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100+ Free JAIIB PPB Practice Questions

Pass your IIBF JAIIB Paper 2: Principles and Practices of Banking (India) exam on the first try — instant access, no signup required.

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2026 Statistics

Key Facts: JAIIB PPB Exam

~100 MCQs / 100 marks

Official JAIIB paper size per subject (2026 rules)

IIBF JAIIB Rules & Syllabus 2026 PDF

50/100

Minimum passing marks per paper

IIBF JAIIB Rules & Syllabus 2026 PDF

2 hours

Examination duration per paper; no negative marking

IIBF JAIIB Rules & Syllabus 2026 PDF

₹4,000 / ₹1,300

First attempt / subsequent attempt fee per paper (+ taxes)

IIBF JAIIB Rules & Syllabus 2026 PDF

4 modules

Official PPB syllabus structure (A–D)

IIBF JAIIB Rules & Syllabus 2026 PDF

5 attempts / 3 years

Time limit to complete all JAIIB papers with credit retention for passed subjects

IIBF JAIIB Rules & Syllabus 2026 PDF

JAIIB PPB (2026): ~100 MCQs for 100 marks in 2 hours, English/Hindi, online, no negative marking; pass at 50/100 per paper. Fees ₹4,000 first attempt / ₹1,300 later attempts per paper + taxes. IIBF members with 12th pass eligibility. Free bank: 100 practice MCQs across four official modules.

Sample JAIIB PPB Practice Questions

Try these sample questions to test your JAIIB PPB exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the banker-customer relationship, when a bank accepts valuables for safe custody, it typically acts as:

A.Agent of the customer

B.Bailee with the customer as bailor

C.Guarantor of the asset value

D.Mortgagee

Explanation: In safe-custody/safe-deposit arrangements the bank is bailee and the customer is bailor — the bank must exercise reasonable care but does not own the goods.

2A banker's general lien applies to:

A.All property of the customer everywhere

B.Securities/documents in bank's possession relating to a general balance owed

C.Only fixed deposits regardless of debt

D.Government tax dues only

Explanation: Banker's general lien is a right to retain goods/securities in its possession until a general balance due from the customer is settled, subject to legal limits and agreement.

3Money laundering is best defined as:

A.Recording cash transactions in passbooks

B.Processing criminal proceeds to disguise their illegal origin

C.Transferring salary through NEFT

D.Paying income tax on interest income

Explanation: AML frameworks define money laundering as disguising the true origin of proceeds of crime so they appear legitimate — a core PMLA/FATF concern in Indian banking.

4Under India's PMLA framework, banks are classified as:

A.Reporting entities with specified record-keeping and reporting obligations

B.Exempt from any AML obligations

C.Regulators of FATF

D.Tax assessing authorities

Explanation: Scheduled commercial banks and other financial institutions are 'reporting entities' under PMLA, required to maintain records, verify identity and file reports such as STRs where applicable.

5The primary objective of KYC norms in banking is to:

A.Eliminate all cash transactions

B.Establish customer identity and understand the nature of business to mitigate financial crime risk

C.Maximise branch footfall

D.Replace credit appraisal

Explanation: KYC enables banks to verify identity, address and beneficial ownership and understand expected account activity — foundational to AML/CFT risk management per RBI master directions.

6CKYCR (Central KYC Records Registry) primarily helps banks by:

A.Eliminating RBI supervision of KYC compliance

B.Reducing duplication through central storage/retrieval of KYC records

C.Setting benchmark lending rates for banks

D.Issuing Legal Entity Identifiers to individuals

Explanation: CKYCR allows a single KYC record with a KYC Identifier that can be accessed by reporting entities, reducing repeated documentation for customers.

7For opening a savings account of a minor (10–18 years) operated by the minor, banks generally require:

A.No identity proof at all

B.KYC of minor and guardian as per RBI/account-opening norms

C.Only the school identity card of the minor, without guardian KYC

D.Only Form 60 of an unrelated introducer, without identity documents

Explanation: Account-opening guidelines require identity/address verification of the minor and guardian (where applicable) along with age proof and operating instructions.

8A Legal Entity Identifier (LEI) is required for large corporate borrowers/transactions primarily to:

A.Replace PAN for individuals

B.Uniquely identify legal entities in financial transactions above prescribed thresholds

C.Serve as the sole KYC document for opening savings accounts of individuals

D.Act as a credit score issued by Credit Information Companies

Explanation: LEI is a global identifier for legal entities used in high-value derivative and credit markets and mandated beyond RBI thresholds for transparency.

