JAIBP Branch Banking Syllabus

Branch Banking syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Branch Banking in JAIBP, not a summary of it.

1. 1

   Introduction to Branch Banking

   3 topics

   • Functions of a Bank Branch
   • Branch Organization and Structure
   • Customer Service Standards
2. 2

   Deposit Products and Account Operations

   3 topics

   • Current, Savings and Term Deposits
   • Account Opening and KYC
   • Account Maintenance and Closure
3. 3

   Cash and Clearing Operations

   3 topics

   • Cash Management and Vault Operations
   • Clearing House and Inward/Outward Clearing
   • Remittances and Funds Transfer
4. 4

   Negotiable Instruments Handling

   3 topics

   • Cheques and Payment Instruments
   • Collection and Payment of Instruments
   • Dishonour and Liability
5. 5

   Trade and Foreign Exchange Services

   3 topics

   • Foreign Currency Accounts
   • Home Remittances
   • Basic Trade Services at Branch Level
6. 6

   Branch Risk and Compliance

   4 topics

   • Operational Risk at the Branch
   • Fraud Prevention and Internal Controls
   • Anti-Money Laundering Compliance
   • Branch Audit and Reporting

Branch Banking flashcards for JAIBP

20 of 51 cards from the Branch Banking deck — real questions with worked answers.

1. What are the core functions of a bank branch?

   Accepting deposits, granting advances/loans, providing remittance and funds-transfer services, collection and payment of cheques/instruments, foreign exchange and trade services, and ancillary services (lockers, utility collection, government transactions).

2. In branch organization, what is the typical role separation between the 'front office' and 'back office'?

   Front office handles direct customer interaction (tellers, customer service, sales/relationship). Back office handles processing, reconciliation, clearing, account maintenance and compliance away from the counter.

3. Who is normally the overall in-charge accountable for a bank branch's operations, compliance and performance?

   The Branch Manager (BM), supported by an Operations Manager/Branch Operations Manager for day-to-day operational and control functions.

4. What is the principle of 'segregation of duties' (maker-checker) at a branch?

   No single person should initiate and authorize/complete a transaction. One officer (maker) inputs and another (checker) verifies/authorizes, reducing fraud and error risk.

5. Define a Current Account.

   A non-interest-bearing demand deposit account designed for frequent transactions (businesses/traders), with unlimited withdrawals, cheque-book and overdraft facility, and no profit/interest payable.

6. Define a Savings (PLS) Account.

   A profit-and-loss sharing deposit account for individuals/small savers that earns profit, allows deposits/withdrawals subject to certain rules, and is intended to encourage savings.

7. Define a Term (Fixed) Deposit.

   A deposit placed for a fixed tenor (e.g., 1 month to several years) at an agreed profit rate; funds are locked for the term and premature encashment usually reduces the profit earned.

8. Compare Current vs Savings accounts on profit and transaction frequency.

   Current: no profit, unlimited transactions, overdraft possible. Savings: profit-bearing, transactions allowed but may have limits/conditions, no overdraft.

9. What does KYC stand for and what is its purpose?

   Know Your Customer — the process of identifying and verifying a customer's identity, address, beneficial ownership and source of funds to prevent money laundering, fraud and terrorist financing.

10. What is CDD in account opening?

    Customer Due Diligence — collecting and verifying customer identity information, understanding the purpose of the account and assessing risk; applied at onboarding and on an ongoing basis.

11. When is Enhanced Due Diligence (EDD) required?

    For higher-risk customers such as PEPs (Politically Exposed Persons), non-residents, high-risk businesses, or unusual/large transactions — requiring deeper verification and senior approval.

12. In Pakistan, what document/biometric verification is typically required to open an individual account?

    A valid CNIC/SNIC (or NICOP/POC for overseas Pakistanis), verified against NADRA, often with biometric verification, plus address proof and source-of-income details.

13. What is a dormant/inoperative account and how does it typically arise?

    An account with no customer-initiated transactions for a defined period (commonly 12 months for current/savings). It is flagged dormant; reactivation requires customer request and re-verification.

14. What is the process for closing a customer account at a branch?

    Receive a written closure request, verify signatures/identity, recover unused cheque leaves and ATM/debit cards, settle outstanding charges, pay the residual balance, and mark the account closed in the system.

15. What are 'unclaimed deposits' and what generally happens to them?

    Deposits/instruments with no activity or claim for a long statutory period (e.g., 10 years in Pakistan). They must be surrendered/reported to the State Bank of Pakistan as required by law.

16. What is the role of cash management at a branch?

    Ensuring adequate but not excessive cash on hand, managing teller cash limits, vault cash, cash sorting (fit/unfit notes), insurance limits, and cash movement (CIT) to/from currency chest or other branches.

17. What is a 'cash retention limit' at a branch?

    The maximum amount of cash a branch (or teller) is authorized to hold, set for security and insurance reasons; excess cash must be remitted to the chest/main branch.

18. What is dual control over the vault?

    The vault/strong-room can only be opened in the joint presence of two authorized custodians, each holding a separate key/combination, so neither can access cash alone.

19. What is a clearing house?

    A centralized mechanism (in Pakistan, NIFT) where banks exchange cheques and instruments drawn on each other and settle the net amounts owed among themselves.

20. Distinguish inward clearing from outward clearing.

    Outward clearing: cheques deposited by a branch's customers drawn on OTHER banks, sent for collection. Inward clearing: cheques drawn ON the branch's own customers received from other banks for payment.

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