CAIIB Syllabus 2023 and Exam Pattern (New), Syllabus PDF


Hello Dear Aspirants,

CAIIB Syllabus 2023: The Institute of Banking and Finance (IBF) conducts the CAIIB exam twice a year. Candidates who have qualified for JAIIB (Junior Associate of Indian Institute of Banking & Finance) are eligible to appear in the CAIIB exam. This exam is for those bankers who are already members of the Institute of Banking & Finance.

Whosoever is preparing for this prestigious exam must have detailed knowledge of the exam syllabus to prepare accordingly. The CAIIB exam aims at providing excellence to banking & finance industry employees in their professional careers. In this article, we have provided a complete syllabus of the CAIIB exam. 

CAIIB Syllabus 2023

CAIIB Syllabus and Exam Pattern 2023

CAIIB 2023 exam has been scheduled for 10th, 11th, 18th, 24th, and 25th June 2023, it’s high time for the candidates to begin with their preparation with a detailed CAIIB Syllabus Indian Institute of Banking and Finance to conduct the CAIIB Examination for Promotion of those Banking Employees, who are already qualified in the JAIIB Examination. CAIIB passed bankers benefits with additional increments at every scale. Here we have summarized the brief information about the CAIIB Examination. 

CAIIB Syllabus 2023
Exam conducting BodyIndian Institute of Banking and Finance 
Exam Name CAIIB 2023
Exam LevelNational Level
Mode of ExamOnline
Types of QuestionsMultiple Choice Type
Number of Papers5 Papers
No. of Questions 100 each paper

CAIIB Exam Pattern 2023 [Revised]

As per revised CAIIB Exam Pattern 2023, the CAIIB exam consists of five papers, in which four papers are compulsory and one paper is elective. The key points of the CAIIB exam pattern are as follows:

  1. The CAIIB examination is conducted in Online Mode only.
  2. Each paper carries 100 multiple-choice questions of 100 marks.
  3. The time duration allotted to complete each paper is 2 hours.
  4. The exam paper will be bilingual i.e. both in English and Hindi Language.
Advanced Bank Management1001002 hours
Bank Financial Management1001002 hours
Advance Business & Financial Management1001002 hours
Banking Regulations and Business Laws1001002 hours
Elective Papers (choose any one)Rural BankingHuman Resources ManagementInformation Technology & Digital BankingRisk ManagementCentral Banking1001002 hours

CAIIB Syllabus 2023 [New]

The new CAIIB Syllabus 2023 consists of 5 papers, in which 4 papers are compulsory and one paper is elective. All papers are divided into Modules. Candidates have the choice to choose any one of the papers among 5 Elective Papers. Candidates are advised to choose elementary papers wisely and prepare all the topics. We have given a detailed CAIIB Syllabus 2023 in the table below:

Paper 1- Advanced Bank Management

Paper-1 consists of  four modules, these four modules are as follows:

  1. Module A- Statistics
  2. Module B- Human Resource Management
  3. Module C- Credit Management
  4. Module D- Compliance in Banks and Corporate Government

The detailed syllabus of Paper-1 is given below in the table: 

