Principles & Practices of Banking (PPB) Syllabus 2026 – JAIIB Paper 2 Guide + Free PDF
The PPB syllabus for Principles & Practices of Banking — JAIIB Paper 2 from the Indian Institute of Banking & Finance (IIBF) — is the broadest and most application-heavy paper a working banker faces in the JAIIB cycle. To clear it efficiently you need three things: a precise map of the syllabus, awareness of what has recently changed in banking regulation, and good practice material. This exhaustive guide covers the complete PPB syllabus for 2026 chapter-by-chapter across all four modules, flags the topics that have been updated, and links you to free tests, one-liners, notes and games to prepare faster. You can also download the official syllabus PDF below.
📥 Download the Full PPB Syllabus (PDF)
The complete, exam-ready Principles & Practices of Banking syllabus in one PDF — keep it open while you plan your study weeks for JAIIB Paper 2.
Download PPB Syllabus PDF →What is the Principles & Practices of Banking (PPB) Paper?
PPB is the second paper of the JAIIB (Junior Associate of the Indian Institute of Bankers) certification and is widely regarded as the heart of the exam. It builds end-to-end working knowledge of how a bank actually operates — from opening accounts and handling KYC, through credit delivery and recovery laws, to banking technology and professional ethics. It suits new joiners, clerical and officer cadre staff, and anyone who wants a firm grasp of day-to-day banking practice grounded in law and RBI regulation.
The paper is deliberately practical: it links the legal relationship between banker and customer to the operational reality of deposits, loans, payment systems and grievance redressal. Mastering PPB pays off twice — it clears a tough JAIIB paper and makes you noticeably better at your branch job.
PPB Exam Pattern at a Glance
The Principles & Practices of Banking examination is an objective, MCQ-based test delivered through IIBF's online mode. Questions are increasingly application- and case-study-oriented rather than simple definition recall, so conceptual clarity on banking law, KYC, credit and technology matters far more than rote learning. Always confirm the current number of questions, marks distribution, duration, negative-marking policy and passing criteria from the latest IIBF examination notification before you register, as IIBF revises these periodically.
PPB Syllabus 2026 – Chapter-Wise
The PPB syllabus is organised into four modules covering 52 chapters in total — General Banking Operations, Functions of Banks, Banking Technology, and Ethics in Banks & Financial Institutions. Here is the complete official breakdown:
| Module | Ch | Chapter | What you learn |
|---|---|---|---|
| General Banking Operations | 1 | Banker-Customer Relationship | The debtor-creditor relationship and the legal foundations of banking. |
| General Banking Operations | 2 | AML-KYC Guidelines | Anti-money-laundering framework and the pillars of Know Your Customer. |
| General Banking Operations | 3 | Operational Aspects of KYC | Customer identification, periodic updation and CDD in practice. |
| General Banking Operations | 4 | Opening Accounts of Various Types of Customers | Minors, firms, companies, trusts, HUFs and their account formalities. |
| General Banking Operations | 5 | Operational Aspects of Deposit Accounts | Savings, current, term deposits, nomination and deposit insurance. |
| General Banking Operations | 6 | Handling Clearing / Collection / Cash | Cheque clearing, CTS, cash handling and collection procedures. |
| General Banking Operations | 7 | Banker's Special Relationship | Lien, set-off, garnishee orders and the duty of secrecy. |
| General Banking Operations | 8 | Foreign Exchange Remittance Facilities for Individuals | LRS, outward/inward remittances and FEMA basics for individuals. |
| General Banking Operations | 9 | Operational Aspects of NRI Business | NRE, NRO and FCNR accounts and the rules governing NRI banking. |
| General Banking Operations | 10 | Foreign Currency Accounts for Residents | RFC, EEFC and other foreign-currency accounts for residents. |
| General Banking Operations | 11 | Cash Management Services | CMS products, collections, payments and their importance to clients. |
| General Banking Operations | 12 | Management Services, Challenges and Issues | Operational challenges in delivering management and CMS services. |
