JAIIB Question Papers & Mock Tests 2026: Free PYQs + Solved MCQs to Clear in

If you have started preparing for JAIIB. You already know the syllabus is huge and the questions are tricky. The single biggest mistake aspirants make is reading too much.

Practising too little. The smartest candidates flip that ratio. They treat JAIIB question papers as their main study tool.

Not as a last-minute formality.

This page is built exactly for that. Below you will find genuinely useful, exam-style JAIIB previous year questions with answers, a clear breakdown of the exam, a comparison table of preparation resources, a practical study method, the mistakes that quietly fail people, and a detailed FAQ. Bookmark it and come back before every mock test.

Why JAIIB Question Papers Are Your Highest-Value Study Resource

The JAIIB (Junior Associate of the Indian Institute of Bankers) exam tests applied banking knowledge. Not just theory. That means the same concept can appear in dozens of different forms.

Reading a textbook teaches you the concept once. Solving JAIIB question papers teaches you every angle from. The examiner can ask it.

Here is what consistent practice with PYQs. Mock tests actually does for you:

• Reveals the real exam pattern so there are no surprises on test day.
• Builds speed because you stop re-reading questions and start recognising patterns.
• Exposes weak topics while there is still time to fix them.
• Improves accuracy by training you to eliminate wrong options quickly.
• Reduces exam anxiety because the format already feels familiar.

In short. Question papers convert passive reading into active recall. And active recall is what survives the pressure of the exam hall.

JAIIB Exam 2026 at a Glance

Before you practise, get the structure clear in your head. JAIIB is conducted by the Indian Institute of Banking. Finance (IIBF).

Is one of the most respected qualifications for bankers in India. Always cross-check the exact paper names. Marks.

And number of papers on the latest official IIBF notification. As IIBF periodically revises the structure.

The exact pass marks. Paper count. And aggregate rules can change. So treat the official notification as the final word. What does not change is the value of disciplined practice.

Solved JAIIB Question Papers: Practice MCQs With Answers

Below is a set of exam-style JAIIB previous year questions with answers. These cover high-yield areas like insurance. Capital adequacy (Basel), mutual funds, SEBI, and trade finance.

Read the question. Attempt it on your own. Then check the answer and understand the reasoning.

Do not just memorise the option letter.

1. Insurance taken by a firm on the life of a key person

Insurance policy taken by a business firm on the life of a very important person to protect the firm against financial loss is called:

a. Master policyb. Keyman policyc. VIP Protection policyd. Uberrima fides

Answer: b. Keyman policy. A Keyman (key person) policy compensates a business for the financial loss caused by the death of a crucial employee or partner.

2. Institution for insurance grievance redressal

To address customer grievances in respect of insurance contracts on personal lives. There is an institution called:

a. Insurance Ombudsmanb. Insurance regulatorc. Insurance Intermediaryd. Insurance Regulatory and Development Authority

Answer: a. Insurance Ombudsman. The Ombudsman provides a low-cost. Quick mechanism to resolve policyholder complaints out of court.

3. Minimum capital to start an insurance company

The minimum capital to start a new insurance company in India is:

a. Rs. 100 crb.

Rs. 75 crc. Rs.

50 crd. Rs. 10 cr

Answer: a. Rs. 100 cr. Note: regulatory capital thresholds can be revised. So confirm the current figure on the latest official IRDAI/IIBF source before the exam.

4. Factoring with recovery from the seller

If there is default of repayment by the buyer in factoring. The factor is able to recover the amount from the seller. It is called:

a. Non-recourse factoringb. Without recourse factoringc. Recourse factoringd. Bills discounting

Answer: c. Recourse factoring. In recourse factoring. The credit risk stays with the seller. So the factor can claim the money back if the buyer defaults.

5. Functions of SEBI under the SEBI Act, 1992

Which of these is/are a function of SEBI under the SEBI Act. 1992? (i) SEBI promotes training of intermediaries of the securities market.

(ii) SEBI prohibits fraudulent and unfair trade practices. (iii) SEBI frames rules. Regulations and a code of conduct for intermediaries such as merchant bankers.

Brokers and underwriters.

a. Only (i) and (ii)b. Only (i) and (iii)c. Only (ii) and (iii)d. (i), (ii) and (iii)

Answer: d. (i), (ii) and (iii). SEBI both develops and regulates the securities market. So all three functions apply.

