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How to Prepare for CAIIB BFM Dec 2025?

How to Prepare for CAIIB BFM Dec 2025 is a common question. For CAIIB BFM Dec 2025 preparation, start with a module-wise strategy focusing on International Banking, Risk Management, Treasury & Balance Sheet. Prioritize high-weightage topics, practice numericals, revise RBI updates, and use mock tests. Ideal prep time is 30–35 hours.
authorImageSwati Kumar29 Jul, 2025
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How to Prepare for CAIIB BFM Dec 2025?

How to Prepare for CAIIB BFM Dec 2025: The Indian Institute of Banking and Finance (IIBF) will conduct the CAIIB (Certified Associate of the Indian Institute of Bankers) exam for Management (BFM) on December 7, 8, 13, and 14. Preparing for the CAIIB BFM Dec 2025 requires candidates to strategically plan their schedule, covering important concepts like international banking, risk management, treasury operations, and balance sheet management. Juggling between work and preparation, professionals need to have a CAIIB BFM Dec 2025 strategy with topics segregated according to priority.

CAIIB BFM Preparation Tips

The CAIIB BFM is a compulsory paper under the CAIIB exam. It includes four modules, namely, International Banking, Risk Management, Treasury Management, and Balance Sheet Management. Some CAIIB BFM 2025 preparation tips are mentioned below. 

  • Under the CAIIB BFM Exam Syllabus: To start preparing for the BFM CAIIB December cycle plan, start by thoroughly reviewing the BFM syllabus. Identify high-weightage modules and recurring exam themes such as international banking and risk management.
  • Make Concise Notes: While studying, make short notes summarizing the formulas, concepts, and RBI circular updates. Use these notes for revision during the last days of exam preparation. 
  • Work on your Time Management: It becomes difficult to balance work and study for a working professional. While starting your CAIIB BFM preparation journey, firstly, break down the syllabus into manageable weekly targets. Figure out how to prepare for CAIIB BFM Dec 2025 in early morning or late-night study sessions. Follow intense revisions on weekends. 
  • Practice Numerical-Based Questions: Dedicate time daily to solve numerical-based questions. Solve sections like Forex and Risk Management daily. 
  • Stay updated: Stay updated with the recent developments in the RBI and banking sector.
  • Attempt Full-Length Mock Tests: Attempt at least 1 full-length mock test regularly. Analyse your performance to identify areas of improvement and try working on them.

CAIIB BFM Dec 2025 Strategy Plan

The CAIIB BFM includes both theoretical concepts and numerical case studies, requiring candidates to adopt an effective CAIIB BFM Dec 2025 strategy plan. Here is an example module on how to prepare for CAIIB BFM Dec 2025 strategically and distribute time across modules.

CAIIB BFM Dec 2025 Strategy Plan

Module

Time 

Descriptions

Module A: International Banking

14-15 hours

About 10-12% of questions are asked from this section, mainly from Exchange Rates, Forex Business, and the Liberalised Remittance Scheme (LRS). 

Module B: Risk Management

9-10 hours

Quite challenging. Focus more on numerical-based questions and case studies. 

Module C: Treasury Management

8-10 hours

Most chapters in this section are theory-based. Revise key facts and concepts regularly. 

Module D: Balance Sheet Management

8-10 hours

Includes both theoretical concepts and numerical problems. The chapters are concise, making them easier to cover quickly using the IIBF book.

Total

30-35 hours

Review all the case studies, practical examples, and numerical questions from Modules A, B, and D. Focus on Annexures of Module A. 

How to Prepare for CAIIB BFM Dec 2025 Module-Wise?

The CAIIB BFM includes 4 major modules, and making strategies for each module can be helpful. By breaking down the syllabus into modules, you can cover key topics, allocate time effectively, and address high-weightage areas to maximize your score. The following are some pointers that will answer your question of how to prepare for the BFM CAIIB exam. 

1. Modules A and B

  • Since about 55-65% of the questions come from these sections, start your BFM CAIIB exam preparation with Modules A and B. 
  • Study foundational concepts to attempt application-based questions. 
  • Working on these concepts in the early preparation stages of the BFM CAIIB December cycle plan will make it much easier to approach complex scenarios and case studies. 

2. Modules C and D

  •  Don’t skip these modules. 
  • Start with these after you have covered Modules A and B. 
  • If you are running out of time, focus on understanding the key basics to get a solid overview of the main concepts. 

CAIIB BFM Important Topics

Candidates can refer to the following tables for CAIIB BFM important topics while preparing for the BFM CAIIB December 2025. Candidates thinking of how to prepare for CAIIB BFM Dec 2025 must first divide the topics as per their weightage across all Modules. 

CAIIB BFM Module A Important Topics

Check out the important topics for CAIIB BFM Module A. 