9Current accounts are typically suitable for:

A.Long-term retirement savings with withdrawal limits

B.Businesses needing frequent payments and receipts with no interest

C.Only government employees

D.Fixed tenure deposits

Explanation: Current accounts suit traders and businesses with high transaction volumes; they generally pay no interest and allow unlimited operations per product terms.

10A bearer cheque is one that is:

A.Payable only to a named payee with crossing

B.Payable to the person presenting it

C.Always non-negotiable

D.Valid only for RTGS

Explanation: Bearer cheques are payable to whoever bears/presents them; they carry higher risk and are discouraged/restricted in practice compared to order cheques.

About the JAIIB PPB Exam

JAIIB Paper 2 (Principles and Practices of Banking) tests operational banking knowledge — customer relationships, KYC/AML, lending, payment technology, recovery and professional ethics essential for branch and operational roles. The 2026 examination is online MCQ with no negative marking.

Assessment

Paper II of the four-paper JAIIB flagship diploma. Online MCQ examination in English or Hindi. Scheduled on dedicated dates (e.g., May 9 and November 22, 2026 sessions per IIBF calendar). Candidates register and pay per attempt.

Time Limit

2 hours

Passing Score

50 out of 100 per paper (or minimum 45 in each paper with 50% aggregate in a single attempt)

Exam Fee

₹4,000 first attempt / ₹1,300 per subsequent attempt per paper (+ convenience charges & taxes) (Indian Institute of Banking & Finance (IIBF))

JAIIB PPB Exam Content Outline

25%

Module A — General Banking Operations

Banker-customer relationship, AML/KYC, account opening, deposits, clearing/collection/cash, NRI business, negotiable instruments, financial inclusion and grievance redressal.

25%

Module B — Functions of Banks

Principles of lending, credit appraisal, working capital/term loans, PSL, agriculture/MSME/SHG, LC/BG, NPAs, SARFAESI/DRT recovery, ALM and consumer protection.

25%

Module C — Banking Technology

CBS, NEFT/RTGS/IMPS/UPI, cards/ATM, digital/e-KYC, cybersecurity, NPCI, e-RUPI, account aggregators, RegTech and business continuity.

25%

Module D — Ethics in Banks and Financial Institutions

Business and banking ethics, governance, CSR, transparency, conflicts of interest, whistleblowing, fair treatment and stakeholder balance.

How to Pass the JAIIB PPB Exam

What You Need to Know

Passing score: 50 out of 100 per paper (or minimum 45 in each paper with 50% aggregate in a single attempt)
Assessment: Paper II of the four-paper JAIIB flagship diploma. Online MCQ examination in English or Hindi. Scheduled on dedicated dates (e.g., May 9 and November 22, 2026 sessions per IIBF calendar). Candidates register and pay per attempt.
Time limit: 2 hours
Exam fee: ₹4,000 first attempt / ₹1,300 per subsequent attempt per paper (+ convenience charges & taxes)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

JAIIB PPB Study Tips from Top Performers

1Work through IIBF courseware Module A — banker-customer relationships, KYC/AML and negotiable instruments are high-frequency.

2Practice lending principles, 5 Cs of credit, PSL categories and NPA classification for Module B.

3Revise payment rails — NEFT, RTGS, IMPS, UPI — and basic cybersecurity controls for Module C.

4Study ethics, governance, CSR and fair-treatment codes for Module D scenario questions.

5Use timed 100-question mocks at 2 hours to match official pacing (~1.2 minutes per question).

6Remember JAIIB has no negative marking — attempt all questions but verify operational-rule items carefully.

Frequently Asked Questions

What is JAIIB Paper 2 PPB?

It is the second paper of IIBF's JAIIB flagship diploma covering Principles and Practices of Banking — general operations, lending functions, banking technology and ethics.

What is the JAIIB PPB exam pattern?

Per IIBF JAIIB Rules & Syllabus 2026: approximately 100 objective MCQs for 100 marks in 2 hours, online mode, no negative marking. Medium is English or Hindi, chosen at registration.

What is the passing score for JAIIB PPB?

Minimum 50 marks out of 100 in the paper. Alternatively, at least 45 marks in each subject with an aggregate of 50% across all papers in a single attempt completes the examination.

How much does the JAIIB exam cost?

First attempt fee is ₹4,000 per paper; 2nd through 5th attempts are ₹1,300 each, plus convenience charges and applicable taxes. Candidates register separately for every attempt.

Who is eligible for JAIIB?

Only ordinary members of IIBF who have passed the 12th standard or equivalent may appear. Employers must be institutional members for staff membership.

Are these official IIBF exam questions?

No. These are original OpenExamPrep practice questions aligned to the official 2026 PPB syllabus modules. IIBF does not release its proprietary MCQ bank.