As the CAIIB 2026 May–June session approaches, candidates should focus on revision and regular MCQ practice to improve retention and exam performance. Module F is an important part of the Central Banking elective, covering NBFCs, Primary Dealers, and other financial institutions that support India’s financial system. The module emphasizes regulatory frameworks, supervisory measures, and practical financial sector developments. Structured quizzes and MCQ-based PDFs help candidates strengthen concepts and prepare effectively for the exam.
Download CAIIB Central Banking Module F Practice Quiz
This exam-focused PDF is designed to help banking professionals revise Module F quickly and effectively. It covers key topics such as NBFC regulation and supervision, the scale-based regulatory framework, Special Liquidity Scheme (SLS), HFC-NBFC alignment, and SARFAESI provisions.
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Attempt CAIIB Central Banking Module F Quiz
Attempt the CAIIB Central Banking Module F quiz to improve your accuracy, conceptual clarity, and confidence for the elective paper.
1. Under the Scale-Based Regulatory (SBR) framework introduced by RBI for NBFCs, which layer consists of NBFCs that are too big to fail and have significant systemic importance?
2. The Prompt Corrective Action (PCA) framework for NBFCs, introduced by RBI, uses which of the following as triggers for invoking corrective action?
3. Which category of NBFC under the Scale-Based Regulatory framework is subject to regulations that are closest to those applicable to commercial banks, including mandatory listing requirements?
4. Under the SARFAESI Act, 2002, what is the minimum outstanding amount of secured debt for which an NBFC can take action against defaulting borrowers under the provisions of the Act?
5. The Special Liquidity Scheme (SLS) for NBFCs and HFCs announced in 2020 was aimed at addressing which critical problem faced by these entities?
6. Under RBI’s regulations, an NBFC is prohibited from declaring dividend unless which of the following conditions is satisfied?
7. Housing Finance Companies (HFCs) were brought under the regulatory ambit of which body after the amendment to the National Housing Bank Act in 2019?
8. Which of the following is NOT a category under the NBFC classification system based on activity?
9. A Core Investment Company (CIC) is exempt from RBI registration if its asset size is below which threshold?
10. Under the Scale-Based Regulatory framework for NBFCs, which layer forms the base and is subject to the least stringent regulations?
11. Which of the following statements about Primary Dealers (PDs) in India is CORRECT?
12. Standalone Primary Dealers (SPDs) are required to maintain a minimum Net Owned Fund (NOF) of:
13. The primary responsibility of Primary Dealers in the Indian government securities market includes:
14. Under RBI guidelines, Primary Dealers are permitted to borrow funds through which of the following instruments?
15. In the context of PD liquidity support, the RBI provides liquidity to Primary Dealers through which of the following mechanisms?
16. Which of the following best describes the evolution of Primary Dealers in India?
17. Which committee’s recommendations led to the introduction of the Primary Dealer system in India?
18. Under RBI regulations, a Primary Dealer that fails to meet its underwriting commitment in a government securities auction faces:
19. Bank-PDs (banks operating as Primary Dealers) differ from Standalone Primary Dealers (SPDs) primarily because:
20. The Capital Adequacy Ratio (CAR) requirement for Standalone Primary Dealers (SPDs) is prescribed as a minimum of:
Quiz Summary
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What is covered in CAIIB Central Banking Module F?
CAIIB Central Banking Module F focuses on NBFCs, Primary Dealers (PDs), and other key institutions that support India’s financial system. It explains their role in maintaining liquidity, facilitating credit flow, supporting the government securities market, and ensuring financial stability. The module also highlights the RBI’s regulatory and supervisory functions over these entities. As the topics are frequently tested through conceptual and statement-based MCQs, regular quiz practice helps improve accuracy, understanding, and exam confidence.
| Topic | Details |
| NBFC Regulation & Supervision | Registration norms, classification, RBI supervision, prudential regulations |
| Scale-Based Regulation | Risk-based framework introduced by RBI for NBFCs |
| Special Liquidity Scheme | Liquidity support measures for NBFCs during stress |
| Housing Finance Companies | Alignment of HFC regulations with NBFC framework |
| SARFAESI & Supervisory Policies | Secured debt norms, PCA framework, auditor appointment |
| Primary Dealers | Evolution, roles, liquidity support, operational framework |
| Risk Management | Capital adequacy, investment norms, supervisory provisions |
| Appendix Topics | RBI committees, international institutions, CBDC, glossary terms |
Why should you attempt CAIIB Central Banking Module F Quiz regularly?
