Preparing for the JAIIB PPB (Principles & Practices of Banking) 2026 exam can feel challenging with so many topics to cover. The good news is that while exact questions may not repeat, certain topics do appear frequently every year. By focusing on these high-frequency areas and practicing MCQs from repeated topics, you can boost your confidence and maximize your score.
In this blog, we provide a curated list of 100 expected PPB questions, along with tips, preparation strategies, and a downloadable PDF to help you study efficiently.
Download PPB Questions For JAIIB Exam
The direct link to download the JAIIB PPB questions PDF is as follows:
What is the syllabus for JAIIB PPB 2026?
The JAIIB PPB paper is designed to test your understanding of banking principles, regulations, and practical applications. The revised syllabus covers 4 main modules:
| Module | Topics |
| Module A – Indian Financial System | Overview of Indian Financial System, Money Markets, Capital Markets, Government Securities Market, Insurance & Mutual Funds |
| Module B – Functions of Banks | Accepting Deposits, Lending, KYC/AML guidelines, Retail Banking, Ancillary Services, IT in Banking, Financial Inclusion |
| Module C – Banking Technology | Core Banking, Payment & Settlement Systems (NEFT, RTGS, IMPS, UPI), Digital Banking, Cybersecurity basics, Fintech |
| Module D – Support Services: Marketing & HRM | Marketing of Bank Products, Customer Relationship Management, Human Resource Management in Banks |
What is the exam pattern and marking scheme?
Understanding the exam structure is crucial for effective preparation:
| Parameter | Details |
| Paper | Principles & Practices of Banking (PPB) |
| Number of Questions | 100 MCQs |
| Duration | 2 hours |
| Passing Marks | 50/100 (Relaxation: 45 in one subject if overall 50% aggregate) |
| Mode | Online (CBT) |
| Conducted By | IIBF (Indian Institute of Banking & Finance) |
| Negative Marking | 0.25 marks per wrong answer in some formats |
Also Check,
Which topics are most repetitive in PPB paper?
Based on the last 2 years of JAIIB exams, certain topics appear frequently. These are your high-priority areas for focused practice:
- Functions of RBI – Banker to Government, lender of last resort, issuing currency
- Deposits & Accounts – CASA, Term Deposits, NRE/NRO/FCNR accounts
- KYC & AML – Politically Exposed Persons (PEP), Customer Due Diligence (CDD)
- Negotiable Instruments – Cheques, bills of exchange, promissory notes; crossing & endorsement
- Loan Types – Priority Sector Lending norms, retail loans, working capital, term loans
- Payment Systems – NEFT, RTGS (minimum ₹2 lakh), IMPS (24×7), UPI
- Acts & Regulations – Banking Regulation Act, RBI Act, SARFAESI Act, PMLA, Negotiable Instruments Act
- Financial Inclusion – PM Jan Dhan Yojana, BCs (Business Correspondents)
- Banking Ombudsman – Grievance redressal under RBI
- Digital Banking & Fintech – Mobile banking, cybersecurity, digital wallets
Also download the JAIIB Previous Year Papers PDF
Expected PPB Questions for JAIIB Exam
Q1. Which of the following instruments is NOT a negotiable instrument under the NI Act, 1881?
- A) Promissory note
- B) Bill of exchange
- C) Cheque
- D) Fixed Deposit Receipt
Answer: D) Fixed Deposit Receipt
Q2. The presentment of a bill of exchange for acceptance is required in which of the following cases?
- A) All bills of exchange
- B) Bills payable after sight or after a specified event
- C) Demand bills only
- D) Only foreign bills
Answer: B) Bills payable after sight or after a specified event
Q3. What is the minimum balance requirement for a Basic Savings Bank Deposit Account (BSBDA)?
- A) ₹500
- B) ₹1,000
- C) Zero (no minimum balance required)
- D) ₹100
Answer: C) Zero (no minimum balance required)
Q4. Which of the following statements about a Current Account is correct?
- A) Current accounts earn interest at savings account rates
- B) Overdraft facility is not available in current accounts
- C) No interest is paid on current account balances as per RBI guidelines
- D) Current accounts can only be opened by individuals
Answer: C) No interest is paid on current account balances as per RBI guidelines
Q5. A customer wants to open a Recurring Deposit (RD) account. Which statement is correct?