Compulsory Paper 1- Advanced Bank Management
Chapters Topics 
Module A- Statistics
Definition of Statistics, Importance & Limitations & Data Collection, Classification & TabulationImportance of Statistics; Functions of Statistics; Limitation or Demerits of Statistics; Definitions;Collection of Data; Classification and Tabulation; Frequency Distribution
Sampling TechniquesRandom Sampling; Sampling Distributions; Sampling from Normal Populations; Sampling from NonNormal Populations; Central Limit Theorem; Finite Population Multiplier
Measures of Central Tendency & Dispersion, Skewness, KurtosisArithmetic Mean; Combined Arithmetic Mean; Geometric Mean; Harmonic Mean; Median andQuartiles; Mode; Introduction to Measures of Dispersion; Range and Coefficient of Range; QuartileDeviation and Coefficient of Quartile Deviation; Standard Deviation and Coefficient of Variation;Skewness and Kurtosis
Correlation and RegressionScatter Diagrams; Correlation; Regression; Standard Error of Estimate
Time SeriesVariations in Time Series; Trend Analysis; Cyclical Variation; Seasonal Variation; Irregular Variation;Forecasting Techniques
Theory of ProbabilityMathematical Definition of Probability; Conditional Probability; Random Variable; ProbabilityDistribution of Random Variable; Expectation and Standard Deviation; Binomial Distribution; PoissonDistribution; Normal Distribution; Credit Risk; Value at Risk; Option Valuation
EstimationEstimates; Estimator and Estimates; Point Estimates; Interval Estimates; Interval Estimates andConfidence Intervals; Interval Estimates of the Mean from Large Samples; Interval Estimates of theProportion from Large Samples
Linear ProgrammingGraphic Approach; Simplex Method
SimulationSimulation Exercise; Simulation Methodology
Module- B: Human Resource Management
Fundamentals of Human Resource ManagementThe Perspective; Relationship between HRM & HRD and their Structure and Functions; Role of HR Professionals; Strategic HRM; Development of HR Functions in India
Development of Human ResourcesHRD and its Subsystems; Learning and Development – Role and Impact of Learning; AttitudeDevelopment; Career Path Planning; Self-Development; Talent Management; Succession Planning
Human Implications of OrganisationsHuman Behaviour and Individual Differences; Employees Behaviour at Work; Diversity at Workplace andGender Issues; Theories of Motivation and their Practical Implications; ‘Role’ : Its Concept & Analysis
Employees’ Feedback and Reward SystemEmployees’ Feedback; Reward and Compensation System
Performance ManagementAppraisal Systems; Performance Review and Feedback; Counselling; Competency Mapping andAssessment of Competencies; Assessment Centres; Behavioural Event Interview (BEI)
Conflict Management and NegotiationConflict: Concept & Definition; Characteristics of Conflict; Types of Conflicts; Reasons for Conflict;Different Phases of Conflict; Conflict Resolution; Conflict Management; Negotiation Skills for Resolutionof Conflicts
HRM and Information TechnologyRole of Information Technology in HRM; HR Information and Database Management; Human ResourceInformation System (HRIS); Human Resource Management System (HRMS); e–HRM; HR Research;Knowledge Management; Technology in Training; HR Analytics
Module- C: Credit Management
Overview of Credit ManagementImportance of Credit; Historical Background of Credit in India; Principles of Credit; Types of Borrowers;Types of Credit; Components of Credit Management; Role of RBI Guidelines in Bank’s CreditManagement
Analysis of Financial StatementsWhich are the Financial Statements; Users of Financial Statements; Basic Concepts Used in Preparationof Financial Statements; Accounting Standards (AS); Legal Position Regarding Financial Statements;Balance Sheet; Profit and Loss Account; Cash Flow Statement; Funds Flow Statement; ProjectedFinancial Statements; Purpose of Analysis of Financial Statements by Bankers; Rearranging the FinancialStatements for Analysis; Techniques used in Analysis of Financial Statements; Creative Accounting;Related Party Transactions
Working Capital FinanceConcept of Working Capital; Working Capital Cycle; Importance of Liquidity Ratios; Methods ofAssessment of Bank Finance; Working Capital Finance to Information Technology and Software Industry;Bills/Receivables Finance by the Banks; Guidelines of RBI for Discounting/Rediscounting of Bills byBanks; Trade Receivables Discounting System (TReDS); Non-Fund Based Working Capital Limits; OtherIssues Related to Working Capital Finance
Term LoansImportant Points about Term Loans; Deferred Payment Guarantees (DPGs); Difference between TermLoan Appraisal and Project Appraisal; Project Appraisal; Appraisal and Financing of InfrastructureProjects
Credit Delivery and Straight Through ProcessingDocumentation; Third-Party Guarantees; Charge over Securities; Possession of Security; Disbursal ofLoans; Lending under Consortium/Multiple Banking Arrangements; Syndication of Loans; StraightThrough Loan Processing or Credit Underwriting Engines
Credit Control and MonitoringImportance and Purpose; Available Tools for Credit Monitoring/Loan Review Mechanism (LRM)
Risk Management and Credit RatingMeaning of Credit Risk; Factors Affecting Credit Risk; Steps taken to Mitigate Credit Risks; Credit Ratings;Internal and External Ratings; Methodology of Credit Rating; Use of Credit Derivatives for RiskManagement; RBI guidelines on Credit Risk Management; Credit Information System
Restructuring/Rehabilitation and RecoveryCredit Default/Stressed Assets/NPAs; Wilful Defaulters; Non-cooperative borrowers; Options Availableto Banks for Stressed Assets; RBI Guidelines on Restructuring of Advances by Banks; AvailableFrameworks for Restructuring of Assets; Sale of Financial Assets
Resolution of Stressed Assets under Insolvency and Bankruptcy Code 2016Compliance Policy; Compliance Principles, Process and Procedures; Compliance Programme; Scope of compliance Function; Role & Responsibilities of Chief Compliance Officer (CCO)
Module – D: Compliance in Banks and Corporate Government
Compliance Function in BanksRole of Risk Based Internal Audit and Inspection; Reporting Framework and Monitoring Compliance; Disclosure Requirements; Accounting Standards; Disclosures under Listing Regulations of SEBI
Compliance AuditOrganizational Structure; Responsibility of the Board and Senior Management; Compliance Structure atthe Corporate Office; Functional Departments; Compliance Structure at Field Levels; Internal Controlsand its Importance
Compliance Governance StructureOrganisational Structure; Responsibility of the Board and Senior Management; Compliance Structure atthe Corporate Office; Functional Departments; Compliance Structure at Field Levels; Internal Controlsand its Importance
Framework for Identification of Compliance Issues and Compliance RisksCompliance Issues; Compliance Risk; Inherent Risk and Control Risk; Independent Testing and EffectiveAudit Programme; Reporting Framework and Monitoring Compliance; Role of Inspection and Audit;Loan Review Mechanism/Credit Audit; What is Good Compliance
Compliance Culture and GRC FrameworkHow to Create Compliance Culture Across the Organisation; Governance, Risk and Compliance – GRCFramework; Benefits of an Integrated GRC Approach; Whistle-blower Policy; The Components of aWhistle-blower Policy; Reasons for Compliance Failures
Compliance Function and Role of Chief Compliance Officer in NBFCsFramework for Scale Based Regulation for Non-Banking Financial Companies; Transition Path;Framework for Compliance Function and Role of Chief Compliance Officer in Non-Banking FinancialCompanies in Upper Layer and Middle Layer (NBFC-UL & NBFC-ML)
Fraud and Vigilance in BanksDefinition of Fraud; Definition of Forgery; Areas in which Frauds are committed in Banks; Banking andCyber Frauds; Fraud Reporting and Monitoring System; Vigilance Function in Banks; RBI Guidelines forPrivate Sector and Foreign

