The JAIIB Practice Book is a helpful tool for candidates preparing for the Junior Associate of the Indian Institute of Bankers (JAIIB) exam. Aligned with the latest syllabus and exam pattern, this book provides a solid base for your studies. The weekly “JAIIB Genius” series focuses on important topics like Retail Banking & Wealth Management (RBWM) and Indian Economy & Indian Financial System (IEIFS). It also includes practice questions for core subjects such as Advanced Financial Management (AFM) and Principles & Practices of Banking (PPB), allowing you to practice effectively and enhance your performance.
Free JAIIB Weekly eBook
A key feature of these books is that they provide practice questions on important topics like Trial Balance, Rectification of Errors, and Closing Entries, helping aspirants assess whether they have a clear understanding of these concepts. The book also includes questions on specialized topics such as the Bankers’ Special Relationship, Foreign Exchange Arithmetic, and key legal frameworks like the SARFAESI Act 2002.
JAIIB Exam Overview
The JAIIB Exam is a comprehensive exam conducted by the Indian Institute of Banking & Finance (IIBF) for banking professionals. It is designed to assess the knowledge and skills of candidates working in banks or financial institutions, helping them enhance their understanding of the banking sector. Successful completion of the exam not only strengthens your banking expertise but can also lead to career advancement opportunities.
- Medium: English or Hindi (chosen during registration)
- Conducting Body: Indian Institute of Banking & Finance (IIBF)
- Mode of Exam: Online
- Frequency: Twice a year (May and November cycles)
- Duration: 2 hours per paper
- Number of Papers: 4 compulsory papers
- Question Type: Multiple Choice Questions (MCQs)
What is the JAIIB exam pattern?
The JAIIB Exam Pattern is designed to test the knowledge of candidates across various important banking topics. The exam consists of four papers, and each paper is divided into modules that cover different aspects of banking, finance, and economics. Below is the exam pattern for each paper:
- Total Questions: 100 questions per paper
- Marking Scheme: 1 mark per question
- Total Marks per Paper: 100 marks
- Duration per Paper: 2 hours
- Negative Marking: No negative marking
- Language: Hindi or English (selected during registration)
What are the JAIIB exam modules?
Each of the four papers in the JAIIB Exam is divided into modules that cover different topics. Here’s a breakdown of the modules for each paper:
| Paper | Modules |
| Indian Economy & Indian Financial System (IE & IFS) | Module A: Indian Economic Architecture Module B: Economic Concepts Related to Banking Module C: Indian Financial Architecture Module D: Financial Products and Services |
| Principles & Practices of Banking (PPB) | Module A: General Banking Operations Module B: Functions of Banks Module C: Banking Technology Module D: Ethics in Banks and Financial Institutions |
| Accounting & Financial Management for Bankers (AFM) | Module A: Accounting Principles and Processes Module B: Financial Statements and Core Banking Systems Module C: Financial Management Module D: Taxation and Fundamentals of Costing |
| Retail Banking & Wealth Management (RBWM) | Module A: Introduction to Retail Banking Module B: Retail Products and Recovery Module C: Support Services – Marketing of Banking Services/Products Module D: Wealth Management |
Download the JAIIB chapter wise notes PDF
The direct links to download the JAIIB chapter-wise notes are provided below:
JAIIB Practice Questions
The JAIIB Practice Questions is an essential resource for candidates preparing for the JAIIB exam. It includes a comprehensive set of practice questions aligned with the exam syllabus, helping candidates strengthen their understanding and improve their performance.
Also download the JAIIB Previous Year Papers PDF
Paper 1: Indian Economy & Indian Financial System (IE&IFS)
Q1. Which of the following is the apex body for rural credit in India?
- a. RBI
- b. SBI
- c. NABARD
- d. SIDBI
Ans – c. NABARD
Q2. The concept of ‘Banker’s Lien’ means:
- a. Bank’s right to sell the securities pledged
- b. Bank’s general right to retain goods/securities until dues are paid
- c. Bank’s right to set off two accounts
- d. Bank’s right to attach borrower’s property
Ans – b. Bank’s general right to retain goods/securities until dues are paid
Q3. Which of the following is NOT a Negotiable Instrument under the NI Act, 1881?
- a. Cheque
- b. Promissory Note
- c. Bill of Exchange
- d. Fixed Deposit Receipt
Ans – d. Fixed Deposit Receipt
Q4. SEBI was established in which year?
- a. 1988
- b. 1992
- c. 1995
- d. 1999
Ans – b. 1992
Q5. Which of the following accounts is freely repatriable outside India?
