CENTRAL BANKING SYLLABUS 2023 | NON-BANKING FINANCIAL COMPANIES AND PRIMARY DEALERS
In this post, we will be taking a brief look at Module E which is newly added to Central Banking Syllabus for CAIIB 2023 Exams.
The Certified Associate of the Indian Institute of Bankers test syllabus has changed for exams in 2023 and later. In order to pass the Central Banking 2023 exam, CAIIB candidates need to understand what topics have been added to the old Central Banking study material.
We have allowed ourselves to give a few details about the NBFCs that could appear in the CAIIB 2023 Tests.
CAIIB CENTRAL BANKING 2023 NEW MODULE | IIBF CAIIB REVISED SYLLABUS
In the CAIIB curriculum, nearly all of the examinations have changed, including the fifth Central Banking Elective Paper (CAIIB). Only Module E has changed from the Central Banking Syllabus 2023 Examinations provided by the Indian Institute of Banking and Finance. Other than this, the remaining modules of the Central Banking Exam are exactly the same:
A-Module = Rationale & Functions of the Central Bank
B-Module = Central Banking in India
C-Module = Monetary Policy and Credit Policy
D-Module = Supervision and Financial Stability
(New) E-Module = Non-Banking Financial Companies and Primary Dealers
So, the Central Banking syllabus has only been extended with respect to the 2023 Exams & nothing else has been reduced in the relevant Central Banking topics & concepts.
NON-BANKING FINANCIAL COMPANIES AND PRIMARY DEALERS | 2023 IIBF
NBFCs are companies registered under the Companies Act, 2013 that provide loans and advances, acquire securities issued by governments or local authorities, lease, hire-purchase, insurance, and chit businesses. They may also acquire shares, stocks, bonds, debentures, and securities of a similar nature except for institutions that have their main business activity in agriculture, industry, the sale of goods (other than securities), and the construction/sale of real estate.
While Non-banking financial companies (Residuary non-banking companies) are companies whose primary business is to receive deposits in one lump sum or in instalments by way of contributions or in any other way under any scheme or arrangement.
The main content that we would/might see in Module E of Central Banking will have text with respect to:
- How NBFCs have similar functions to banks.
- The difference between NBFCs & banks
- NBFCs lend and make investments
- The necessity of NBFC to get registered with RBI
- The requirements for registering with RBI
- The procedure for application for registering with RBI
- The different categories of NBFCs that are registered with the RBI
- The powers of the RBI with regard to ‘NBFCs’ (the 50-50 Principal Business Criteria)
- Action that can be taken against financial companies for making a false claim of being regulated by the RBI
- Financial institutions that conduct lending or investing as their primary business but lack an RBI Certificate of Registration may be subject to enforcement action.
- The list of instructions issued to NBFCs
- The regulations are applicable to non-deposit-accepting NBFCs.
- Various prudential regulations have been made applicable to NBFCs
- With a connection to NBFCs, owned funds and net owned fund
- The responsibilities of the registered NBFCs with regard to compliances and other information (CRR, SLR; Returns)
- Residuary Non-Banking Companies (RNBCs)
- Sources of Finance (Share Capital; its Types & components, Debentures and its types, Public deposits; Bank Finance; Commercial Paper; Short term/Long term Bonds, forfeiting, Factoring, ADRs, GDRs, ECBs).
- The role of the Company Law Board in the protection of the depositors’ interest.
- Pre-payment of public deposits
- RBI’s initiatives to protect the interest of NBFC depositors
- Primary Dealers
- Recent RBI initiatives that affect NBFCs.
- NBFC prudential standards (CRAR, ALM, Market risk, Operational risk)
- NBFC deposits vs. bank deposits
- operational facets of creating and keeping up accounts for various types of clients;
- Credit appraisal techniques
- Asset classification; NPA management; and loan recovery are examples of documentation and credit management and monitoring.
- Securities & different modes of charging, collaterals types & their characteristics.
- Types of investments: Govt. securities, Bonds, Inter-corporate deposits, Mutual Funds;
- Classification, Accounting and Mark to market requirements.
Let us see how much the Newly added Module E of Central Banking (Emerging Scenario in Central Banking) is going to hold value in this elective paper. The extension was called & it’s a matter of time to check how the candidates are going to prevail in the Certified Associate of the Indian Institute of Bankers Exams 2023. But what is sure is the fact that the candidates have to fully devote their sweat & time to the CAIIB Exams 2023 to get passing marks under the prevalence of negative markings.
HOW TO PASS CENTRAL BANKING 2023 IN ONE ATTEMPT?
The visible formula for success is preparing well.
And well preparation begins with the right mind & regular studying and then the right study material.
As far as being of sound mind is concerned, that is entirely up to the CAIIB applicants, and being regular can be aided to some amount by your coaching classes. Because if you join classes, you have to be regular to take the lesson and that is very helpful in creating the habit of taking some time off from your regular schedule.
The appropriate study material is next… Which study guide from the Institute should you pick from the many options available?
Well… we recommend Learning Sessions for the following reasons:
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So, you can make it easy by just joining Learning Sessions for the upcoming sessions.
More than 50,000 bankers (in Dec 2023) have used our study materials to pass the Indian Institute of Bankers Certified Associate Exams. Learning Sessions is dedicated to assisting candidates in any way it can, whether through online coaching sessions, mock exams, e-pdfs, mega classes, or question classes.
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