| General Banking Operations | 13 | Responsibility of Paying Bank | Payment in due course, protection and material alterations. |
| General Banking Operations | 14 | Responsibility of Collecting Bank | Conversion, statutory protection and the duty of due diligence. |
| General Banking Operations | 15 | Ancillary Services | Remittances, safe deposit lockers, safe custody and agency services. |
| General Banking Operations | 16 | Financial Inclusion & Financial Literacy | BSBDA, BC model, PMJDY and financial-literacy initiatives. |
| General Banking Operations | 17 | Customer Service Guidelines | BCSBI codes, fair-practices and customer-service benchmarks. |
| General Banking Operations | 18 | Duties & Rights of a Banker and Customer Rights | The mutual rights and obligations in the banking relationship. |
| General Banking Operations | 19 | Grievance Redressal & RBI Integrated Ombudsman Scheme 2021 | Internal redressal and the One-Nation-One-Ombudsman framework. |
| General Banking Operations | 20 | Grievances, The RBI - Integrated Ombudsman Scheme | Procedure, appeal mechanism and powers of the Ombudsman. |
| General Banking Operations | 21 | The Right to Information Act, 2005 | RTI applicability to public-sector banks and disclosure norms. |
| Functions of Banks | 22 | Appraisal and Assessment of Credit Facilities | Creditworthiness, working-capital and term-loan assessment basics. |
| Functions of Banks | 23 | Operational Aspects of Loan Accounts | Disbursement, interest application, review and renewal of limits. |
| Functions of Banks | 24 | Types of Collaterals and Their Characteristics | Land, stocks, securities, LIC policies and their suitability as security. |
| Functions of Banks | 25 | Different Modes of Charging Securities | Pledge, hypothecation, mortgage, lien and assignment. |
| Functions of Banks | 26 | Documentation | Stamping, execution, limitation and proper loan documentation. |
| Functions of Banks | 27 | Non-Performing Assets / Stressed Assets | IRAC norms, asset classification, provisioning and resolution. |
| Functions of Banks | 28 | Important Laws Relating to Recovery of Dues | SARFAESI, DRT, IBC and Lok Adalat recovery mechanisms. |
| Functions of Banks | 29 | Contracts of Indemnity | Indemnifier-indemnified relationship and its banking use. |
| Functions of Banks | 30 | Contracts of Guarantee & Bank Guarantee | Surety, guarantee types and performance/financial guarantees. |
| Functions of Banks | 31 | Letters of Credit | Types of LC, UCPDC and documentary-credit mechanics. |
| Functions of Banks | 32 | Deferred Payment Guarantee | DPG structure, instalment guarantees and associated risk. |
| Functions of Banks | 33 | Laws Relating to Bill Finance | Bill discounting, purchase and the law of negotiable instruments. |
| Functions of Banks | 34 | Credit Cards, Home / Personal / Consumer Loans | Retail credit products, eligibility and operational aspects. |
| Functions of Banks | 35 | Priority Sector Advances | PSL targets, sub-targets and categories under RBI norms. |
| Functions of Banks | 36 | Agricultural Finance | KCC, crop loans, investment credit and allied agriculture. |
| Functions of Banks | 37 | Finance to MFIs / Co-Lending with NBFCs | Microfinance lending and the co-lending model with NBFCs. |
| Functions of Banks | 38 | Micro, Small and Medium Enterprises (MSME) | MSME classification, CGTMSE and dedicated lending schemes. |
| Functions of Banks | 39 | Government Sponsored Schemes | PMMY, Stand-Up India, PMEGP and other flagship schemes. |
| Functions of Banks | 40 | Self-Help Groups | SHG-bank linkage, JLGs and group-lending mechanics. |
| Banking Technology | 41 | Operational Aspects of CBS Environment | Core Banking Solution architecture and day-to-day operations. |
| Banking Technology | 42 | Alternate Delivery Channels – Digital Banking | ATMs, internet, mobile banking and self-service channels. |
| Banking Technology | 43 | Data Communication Network and EFT Systems | Network basics, RTGS, NEFT and electronic fund transfer. |
| Banking Technology | 44 | Digital Payment Systems – NPCI | UPI, IMPS, AePS, NACH and the NPCI payment ecosystem. |
| Banking Technology | 45 | Impact of Technology Adoption & Trends | How technology reshapes banking models and customer experience. |
| Banking Technology | 46 | Security Considerations & Mitigation Measures | Information security, controls and risk mitigation in banks. |
| Banking Technology | 47 | Cyber Crimes / Fraud Risk Management | Cyber-crime types, fraud prevention and incident response. |