6. Characteristics of an open-ended mutual fund

What are the characteristics of an open-ended mutual fund? (i) Units are bought. Sold on demand at their net asset value (NAV). (ii) NAV is generally calculated at the close of every trading day. (iii) Investors buy units directly from the fund.

a. Only (i)b. Only (i) and (ii)c. Only (ii) and (iii)d. (i), (ii) and (iii)

Answer: d. (i), (ii) and (iii). Open-ended funds accept continuous purchases and redemptions at NAV. So all three statements are correct.

7. Who constituted the Basel Committee on Banking Supervision

The Basel Committee on Banking Supervision was constituted by:

a. RBI and World Bankb. International Monetary Fundc. United Nationsd. None of the above

Answer: d. None of the above. The Basel Committee was set up by the central bank governors of the Group of Ten (G10) countries. Not by the IMF, UN or World Bank.

8. Undisclosed reserves in Tier-2 capital

A bank has risk-weighted assets of Rs. 1000 cr and undisclosed reserves of Rs. 30 cr. What is the maximum amount of such reserves that can be included in Tier-2 capital?

a. Rs. 90 crb.

Rs. 30 crc. Rs.

12.50 crd. Rs. 7.50 cr

Answer: c. Rs. 12.50 cr.

General provisions / certain reserves are capped at 1.25% of risk-weighted assets for Tier-2 inclusion (1.25% of Rs. 1000 cr = Rs. 12.50 cr).

Always confirm the prevailing Basel/RBI norm.

9. Investing in other schemes of mutual funds

When an investment is made in other schemes of the same or different mutual funds. Such a fund is called:

a. Index fundb. Gilt fundc. Fund of fundsd. Mutual fund

Answer: c. Fund of funds. A fund of funds invests in units of other mutual fund schemes rather than directly in securities.

10. Premium on with-profit vs without-profit policies

Which statement is correct regarding premiums on life insurance policies?

a. Premium rates for with-profit policies are higher than for without-profit policiesb. Premium rates for with-profit policies are lower than for without-profit policiesc. Premium rates for with-profit policies are equal to those for without-profit policiesd. None of the statements is correct

Answer: a. With-profit policies share in the insurer's surplus (bonus). So they carry a higher premium than without-profit policies.

11. Frequency of NAV disclosure by mutual funds

NAV is required to be disclosed by mutual funds on a ___ basis.

a. dailyb. weeklyc. depending on the type of schemed. none

Answer: c. Depending on the type of scheme. Disclosure frequency varies with the scheme type. So the correct choice is the conditional option.

12. Transaction backed by a letter of credit

Which of these is backed by a letter of credit?

a. Factoringb. Forfaitingc. Securitizationd. Leasing

Answer: b. Forfaiting. Forfaiting typically involves the without-recourse purchase of receivables that are supported by instruments such as a letter of credit or a bank guarantee.

13. Revaluation reserves in Tier-1 capital

A bank has revaluation reserves of Rs. 300 cr. What amount can be included in Tier-1 capital?

a. Rs. 300 crb.

Rs. 165 crc. Rs.

135 crd. Rs. 30 cr

Answer: c. Rs. 135 cr.

Revaluation reserves are recognised after a discount (a 55% haircut leaves 45%; 45% of Rs. 300 cr = Rs. 135 cr).

Confirm the current treatment under prevailing Basel/RBI guidelines.

14. Minimum maturity for subordinated debt in Tier-2

Subordinated debt can be included in Tier-2 capital only where it has an original maturity of:

a. Max 10 yearsb. Min 10 yearsc. Max 5 yearsd. Min 5 years

Answer: d. Minimum 5 years. Subordinated debt generally needs a minimum original maturity to qualify for Tier-2 capital. Verify the exact tenor on current norms.

15. Fair Practice Code: transfer of a loan account

Under the Fair Practice Code for lenders. If a bank receives a request from a borrower to transfer the loan account to another bank. The bank must convey its consent or objection within ___ of receiving the request.

a. 30 daysb. 21 daysc. 15 daysd. 10 days

Answer: b. 21 days. Timelines under codes and guidelines can be updated. So reconfirm the current period before the exam.