- a. NRO Account
- b. FCNR Account
- c. Resident Foreign Currency Account
- d. Basic Savings Account
Ans – b. FCNR Account
Q6. The minimum maturity period for a Commercial Paper (CP) is:
- a. 7 days
- b. 15 days
- c. 30 days
- d. 90 days
Ans – a. 7 days
Q7. Which of the following is a Direct Tax in India?
- a. GST
- b. Customs Duty
- c. Income Tax
- d. Excise Duty
Ans – c. Income Tax
Q8. A cheque that bears the words “Not Negotiable” between two parallel lines is called:
- a. Account Payee Cheque
- b. Special Crossing
- c. Not Negotiable Crossing
- d. General Crossing
Ans – c. Not Negotiable Crossing
Q9. EXIM Bank of India was established to:
- a. Promote domestic trade
- b. Finance and promote India’s foreign trade
- c. Regulate stock exchanges
- d. Provide agricultural credit
Ans – b. Finance and promote India’s foreign trade
Q10. The full form of RTGS is:
- a. Real Time Gross Settlement
- b. Real Time General Settlement
- c. Rapid Transfer Gross System
- d. Real Time Gross System
Ans – a. Real Time Gross Settlement
Paper 2: Principles and Practices of Banking (PPB)
Q1. Under the SARFAESI Act 2002, banks can enforce security interest without court intervention if the loan is classified as NPA and the secured asset value is more than:
- a. ₹50,000
- b. ₹1,00,000
- c. ₹5,00,000
- d. ₹10,00,000
Ans – b. ₹1,00,000
Q2. As per RBI guidelines, an account is classified as a Non-Performing Asset (NPA) if interest or installment remains overdue for more than:
- a. 30 days
- b. 60 days
- c. 90 days
- d. 180 days
Ans – c. 90 days
Q3. The doctrine of ‘indoor management’ protects:
- a. Bank employees from fraudulent customers
- b. Outsiders dealing with a company in good faith
- c. Directors from shareholders
- d. RBI from commercial banks
Ans – b. Outsiders dealing with a company in good faith
Q4. Which of the following is NOT a valid reason for dishonoring a cheque?
- a. Insufficient funds
- b. Signature mismatch
- c. Cheque presented before the date mentioned
- d. Cheque presented during banking hours
Ans – d. Cheque presented during banking hours
Q5. The Banking Ombudsman scheme is issued under which section of the Banking Regulation Act?
- a. Section 35A
- b. Section 45L
- c. Section 45M
- d. Section 47
Ans – a. Section 35A
Q6. In a letter of credit transaction, the bank that opens the LC on behalf of the importer is called:
- a. Advising Bank
- b. Confirming Bank
- c. Issuing Bank
- d. Negotiating Bank
Ans – c. Issuing Bank
Q7. Which of the following is NOT a mode of creating charge on assets?
- a. Pledge
- b. Hypothecation
- c. Mortgage
- d. Indemnity
Ans – d. Indemnity
Q8. A Garnishee Order is applicable on which of the following balances in a customer’s account?
- a. Future credits only
- b. Existing credit balance at the time of order
- c. Both existing and future credits
- d. Overdraft accounts only
Ans – b. Existing credit balance at the time of order
Q9. Section 131 of the NI Act provides protection to a collecting banker if it collects a cheque:
- a. For a fictitious payee
- b. In good faith and without negligence
- c. After the cheque is stale
- d. Without the drawer’s signature
Ans – b. In good faith and without negligence
Q10. The maximum period for which a Fixed Deposit can be accepted by a commercial bank is:
- a. 3 years
- b. 5 years
- c. 7 years
- d. 10 years
Ans – d. 10 years
Also Check:
Paper 3: Accounting and Financial Management for Bankers (AFM)
Q1. Which of the following accounting concepts states that expenses should be matched with the revenue they help generate?
- a. Consistency Concept
- b. Matching Concept
- c. Prudence Concept
- d. Going Concern Concept
Ans – b. Matching Concept
Q2. If total assets of a firm are ₹10,00,000 and total liabilities are ₹6,00,000, the owner’s equity is:
- a. ₹16,00,000
- b. ₹6,00,000
- c. ₹4,00,000
- d. ₹2,00,000
Ans – c. ₹4,00,000
Q3. Which of the following appears on the credit side of a Trial Balance?
