PPB Most Important Questions for JAIIB 2026: 100+ Memory-Recalled MCQs (Paper 1)

Looking for the PPB most important questions that actually repeat in the JAIIB exam? You are in the right place. This guide compiles 100+ memory-recalled questions from past JAIIB papers. Organised topic-wise with crisp answers.

Paper 1 of JAIIB –. Principles and Practices of Banking (PPB) – is the gateway exam. Score well here and the rest of JAIIB feels lighter. This is your fast-track revision sheet for the 2026 attempt.

What Is PPB in JAIIB and Why It Matters

Principles. Practices of Banking is the first. Most foundational paper in the JAIIB exam conducted by IIBF. It covers how banks really work day to day.

The syllabus blends practical banking with legal concepts. You learn about accounts, deposits, customer relationships, KYC norms and negotiable instruments. These ideas reappear across every other JAIIB and CAIIB paper.

Many candidates find PPB tricky despite working in banks. The catch is simple. The exam tests rules and exceptions, not just routine branch work. That is exactly why these PPB most important questions matter.

How These Questions Help You Score

IIBF reuses concepts heavily. The wording changes, but the underlying logic stays the same. Master these recalled questions. You cover a large slice of the paper.

• Spot the repeating themes examiners love.
• Train yourself to read application-based scenarios.
• Build speed so you finish the paper on time.

PPB Quick-Facts Table: High-Yield Banking Numbers

Examiners love numbers. The table below collects frequently tested figures from PPB. Treat it as your rapid-revision cheat sheet.

Important: rules and limits change. Always confirm the current figure on the latest official IIBF notification or RBI circular before the exam.

Banker-Customer Relationship Questions

This is a guaranteed scoring area. The relationship changes with the service offered. Learn the four core pairs below.

• Deposits – the bank is the Debtor, the customer is the Creditor (Debtor-Creditor).
• Safe custody of articles –. Bailee (bank) and Bailor (customer); governed by the Indian Contract Act.
• Standing instructions – Agent (bank) and Principal (customer).
• Loans / overdraft –. Here the bank becomes the Creditor and the customer the Debtor.

A classic recalled question asks the relationship between a bank. A judgment debtor. The answer remains Debtor and Creditor.

Right of Set-Off Scenarios

The right of set-off lets a bank combine accounts of the same customer to clear dues. Several memory-recalled questions test it with numbers.

• Mr Sharma has Rs 40,000 credit in savings. A Rs 20,000 overdue debit in OD. The bank debits savings to adjust OD –. This is the Right of Set-off.
• An OD account is overdrawn by Rs 2,000 while savings holds Rs 3,000. The bank adjusts using Set-off.
• Savings has a credit balance. The current account shows an overdraft of Rs 555 in the same name. Adjusting one against the other is again the Right of Set-Off.

Garnishee Order Questions in PPB

A garnishee order is a court order that freezes a debtor's funds held by the bank. PPB tests its scope and limits.

• A garnishee order is not applicable to a CC/OD account that has a debit balance. It applies to savings, current and FD credit balances.
• If the order does not mention an amount. The bank attaches the full balance.

Deposits, Interest Rates and Schemes

Deposit products form the backbone of PPB. Expect questions on who fixes rates, special schemes and senior-citizen benefits.

Who Decides Interest Rates

• The savings deposit rate is decided by banks individually. Is not regulated by RBI.
• For fixed deposits. The rate is fixed by the Board of Directors of the respective bank.
• Banks can set rates for NRE. NRO and term deposits at their discretion.
• RBI periodically reviews the Repo rate and Bank rate. But not the savings bank rate.

Senior Citizen and Special-Category Rules

• Additional interest for senior citizens may apply across fixed deposits (it can vary from bank to bank).
• A super senior citizen is a person aged 80 years and above.
• If a HUF term deposit is up for renewal. The Karta has just turned senior citizen. The normal rate applies – HUF gets no senior-citizen benefit.
• In the Senior Citizen Saving Scheme. The joint account holder can only be the spouse.
• Staff. Senior citizens are not eligible for a preferential rate on NRE deposits.