How to Use JAIIB Question Papers the Smart Way

Solving questions randomly feels productive but rarely moves your score. Use this structured method instead. It turns every practice session into measurable progress.

Step 1: Learn the concept first, lightly

Skim the topic once so the terms make sense. You do not need mastery yet. The goal is just enough context to attempt questions without staring blankly.

Step 2: Solve topic-wise questions

Pick one topic. Such as mutual funds or Basel capital. And solve 15 to 25 questions on it. Concentrated practice builds pattern recognition far faster than mixing topics.

Step 3: Take full-length timed mock tests

Once a few topics are done, sit a full mock test with a timer. This trains time management and mental stamina, which are exactly what break down on exam day.

Step 4: Analyse every mistake

This is the step most aspirants skip. It is the most important one. For every wrong answer.

Write down why you got it wrong: was it a concept gap. A calculation slip, or a misread question? Patterns will appear quickly.

Step 5: Revise and repeat

Re-solve the questions you got wrong after a few days. If you still miss them, the concept needs deeper study. Cycle through weak topics until they stop being weak.

Comparison: Ways to Practise for JAIIB

Not every resource gives the same return on your limited time. Here is an honest comparison so you can prioritise.

The pattern is clear. Concepts come from notes and videos, but the score comes from PYQs and mock tests. Spend most of your final weeks there. Explore our free guides to strengthen the underlying concepts as you practise.

Common Mistakes That Quietly Fail JAIIB Aspirants

Most people who fail JAIIB do not lack intelligence. They repeat avoidable mistakes. Watch out for these.

• Reading endlessly, practising rarely. If you have not solved enough JAIIB question papers. You are not actually prepared.
• Memorising option letters. The exam rephrases questions. Understand the why, not the alphabet.
• Ignoring numericals. Capital adequacy, NPA and interest calculations are scoring areas. Skipping them throws away easy marks.
• Never sitting a full timed mock. Stamina and pacing only improve under real conditions.
• Skipping mistake analysis. Without a review step. You repeat the same errors in the real exam.
• Trusting outdated figures. Regulatory limits change. For any number, confirm on the latest official IIBF notification.

A Simple 4-Week JAIIB Practice Plan

Short on time? This lightweight plan keeps practice at the centre. Adjust the pace to suit your schedule.

1. Week 1: Cover core concepts subject by subject. Solve topic-wise MCQs as you go.
2. Week 2: Focus on numericals and high-weight topics like capital adequacy. Mutual funds and insurance.
3. Week 3: Take two to three full-length mock tests and analyse every mistake in detail.
4. Week 4: Re-solve your error log. Revise formulas. And take final timed mocks to lock in speed and confidence.

Frequently Asked Questions About JAIIB Question Papers

Are JAIIB previous year questions enough to pass the exam?

PYQs are essential but work best alongside concept study. Use notes and videos to build understanding. Then drill JAIIB question papers. Mock tests to convert that understanding into marks. The combination is what clears the exam in one attempt.

How many mock tests should I take before the JAIIB exam?

There is no fixed number, but aim to take enough full-length mock tests that the format feels routine and your timing is comfortable. Quality of analysis matters more than quantity, so review each test thoroughly.

Is there negative marking in JAIIB?

The marking scheme can change. So always confirm on the latest official IIBF notification before the exam. Whatever the rule, accuracy built through practice is your best protection.

Which JAIIB topics are most important for scoring?

High-yield areas include capital adequacy (Basel/Tier-1 and Tier-2). Mutual funds, insurance, SEBI functions, trade finance and banking regulations. Numerical questions in these areas are very scoring if you practise them.

How do I avoid running out of time in the JAIIB exam?

Practise under a timer from day one. Attempt the questions you know first. Flag the tricky ones, and return to them. Regular timed mocks train this pacing automatically.

Final Word: Practice Is the Real Shortcut

There is no secret hack to JAIIB. The aspirants who clear it in one attempt simply practise more JAIIB question papers, analyse their mistakes honestly, and revise their weak topics until they are strong. Start today with the solved MCQs above, build a routine of timed mock tests, and keep your concepts sharp with our free guides.

Stay consistent. Trust the process. And walk into the exam hall knowing you have already seen questions just like the ones in front of you. That confidence is earned through practice. And it is exactly what passes JAIIB.

Related Guides

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