JAIIB PPB Syllabus 2026: Complete Module-Wise Guide to Principles & Practices

If you are preparing for Paper 2 of the flagship banking exam. The JAIIB PPB syllabus is the single most important document you will ever read. PPB - Principles.

Practices of Banking is the backbone paper of the revised JAIIB course conducted by the Indian Institute of Banking & Finance (IIBF). It tests whether you truly understand how a bank works. From the Indian financial system right down to the ethics you practise at your branch counter every single day.

This guide is your one-stop, 2026-ready reference. We break down the entire Principles. Practices of Banking syllabus module by module.

Explain the exam pattern. Share a realistic study plan, and answer the questions every candidate asks. No fluff.

Just the clarity you need to clear PPB in a single attempt.

Why the JAIIB PPB Paper Matters for Your Banking Career

The JAIIB (Junior Associate of the Indian Institute of Bankers) certification is far more than a line on your resume. For most public and private sector bankers. Clearing JAIIB unlocks a merit-based increment. Brings you one step closer to your next promotion.

Among the JAIIB papers. Principles. Practices of Banking stands out because it mirrors your real job.

The concepts you learn here - banker-customer relationship. KYC norms. Lending principles.

NPA classification - are the same ones you apply at work. Master PPB and you do not just pass an exam. You become a sharper.

More confident banker.

JAIIB PPB Exam Pattern at a Glance

Before you dive into the JAIIB PPB syllabus. Understand how the paper is structured. PPB is an objective, multiple-choice paper delivered online. Questions range from straightforward knowledge-based ones to tricky case-study. Numerical questions designed to test application.

Important: IIBF revises exam details from time to time. Always verify the total marks. Passing criteria. Time limit. Whether negative marking applies on the latest official IIBF notification for your attempt.

JAIIB PPB Syllabus 2026: The Five Modules

The complete Principles. Practices of Banking syllabus is organised into five clear modules. Here is the bird's-eye view before we go deep into each one.

Module A: Indian Financial System

Module A sets the foundation. It gives you a complete overview of how money. Credit and regulation flow through the Indian economy. This is where your conceptual base is built.

Indian Financial System - An Overview

You start with the big picture: the role of the Reserve Bank of India (RBI). Commercial Banks. Cooperative Banks, Non-Banking Financial Companies (NBFCs), Primary Dealers and Financial Institutions.

You also learn the basics of the Cash Reserve Ratio (CRR). Statutory Liquidity Ratio (SLR). The equity and debt markets.

And the role of the Insurance Regulatory and Development Authority (IRDAI).

Banking Regulation

This unit covers the constitution of banks. Their objectives. The regulatory functions of the RBI.

Monetary control tools and regulatory restrictions on lending. It explains how the central bank keeps the banking system stable. Disciplined.

Types of Banking and the Markets

Here you explore Retail. Wholesale. International and Universal Banking.

Along with the role of the money market. Debt market and forex market. Key terms include Government Securities.

Authorised Dealers, the Foreign Exchange Management Act (FEMA) 1999, and benchmark rates. You also study Capital Markets and SEBI. Covering instruments such as ASBA and QIP.

Specialised Topics in Module A

• Mutual Funds. Insurance, Bancassurance and IRDAI - how these products are managed and regulated.
• Factoring, Forfaiting and Off-Balance-Sheet items - their types and advantages.
• Risk Management and Basel Accords - an introduction to Basel I. II and III set by the Basel Committee on Banking Supervision (BCBS).
• Credit Information, Fair Practices Code and customer-protection codes.
• Recent developments in the Indian financial system. Including reforms in money, forex and debt markets.

Module B: Functions of Banks (The Heart of PPB)

If you study only one module deeply, make it Module B. Functions of Banks is the largest. Most application-heavy section of the JAIIB PPB syllabus. It is also where most exam questions are framed. So give it the lion's share of your time.

Banker-Customer Relationship and KYC

You learn the different types of deposit products and services. The legal nature of the banker-customer relationship. And the critical KYC / AML / CFT norms. This includes the Prevention of Money-Laundering Act. 2002 and Know Your Customer guidelines that govern every account you open.

Special Relationships and Consumer Protection

This unit explains the banker's special relationships - Mandate. Power of Attorney, Garnishee Order, Banker's Lien and Right to Set-off. It also covers consumer protection through the Consumer Protection Act. The Banking Ombudsman Scheme.

Negotiable Instruments and Account Operations

You study the Negotiable Instruments Act. The role and duties of paying and collecting banks. Cheque bouncing, endorsements, forged instruments and the Cheque Truncation System (CTS). You also learn the operational aspects of opening. Maintaining accounts for various types of customers.

Lending, Credit and Priority Sector

This is the most exam-relevant cluster. Topics include:

• Principles of lending. Working capital assessment and credit monitoring - operating cycle. Turnover method, cash budget and term loans.
• Priority Sector Advances - targets, sub-targets and recent developments.
• Agricultural Finance and MSME - including the MSMED Act, 2006.
• Government-sponsored schemes and Self-Help Groups (SHGs).
• Credit cards, home loans, personal loans and consumer loans.

Securities, NPAs and Financial Inclusion

You also cover documentation. The different modes of charging securities (assignment. Lien.

Set-off. Hypothecation. Pledge.