| Banking Technology | 48 | Technology Trends, e-RUPI, Fintech, RegTech, SupTech | Emerging fintech, e-RUPI vouchers and regulatory technology. |
| Ethics in Banks & Financial Institutions | 49 | Ethics at the Individual Level | Values, integrity and ethical decision-making for bankers. |
| Ethics in Banks & Financial Institutions | 50 | Ethical Dimensions: Employees | Employee conduct, conflicts of interest and accountability. |
| Ethics in Banks & Financial Institutions | 51 | Work Ethics and the Workplace | Workplace ethics, fairness and professional behaviour. |
| Ethics in Banks & Financial Institutions | 52 | Banking Ethics: Changing Dynamics | Evolving ethical challenges in a digital, regulated banking world. |
🆕 Recently Updated Topics You Must Not Miss
Banking regulation moves fast, and the PPB paper increasingly tests the latest position. Pay special attention to these recently revised areas (always cross-check the exact current figures against the latest RBI Master Directions / IIBF notification):
- RBI Integrated Ombudsman Scheme 2021: The 'One Nation One Ombudsman' framework consolidated the earlier separate schemes and widened coverage to digital-payment grievances. Expect direct questions on its scope, the appellate authority and turnaround timelines.
- KYC / AML and periodic updation: RBI's Master Direction on KYC has been amended several times, including the treatment of video-based customer identification (V-CIP), risk categorisation and re-KYC periodicity. Study the current position rather than older norms.
- MSME classification & PSL norms: The investment-and-turnover thresholds defining Micro, Small and Medium enterprises and the PSL Master Directions (including treatment of small & marginal farmers and weaker sections) have been revised — verify the latest limits, as older figures are now outdated.
We keep our PPB notes and tests synced with these updates, so the figures you revise here stay current.
Quick PPB One-Liners for Revision
Use these rapid-fire one-liners to lock in the high-yield PPB concepts before the exam:
Free PPB Study Resources on Learning Sessions
A syllabus is only the start — you clear PPB by practising. Use the full Learning Sessions toolkit, all built around this exact syllabus:
- 📝 Chapter-wise PPB mock tests — timed, exam-pattern MCQs with instant answers and explanations.
- ⚡ Chapter one-liners — bite-sized revision points (a sample set is below) for last-mile prep.
- 🎮 Matching games — gamified drills that make banking terms, laws and payment systems stick.
- 📚 Detailed notes & study-material PDFs — chapter-by-chapter notes you can download and revise offline.
- 🎥 Live and recorded classes — concept-building sessions by Ashish Jain for every PPB topic.
Test Yourself — PPB Practice Questions
Try these hard, application-based questions. Tap Show Answer to check yourself and read the reasoning:
Q1. A bank receives a garnishee order attaching a customer's account that holds the proceeds of a term deposit not yet matured. How should the bank treat it?
- a) Immediately remit the full deposit to the court
- b) The order attaches only the debt due and payable, so an unmatured deposit is generally not attachable
- c) Close the account and refuse all transactions
- d) Ignore the order as deposits are protected
✅ Show Answer
Answer: b) The order attaches only the debt due and payable, so an unmatured deposit is generally not attachable
A garnishee order attaches debts that are 'due or accruing due' to the judgment-debtor. An unmatured fixed deposit is not yet payable, so it is generally outside the order's reach until maturity, whereas a credit balance in a savings/current account is attachable.
Q2. A customer issues a cheque on which the amount in words and figures differ. Under the Negotiable Instruments Act, how should the paying bank act?
- a) Return the cheque unpaid as ambiguous
- b) Pay the amount stated in figures
- c) Pay the amount stated in words
- d) Pay the lower of the two amounts
✅ Show Answer
Answer: c) Pay the amount stated in words
Section 18 of the Negotiable Instruments Act provides that where the amount in words and figures differ, the amount in words is the amount payable. Banks may, by practice, return such cheques, but the statutory position favours the words.
Q3. An exporter wants pre-shipment finance and a resident individual wants to remit funds abroad for education. Which framework governs the individual's outward remittance?
