IIBF Forex for Individuals study plan
IIBF Forex for Individuals · Give each week a clear focus.
8 weeks · About 6 hours per week
Foreign Exchange Fundamentals and FEMA Framework
Define foreign exchange and distinguish between currency conversion, remittance, and travel-related forex services offered to individuals.
Classify current account and capital account transactions under FEMA and state which individual remittances fall in each category.
List the permitted purposes and limits for individuals under the Liberalised Remittance Scheme, including the annual cap and the treatment of joint holders and minors.
Explain the roles of RBI, authorised dealers, full-fledged money changers, and authorised money changers in the retail forex chain.
Your checkpoint
A one-page FEMA decision tree that maps five sample individual remittance scenarios (education, medical, gift, investment abroad, travel) to the correct account type, approval route, and reporting form.
Foreign Exchange Fundamentals and FEMA Framework
Differentiate between FEMA and the Foreign Exchange Management (Current Account Transactions) Rules in terms of prohibitions and prior approvals.
Identify transactions that are prohibited outright versus those requiring prior approval from RBI, the Government of India, or the authorised dealer.
Describe the facility structure for individuals: one-time relaxation, annual limits, and the conditions that trigger a cap.
Summarise the consequences of non-compliance, including compounding of contraventions and the role of the Enforcement Directorate.
Your checkpoint
A 15-question self-test on FEMA account classification and LRS limits, scored and reviewed, with every wrong answer rewritten as a correct one-line rule.
Retail Forex Products and Facilities for Individuals
Compare retail forex products available to individuals: cash, travel cards, demand drafts, wire transfers, and foreign currency fixed deposits.
Describe the features of a resident foreign currency account and a non-resident external account, and state who can open each.
Explain how exchange houses and money changers quote buy and sell rates for cash versus traveller's cheques.
Outline the process for buying and selling foreign currency cash, including endorsement requirements on the passport and the encashment of unspent currency.
Your checkpoint
A product comparison table covering six retail forex products across five attributes (eligibility, limit, currency, settlement time, surrender rule), with at least one worked numeric example per product.
Retail Forex Products and Facilities for Individuals & Documentation, KYC and Compliance for Individual Forex Transactions
Assemble the standard document set for an individual forex transaction: PAN, passport, visa, ticket, invoice, and Form A2.
Explain when Form A2 is required, how it is completed, and how it links to the purpose code used in reporting.
Map common purpose codes to the supporting documents an authorised dealer must retain.
Describe the KYC process for individuals, including identity verification, address proof, and periodic re-KYC triggers.
Your checkpoint
A document checklist matrix that pairs eight purpose codes with the exact documents required, the retention period, and the form to be filed.
Documentation, KYC and Compliance for Individual Forex Transactions
Apply anti-money laundering and know-your-customer principles to retail forex, including customer risk categorisation and enhanced due diligence for high-risk cases.
Identify red flags in individual forex transactions such as structuring, third-party payments, and inconsistent purpose declarations.
Explain the reporting obligations of authorised dealers to the Financial Intelligence Unit and the treatment of suspicious transaction reports.
Describe the role of the Foreign Exchange Management Act reporting system and the purpose of the A2 and A1 forms in trade and non-trade reporting.
Your checkpoint
A red-flag register of ten suspicious patterns, each with the correct escalation step and the report that must be generated.
Rates, Charges, Settlement and Customer Service in Retail Forex
Distinguish between the interbank rate, the card rate, and the TT buying and selling rates, and compute the effective cost to the customer for each.
Calculate the impact of service tax, GST, margin, and rounding on the final amount debited for a remittance.
Explain forward contracts, cancellations, and rollovers for individuals, including the underlying exposure requirement.
Compute the realised gain or loss on a cancelled forward using a worked example with a given spot and forward rate.
Your checkpoint
A spreadsheet with three worked rate calculations (cash purchase, wire transfer, and forward cancellation) showing the customer-facing amount and the bank's margin.
Rates, Charges, Settlement and Customer Service in Retail Forex & Foreign Exchange Fundamentals and FEMA Framework
Describe the settlement cycle for retail forex transactions and the treatment of value dates, holidays, and cut-off times.
Explain the customer grievance redressal mechanism for forex services, including the internal ombudsman route and RBI's integrated ombudsman scheme.
Revisit FEMA limits and reconcile them with the pricing and settlement rules learned in week 6.
Practice explaining charges, limits, and turnaround times to a customer in plain language.
Your checkpoint
A one-page customer-facing explainer that states the charges, limits, settlement timelines, and complaint escalation path for an outbound education remittance.
Foreign Exchange Fundamentals and FEMA Framework & Retail Forex Products and Facilities for Individuals & Documentation, KYC and Compliance for Individual Forex Transactions & Rates, Charges, Settlement and Customer Service in Retail Forex
Consolidate all four domains into a single revision outline with the ten most testable rules per domain.
Complete a timed mock test covering all domains and analyse the score by domain.
Re-drill weak areas identified in the mock test using the notes produced in weeks 1 to 7.
Rehearse the regulatory citations most likely to be tested, including LRS limits, form numbers, and reporting timelines.
Your checkpoint
A timed 60-question mock test, scored, with a written remediation plan listing the three weakest sub-topics and the specific notes to revisit before the exam.
Milestones
Week 2: Score at least 12 out of 15 on the FEMA self-test and correctly classify all five scenarios in the week 1 decision tree without referring to notes.
Week 4: Complete the document checklist matrix with all eight purpose codes correctly matched to documents and forms, verified against the FEMA rules.
Week 6: Produce all three rate calculations with no arithmetic errors and explain each margin component in one sentence.
Week 8: Score at least 70 percent on the timed mock test and show a written remediation plan covering the three weakest sub-topics.