CAB Question bank Structure

This course provides a comprehensive overview of banking and finance, drawing from a wide range of topics relevant to the banking industry, with a focus on the concepts, regulations, and practices that are essential for banking professionals.

Our Topic Wise Quizzes consist of all these Frequently asked topics in Exam

I. Core Banking Operations & Regulations:

This module delves into the foundational aspects of banking, covering the legislative framework that governs banking operations in India, including:

• The Banking Regulation Act of 1949 which is the primary legislation that governs and controls banking companies in India.
• The Reserve Bank of India Act of 1934 which outlines the functioning and powers of the Reserve Bank of India.
• RBI circulars and guidelines that provide specific instructions for banks.
• Key committees and their roles.
• Core Banking Solutions (CBS), which are comprehensive software solutions that enable banks to manage their operations.
• The regulatory framework for Cooperative Banks and Regional Rural Banks (RRBs).
• The Basel Accords, which set international standards for banking regulation and supervision.
• Income Recognition and Asset Classification (IRAC) norms which are used by banks to classify their assets based on quality.
• Various sections of banking-related acts.
• Centralized Credit Processing Units (CCPUs) and their role in processing loan applications.
• Counterfeit currency and the procedures for handling and reporting it.
• Stamp duty regulations and their application in various financial documents.

II. Legal and Regulatory Compliance:

This module focuses on the legal and compliance aspects that banks must adhere to, including:

• The Income-tax Act of 1961.
• Insolvency procedures and the Insolvency and Bankruptcy Code (IBC).
• The Prevention of Money Laundering Act (PMLA) of 2002, and other Anti-Money Laundering (AML) laws.

III. Customer Accounts & Services:

This module covers the various types of accounts and services banks offer to customers, as well as the related regulations and guidelines including:

• Joint accounts.
• Savings Bank Accounts.
• Small accounts designed for individuals with limited KYC documentation.
• Non-resident ordinary (NRO) and Non-resident external (NRE) accounts.
• Know Your Customer (KYC) guidelines for customer verification.
• Nomination facilities for bank accounts and locker services.
• Locker services, including deposit requirements and regulations.

IV. International Banking and Finance:

This module deals with international transactions and regulations, such as:

• Foreign exchange markets and trading.
• The Fixed Income Money Market and Derivatives Association of India (FIMMDA).
• Interest Not Collected Account (INCA).
• The Liberalized Remittance Scheme (LRS) for individuals to remit funds abroad.

V. Financial Transactions & Instruments:

This module focuses on the various financial instruments used in banking, as well as their specific use:

• Automated Teller Machines (ATMs), their transactions and customer rights.
• Call money market operations.
• Certificates of deposit (CDs) and their regulatory guidelines.
• Cheques and their handling as per banking norms.
• Commercial paper.
• Cash management and related transactions.
• Cash flow analysis and budgeting.
• Treasury bills and their issuance by the Government of India.
• Short term finance options.
• Factoring of accounts receivable.
• Unrealized income in prior year (URIPY).
• Nostro accounts and their functions.
• Ledger and its use in banking.

VI. Lending, Credit & Security:

This section covers the different aspects of lending, credit risk, and the various forms of security:

• Loans and their classification.
• Term loans.
• Working capital management and assessment.
• Lines of credit and their utilization.
• Micro, Small, and Medium Enterprises (MSME) lending and restructuring.
• The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.
• Export finance and related mechanisms.
• Guarantees, including bank guarantees and corporate guarantees.
• Credit rating and its significance.
• Non-Performing Assets (NPAs) and their management.
• Special Mention Accounts (SMAs) and their classification.
• Provisions for potential losses.
• The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002.
• Mortgages and related concepts.
• Immovable property and its valuation.
• Movable goods and their use as collateral.

VII. Bank Lending and Operations:

This section includes topics related to the day-to-day operations of banks that were not covered elsewhere.

VIII. Financial Management & Risk:

This module encompasses crucial areas of financial planning and risk management within banks, including:

• Budgeting principles and practices.
• Capital budgeting techniques.
• Cash budget.
• Capital Adequacy and its importance in maintaining financial stability.
• Risk management strategies and their importance.
• Portfolio management and diversification.
• Investment strategies and asset allocation.
• Interest calculation methods.

IX. Audit & Compliance:

This module focuses on the various auditing and compliance functions within a bank, including:

• Concurrent audit.
• General audit procedures.
• Legal audit requirements.
• Statutory audit.
• Due diligence procedures for loans.

This course provides a blend of theoretical knowledge and practical insights, enabling participants to gain a holistic understanding of the banking sector and its various facets. By covering these topics, the course aims to prepare individuals for a variety of roles within the banking industry, while ensuring they are knowledgeable about the regulatory and compliance aspects of banking operations.