Other High-Frequency Deposit Facts

• Bankers prefer savings deposits over term deposits. The cost of SB deposits is lower.
• Banks can raise term and demand deposits.
• Savings interest is calculated on a daily product basis.
• A differential rate on a single FD is allowed for deposits of Rs 1 crore. Above.
• The NRE deposit maximum period is at bank discretion. An NRE FD is normally accepted for 1 to 3 years.
• An NRO account can be opened jointly by an NRI with a resident.
• There is no limit on a loan granted against an FCNR deposit.
• Overdue FD renewal: if the customer demands payment and does not renew. Interest for the overdue period is paid at the savings bank rate.
• Cash payment for FDR encashment is allowed only if the amount is below Rs 20,000. Paying Rs 20,000 in cash attracts a penalty equal to the amount paid.

Financial Inclusion, BSBDA and Small Accounts

Financial inclusion means providing banking services at an affordable cost to poor. Distressed sections. This theme is heavily tested.

Basic Savings Bank Deposit Account (BSBDA)

• The minimum amount to open a BSBDA is NIL.
• It needs no minimum balance. It can be opened with nil or a very small amount.
• No-frills accounts were introduced for financial inclusion and evolved into BSBDA.
• OD under PMJDY is available up to Rs 5,000 (subject to current rules).

Small Accounts

• A small account suits a person without proof of identity and address.
• Documents needed: a self-attested photo and address.
• Monthly withdrawal is capped at Rs 10,000.
• Total credits in a year should not exceed Rs 1,00,000.
• An illiterate person is generally not allowed to open a current account.

Business Correspondent (BC) Questions

• A BC works as the bank's agent and serves weaker sections.
• A BC can be identified by the BDO. Post Master, Head of Village Panchayat or another BC.
• BC activities include processing applications. Disbursing small-value credit. Recovering principal/interest and collecting small deposits – all of these.
• Distance norm: the retail outlet/sub-agent should ordinarily be within 30 km in rural. Semi-urban and urban areas and 5 km in metropolitan centres.

KYC, Nomination and Account Opening

Know Your Customer rules are a perennial favourite. Examiners test documents, witnesses and review cycles.

KYC and Documentation

• A prospective customer must submit PAN or Form 60/61.
• A ration card is not accepted as proof of identity.
• The risk classification of customers is reviewed every six months.
• While opening an account. The bank must observe the Indian Contract Act. Exercise utmost care and attention.

Nomination Rules

• After nomination, the nominee acts as a trustee of the legal heirs.
• An illiterate account holder needs two witnesses for nomination (thumb impression).
• Nomination in a minor's account is done by the guardian. Not the minor.
• Among HUF. Limited company. Trust. Partnership and sole proprietorship. Only a sole proprietorship firm can make a nomination.
• Form DA-2 is used to cancel a nomination in deposit accounts.

Address Change and Account Transfer

• On account transfer. The account holder should advise the new address within two weeks.
• Address proof for the transferee branch is typically submitted within the prescribed window –. Confirm the exact timeline on the latest official IIBF notification.

DICGC Deposit Insurance Questions

Deposit insurance through DICGC is a guaranteed topic. Focus on who pays, what is covered and the coverage limit.

Note: the legacy question quotes Rs 1 lakh as the DICGC cover. The limit has since been revised upward. So always verify the current figure before the exam.

Banking Law and Negotiable Instruments

PPB tests core legal concepts in plain scenarios. These recalled questions blend law with branch practice.

• A bank can submit a true copy instead of original records under the Bankers' Books Evidence Act.
• Safe custody of articles falls under the Indian Contract Act.
• A minor's guarantee for a loan cannot be ratified by anyone.
• A minor cannot make himself liable for his actions.
• In a Limited Liability Partnership. A partner's liability equals the amount agreed to be contributed.
• A will need not be registered; registration is optional.
• A Letter of Administration is issued when a person dies intestate (without a will).
• The most important document for a trust account is the Trust Deed.