Paper 2 – Bank Financial Management

Paper-2 consists of  four modules, these four modules are as follows:

  1. Module A- International Banking
  2. Module B- Risk Management
  3. Module C- Treasury Management
  4. Module D- Balance Sheet Management

The detailed syllabus of Paper-2 is given below in the table: 

Compulsory Paper – 2: Bank Financial Management 
Module – A: International Banking
Exchange Rate and Forex BusinessForeign Exchange – Definition and Markets; Factors Determining Exchange Rates; Exchange RateMechanism; Foreign Exchange Dealing Room Operations; Derivative Products; RBI / FEDAI Guidelines;Foreign Exchange Arithmetic – Concepts and Examples
Liberalised Remittance Scheme (LRS) and
other Remittance Facilities for Residents
Capital Account Transactions and Current Account Transactions; Key Sections under FEMA vis-à-visLiberalized Remittance Scheme; Permissible/Non-permissible Remittances under LRS; OperationalGuidelines; Remittances under LRS for Current Account Transactions; Tax Collected at Source (TCS); LRSvis-à-vis Capital Account Transactions; Reporting Requirements under LRS
Correspondent Banking and NRI AccountsCorrespondent Banking – Accounts and other Services; Nostro, Vostro and Loro Accounts; ElectronicModes of Transmission/Payment Gateways – SWIFT, CHIPS, CHAPS, RTGS, etc.; NRI Banking; NRIaccounts – Rupee and Foreign Currency Accounts; Facilities to NRIs; Advances to Non-Residents againstNon-Resident Deposits; Housing Loans to Non-Resident Indians
Documentary Letters of CreditDefinition of Letter of Credit; Types of Letters of Credit; Operations of Letter of Credit; UCP 600 andImportant 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
Facilities for Exporters and ImportersExchange and Trade Control Guidelines for Exporters; Facilities for Exporters;; Export Finance; Gold CardScheme for Exporters; Export Data Processing and Monitoring System (EDPMS); Factoring andForfaiting; Exchange and Trade Control Guidelines for Importers; Import Finance; Import DataProcessing and Monitoring System (IDPMS); Trade Credit – Supplier’s Credit and Buyer’s Credit; CaseStudy on Export Finance
External Commercial Borrowings and Foreign Investments in IndiaExternal Commercial Borrowings – Concepts; ECBs – Other Operational Concepts; ReportingRequirements; Conversion of ECB into Equity; Foreign Investments; Key Concepts; Eligible ForeignInvestors; Eligible Investee Entities; Eligible Investment Instruments; Prohibited Sectors; RulesGoverning 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 ForeignInvestmentsRisks in Foreign Trade – Role of ECGCDefinition of Risk and Risks in International Trade; Country Risk; Export Credit Insurance in InternationalTrade; ECGC Role and Products; ECGC Policies; ECGC’s Products for Banks; Other Aspects Relating toECGC Policies and Guarantees; Some of the Common “To Do Points” under ECGC Policies; Claims
Role of EXIM Bank, 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 ControlRegulations in India; Foreign Exchange Management Act (FEMA) 1999; Role of FEDAI and FEDAI Rules;Short Notes on Other Topics: ECB and ADR/GDRs and FCCB; 
International Financial Service Centres (IFSC), GIFTCityScope 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
Technology in International BankingIntroduction to Digitization in International Banking – An Overview, Evolution of Technology inInternational Banking; Benefits and Limitations of Technology in International Banking; Digital Platformsin International Banking; FINTECH and evolution of FINTECH in International Banking; Delivery channelsunder FINTECH in International Banking; Sample process of International Trade Using BlockchainTechnology; Challenges in FINTECH
Module – B: Risk Management
Risk and Basic Risk Management FrameworkWhat is Risk?, Linkages aamong Risk, Capital and Return; Why Risk Management? Basic Risk Management Framework
Risks in Banking BusinessRisk Identification in Banking Business; The Banking Book; The Trading Book; Off-Balance SheetExposures; Banking Risks – Definitions
Risk Regulations in Banking IndustryRegulation of Banking Industries – Necessities and Goals; The Need for Risk-based Regulation in aChanged World Environment; Basel I: The Basel Capital Accord; 1996 Amendment to Include MarketRisk; Basel II Accord – Need and Goals; Basel II Accord; Towards Basel III; Capital Charge for Credit Risk;Credit Risk Mitigation; Capital Charge for Market Risk; Capital Charge for Operational Risk; Pillar 2 –Supervisory Review Process; Pillar 3 – Market Discipline; Capital Conservation Buffer; Leverage Ratio;Countercyclical Capital Buffer; Systemically Important Financial Institutions (SIFIs); Risk BasedSupervision (RBS
