Introduction
If you are preparing for the JAIIB Exam 2026, it is important to understand the syllabus for the Principles & Practices of Banking (PPB) paper clearly before starting your studies. PPB is one of the four main papers in the JAIIB exam conducted by the Indian Institute of Banking and Finance (IIBF). This article explains the full syllabus divided by modules, the exam pattern, marking scheme, and preparation advice based on the official syllabus. This will help you plan your study time effectively.
JAIIB PPB Syllabus 2026 - Quick Overview
The PPB paper tests your knowledge of banking operations, bank functions, banking technology, and ethics in banking. It is an objective test with no negative marking and is divided into four modules covering both everyday and specialized banking topics.
| 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 exam is conducted online with multiple-choice questions. There is no penalty for wrong answers, so it is best to attempt all questions. The exam covers general banking operations, bank functions, banking technology, and ethics.
| 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 minimum 50% in each module) |
JAIIB PPB Module-Wise Syllabus 2026
The syllabus is divided into four modules, each with detailed chapters and topics to help you prepare step-by-step.
Module A: General Banking Operations
| Subject/Area | Topics Covered |
|---|
| Banker-Customer Relationship | Bank definition; banker-customer relationship; trustee and agent roles; deposit products; customer services |
| AML-KYC Guidelines | Money laundering risks; AML framework in India; KYC policy; PMLA obligations; FATF jurisdictions; correspondent banking; FATCA/CRS reporting |
| Operational Aspects of KYC | KYC norms; wire transfers; Central KYC Records Registry; transaction monitoring |
| Opening of Accounts | Personal and other accounts; current account norms; photograph requirements; Legal Entity Identifier |
| Operational Aspects of Deposit Accounts | Deposit account features; interest; inoperative accounts; joint accounts; nomination; attachment orders; statutory submissions |
| Clearing, Collection & Cash Handling | Cheque Truncation System; RBI collection guidelines; cash custody; branch and ATM security |
| Banker's Special Relationship | Mandate; Power of Attorney; banker's lien; set-off and appropriation rights |
| Foreign Exchange Remittance Facilities | FEMA evolution; foreign exchange rules; inward/outward remittances; Indo-Nepal remittance |
| Operational Aspects of NRI Business | Accounts for NRIs/PIOs; foreign nationals' accounts; Special Non-Resident Rupee account; asset remittance; property and investment rules |
| Foreign Currency Accounts | Types of foreign currency accounts; accounts in India and abroad; Foreign Contribution Regulation Act |
| Cash Management Services (CMS) | CMS developments; types; challenges |
| Negotiable Instruments | Negotiable Instruments Act; cheque payment; endorsement; forged instruments; dishonour; CTS |
| Responsibility of Paying Bank | Liability under Negotiable Instruments Act; forged signatures; payment in good faith; cheque truncation |
| Responsibility of Collecting Bank | Statutory protection; duties of collecting bank |
| Ancillary Services | Demand Drafts; Banker's Cheques; NEFT; RTGS; digital banking; lockers; merchant banking; government business |
| Financial Inclusion & Literacy | Banking services extension; digital tools; financial literacy; Rural Self Employment Training Institutes |
| Customer Service Guidelines | Customer service; branch policies; ATM operations; security; special facilities |
| Grievance Redressal & Legal Framework | Grievance policy; RBI 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 | Lending principles; borrower types; credit facilities; working capital; term and demand loans; non-fund based facilities |
| Appraisal and Assessment of Credit Facilities | Credit appraisal techniques; loan assessment; working capital and term loan evaluation |
| Operational Aspects of Loan Accounts | Loan interest rates; credit management; loan processing; accounting; recovery agents; Fair Practices Code |
| Types of Collaterals and Securities | Secured/unsecured loans; land/buildings; goods; insurance; shares; gold loans; vehicle finance |
| Modes of Charging Securities | Contracts; agency; bailment; charge types; registration |
| Documentation | Loan document types; documentation process |
