JAIIB PPB Top 7 Concepts: A 30-Minute Revision Sheet

JAIIB Principles and Practices of Banking revision — this guide gives you the latest 2026 information, key dates, eligibility, fees and study tips for the JAIIB exam.

JAIIB Principles & Practices of Banking covers a huge syllabus, but examiners return to the same handful of topics every cycle. Master these seven concepts and you have walked away with roughly 40 of the 100 marks before the harder questions start.

1. KYC Norms and CDD (Customer Due Diligence)

Three tiers of customer risk: low, medium, high. CDD is the process of collecting identity (OVD — Officially Valid Document), proof of address, and PAN/Form 60. Periodic updation: low risk every 10 years, medium 8 years, high 2 years. Common trap: examiners ask which document is NOT an OVD. Aadhaar, Passport, Voter ID, Driving Licence, NREGA job card, Letter from NPR are the six OVDs.

• Small accounts: simplified KYC, balance cap ₹50,000, credit cap ₹1 lakh per year.
• BSBDA (Basic Savings Bank Deposit Account): no balance cap, minimum 4 withdrawals per month free.

2. NPA Classification

Income recognition and asset classification — bread and butter of every PPB paper.

• Standard: regular payments, no overdue beyond 90 days.
• Sub-standard: NPA for < 12 months.
• Doubtful: NPA for 12 to 36 months (D1, D2, D3 sub-stages).
• Loss assets: recovery is improbable but not written off.

Provisioning: Standard 0.25% to 1%, Sub-standard 15% (secured) / 25% (unsecured), Doubtful 25% / 40% / 100% by sub-stage, Loss 100%.

3. Negotiable Instruments Act — the must-know triple

Three negotiable instruments: Promissory Note, Bill of Exchange, Cheque. Cheque = bill of exchange drawn on a banker, payable on demand. Crucial differences examiners ask:

• Number of parties: PN = 2 (maker, payee). BoE and Cheque = 3 (drawer, drawee, payee).
• Acceptance: required only for BoE. PN and Cheque don't require acceptance.
• Days of grace: 3 days for PN and BoE if payable after a fixed period. None for cheques.
• Crossing: applies only to cheques.

4. Mandate vs Power of Attorney

• Mandate — unstamped written authority to operate an account. Can be revoked at any time. Limited scope.
• Power of Attorney (POA) — stamped (₹100 in most states), notarised, broad scope. General POA covers all banking, Special POA covers a specific transaction.
• Death, insanity, insolvency of either party revokes both immediately.

5. Garnishee Order vs Attachment Order

Both freeze customer accounts but the source differs:

• Garnishee Order: issued by a civil court under CPC. Two stages — Order Nisi (banker holds funds) and Order Absolute (banker pays the judgement creditor).
• Attachment Order: issued by tax authority (Income Tax, GST). Banker pays the demanded sum directly to the authority.
• Garnishee covers only debit balance as on date of order; future credits are NOT attached. Attachment covers future credits too.

6. Banker-Customer Relationship — the eight pairings

Memorise the relationship pair for each banking activity:

• Deposit account: Debtor (bank) - Creditor (customer)
• Loan account: Creditor (bank) - Debtor (customer)
• Safe deposit locker: Lessor (bank) - Lessee (customer)
• Articles in safe custody: Bailee (bank) - Bailor (customer)
• Demand draft / cheque collection: Agent (bank) - Principal (customer)
• Standing instruction: Agent - Principal
• Pledge of goods: Pawnee (bank) - Pawnor (customer)
• Mortgage of immovable property: Mortgagee (bank) - Mortgagor (customer)

7. BCSBI and Banking Ombudsman

• BCSBI (Banking Codes & Standards Board of India) wound up in 2021. Standards now under RBI's Consumer Education and Protection Department.
• Integrated Ombudsman Scheme 2021: one ombudsman covers banks, NBFCs, payment system operators. Complaint up to ₹30 lakh compensation. No fee.
• Internal Ombudsman: mandatory for banks with > 10 branches; handles complaints partially or wholly rejected by the bank.

Quick MCQ traps

1. "BCSBI is the current code regulator" — false. Ceased 2021.
2. "Garnishee order covers future credits" — false. Only the balance on order date.
3. "Cheque requires acceptance" — false. Bill of exchange does.
4. "Standard asset provisioning is 0%" — false. 0.25% to 1%.
5. "BSBDA has a balance cap of ₹50,000" — false. That's the Small Account.