Market RiskMarket Risk – Concept; Market Risk in Banks; Market Risk Management Framework; OrganisationStructure; Risk Identification; Risk Measurement; Risk Monitoring and Control; Risk Reporting;Managing Trading Liquidity; Risk Mitigation
Credit RiskGeneral; Credit Risk Management Framework; Organisation Structure; Risk Identification; RiskMeasurement; Credit Risk Control and Monitoring; Credit Risk Policies and Guidelines at TransactionLevel; Credit Control and Monitoring at Portfolio Level; Active Credit Portfolio Management; ControllingCredit Risk through Loan Review Mechanism (LRM); Credit Risk Mitigation; Securitisation; CreditDerivatives (CDs)
Operational Risk and Integrated Risk ManagementOperational Risk – General; Operational Risk – Classification; Operational Risk Classification by EventType – Definitions; Operational Risk Management Practices; Management Overview and OrganisationalStructure; Processes and Framework; Risk Monitoring and Control Practices; Operational RiskQualification; Operational Risk Mitigation; Scenario Analysis; Integrated Risk Management; TheNecessity of Integrated Risk Management; Integrated Risk Management – Challenges; Integrated RiskManagement – Approach
Liquidity Risk ManagementLiquidity Risk Management – Need & Importance; Potential Liquidity Risk Drivers; Types of LiquidityRisk; Principles for Sound Liquidity Risk Management; Governance of Liquidity Risk Management;Liquidity Risk Management Policy, Strategies and Practices; Management of Liquidity Risk; Ratios inrespect of Liquidity Risk Management; Stress Testing; Contingency Funding Plan; Overseas Operationsof the Indian Banks’ Branches and Subsidiaries and Branches of Foreign Banks in India; Broad Norms inRespect Of Liquidity Management; Liquidity Across Currencies; Management Information System;Reporting to the Reserve Bank of India; Internal Controls
Basel III Framework on Liquidity StandardsLiquidity Coverage Ratio; Liquidity Risk Monitoring Tools; Net Stable Funding Ratio
Module – C: Treasury Management
Introduction to Treasury ManagementThe Concept; Functions of Integrated Treasury; The Process of Globalisation; Evolving Role of Treasuryas Profit Centre; Organisation of Treasury
Treasury ProductsProducts of Foreign Exchange Markets; Money Market Products; Securities Market Products; Domesticand Global Markets
International Equity and Debt ProductsRegulatory Environment; Global Depository Receipts; Indian Depository Receipts; External CommercialBorrowings; Trade Credits; Rupee Denominated Bonds
Funding and Regulatory AspectsReserve Assets: CRR and SLR; The Liquidity Adjustment Facility (LAF); Payment and Settlement Systems
Treasury Risk ManagementSupervision and Control of Treasury; Market Risk and Credit Risk; Risk Measures: VaR and Duration; Useof Derivatives in Risk Management
Derivative ProductsDerivatives and the Treasury; OTC and Exchange Traded Products; Forwards, Options, Futures andSwaps; Interest Rate and Currency Swaps; Developments in Indian Markets and RBI Guidelines on RiskExposure
Treasury and Asset-Liability ManagementMeaning of Asset-Liability Management (ALM), Liquidity Risk and Interest Rate Risk, Role of treasury inALM, Use of derivatives in ALM, Credit risks and Credit Derivatives, Transfer pricing, Policy Environment
Module – D: Balance Sheet Management 
Components of Assets and Liabilities in 
Bank’s Balance Sheet and their Management
Components of a Bank’s Balance Sheet; What is Asset Liability Management?; Significance of AssetLiability Management; Purpose and Objectives of Asset Liability Management; ALM as Co-ordinatedBalance Sheet Management
Capital Adequacy – Basel NormsScope of Application; Pillar-1 – Minimum Capital Requirements; Pillar 2- Supervisory Review Process;Pillar 3 – Market Discipline;
Asset Classification and Provisioning NormsAsset Classification; Provisioning Norms
Liquidity ManagementDefinition; Dimensions and Role of Liquidity Risk Management; Measuring and Managing Liquidity Risk
Interest Rate Risk ManagementEssentials of Interest Rate Risk; Sources of Interest Rate Risk; Effects of Interest Rate Risk; Measurementof Interest Rate Risk; Interest Rate Risk Measurement Techniques; Strategies for Controlling InterestRate Risk; Controls and Supervision of Interest Rate Risk Management; Sound Interest Rate RiskManagement Practices; RBI’s Draft Guidelines on Interest Rate Risk in Banking Book
RAROC and Profit PlanningProfit Planning; Risk Aggregation and Capital Allocation; Economic Capital and RAROC