- A) The customer deposits a lump sum amount once and earns interest
- B) The customer deposits fixed amounts at regular intervals and gets a lump sum on maturity
- C) The deposit is repayable on demand
- D) RD accounts cannot be prematurely closed
Answer: B) The customer deposits fixed amounts at regular intervals and gets a lump sum on maturity
Also Check:
Q6. A nomination facility in bank accounts is governed by which section of the Banking Regulation Act?
- A) Section 45ZA
- B) Section 35A
- C) Section 21A
- D) Section 10A
Answer: A) Section 45ZA
Q7. A post-dated cheque (PDC) presented before its date should be:
- A) Paid immediately if funds are available
- B) Returned unpaid as it is not yet valid
- C) Held by the bank and paid on the date mentioned
- D) Converted into a demand draft
Answer: B) Returned unpaid as it is not yet valid
Q8. Which of the following statements about ‘payment in due course’ is correct?
- A) Payment must be made only to account holders of the paying bank
- B) Payment must be made in good faith, without negligence, at the proper time, and to the right person
- C) Payment in due course applies only to RTGS and NEFT transactions
- D) Payment in due course means the bank ensures the payee’s identity through biometrics
Answer: B) Payment must be made in good faith, without negligence, at the proper time, and to the right person
Q9. The primary objective of the Know Your Customer (KYC) guidelines is:
- A) To increase bank deposits by verifying wealthy customers
- B) To prevent banks from being used for money laundering and terrorist financing
- C) To ensure customers maintain minimum balance requirements
- D) To facilitate faster account opening for all customers
Answer: B) To prevent banks from being used for money laundering and terrorist financing
Q10. Which of the following is an Officially Valid Document (OVD) for KYC purposes?
- A) Voter ID card, Aadhaar, Passport, Driving Licence, NREGA Job Card
- B) PAN card only
- C) Bank statement from another bank
- D) Employer identity card
Answer: A) Voter ID card, Aadhaar, Passport, Driving Licence, NREGA Job Card
Scenario: Mrs. Sunita, an illiterate widow aged 68, holds a savings account at Mahalaxmi Bank. She suffers a stroke and becomes bedridden, unable to visit the branch or sign documents. Her son Rahul wants to operate the account on her behalf. The bank is also asked by her daughter Priya to add her name as a joint holder.
CS-Q1. What is the correct procedure for allowing Rahul to operate Mrs. Sunita’s account given her incapacitation?
- A) Rahul can operate the account by simply presenting his Aadhaar card at the branch
- B) The bank should obtain a court order appointing Rahul as her legal guardian before allowing account operation
- C) Mrs. Sunita can authorize Rahul through an Authorisation-cum-Indemnity letter with a thumb impression witnessed by two independent witnesses, or through a Power of Attorney
- D) The bank should freeze the account until Mrs. Sunita recovers and visits the branch personally
Answer: C) Mrs. Sunita can authorize Rahul through an Authorisation-cum-Indemnity letter with a thumb impression witnessed by two independent witnesses, or through a Power of Attorney
CS-Q2. Regarding Priya’s request to be added as a joint holder — can the bank add her name to the existing account, and what mandate options are available?
- A) Adding a joint holder to an existing account is not permitted — Priya must open a separate new account
- B) The bank can add Priya as a joint holder with Mrs. Sunita’s consent; mandate options include ‘Either or Survivor,’ ‘Jointly,’ or ‘Former or Survivor’
- C) Joint accounts are permitted only between spouses — Priya cannot be added as Mrs. Sunita’s daughter
- D) Priya can be added only as a nominee, not as a joint account holder
Answer: B) The bank can add Priya as a joint holder with Mrs. Sunita’s consent; mandate options include ‘Either or Survivor,’ ‘Jointly,’ or ‘Former or Survivor’
Download JAIIB important MCQs Free PDF
Also, download the JAIIB important MCQs free PDF here:
What type of questions are expected in PPB?
PPB questions test both knowledge and practical understanding. The common types include:
| Question Type | Frequency | Example Topics |
| Conceptual MCQs | Very High | Principles of banking, regulations, KYC/AML, RBI functions |
| Numerical MCQs | Moderate | Interest calculations, financial ratios |
| Scenario-based / Application | High | Loan approvals, payment system operations, real banking situations |
| Regulatory/Update-based | Medium | RBI guidelines, recent circulars, Priority Sector Lending norms |
FAQs
Candidates need at least 50/100 in PPB, with relaxation to 45 if overall aggregate is 50% or more.
High-frequency topics include RBI functions, KYC/AML, CASA accounts, payment systems, and PSL.
The exam is 2 hours long and conducted online (CBT) with 100 MCQs.
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