FAQ

How heavily are NI Act questions weighted? 8 to 10 marks across PPB in a typical cycle. High-yield.

Is Aadhaar mandatory for KYC? No. Aadhaar is one of six OVDs; customer can use any other.

What is the present limit of Ombudsman compensation? ₹30 lakh under the Integrated Ombudsman Scheme 2021.

Next step: 30 minutes to lock these seven. 30 more minutes on a JAIIB PPB mock test, and you have built unshakeable confidence on the highest-yield section of Paper 1.

For more on JAIIB Principles and Practices of Banking revision, see the official IIBF circulars and our chapter-wise free notes on iibf.store.

For more on JAIIB Principles and Practices of Banking revision, see the official IIBF circulars and our chapter-wise free notes on iibf.store.

For more on JAIIB Principles and Practices of Banking revision, see the official IIBF circulars and our chapter-wise free notes on iibf.store.

For more on JAIIB Principles and Practices of Banking revision, see the official IIBF circulars and our chapter-wise free notes on iibf.store.

For more on JAIIB Principles and Practices of Banking revision, see the official IIBF circulars and our chapter-wise free notes on iibf.store.

Browse the full JAIIB syllabus + free classes to jumpstart your prep.

Practice on our latest mock tests with bilingual explanations and a public leaderboard.

Sharpen recall with the matching games — 60-second drills on dates, schemes and definitions.

Source: Indian Institute of Banking & Finance — iibf.org.in

More on JAIIB Principles and Practices of Banking revision

Aspirants often ask whether the JAIIB Principles and Practices of Banking revision question paper is bilingual; yes. Every objective paper on IIBF carries Hindi alongside English so candidates can pick the language they read fastest in. Use this freedom to your advantage — switch to the language you naturally think in when a question is ambiguous.

Another common worry is negative marking. As of 2026, objective papers carry no negative marks, so attempt every question and use elimination on the ones you are unsure about. The case-study section rewards conceptual clarity over rote learning, so spend the first week building first-principles intuition before diving into mock tests.

Coaches who clear IIBF exams in one attempt share the same pattern — split your day into two 90-minute deep-work blocks separated by a brisk walk and a short 10-minute spaced-repetition review. The brain consolidates banking definitions when you sleep on them. Which is why we keep all our notes downloadable as PDFs so you can revise the night before.

Finally, remember that scores under 50 percent are usually a sign of weak time management, not weak knowledge. Use the in-built timer on every mock test on iibf.store. And aim to finish 90 questions in 65 minutes so you have time to mark for review. Once that timing is automatic, accuracy climbs on its own.

For deeper background, read the official notification on iibf.org.in, then come back here for our chapter-wise study plan, mock tests and matching games. We update this guide weekly, so bookmark it.

Browse the full JAIIB syllabus + free classes to jumpstart your prep.

Practice on our latest mock tests with bilingual explanations and a public leaderboard.

Sharpen recall with the matching games — 60-second drills on dates, schemes and definitions.

Source: Indian Institute of Banking & Finance — iibf.org.in

Browse the full JAIIB syllabus + free classes to jumpstart your prep.

Practice on our latest mock tests with bilingual explanations and a public leaderboard.

Sharpen recall with the matching games — 60-second drills on dates, schemes and definitions.

Source: Indian Institute of Banking & Finance — iibf.org.in

Browse the full JAIIB syllabus + free classes to jumpstart your prep.

Practice on our latest mock tests with bilingual explanations and a public leaderboard.

Sharpen recall with the matching games — 60-second drills on dates, schemes and definitions.

Source: Indian Institute of Banking & Finance — iibf.org.in

Browse the full JAIIB syllabus + free classes to jumpstart your prep.

Practice on our latest mock tests with bilingual explanations and a public leaderboard.

Sharpen recall with the matching games — 60-second drills on dates, schemes and definitions.

Source: Indian Institute of Banking & Finance — iibf.org.in

Browse the full JAIIB syllabus + free classes to jumpstart your prep.

Practice on our latest mock tests with bilingual explanations and a public leaderboard.

Sharpen recall with the matching games — 60-second drills on dates, schemes and definitions.

Source: Indian Institute of Banking & Finance — iibf.org.in

Browse the full JAIIB syllabus + free classes to jumpstart your prep.

Practice on our latest mock tests with bilingual explanations and a public leaderboard.

Sharpen recall with the matching games — 60-second drills on dates, schemes and definitions.

Source: Indian Institute of Banking & Finance — iibf.org.in