Paper 3 – Advanced Business & Financial Management

Paper-3 consists of  four modules, these four modules are as follows:

  1. Module A- The Management Process
  2. Module B- Advanced Concept of Financial Management
  3. Module C- Valuation, Merger, and Acquisitions
  4. Module D- Emerging Business Solutions

The detailed syllabus of Paper-3 is given below in the table: 

Compulsory Paper – 3: Advanced Business & Financial Management
Module – A: The Management Process
Basics of ManagementDefinition of Management, The Management Process, Functions of Management, Importance ofManagement, Management Thoughts & Approaches, Management Challenges & Opportunities,Introduction to Strategic Management, Business Environment Analysis
PlanningFundamentals of Planning, Steps in Planning, Importance of Planning, Advantages and disadvantages ofplanning, Management by Objectives, Plan Components, Contingency planning, Forecasting & DecisionMaking
OrganizingIntroduction and Fundamentals of Organizing, Importance of Organisation, Stages in OrganisingProcess, The Organising Process, Principles of organizing, Types of Organisations, Organisationstructure, Organisation charts and manuals, The Organisation culture, Authority & Responsibility, KeyIssues in Organisation Structure, Organisational Change, Conflict Dynamics
StaffingFunctions of Staffing, Objectives of staffing, Nature of staffing, Facets of staffing, Significance of staffing,System approach to staffing, Recruitment, Selection, Training, Retention and development, Knowledgeand learning management,Performance Appraisal, Human Resource Development
DirectingCharacteristics of directing, Importance of directing, Elements of directing, Leadership, Motivation,Communication, Supervision
ControllingBasics of Controlling, Characteristics of controlling, Advantages of controlling, Limitations of controlling,Types of control management, Control process, Relation between planning and control, ControlTechniques, Control technique and Information Technology
Module – B: Advanced Concept of Financial Management
Sources of Finance and Financial StrategiesEquity Capital, Internal Accruals, Preference Capital, Term Loans, Debentures, Alternative FinancingStrategies in the Context of Regulatory Requirements
Financial and Operating LeveragesFinancial Leverage, Degree of Financial Leverage and its Behaviour, Operating Leverage, Degree ofOperating Leverage and its Behaviour, Combined or Total Leverage
Capital Investment DecisionsObjective of capital investment decisions, Estimation of project cash flows, Forecasting and its relationto 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 ofInvestment appraisal;Social Cost Benefit Analysis
Capital Budgeting for International Project Investment DecisionsForeign Investment Analysis, Special Considerations-Foreign & Home Currency Cash Flows, ForeignCurrency Discount Rates Computation, International Portfolio Investment and Institutional Constraints,Direct and Indirect Channels for International Portfolio Investment, Exchange and Country Risk, Returnand Risk of Foreign Investment, Capital asset pricing model, Arbitrage pricing theory; InternationalCapital Budgeting Issues involved in overseas projects, Approaches for evaluation of overseas projects,Evaluation methods, , Impact of transfer pricing
Adjustment of Risk and Uncertainty in Capital Budgeting DecisionSources & Perspectives on Risk, Sensitivity Analysis, Scenario Analysis, Hillier Model, SimulationAnalysis, Decision Tree Analysis, Corporate Risk Analysis, Managing Risk, Project Selection Under Risk,Risk Analysis in Practice
Decision MakingDecision Making using Cost-Volume-Profit (CVP) Analysis, Decision Making using Relevant CostConcepts, Decision Making using Activity Based Costing, Ethical and Non-Financial ConsiderationsRelevant to Decision Making
Module – C: Valuation, Merger, and Acquisitions
Corporate ValuationsApproaches to Corporate Valuation, Adjusted Book Value Approach, Stock and Debt Approach, DirectComparison Approach, Discounted Cash Flow Approach, Steps involved in valuation using DCFApproach, 
Discounted Cash Flow ValuationEstimating Inputs, Approaches to Discounted Cash Flow Models, Various discounted Cash Flow Models,Dividend Discount Model, Applicability of the Dividend Discount Model,
Other Non-DCF valuation modelsRelative valuation model, Equity Valuation Multiples Model, , Enterprise value multiples Model,Choosing the right multiples,Book value approach Model, Stock and debt approach
Special cases of valuationIntangibles –Brand, Human valuation etc., Real estate Firms, Start-up firms, Firms with negative or lowearnings, Financial Service companies, Distressed firms, Valuation of cash and cross holdings, Warrantsand convertibles, Cyclical & non-cyclical companies, Holding companies, E-commerce firms
Mergers, Acquisitions and RestructuringTypes 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, AcquisitionFinancing, Business Alliances, Managing Acquisitions, Divestitures, Holding Company, DemergersDeal structuring and financial strategiesNegotiations, Payment and legal considerations, Tax and accounting considerations, Tax reliefs andbenefits in case of Amalgamation in India, Financial reporting of business combinations, Deal Financing,Financing of cross border acquisitions in India
Module – D: Emerging Business Solutions
Hybrid FinanceAdvantages and disadvantages of Hybrid securities, Types of hybrid securities, Preference Share Capital,Features of Warrants, Features of Convertible Debentures, Differences between Warrants andConvertible debentures, Valuation of Warrants, Valuation of Compulsorily Convertible (Partly or fully)Debentures, Objective of issuing Warrants and Convertible debentures, Features of Foreign CurrencyConvertible Bond (FCCB), Mezzanine Financing, Innovative Hybrids
Start-up FinanceBenefits 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 programmes, International challengesand bridges
Private Equity and Venture CapitalCharacteristics of Venture Capital Investments, Characteristics shared by Private Equity and VentureCapital as well as their key distinctions, Financing options available through Venture Capital, Investmentin Private equity, Benefits obtained through private equity, Drawbacks to the practice of private equity,, Due diligence, Exit Strategies
Artificial IntelligenceHistory of Artificial Intelligence, Applicability of Artificial Intelligence, Artificial Intelligence in Bankingand Finance, The future scope of Artificial Intelligence, Neural Networks, Control Theory andCybernetics, Rational Agents, Motion and Manipulation, Tools and Techniques of Artificial Intelligence,Artificial Intelligence and Morality
Business Analytics as Management ToolEssentials 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
Green and Sustainable FinancingISO Standards for Green Finance, Building Green Finance, International Best Practices towards GreenFinance, Public Policy in India, Progress of Green Finance in India, Challenges and way forward, Growthof Regulatory Framework, National Efforts towards Green and Sustainable Financing, RBI Views onClimate Risk and Sustainable Finance
Special Purpose Acquisition CompanyAdvantages 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

Elective Paper 1  – Rural Banking

Elective paper-1 consists of  four modules, these four modules are as follows:

