Small Finance Banks (SFB) Syllabus 2026 + Free PDF
The Small Finance Banks (SFB) certification from the Indian Institute of Banking & Finance (IIBF) is built for bankers and aspirants who work in — or want to enter — the fast-growing financial-inclusion space. To clear it efficiently you need three things: a precise map of the syllabus, awareness of what RBI has recently changed, and good practice material. This exhaustive guide covers the complete Small Finance Banks syllabus for 2026 chapter-by-chapter, 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 SFB Syllabus (PDF)
The complete, exam-ready Small Finance Banks syllabus in one PDF — keep it open while you plan your study weeks.
Download SFB Syllabus PDF →What is the Small Finance Banks (SFB) Course?
The SFB certification is a focused programme that builds practical expertise in running and growing a differentiated, inclusion-first bank. Small Finance Banks are licensed by the RBI to take banking to the unserved and underserved — small business units, micro and marginal farmers, micro and small industries and the unorganised sector — primarily through small-ticket, high-volume credit. The course suits SFB staff, microfinance professionals, relationship managers and anyone whose role touches priority-sector and micro-credit delivery.
It runs from the financial-inclusion and regulatory backdrop, through the operational core of KYC/AML and asset classification, into MSME and forex lending and finally the marketing, technology and customer-service skills that make an SFB branch work — a complete toolkit for the inclusion-focused banker.
Small Finance Banks Exam Pattern
The Small Finance Banks examination is an objective, MCQ-based test delivered through IIBF's standard mode. Questions are application- and scenario-oriented rather than simple definition recall, so conceptual clarity on regulatory norms, asset classification and inclusion schemes matters far more than rote learning. Always confirm the current number of questions, duration and passing marks from the latest IIBF examination notification before you register, as IIBF revises these periodically.
Small Finance Banks Syllabus 2026 – Chapter-Wise
The SFB syllabus is organised into modules covering the financial system, banking operations, credit & forex, and marketing/technology/customer service. Here is the complete chapter-wise breakdown in the official order:
| Module | Ch | Topic | What you learn |
|---|---|---|---|
| Indian Financial System & Regulatory Guidelines | 1 | Government-Sponsored Credit-Linked Schemes: DAY-National Rural Livelihood Mission | SHG bank linkage, the DAY-NRLM framework and how credit reaches the rural poor. |
| Operational Aspects of Banking | 2 | Know Your Customer (KYC) and Anti-Money Laundering (AML): KYC Norms | Customer Due Diligence, risk categorisation, PMLA obligations and STR/CTR reporting. |
| Credit & Foreign Exchange Management | 3 | Income Recognition, Asset Classification & Provisioning (IRAC): Non-Performing Assets | The 90-day NPA rule, sub-standard/doubtful/loss buckets and provisioning norms. |
| Credit & Foreign Exchange Management | 4 | Lending to Micro, Small & Medium Enterprises (MSMEs): Policies & Challenges | MSME classification, appraisal of small borrowers and the challenges of information asymmetry. |
| Credit & Foreign Exchange Management | 5 | Foreign Exchange Transactions for SFBs: Foreign Exchange Market | FEMA basics, Authorised Dealer role, remittances and trade-related forex for SFBs. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 6 | Examination Centre Selection Rules | Centre-selection conduct rules — note there is no provision to change centre after applying. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 7 | Mobile Phones in the Examination | Rules on carrying and using mobile phones at the exam venue. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 8 | Use of Calculator | Permitted calculator rules during the examination. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 9 | Other Rules / Information | General conduct and administrative instructions for candidates. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 10 | Exam-Hall Timing & Seating Rules | No exit in the first 60 minutes; occupy the allotted seat as instructed. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 11 | Rules & Penalties for Misconduct / Unfair Practices | What counts as malpractice and the consequences candidates face. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 12 | Debarment Period for Unfair Practices | Refer the Institute's website (Exam Related menu) for debarment details. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 13 | Result Advice / Consolidated Marksheet / Final Certificate | How results, marksheets and the final certificate are issued. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 14 | South Zone Contact (iibfsz@iibf.org.in) | Zonal office contact details for candidate queries. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 15 | North Zone Contact (iibfnz@iibf.org.in) | Zonal office contact details for candidate queries. |
| Marketing, Technology & Customer Service (incl. Soft Skills) | 16 | East / West / North-East Zone Contacts (iibfez@iibf.org.in, PDC-Lucknow) | Remaining zonal contacts for administrative correspondence. |
Note: Chapters 6–16 above reproduce the examination-conduct and administrative instructions exactly as they appear in the official syllabus document. Focus your subject study on Chapters 1–5, which carry the testable banking concepts.
🆕 Recently Updated Topics You Must Not Miss
SFB regulation moves quickly, and the 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):
- Priority Sector Lending (PSL) norms for SFBs: RBI prescribes a higher PSL target (as a share of Adjusted Net Bank Credit) for Small Finance Banks than for universal banks, with periodic refinements to classifications and sub-targets. Verify the current percentage and sub-targets before the exam.
- MSME classification: The composite investment-and-turnover thresholds defining Micro, Small and Medium enterprises were revised upward — study the latest limits, since older numbers are now outdated and directly tested.
- KYC / AML Master Directions: RBI periodically updates Customer Due Diligence, periodic KYC updation and beneficial-ownership norms, alongside FIU-IND reporting expectations. Confirm the current requirements rather than relying on older versions.
We keep our SFB notes and tests synced with these updates, so the figures you revise here stay current.