- a. Drawings
- b. Purchases
- c. Capital
- d. Machinery
Ans – c. Capital
Q4. The Debt-Equity Ratio is calculated as:
- a. Total Debt / Net Worth
- b. Net Worth / Total Debt
- c. Total Assets / Net Worth
- d. Net Profit / Total Debt
Ans – a. Total Debt / Net Worth
Q5. Amortization refers to:
- a. Depreciation of tangible assets
- b. Writing off intangible assets over their useful life
- c. Revaluation of fixed assets
- d. Provision for bad debts
Ans – b. Writing off intangible assets over their useful life
Q6. If cost price is ₹800 and profit is 25% on cost, the selling price will be:
- a. ₹900
- b. ₹950
- c. ₹1,000
- d. ₹1,100
Ans – c. ₹1,000
Q7. Which of the following is an example of a Capital Receipt?
- a. Sale of goods
- b. Interest received on investments
- c. Proceeds from issue of shares
- d. Commission received
Ans – c. Proceeds from issue of shares
Q8. Working Capital is defined as:
- a. Fixed Assets minus Current Liabilities
- b. Current Assets minus Current Liabilities
- c. Total Assets minus Total Liabilities
- d. Current Assets minus Fixed Assets
Ans – b. Current Assets minus Current Liabilities
Q9. A sum of ₹5,000 is invested at 10% per annum compound interest. What will be the amount after 2 years?
- a. ₹5,500
- b. ₹6,000
- c. ₹6,050
- d. ₹6,100
Ans – c. ₹6,050
Q10. Which of the following is NOT included in the Cash Flow Statement?
- a. Operating Activities
- b. Investing Activities
- c. Financing Activities
- d. Budgeting Activities
Ans – d. Budgeting Activities
Paper 4: Retail Banking and Wealth Management (RBWM)
Q1. Under PM Jan Dhan Yojana, the overdraft facility available to eligible account holders is up to:
- a. ₹2,000
- b. ₹5,000
- c. ₹10,000
- d. ₹15,000
Ans – c. ₹10,000
Q2. Which of the following is NOT a feature of a Term Loan?
- a. Fixed repayment schedule
- b. Interest charged on outstanding balance
- c. Withdrawal and redeposit allowed anytime
- d. Secured or unsecured nature
Ans – c. Withdrawal and redeposit allowed anytime
Q3. The concept of cross-selling in banking means:
- a. Selling banking products to competitors
- b. Selling additional products to existing customers
- c. Selling products below market price
- d. Selling foreign currency to customers
Ans – b. Selling additional products to existing customers
Q4. A Systematic Investment Plan (SIP) is associated with which financial product?
- a. Fixed Deposits
- b. Mutual Funds
- c. Insurance Policies
- d. Government Bonds
Ans – b. Mutual Funds
Q5. Under PMAY (Pradhan Mantri Awas Yojana), the interest subsidy is provided under which scheme?
- a. MUDRA
- b. CGTMSE
- c. CLSS (Credit Linked Subsidy Scheme)
- d. SARFAESI
Ans – c. CLSS (Credit Linked Subsidy Scheme)
Q6. CRR (Cash Reserve Ratio) is maintained by commercial banks with:
- a. SEBI
- b. NABARD
- c. RBI
- d. Finance Ministry
Ans – c. RBI
Q7. Which of the following best describes ‘Wealth Management’?
- a. Managing only fixed deposits of HNI customers
- b. Comprehensive financial planning and investment advisory for high net worth individuals
- c. Providing loans to ultra-rich customers
- d. Managing government securities only
Ans – b. Comprehensive financial planning and investment advisory for high net worth individuals
Q8. The full form of CIBIL is:
- a. Central Indian Bureau of Intelligence and Loans
- b. Credit Information Bureau India Limited
- c. Central Institution for Banking and Insurance Loans
- d. Credit and Insurance Bureau of India Limited
Ans – b. Credit Information Bureau India Limited
Q9. As per RBI guidelines, loans given to Self Help Groups (SHGs) are classified under which sector?
- a. Corporate Sector
- b. Priority Sector
- c. Non-Priority Sector
- d. Infrastructure Sector
Ans – b. Priority Sector
Q10. Which of the following documents is NOT required for KYC compliance?
- a. Aadhaar Card
- b. PAN Card
- c. Voter ID
- d. Employee ID
Ans – d. Employee ID
Download JAIIB important MCQs Free PDF
Our JAIIB study material has been designed to cover questions based on all the topics thereby allowing professional to practice questions from each and every topic of the 4 compulsory JAIIB papers.
FAQs
It is a professional certification by IIBF for banking staff to strengthen their knowledge of banking and finance.
The exam consists of four compulsory papers: IE & IFS, PPB, AFM, and RBWM.
Ordinary IIBF members working in banks/financial institutions, generally 12th pass or equivalent, with special provisions for clerical/supervisory staff.
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