  1. Module A- A Rural India
  2. Module B- Financing Rural Development
  3. Module C- Priority Sector Financing and Government initiatives
  4. Module D- Problems and prospects in Rural Banking

The detailed syllabus of Elective paper-1 is given below in the table: 

Elective Paper – 1: Rural Banking
Module – A: Rural India
Demographic featurePopulation, occupation, literacy, socio-economic development indicatorsHealth, nutrition, and education, – urban migration.
Characteristics of Rural SocietyCaste and power structure – rural social stratification, Economic FeaturesThe economic life of rural people, share in National incomeTrends in per capita income, rural money markets, rural indebtedness, rural povertyMain causes and methods of measuring rural poverty.
Rural infrastructureTransport, Power, Markets and other services. Agriculture EconomyStructure and characteristics of Indian agriculture, Role of agriculture in economic development, agricultureIndustry linkages, Resources and technical changes in agriculture, constraints to agriculture development, Emerging issues inIndian Agriculture. Rural Development Policy: Govt. policies and programs for rural farm and non-farm sectorsEconomic reforms and their impact on the rural economy.
Rural IssuesDevelopment issues, Management Issues, Marketing issues, Pricing issues
Module – B: Financing Rural Development
Regulation of Rural Financial ServicesFunction and policies of RBI in Rural Banking, NABARD Main functionsThe role, refinance support. Lead bank approachState-level and District Level Credit committees
Rural Credit InstitutionsCo-operative Credit Societies and Banks, Land Development Banks, Regional Rural Banks, Commercial BanksRole of Information and communication technologies in rural Banking-ModelsFinancial inclusion & inclusive growth for rural development bankingRural insurance micro-insurance scheme, the concept of Business Facilitators and Business Correspondents in rural financing
Financing agriculture/ allied activitiesCrop Loans Assessment, Sanction, Disbursement, replacementTerm loans for irrigation, farm mechanization, Godowns/ cold-storage facilities, etcFinancing allied agriculture activities like Horticulture, Fisheries, Social forestry, etcFinance against Warehouse/ cold storage receipts
Financing Rural Non-Farm Sector (RNFS)Importance of RNFS, Segments in RNFSRole of Development and Promotional Institutions in RNFS
SME FinanceDefinition of SME. Importance to the Indian economyFinancing of SME and small enterprise Refinance from SIDBIProject funding techniques and requirement assessmentCluster-based approach and joint finance with SIDBIMSMED Act 2006, CGTMSE, Working capital assessment of SMEsRisk rating of SME proposals, the role of rating agencies, and rating methodologyRevival of sick units; revival package and implementation, Stressed assets under rehabilitationDebt restructuring mechanism for SMEs.
Module – C: Priority Sector Financing and Government initiatives
Components of priority sectorRBI guidelines.
Government initiativesPoverty alleviation programs/ Employment programs/ Production oriented programs-rationale and philosophy, progress and impact, problems and deficienciesRural housing and Urban housing schemes under priority sector, they’re equity refinance, Educational loans
Module – D: Problems and prospects in Rural Banking
Role of rural bankingProblems of Rural branches of Commercial banks – transaction costs and risk costs. Technology-based Financial Inclusion.Emerging trends in rural banking-financing poor as a bankable opportunity, Micro Credit, Self Help Groups/ NGOs, linkages with banking, latest guidelines of GOI and RBI.

Elective Paper 2  – International Banking

Elective paper-2 consists of  four modules, these four modules are as follows:

  1. Module A-  International Banking and Finance
  2. Module B-  Foreign Exchange Business
  3. Module C-  International Trade
  4. Module D-  Derivatives

The detailed syllabus of Elective paper-2 is given below in the table: 

Elective Paper – 2: International Banking
Module – A: International Banking and Finance
International BankingGlobal Trends and Developments in International BankingInternational Financial Centres, Offshore Banking Units, SEZsProfitability of International Banking operationsCorrespondent Banking and inter – Bank BankingInvestment Banking, Wholesale Banking, Retail Banking, Merchant BankingInternational Financial Institutions: IMF, IBRD, BIS, IFC, ADBLegal and regulatory aspectsRisk Management
International Finance Fundamental Principles of Lending to MNCs, documentation, and MonitoringInternational Credit Policy Agencies and Global Capital MarketsRaising resources: Availability features and risks of various Equity and debt products like ECBs, ADRs, ECCBs and other types of Bonds, etc., Syndication of loansProject and Infrastructure Finance: Investments both in India (FII & FDI) and abroad, Joint ventures abroad by Indian Corporates. Investment opportunities abroad for resident Indians.Financing of mergers and acquisitions
Module – B: Foreign Exchange Business
Foreign Exchange Management Act (FEMA) and its philosophyDifferent types of Exchange RatesRBI and FEDAI: their role in regulating Foreign Exchange Business of Banks/ other Authorized Dealers.Rules regarding rate structure, cover operations, dealing room activities, and risk management principles, including correspondent Bank arrangements.NRI customers and various banking and investment products available to them under FEMA.Remittance facilities
Module – C: International Trade
Regulations covering international tradeVarious Aspects of International Trade, Government policies, DGFT and their schemes, Customs procedures, Banks’ role in implementing these policies and schemesWTO – its impactBalance of payment, the balance of trade, Current account, and capital account convertibility.Documents used in Trade: bill of exchange, invoice, Bill of lading, Airways bill, Insurance policy, etcRole of Banks in Foreign TradeLetters of credit; importance in international trade, various types of LCs, settlement of disputes, UCP 600, INCOTERMS.Exchange control relating to foreign trade. Returns required to be submitted to RBI
Import/ Export FinanceLaws governing trade finance i.e. FEMA, NI Act, Indian Stamp Act, EXIM policy, RBI/ FEDAI guidelineRole of Banks, including EXIM Bank, in financing Foreign Trade, various facilities to Exporters and importers including project finance, Forfaiting, and FactoringRisks involved in foreign trade finance: Country risk, Currency risk, Exchange risk, legal risk, etc., Role of ECGC.
Module – D: Derivatives
Treasury operations of banks and corporatesDerivatives as hedging instruments, types of instruments available in the Indian Market.RBI rules and guidelines regarding derivativesMathematics of derivative valuation and pricingRisk assessment of derivatives, Lessons from the recent crisis in the derivatives market.