Quick Small Finance Banks One-Liners for Revision
Use these rapid-fire one-liners to lock in the high-yield SFB concepts before the exam:
Free Small Finance Banks Study Resources on Learning Sessions
A syllabus is only the start — you clear the SFB exam by practising. Use the full Learning Sessions toolkit, all built around this exact syllabus:
- 📝 Chapter-wise SFB 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 inclusion schemes, KYC terms and asset-classification rules 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 SFB topic.
Test Yourself — Small Finance Banks Practice Questions
Try these hard, application-based questions. Tap Show Answer to check yourself and read the reasoning:
Q1. A Small Finance Bank is found to be lending predominantly to large corporates with high ticket sizes. Which core licensing condition is it most likely breaching?
- a) The CRR maintenance requirement
- b) The mandate to serve unserved and underserved segments with a focus on small-ticket lending
- c) The Basel III capital norms
- d) The deposit insurance ceiling
✅ Show Answer
Answer: b) The mandate to serve unserved and underserved segments with a focus on small-ticket lending
The very purpose of an SFB licence is financial inclusion — serving micro enterprises, small/marginal farmers and the unorganised sector. Concentrating on large corporates defeats the differentiated-bank mandate, even if capital and reserve ratios are met.
Q2. An SFB customer's account shows interest unpaid for 95 days. For income recognition purposes, the advance should be treated as:
- a) Standard, since under 180 days
- b) A Non-Performing Asset, with interest no longer recognised on accrual basis
- c) A restructured standard asset
- d) Doubtful asset straightaway
✅ Show Answer
Answer: b) A Non-Performing Asset, with interest no longer recognised on accrual basis
Once interest/principal is overdue beyond 90 days the account becomes an NPA; income can then be booked only on realisation, not on accrual. It first becomes sub-standard — it does not jump directly to doubtful.
Q3. Under DAY-NRLM, the primary channel through which credit reaches rural poor women is:
- a) Direct large term loans to individuals
- b) Self-Help Group (SHG) bank linkage
- c) Corporate social responsibility grants
- d) Foreign currency loans
✅ Show Answer
Answer: b) Self-Help Group (SHG) bank linkage
DAY-NRLM works on the SHG model — groups of rural women are credit-linked to banks, building thrift, mutual guarantee and graduated access to bank finance, a natural fit for SFBs.
Q4. During onboarding, an SFB assigns customers to low, medium and high risk buckets and applies enhanced due diligence to the high-risk set. This process is best described as:
- a) Customer Acquisition Cost analysis
- b) Risk categorisation under KYC/AML CDD norms
- c) Credit scoring for pricing
- d) Priority Sector classification
✅ Show Answer
Answer: b) Risk categorisation under KYC/AML CDD norms
Risk-based Customer Due Diligence requires categorising customers by money-laundering risk and applying proportionate (enhanced) diligence — distinct from credit scoring or PSL tagging.
Q5. An SFB wishes to offer foreign-exchange remittance services to its migrant-worker customers. What does it first require?
- a) A merchant-banking licence from SEBI
- b) Authorised Dealer status under FEMA from the RBI
- c) An NBFC registration
- d) Listing on a stock exchange
✅ Show Answer
Answer: b) Authorised Dealer status under FEMA from the RBI
Forex dealing — including remittances and trade transactions — requires Authorised Dealer authorisation under FEMA. SFBs operate such forex business strictly within the limits RBI prescribes for them.
Q6. A micro-enterprise borrower of an SFB has an investment and turnover within the Micro threshold but is being appraised under MSME policy. The most relevant challenge highlighted in SFB MSME lending is:
- a) Excessive collateral availability
- b) Information asymmetry and lack of formal financial records of small borrowers
- c) Over-regulation of large corporates
- d) Surplus priority-sector achievement
✅ Show Answer
Answer: b) Information asymmetry and lack of formal financial records of small borrowers
MSME and micro borrowers often lack audited statements and formal records, making credit assessment harder — a central challenge in SFB lending, addressed through cash-flow-based and surrogate appraisal methods.
How to Prepare for the SFB Exam
Because the SFB paper is application-driven, a chapter-grouped approach works best:
- Build the regulatory base (Chapter 1): understand financial inclusion, DAY-NRLM and the SHG bank-linkage model that underpins SFB lending.
- Lock in operations (Chapter 2): KYC/AML is high-yield and factual — master CDD, risk categorisation and reporting obligations.
- Master credit & forex (Chapters 3–5): the scoring heart of the paper — drill IRAC/NPA rules, MSME appraisal challenges and the forex/FEMA basics for SFBs.
- Skim the admin chapters (6–16): these are exam-conduct rules — read once for compliance, but spend your study energy on Chapters 1–5.
- 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
Is the Small Finance Banks certification worth it?
Yes. For anyone working in an SFB, microfinance institution or financial-inclusion role, the SFB certification builds directly job-relevant skills across inclusion schemes, KYC/AML, asset classification and MSME lending — and signals domain expertise to employers.
How many chapters are there in the SFB syllabus?
The official document lists 16 chapters across four modules, but the testable banking concepts are concentrated in Chapters 1–5 (inclusion schemes, KYC/AML, NPA/IRAC, MSME lending and forex); the remaining chapters cover examination-conduct rules.
Where can I download the SFB syllabus PDF?
You can download the complete SFB syllabus PDF from the button above — it lists every chapter in the official IIBF order.
How should I keep up with updated topics?
Follow RBI Master Directions for PSL, MSME classification and KYC/AML, and use our regularly-updated SFB notes and mock tests, which reflect the latest figures.
Start Your SFB Preparation Today
A clear syllabus is half the battle. Download the SFB syllabus PDF, map each chapter to a study week, revise with one-liners and games, and back it all with timed mock tests. With a structured plan and consistent practice, the Small Finance Banks certification is well within reach.
Take a free mock test, download chapter PDFs, or watch a video class — all included on iibf.store.
