Banking Sector Module (Intermediate) Practice Exam

Banking Sector Module (Intermediate) Practice Exam

As businesses continuously seek funding for establishment, expansion, and development, banks play a pivotal role as primary sources of finance. In today’s fast-paced and globalized financial environment, there is a growing demand for skilled professionals with strong knowledge of banking practices.

The Banking Sector Module (Intermediate) Exam is designed to assess your understanding of core banking operations and products offered by banks in India.  Passing this exam demonstrates a foundational knowledge of various banking services and their role within the Indian financial system.

Who Should Take This Exam

This certification is ideal for:

• Individuals seeking a career in the banking sector, particularly those interested in roles like customer service representatives, loan processors, or wealth management associates.
• Professionals who want to enhance their financial literacy and understanding of banking products and services.
• Those aiming to pursue further NCFM certifications in specific banking domains.
• Students of Management and Commerce
• Finance Professionals
• Employees with banks and financial institutions
• Distributors / Agents

Prerequisites

There are no formal prerequisites for taking this exam. However, a basic understanding of financial concepts would be beneficial.

Roles and Responsibilities 

• Customer Service Representatives: Providing basic banking services, responding to customer inquiries, and processing transactions.
• Loan Processors: Collecting and verifying loan applications, assessing creditworthiness, and processing loan approvals.
• Wealth Management Associates: Assisting clients with investment planning and managing their financial portfolios (may require additional certifications).

Course Outline   

The exam covers the following topics:

1. Introduction to Banking

• Fundamental role and evolution
• Banking structure in India
• Licensing of banks in India
• Branch licensing
• Foreign Banks
• Private Banks – Capital and voting rights
• Dividend
• Corporate Governance

2. Banking and the Economy

• Cash Reserve Ratio (CRR)
• Statutory Liquidity Ratio (SLR)
• Repo and Reverse Repo
• Open Market Operations
• Security Valuation
• Capital Account Convertibility

3. Bank Deposits, Nomination and Deposit Insurance

• Kinds of deposits
• Joint accounts
• Nomination
• Closure of deposit accounts
• Deposit insurance.

4. Other Banking services

• Fund-based services.
• Non-Fund based services
• Money Remittance Services
• Banking Channels.

5. Bank – Customer Relationship

• Roles of Banks.
• Bankers’ obligation of secrecy

6. Security Creation

• Pledge
• Hypothecation
• Mortgage
• Assignment

7. NPA and curitisation

• Non-Performing Assets
• NPA categories
• NPA Provisioning Norms
• SARFAESI Act.

8. Understanding a Bank’s Financials.

• Balance Sheet
• Profit & Loss Account
• Camels Framework.

9. Basel Framework.

• Bank for International Settlements (BIS)
• Basel Accords

10. Regulatory Framework (Part 1)

• Anti-Money Laundering and Know Your Customer
• Banking Ombudsman Scheme, 2006

11. Regulatory Framework (Part 2)

• Indian Contract Act, 1872
• Sales of Goods Act, 1930
• Negotiable Instruments Act, 1881
• The Limitation Act, 1963

12. Financial Inclusion