Elective Paper 3  – Information Technology

Elective paper-3 consists of  four modules, these four modules are as follows:

  1. Module A- Introduction to Information Technology
  2. Module B- Systems and Design
  3. Module C- Applications in Banking
  4. Module D- Security, Controls, and Guidelines

The detailed syllabus of the Elective paper-3 is given below in the table: 

Elective Paper – 3: Information Technology
Module – A: Introduction to Information Technology
Impact of IT on BankingChanging Financial Environment and IT as a Strategic Response Hardware (H/ W)Software: (S/ W)
System SoftwareOperating Systems (Desktop OS/ Server OS) Windows (Desktop/ Server)/ UNIX (H. P. Unix, Sun Solaris, Linux, IBM AIX)
Computer Languages1st Generation Languages (Assembly), 2nd Generation (FORTRAN, ALGOL, COBOL)3rd Generation (C, C++, C# and JAVA, etc.) and 4th Generation Languages (Clipper, Power Builder, SQL, etc.) and 5th Generation Languages (Logic Programming Languages)Database Management System and Relational Database Management Systems (Oracle10g, MS SQL-2005, MySQL) Application Servers (Oracle 10AS, BeWeblogic, WebShare ) Web Servers (IIS, Apache, etc.)Web Browsers (IE 7.0, Firefox, etc.)
Application SoftwarePackaged Software, Custom-built Software, etc. Computer NetworksEquipment & Data Communication
Computer NetworksNetwork Layers, Topologies, Protocols, IP Address Mechanisms, LAN, WAN, VLANIntranet, Extranet, Internet, Network Equipment: Cables (BNC, Twisted Pair, Fibre Optics)Connectors, I/Os, Patch Panel, Jack Panels, Network Racks.
Module – B: Systems and Design
Systems and DesignSystems Design & Analysis Data modeling, Entity Relationships, Generic Data ModelingSemantic Data Modeling Normalization (from 1st to 3rd and BCNF, 4th & 5th level of normalization) Software Development Life Cycle (SDLC)Various phases of SDLC, In-house/ Out-sourcing, Software Project Management, Computer-Aided Software Engineering (CASE) Tools.System Architecture: Clients (Hardware/ Software), Servers (Hardware/ Software)Client-Server Architecture, 3 Tier Architecture, N-Tier Architecture, etc.Data Warehousing – Data Mining tools
MIS and Organization Support SystemsDSS, EIS, GDSS, Groupware, and Multimedia Business IntelligenceExpert Systems, Artificial Neural Networks (ANN) Grid Computing, Virtualization and Consolidation
Module – C: Applications in Banking
Applications in BankingCentralized Banking System/ Core Banking System/ System Administration, Database AdministrationApplication Server and Application Administration, Network Administration, Domains, ISPS, Hosting, Data Downloads/ UploadsBandwidths, Data Centre, Data Storage Devices, Data Backups/ RestorationDisaster Recovery Centre Delivery Channels – ATM, EFTPOS, Phone Banking, Internet Banking, SMS BankingMobile Banking, Credit/ Debit Cards, Smart Cards E-Mails, SMS alerts
E-Commerce Secure Electronic Transfer (SET), Payment Gateways (Credit card/ Debit cards), Authentication of payments, etc.PKI – CCA, CA, RA, Digital Certificate, Digital Signature, Non-repudiation of Origin, Nonrepudiation of ReceiptService – Level Agreement
Module – D: Security, Controls, and Guidelines
Threats to Information SystemPhysical (Insiders/ outsiders) ii) Viruses, Worms, Trojan horse, Malware, Software bombs, Phishing, Spoofing, Spamming, denial of service attacks, etcInformation System Security Measures, Policy, controls, ISO, 17799, BS7799, IS4477, IS Audit, BCP/ DRP, IT Act 2000Basel guidelines for E-banking, Various RBI Committee Reports on Information Systems.
IT Service Delivery & SupportService level management practices, Operations management – workload scheduling, network services managementPreventive maintenance, Systems performance monitoring process tools, techniques, Functionality of hardware, software, database.Drafting of RFP, system specifications, SLAs, Capacity planning & monitoringChange management processes/ scheduled, emergency in the configuration of production systems, application of patches, releases, etc.Incident & problem management practices, System resiliency tools, and techniques – fault tolerance, elimination of single point of failure, clustering.