CAIIB BFM Module A Important Topics

Chapter

Topics

Exchange Rates and Forex Business 

Characteristics of Forex Markets, RBI/FEDAI Guidelines, Foreign Exchange Arithmetic 

Liberalised Remittance Scheme (LRS) and Other Remittance Facilities for Residents 

Key Sections Under FEMA vis-à-vis Liberalised Remittance Scheme (LRS), 

Capital Account Transactions 

Correspondent Banking and NRI Accounts 

Electronics Modes of Transmission, NRI Accounts 

Documentary Letters of Credit (LC) 

Definition of LC, Parties Involved in LC and Their Role, Uniform Customs and Practice for Documentary Credits 

Facilities for Exporters and Importers 

Export Data Processing and Monitoring System (EDPMS), Exchange and Trade Control Guidelines for Exporters & Importers 

Trade Credit 

External Commercial Borrowings and Foreign Investments in India 

Concept of External Commercial Borrowings (ECBs), Operational Guidelines 

Risks in Foreign Trade – Role of ECGC 

Types of Risks in International Trade, ECGC Ltd. – Role and Products 

Role of EXIM Bank, Reserve Bank of India, Exchange Control in India, FEMA, FEDAI, and Others 

EXIM Bank – Role and Functions 

International Financial Service Centre (IFSC), GIFT City 

Regulatory Framework for IFSCs, Entities at GIFT City 

Technology in International Banking 

Digital Platforms in International Banking, FINTECH in International Banking 

CAIIB BFM Module B Important Topics

The following table mentions the important topics for the CAIIB BFM Module B. 

CAIIB BFM Module B Important Topics

 

Chapter

Topics

Risk and Basic Risk Management Framework 

Concept of Risk, Risk Management Framework 

Risks in Banking Business 

Risk Identification, Banking Risks – Definitions 

Risk Regulations in the Banking Industry 

Basel III Accords 

Market Risk 

Market Risk Identification 

Risk Measurement, Risk Reporting 

Credit Risk 

Measurement and Management of Credit Risk, Credit Risk Through Loan Review Mechanism (LRM) 

Operational Risk and Integrated Risk Management 

Concepts of Operational Risk and Integrated Risk Management, Operational Risk Management 

Liquidity Risk Management 

Liquidity Risk Management – Need & Importance, Overseas Operations of the Indian Banks’ Branches and Subsidiaries, and Branches of Foreign Banks in India 

Basel-III Framework on Liquidity Standards 

Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR) 

CAIIB BFM Module C Important Topics

Refer to the following table to get insights into the CAIIB BFM Module C important topics. 

CAIIB BFM Module C Important Topics

Chapter

Topics

Introduction to Treasury Management 

Concept of Treasury Management 

Treasury Products 

Products of Forex Markets and Money Markets 

International Equity and Debt Products 

Regulatory Environment, GDRs & IDRs 

Funding and Regulatory Aspects 

CRR & SLR, Liquidity Adjustment Facility (LAF) 

Treasury Risk Management 

Value at Risk (VaR), Use of Derivatives in Risk Management 

Derivative Products 

Types of Derivative Products, 

RBI Guidelines on Risk Exposure 

Treasury and Asset-Liability Management 

Meaning of Asset-Liability Management 

CAIIB BFM Module D Important Topics

Here are some important topics for the CAIIB BFM Module D. 

CAIIB BFM Module D Important Topics

Chapter

Topics

Components of Assets and Liabilities in a Bank’s Balance Sheet and Their Management 

Components of Assets and Liabilities in a Bank’s Balance Sheet, Asset Liability Management as Co-ordinated Balance Sheet Management 

Capital Adequacy-Basel Norms 

Pillars of Basel Norms 

Asset Classification and Provisioning Norms 

Asset Classification and NPAs, 

Insolvency and Bankruptcy Code, 2016 (IBC) 

Liquidity Management 

Meaning of Liquidity Risk Management, Types of Liquidity Risks 

Interest Rate Risk Management 

Sources of Interest Rate Risks, 

Interest Rate Risk Measurement Techniques 

RBI Guidelines on Interest Rate Risk in Banking Book 

RAROC and Profit Planning 

Risk Adjusted Return on Capital (RAROC) 

Risk Aggregation and Capital Allocation 

NaBFID 

CAIIB BFM Dec 2025 Preparation Books

To prepare for the CAIIB BFM Dec 2025, candidates can refer to the "Bank Financial Management" book published by IIBF and Macmillan, which comprehensively covers all four modules according to the latest syllabus. This will include practice questions, case studies, and numerical-based questions. 

How to Prepare for CAIIB BFM Dec 2025? FAQs

What topics should I prioritize while preparing for the CAIIB BFM Dec 2025?

While preparing for the CAIIB BFM Dec 2025, focus more on International Banking, Risk Management, Treasury, and Balance Sheet Management. Exchange Rates, Forex Business, and LRS.

How much time should I ideally dedicate to CAIIB BFM Dec 2025 preparation?

If you are a working professional, you should ideally study for at least 1–2 hours each day. Utilize weekends for longer, in-depth study sessions and revision.

How important is practicing numerical and case studies for CAIIB BFM Dec 2025?

It is very important to practice numerical and case studies. BFM contains calculation-based and case-study questions, especially in forex and risk management. Practice these regularly.

What resources should I use for BFM preparation?

For BFM preparation, rely on IIBF-prescribed textbooks for conceptual clarity. Consult online courses, video lectures, concise PDF notes, and previous years’ question papers and mock tests to cover topics.

Are banking regulations and RBI-related news asked in CAIIB BFM exam?

Yes, the paper includes questions on RBI updates. Regularly review RBI circulars and major regulatory updates.
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