- a) The Liberalised Remittance Scheme (LRS) under FEMA
- b) Priority Sector Lending norms
- c) The SARFAESI Act
- d) The Banking Ombudsman Scheme
✅ Show Answer
Answer: a) The Liberalised Remittance Scheme (LRS) under FEMA
Outward remittances by resident individuals — including for education, travel or maintenance of relatives — are permitted under the LRS within the per-financial-year limit notified by RBI under FEMA. Always confirm the current ceiling from the latest RBI Master Direction.
Q4. A borrower's account shows interest and/or principal overdue for more than 90 days. For income-recognition purposes the account becomes:
- a) A standard asset
- b) A non-performing asset (NPA)
- c) A priority sector asset
- d) A contingent liability
✅ Show Answer
Answer: b) A non-performing asset (NPA)
Under RBI's IRAC norms, a term-loan account where interest or principal remains overdue for more than 90 days is classified as a non-performing asset, after which interest cannot be recognised on accrual but only on realisation.
Q5. A customer disputes a failed UPI transaction where the amount was debited but not credited to the beneficiary, and the bank fails to resolve it in time. Which avenue offers cost-free redressal?
- a) The Debt Recovery Tribunal
- b) The RBI Integrated Ombudsman Scheme 2021
- c) The SARFAESI Act
- d) The Lok Adalat for loan compromise
✅ Show Answer
Answer: b) The RBI Integrated Ombudsman Scheme 2021
Deficiency-in-service complaints, including digital payment failures, fall under the RBI Integrated Ombudsman Scheme 2021, which provides a free grievance-redressal mechanism once the bank's internal channel is exhausted or 30 days have elapsed.
Q6. A bank pays a crossed cheque over the counter in cash instead of through an account. What is the consequence?
- a) The bank is fully protected under Section 85
- b) The bank loses the statutory protection available for payment in due course of a crossed cheque
- c) The crossing is automatically cancelled
- d) The drawer becomes liable for the loss
✅ Show Answer
Answer: b) The bank loses the statutory protection available for payment in due course of a crossed cheque
A crossing is a direction to pay only through a banker (account). Paying a crossed cheque in cash over the counter is contrary to the crossing, so the paying bank forfeits the protection it would otherwise enjoy for a payment made in due course.
How to Prepare for the PPB Paper
Because PPB is broad and application-driven, a module-by-module approach works best:
- Module A – General Banking Operations (Ch 1–21): the relationship law, KYC/AML, deposits, cheques and grievance redressal carry heavy, factual marks — make this your strong base.
- Module B – Functions of Banks (Ch 22–40): the credit-and-recovery engine of the paper — drill NPA/IRAC norms, modes of charge, guarantees, PSL and government schemes until they are automatic.
- Module C – Banking Technology (Ch 41–48): CBS, NPCI payment systems, cyber security and fintech are increasingly examined; keep current with new trends like e-RUPI.
- Module D – Ethics (Ch 49–52): high-scoring and conceptual — quick to revise and a reliable mark-booster.
- Revise with mocks + one-liners + games: alternate full-length mock tests with one-liner revision and matching games so accuracy and speed climb together.
Frequently Asked Questions
How many chapters are there in the PPB syllabus?
The PPB syllabus has 52 chapters spread across four modules — General Banking Operations, Functions of Banks, Banking Technology, and Ethics in Banks & Financial Institutions.
Is PPB the toughest paper in JAIIB?
Many candidates find PPB the most demanding JAIIB paper because of its sheer breadth — it spans banking law, credit, technology and ethics. With a module-wise plan and regular mock tests, however, it is very much scorable and directly useful on the job.
Where can I download the PPB syllabus PDF?
You can download the complete PPB syllabus PDF from the button above — it lists every chapter in the official IIBF order across all four modules.
How should I keep up with updated topics?
Follow RBI Master Directions for KYC/AML, PSL, MSME and the Integrated Ombudsman Scheme, and use our regularly-updated PPB notes and mock tests, which reflect the latest figures and circulars.
Start Your PPB Preparation Today
A clear syllabus is half the battle. Download the PPB syllabus PDF, map each module to a study block, revise with one-liners and games, and back it all with timed mock tests. With a structured plan and consistent practice, JAIIB Paper 2 — Principles & Practices of Banking — is well within your reach.
Take a free mock test, download chapter PDFs, or watch a video class — all included on iibf.store.
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