Mortgage). Types of collateral. And the all-important Non-Performing Assets (NPA) topic - income recognition.

Asset classification and provisioning norms. The module closes with Financial Inclusion and Financial Literacy. Including the role of Business Correspondents and technology in reaching rural India.

Module C: Banking Technology

Banking is now digital-first, and Module C reflects that reality. This section explains the technology backbone that keeps modern banks running.

What Module C Covers

• Essentials of bank computerisation - computer systems. LAN, WAN, UPS and Core Banking.
• Payment systems and electronic banking - ATMs. Electromagnetic cards, RuPay, CTS and PIN systems.
• Data communication networks and EFT systems - SWIFT. Automated clearing and funds-transfer systems.
• Technology upgradation and its impact on banks, plus global trends.
• Security considerations, the IT Act and the recommendations of the Gopalakrishna Committee.
• Preventive vigilance - phishing, safety checks and customer education.

Module D: Support Services - Marketing of Banking Services/Products

A banker is also a salesperson. Module D teaches the marketing fundamentals every modern banker needs to grow business. Serve customers better.

Core Marketing Concepts for Bankers

• Marketing basics - marketing mix, products, services and brand image.
• Social marketing and networking in banking.
• Consumer behaviour, product planning and CRM.
• Pricing and distribution - including net banking and mobile banking channels.
• Channel management and promotion in the marketing mix.
• Role of Direct Selling and Direct Marketing Agents.
• Marketing Information Systems (MKIS) - functions, components and advantages.

Module E: Ethics in Banks & Financial Institutions

Trust is the currency of banking. And Module E is built around it. This module ties the entire Principles. Practices of Banking paper together by focusing on integrity and ethical conduct.

What You Will Study in Module E

• Ethics. Business ethics. Banking - an integrated perspective in the global and Indian context.
• Ethics at the individual level - values. Norms, dilemmas, morality and integrity in decision-making.
• Ethical dimensions for employees - conflict of interest. Abuse of position, fair accounting practices and HR ethics.
• Work ethics and the workplace - code of ethics. Whistleblowing and whistleblowing laws in India.
• Changing dynamics - data security, privacy, intellectual property rights and cyber threats.

How to Study the JAIIB PPB Syllabus: A 4-Week Plan

Knowing the syllabus is half the battle. The other half is a smart, time-boxed study plan. Here is a simple weekly approach you can adapt.

1. Week 1 - Build the base: Cover Module A (Indian Financial System). Make short notes on regulators, CRR, SLR, markets and Basel norms.
2. Week 2 - Conquer the heavyweight: Spend the entire week on Module B (Functions of Banks). Focus hard on lending, priority sector, NPAs and negotiable instruments.
3. Week 3 - Tech, marketing and ethics: Finish Modules C, D and E. These are more readable and scoring, so revise actively.
4. Week 4 - Revise and test: Take full-length mock tests daily, analyse mistakes, and revisit weak units. Read our free guides for last-minute revision.

Common Mistakes JAIIB PPB Aspirants Make

Avoid these frequent pitfalls. You will already be ahead of most candidates.

• Ignoring Module B: It is the heaviest module. Yet many leave it for the end and run out of time.
• Rote-learning definitions: The exam tests application through case studies and numericals. Not plain recall.
• Skipping mock tests: Without timed practice. You never build exam speed or spot your weak areas.
• Relying on outdated material: Always study from the current revised syllabus. Verify figures on the latest official IIBF notification.
• Neglecting Modules D. E: Marketing and Ethics are easy scoring zones that aspirants often underestimate.

Frequently Asked Questions (FAQ)

What does PPB stand for in JAIIB?

PPB stands for Principles and Practices of Banking. It is Paper 2 of the revised JAIIB examination conducted by IIBF. Covers the foundational concepts and day-to-day practices of banking.

How many modules are there in the JAIIB PPB syllabus?

There are five modules: Module A (Indian Financial System). Module B (Functions of Banks). Module C (Banking Technology). Module D (Support Services - Marketing). And Module E (Ethics in Banks & Financial Institutions).

Which is the most important module in PPB?

Module B - Functions of Banks is the most important. Most exam-relevant module. It is the largest section. Includes high-weightage topics such as lending principles. Priority sector advances and NPAs.

Is the JAIIB PPB paper difficult to pass?

PPB is considered one of the more scoring JAIIB papers when studied module-wise. With consistent preparation, a strong focus on Module B, and regular mock tests, most candidates clear it in a single attempt.

Does the JAIIB PPB exam have negative marking?

Exam rules including marks and negative marking can change. So always confirm the current pattern on the latest official IIBF notification before your attempt rather than relying on older information.

Final Word: Clear PPB With Confidence

The JAIIB PPB syllabus may look long at first glance. But it is completely manageable once you break it into its five modules. Build your base with Module A.

Master the heavyweight Module B. And quickly secure marks in Modules C, D and E. Pair this with disciplined revision and plenty of practice.

And a single-attempt pass is well within reach.

Stay consistent, study smart, and trust the process. Your JAIIB success -. The career boost that follows - is closer than you think. You have got this.

Related Guides

For more on JAIIB PPB syllabus. See the official IIBF circulars. Our chapter-wise free notes on iibf.store.

For more on “JAIIB PPB syllabus”, explore our free mock tests and chapter notes on iibf.store.