IIBF NBFC study guide
IIBF NBFC · Work through your exam, one topic at a time.
The IIBF NBFC credential refers to certification and training offerings from the Indian Institute of Banking & Finance (IIBF), a professional body established in 1928 as a company under Section 26 of the Indian Companies Act, 1913. Its stated vision is to be the premier institute for developing and nurturing competent professionals in banking and finance, and its mission is to develop professionally qualified and competent bankers and finance professionals through education, training, examination, consultancy/counselling and continuing professional development. The IIBF NBFC study guide has 5 sections and about 2,075 words.
01NBFC Regulatory Framework (RBI Directions and Applicable Law)
It tests the legal plumbing: which statute empowers RBI, who needs a Certificate of Registration (CoR), how the principal business test works, and how the Scale Based Regulation (SBR) framework (October 2021, effective 1 October 2022) decides which prudential norms bite. Chapter IIIB of the RBI Act, 1934 governs NBFCs: Section 45-IA (CoR mandatory before commencing business), 45-IB (liquid assets), 45-IC (transfer at least 20% of profit after tax to a reserve fund every year), 45-S (unincorporated bodies barred from deposit taking).
427 words, about 2 min02NBFC Operations
Day-to-day operating rules a branch, treasury or operations team actually applies: deposit mobilisation ceilings, statutory liquid assets, returns and records, and outsourcing boundaries. Public deposits only under a valid deposit-taking CoR, an investment-grade credit rating and a board-approved, disclosed interest rate policy.
380 words, about 2 min03Products and Customer Protection
Product-level rules - gold loans, microfinance, digital lending - and the conduct standards that decide a customer complaint or an inspection finding. Gold loans: loan-to-value capped at 75% of the value of gold jewellery, with documented valuation and auction processes.
421 words, about 2 min04NBFC Credit, Risk and Asset-Liability Management
How credit is appraised and classified, how concentration is capped, and how liquidity and interest rate risk are measured and reported. Board-approved credit policy; appraisal, documentation and credit-bureau checks; exposure ceilings for a single borrower and a group, with higher ceilings for infrastructure lending.
391 words, about 2 min05NBFC Compliance, Audit, AML/CFT and Governance
The control environment: compliance officer and policy, internal and statutory audit, board composition, and AML/CFT reporting obligations that carry criminal liability. Board-approved compliance policy and an independent compliance function headed by a Chief Compliance Officer in larger NBFCs (Upper Layer and Middle Layer above the prescribed asset threshold), reporting to the board or audit committee.
456 words, about 2 min