Cheque Handling Scenarios

• If the amount is in words. Other items are in a regional language. The bank should pay the cheque.
• Balance is Rs 15,000; a Rs 30,000 cheque is sent for collection. Before it clears, a Rs 20,000 cheque is presented. The bank returns it with reason Insufficient Funds.

Currency, Tax and Other Recalled Facts

A final cluster of one-liners rounds out the high-yield list. Skim these the night before the exam.

• Currency management is entrusted to a nodal official of the rank not less than General Manager.
• Star series notes can be issued in the Rs 100 denomination (earlier only Rs 10. 20 and 50).
• The Direct Tax Code is intended to replace the Income Tax Act.
• Form 15H is used for tax exemption by a depositor aged 60+ (the legacy paper cites 61 years).
• CASA stands for Current Account and Savings Account.
• A pensioner account can be opened jointly with the spouse as Either or Survivor / Former or Survivor.
• Locker allotment may require advance rent plus locker-breaking charges as per current bank policy.
• Consumer forum complaints (where no testing of goods is needed) are dealt with within 90 days.
• Among joint. Corporate. Inter-bank and HUF deposits. The inter-bank deposit is treated differently for insurance purposes.

How to Study PPB Most Important Questions

A question bank only works with the right method. Follow this simple, proven approach for the JAIIB 2026 attempt.

1. Read the concept first. Understand why set-off or a garnishee order works before memorising the answer.
2. Group by theme. Study deposits together, KYC together, and so on. Themes stick better than random lists.
3. Make a number sheet. Copy the quick-facts table by hand. Numbers fade fast, so revise daily.
4. Solve timed tests. Take full-length mock tests to build exam speed and stamina.
5. Revise exceptions. Examiners trap you on exceptions –. The case that does not fit the rule.
6. Verify current data. Check every rate, limit and tenure against the latest official IIBF notification.

A Simple 7-Day PPB Revision Plan

Common Mistakes to Avoid in PPB

Small errors cost big marks. Steer clear of these traps that catch most JAIIB candidates.

• Memorising old numbers. Rates and limits change often. Always trust the latest official IIBF notification over old PDFs.
• Ignoring exceptions. The garnishee order rule for CC/OD with a debit balance is a classic exception –. Do not skip it.
• Confusing relationships. Deposit equals Debtor-Creditor; loan flips it. Mixing these is a common slip.
• Rushing scenario questions. Read every numeric scenario twice before choosing an answer.
• Skipping mock tests. Knowledge without timed practice fails on exam day.
• Overlooking free resources. Use the free guides to fill conceptual gaps.

Frequently Asked Questions on PPB

What are the most important topics in PPB for JAIIB 2026?

The highest-yield PPB topics are deposits and interest rates. KYC and nomination. The right of set-off, garnishee orders, DICGC deposit insurance, and financial inclusion. These themes appear in almost every JAIIB paper.

How many questions come from PPB in the JAIIB exam?

PPB is a full paper with 100 questions in the standard JAIIB pattern. The exact pattern. Marks and passing criteria can change. So always confirm on the latest official IIBF notification.

Are these PPB most important questions enough to pass?

This question bank covers a large share of recurring concepts and is a powerful revision tool. For best results, combine it with full chapter study and timed mock tests.

Is PPB the toughest paper in JAIIB?

PPB is foundational rather than the toughest. Many find Accounting and Finance harder. Because PPB covers daily banking. Focused revision of these recalled questions makes it very scoring.

How should I revise PPB in the last few days?

Spend the final days on the quick-facts table. Exceptions and at least two full-length mock tests. Revise numbers daily and review the questions you get wrong. Verify current figures before the exam.

Keep Going: You Can Clear JAIIB 2026

Clearing JAIIB starts with a strong Paper 1. You now have a topic-wise bank of the most repeated PPB questions. A quick-facts sheet and a clear study plan.

Consistency beats cramming. Revise a little every day, test yourself often, and trust the process. Thousands of bankers have cleared JAIIB – you are next.

Related Guides

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