Elective Paper 4  – Risk Management 

Elective paper-4 consists of  five modules, these five modules are as follows:

  1. Module A- An overview
  2. Module B- Credit Risk Management
  3. Module C- Operational Risk
  4. Module D- Market risk
  5. Module E- Risk Organization and Policy

The detailed syllabus of the Elective paper-4 is given below in the table: 

Elective Paper – 4: Risk Management
Module – A: An overview
Risk definition/ policiesRisk Process-Risk OrganizationKey risks – Credit risk, market risk, operational risk, liquidity risk, legal risk, interest rate risk, and currency risk
Asset Liability Management ALM ConceptALM organization ALCO techniques/ tools Simulation, Gap, Duration analysis, Linear and other statistical methods of control
Risk measurement & Control Risk Measurement & Control 
Risk managementCapital adequacy normsPrudential normsExposure normsConcept of Mid officeForwardsFuturesOptionsStrategies and Arbitrage opportunities Regulatory prescriptions of risk management
Module – B: Credit Risk Management
Credit Risk ManagementIntroductionBasel NormsThree pillars of Basel and Capital for Operational risk Framework for risk management RBI guidelines on risk management Risk rating and risk pricing Methods for estimating capital requirementsCredit risk – standardized approach Credit risk – an advanced approach Credit rating/ credit scoring and rating system design Credit BureausStress test and sensitivity analysis Internal Capital Adequacy Assessment Process (ICAAP)Introduction to structured products
Module – C: Operational Risk
Operational RiskIntroduction, Basel NormsRBI guidelines Likely forms of operational risk and causes for a significant increase in operational riskSound Principles of Operational Risk Management (SPOR)SPOR – organizational setup and key responsibilities of ORMSPOR – policy requirements and strategic approach for ORMSPOR identification, measurement, control/ mitigation of operational risks Capital allocation for operational risk, methodology, qualifying criteria for banks for the adoption of the methodsComputation of capital charge for operational risk
Module – D: Market Risk
Market Risk Introduction and definitionPrescriptions of Basel NormsLiquidity risk Interest rate risk foreign exchange risk Price risk (Equity)Commodity risk
Treatment of market risk under BaselStandardized duration methodInternal measurement approach – VaR
Module – E: Risk Organization and Policy
Risk Organization and PolicyRisk Management PolicyInter – linkages to – TreasuryCreditALCO

Elective Paper 5  – Central Banking

Elective paper-1 consists of  four modules, these four modules are as follows:

  1. Module A-  Rationale and Functions of Central Bank
  2. Module B-  Central banking in India
  3. Module C-  Monetary Policy and Credit Policy
  4. Module D-  Supervision and Financial Stability

The detailed syllabus of Elective paper-1 is given below in the table: 

Elective Paper – 1: Central Banking
Module – A: Rationale and Functions of Central Bank
Evolution and Functions of Central BankingAn Overview of Fiscal Policy
Functions of a Central BankIndia-Specific Issues: 
Contemporary IssuesDesirability, Autonomy and independence, CredibilityAccountability and transparency of a Central BankConflict with fiscal policies.
Module – B: Central banking in India
Reserve Bank of IndiaModule – B: Central Banking in India
India Specific Issues: Evolutions of Theory and Practice of Central BankingDevelopment of Central Banks in Developed and Developing Countries.
Module – C: Monetary Policy and Credit Policy
Monetary PolicyObjectives, Reconciling dual objectives The Taylor Rule, Indicators of Policy, instruments of policy (Bank Rate, OMO, CRR, SLR, etc.)Policy Transmission mechanism and channels, transparency of policiesLags in the policy.
Credit PolicyObjectives, Theory, and Practice, Instruments.
An overview of Fiscal PolicyImportance of Budgets, Union Budget, State Budget, Finances of Union and State Governments, Finance Commission.Striking balance between inflation and growth through monetary and fiscal policies.
Module – D: Supervision and Financial Stability
Indian Financial SystemConstituents of Indian Financial Markets and their RegulationEvolution of Bank Regulation and supervision
Financial StabilityFinancial Development Vs Financial stabilityRisks to Financial stability, Early warning signals, and remedial actionLiquidity Management, Regulation, and Supervision of BanksRisk Management in BanksThe Basel Norms, Prudential Norms, Effect of liberalization and Globalization on Financial StabilityLinkage to International Financial StabilityInternational standards and codesRole of Supervisor under Basel Norms.

FAQ on CAIIB Syllabus 2023

Q. What are the subjects in Caiib?

Ans: CAIIB Syllabus
2 Compulsory Papers- Advanced Bank Management. Bank Financial Management.
1 Elective paper (anyone from the list given below): Corporate Banking. Human Resources Management. Rural Banking. Information Technology. International Banking. Risk Management. Retail Banking. Central Banking. Co-operative Banking.

Q. Is Caiib difficult?

Ans: Since the examination is conducted twice a year, the candidates will get around 6 months to prepare for it. As we mentioned, the CAIIB examination is difficult and takes a lot of preparation.

Q. Which optional subject is best for Caiib?

Ans: What is the best optional subject for CAIIB? Information technology.

Q. How many attempts are allowed in Caiib?

Ans: CAIIB Number of Attempts
You can appear for the CAIIB Examination for four (4) consecutive attempts within a period of 2 years. If you cannot pass in 4 consecutive attempts, then you will have to re-enroll yourselves afresh.

CAIIB Syllabus 2023 and Exam Pattern (New), Syllabus PDF


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