| Non-Performing Assets (NPA) / Stressed Assets | NPA definition; income recognition; asset classification; provisioning; write-offs; resolution |
| Laws Relating to Recovery of Dues | Recovery of Debts Act; SARFAESI; Insolvency Code; Legal Services; Limitation Law |
| Contracts of Indemnity | Definition; indemnity vs guarantee; rights; banking applications |
| Contracts of Guarantee & Bank Guarantee | Parties; surety liability; revocation; bank guarantee types; precautions |
| Letters of Credit (LC) | Meaning; parties; types; documents; UCPDC 600; bank obligations |
| Deferred Payment Guarantee (DPG) | Purpose; payment method |
| Bills Finance | Bill types; laws; bill finance; banker's legal position |
| Retail Loans & Credit Cards | Credit cards; home, personal, consumer loans |
| Priority Sector Advances | Applicability; targets; categories; consequences of non-achievement |
| Agricultural Finance | Short/long-term loans; crop loans; Kisan Credit Card; Minimum Support Price; crop insurance scheme |
| Finance to MFIs & NBFCs | Bank finance to NBFCs; on-lending; co-lending; Scale-Based Regulation |
| Micro, Small and Medium Enterprises (MSME) | MSME Act; credit support; delayed payments; TReDS; Credit Guarantee Fund; cluster financing |
| Government Sponsored Schemes | DAY-NRLM; DAY-NULM; PMJDY; MUDRA loans; Khadi and Village Industries Commission |
| Self-Help Groups (SHG) | Definition; formation; SHGs under government schemes; SHG-Bank Linkage Programme |
Module C: Banking Technology
| Subject/Area | Topics Covered |
|---|
| Essentials of Bank Computerisation | Bank computerisation; networking; UPS; Core Banking System; data warehousing and mining |
| Operational Aspects of CBS Environment | CBS functions; transaction flow; Begin/End of Day; password and access controls; security |
| Alternate Delivery Channels - Digital Banking | ATMs; electronic cards; e-banking; customer protection; transaction turnaround time; compensation |
| Data Communication Network & EFT Systems | Data networks; major Indian networks; Electronic Funds Transfer evolution; SWIFT; clearing systems |
| Digital Payment Systems - NPCI | Electronic clearing; National Payments Corporation of India; government digital payment initiatives |
| Impact of Technology Adoption in Banking | Technology trends; IT role; global banking systems |
| Security Considerations & Mitigation Measures | Bank risks; cyber threats; computer and IS audits; online fraud; cyber security awareness; Disaster Recovery; IT Act; RBI Ombudsman Scheme |
| Operational Aspects of Cyber Crime & Fraud Risk Management | Fraud vs crime; incident response plan phases |
| 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 principles; ethical foundation of banking; global financial crisis; Enron and Satyam cases |
| Ethics at the Individual Level | Values, norms, beliefs; core values; morality; Golden Rule; ethical dilemmas; decision-making framework |
| Ethical Dimensions: Employees | Abuse of position; insider trading; third-party obligations; discrimination; sexual harassment; conflict of interest; HR ethics; employees as ethics ambassadors |
| Work Ethics and the Workplace | Definition; benefits; causes and remedies of unethical behaviour; banker ethics; whistleblowing and law in India |
| Banking Ethics: Changing Dynamics | Ethics and technology; data security and privacy; intellectual property rights; patents; information security ethics |
How to Prepare for the JAIIB PPB Paper?
To prepare well for the PPB paper, follow a structured study plan based on the module-wise syllabus. Focus on understanding concepts clearly, practice multiple-choice questions, and revise regularly. Since there is no negative marking, attempt all questions in the exam. Use official study materials and keep updated with banking developments and guidelines.
Frequently Asked Questions
- Q: What is the full form of JAIIB PPB?
A: Junior Associate of the Indian Institute of Bankers - Principles and Practices of Banking. - Q: What is the total marks for the JAIIB PPB paper?
A: The paper carries 100 marks in total. - Q: What is the duration of the JAIIB PPB exam?
A: The exam lasts 2 hours (120 minutes). - Q: Is there negative marking in the JAIIB PPB exam?
A: No, there is no negative marking. - Q: How many modules are there in the JAIIB PPB syllabus?
A: There are four modules: Module A (General Banking Operations), Module B (Functions of Banks), Module C (Banking Technology), and Module D (Ethics in Banks and Financial Institutions).
