paper 2: Bank Financial Management(BFM)

CAIIB Syllabus Paper 2 Module A: International Banking

Here's an overview of the topics related to Exchange Rates, Forex Business, International Banking, and Technology:

1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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
• Common "To Do Points" under ECGC Policies
• Claims Role of EXIM Bank

8. 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

9. Short Notes on Other Topics:

• ECB and ADR/GDRs and FCCB
• International Financial Service Centres (IFSC), GIFT City
• 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

10. 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

CAIIB Syllabus Paper 2 Module B: Risk Management

CAIIB Syllabus Paper 3:Advanced Business and Financial Management (ABFM)

CAIIB Syllabus Paper 3 Module A: The Management Process

Here's an overview of the topics related to Basics of Management, including functions, planning, organizing, staffing, directing, and controlling:

1. Basics of Management:

• Definition of Management
• The Management Process
• Functions of Management
• Importance of Management
• Management Thoughts & Approaches
• Management Challenges & Opportunities

2. Introduction to Strategic Management:

• Business Environment Analysis

3. 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

4. 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

5. 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

6. Directing:

• Characteristics of directing
• Importance of directing
• Elements of directing
• Leadership
• Motivation
• Communication
• Supervision

7. 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

CAIIB Syllabus Paper 3 Module B: Advanced Concepts Of Financial Management

Here's an overview of the topics related to Sources of Finance, Financial Strategies, Capital Investment Decisions, International Project Investment, Capital Budgeting, Risk Analysis, and Decision Making:

1. Sources of Finance and Financial Strategies:

• Equity Capital
• Internal Accruals
• Preference Capital
• Term Loans
• Debentures
• Alternative Financing Strategies in the Context of Regulatory Requirements

2. Financial and Operating Leverages:

• Financial Leverage
• Degree of Financial Leverage and its Behavior
• Operating Leverage
• Degree of Operating Leverage and its Behavior
• Combined or Total Leverage

3. 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

4. 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 the evaluation of overseas projects
• Evaluation methods
• Impact of transfer pricing
• Adjustment of Risk and Uncertainty in Capital Budgeting Decision

5. Risk Analysis:

• 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

6. 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

CAIIB Syllabus Paper 3 Module C: Valuation, Mergers & Acquisitions

Here's an overview of the topics related to Corporate Valuations, Valuation Approaches, Discounted Cash Flow Valuation, Non-DCF Valuation Models, Special Cases of Valuation, Mergers, Acquisitions, Restructuring, and Deal Structuring:

1. 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

2. 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

3. 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

4. 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

5. 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

6. Deal Structuring and Financial Strategies:

• 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

CAIIB Syllabus Paper 3 Module D: Emerging Business Solutions

Here's an overview of the topics related to Hybrid Finance, Start-up Finance, Private Equity and Venture Capital, Artificial Intelligence, Business Analytics, Green and Sustainable Financing, and Special Purpose Acquisition Company (SPAC):

1. 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

2. 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 programs
• International challenges and bridges

3. 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

4. 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

5. 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

6. 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

7. Special Purpose Acquisition Company (SPAC):

• 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

CAIIB Syllabus Paper 4: Banking Regulations and Business Laws (BRBL)

CAIIB Syllabus Paper 4 Module A: Regulations and Compliance

Here's an overview of the topics related to the legal framework and regulation of banks and other financial institutions:

1. 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

2. Control over the Organization of Banks:

• Licensing of Banking Companies
• RBI Licensing 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

3. 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

4. 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 Offenses

5. Different Categories of Banks:

• Public Sector Banks
• Private Sector Banks
• Regional Rural Banks
• Differentiated Banks and Co-operative Banks
• Local Area Banks
• State Bank of India

6. Regulation of 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 Priority Sector Advances (PSA)

7. Financial Sector Legislative Reforms and Financial Stability and Development Council:

• Narasimham Committees
• 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

CAIIB Syllabus Paper 4 Module B: Important Acts/Laws & Legal Aspects of Banking Operations –Part A

Here's an overview of the topics related to various financial and legal acts:

1. 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

2. 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

3. 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

4. Payment & Settlement Systems Act, 2007:

• Definitions
• Designated Authority/Authorization
• Regulation and Supervision by the RBI
• Settlement and Netting
• Power of RBI to make regulations

5. 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

6. Law Relating to Securities and Modes of Charge – II:

• Appropriation
• Assignment
• Pledge
• Hypothecation
• Banker's 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 Non-registration of Charges
• Provisions of Companies Act 2013 Relating to Registration of Charges

CAIIB 2025 Marking Scheme

• To successfully clear each subject of the CAIIB exam, candidates must secure a minimum score of 50 marks out of the total 100 marks allotted.
• Alternatively, candidates who manage to obtain a minimum of 45 marks in every subject and an overall aggregate of at least 50% in a single attempt will also be considered as having qualified for the examination.
• The credits obtained for the subjects in which candidates have achieved passing marks will remain valid until the specified time limit expires for completing the entire examination process.

CAIIB Exam Pattern 2025 for All Papers

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