Regular quiz practice helps candidates develop a clear understanding of practical banking concepts in an exam-oriented manner. Since Module F emphasizes regulatory frameworks and RBI guidelines, conceptual clarity is more important than rote learning. Solving MCQs regularly improves speed, retention, and revision efficiency while boosting exam confidence. For working professionals with limited study time, structured quizzes are an effective tool for identifying weak areas and strengthening key financial sector concepts.
- Improves understanding of NBFC regulations and frameworks
- Helps in revising RBI supervisory measures quickly
- Enhances MCQ solving speed and conceptual accuracy
- Strengthens preparation for statement-based questions
- Builds confidence for the Central Banking elective paper
What are the important topics in NBFC and primary dealers (Module F)?
This section explains the development, regulation, and supervision of NBFCs along with the role of Primary Dealers in the financial market. It helps candidates understand how these institutions support lending, liquidity, and the government securities market under RBI supervision.
Questions from this area are usually conceptual and based on regulations, supervisory frameworks, and operational roles. Candidates should focus on understanding the practical application of these concepts instead of only memorizing definitions.
| Topic | Details |
| NBFCs: Development, Regulation & Supervision | • Registration conditions • NBFCs under RBI & other regulators • Classification categories • Growth & prudence in NBFC sector • RBI’s role in development & regulation • Scale-based regulatory framework • Special Liquidity Scheme (SLS) • Alignment of HFCs with NBFCs • SARFAESI Act: Secured debt limit • Dividend declaration • Supervisory policies • Auditor appointment • PCA framework for NBFCs • Pandemic impact |
| Primary Dealers (PDs) | • Evolution of PDs • Eligibility conditions • Roles & responsibilities • Liquidity support from RBI • Operations & performance • Financial performance of SPDs • Operational, regulatory & supervisory provisions • Investment guidelines • Capital adequacy & risk management |
How does Module F help in understanding RBI supervision?
Module F provides practical insights into how the RBI supervises financial institutions and maintains financial stability. It covers key concepts such as prudential norms, capital adequacy, liquidity support, and supervisory frameworks for NBFCs and Primary Dealers. The module is valuable not only for CAIIB preparation but also for banking professionals working in credit, treasury, risk, and compliance functions. Understanding these frameworks helps connect theoretical concepts with real-world banking operations.
| Area | Importance |
| RBI Regulation | Ensures stability and discipline in financial institutions |
| Liquidity Management | Supports smooth functioning of financial markets |
| Risk Management | Helps control operational and financial risks |
| Prudential Norms | Protects the financial system from instability |
| Supervisory Framework | Monitors compliance and institutional health |
What is included in the appendix of the central banking syllabus?
The appendix section provides additional reference material that helps candidates understand important developments and institutions connected with central banking. It includes committees formed by RBI, international financial institutions, cryptocurrencies, CBDC, sustainable finance, and key banking terms.
These topics are useful for conceptual understanding as well as factual MCQs in the examination. Candidates should revise this section carefully because many direct and short questions can be asked from these areas.
| Topic | Details |
| Important References | 1. Important Committees set up by RBI 2. Major international financial institutions: genesis, objectives & functions 3. A note on cryptocurrencies & CBDC 4. RBI discussion paper/report on sustainable finance 5. Glossary of central banking terms |
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FAQs
Module F mainly covers NBFCs, Primary Dealers, RBI supervision, regulatory frameworks, CBDC, and important financial system references.
Module F is important because it explains practical regulatory and supervisory functions frequently asked in conceptual MCQs.
NBFCs are financial institutions that provide banking-related services without holding a full banking license.
RBI supervises, regulates, and monitors NBFCs to ensure financial stability and compliance.
It is an RBI framework that regulates NBFCs according to their size, risk level, and importance.
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