IIBF NBFC study plan

IIBF NBFC · Give each week a clear focus.

8 weeks · About 6 hours per week

Week 1

NBFC Regulatory Framework (RBI Directions and Applicable Law)

Map the NBFC regulatory architecture by listing the primary RBI Directions (Master Direction on NBFCs, Scale Based Regulation, etc.) and their applicability thresholds.
Differentiate between deposit-taking and non-deposit-taking NBFCs, and between systemically important and non-systemically important entities.
Explain the registration process, capital requirements, and permissible/inpermissible activities for NBFCs.
Identify the key provisions of the RBI Act, 1934 and Companies Act, 2013 that govern NBFC incorporation and operations.

Create a one-page comparison table of NBFC categories (e.g., Type I/II, NBFC-ICC, NBFC-Factor) with their minimum NOF and regulatory triggers.

Week 2

Summarize the Scale Based Regulation (SBR) framework: criteria for Base, Middle, Upper, and Top layers, and the corresponding regulatory requirements.
Outline the prudential norms for NBFCs: capital adequacy, asset classification, provisioning, and income recognition.
Describe the rules for acceptance of public deposits, including ceiling, tenure, and interest rate caps.
Explain the RBI's powers of inspection, supervision, and enforcement, including penalties and directions.

Draft a 10-question self-test on SBR layers and prudential norms, with answer key, scoring at least 80%.

Week 3

Detail the features and regulatory guidelines for key NBFC products: loans (gold, vehicle, consumer, MSME), leases, and investments.
Explain the Fair Practices Code (FPC) requirements, including loan pricing, grievance redressal, and repossession norms.
Describe customer protection mechanisms: Ombudsman scheme, Know Your Customer (KYC), and disclosure norms.
Analyze the RBI guidelines on digital lending and outsourcing of financial services.

Prepare a checklist of 15 compliance points for Fair Practices Code and digital lending, referencing specific RBI circulars.

Week 4

Explain credit appraisal techniques for retail and wholesale lending, including cash flow analysis and collateral valuation.
Outline the risk management framework: credit risk, market risk, operational risk, and liquidity risk, with RBI-prescribed tools.
Describe asset-liability management (ALM) for NBFCs: structural liquidity statement, interest rate sensitivity, and monitoring.
Summarize the RBI guidelines on securitization, assignment of loans, and co-lending arrangements.

Solve a case study on liquidity gap analysis and draft a 1-page ALM report for a hypothetical NBFC.

Week 5

Apply credit risk models: credit scoring, rating frameworks, and stress testing for NBFC portfolios.
Compute key financial ratios (CRAR, NPA ratios, liquidity coverage) from given financial statements.
Explain the regulatory reporting requirements (e.g., NBS-7, NBS-9, CRILC) and their role in risk monitoring.
Evaluate the impact of RBI's norms on loan-to-value (LTV) ratios and provisioning on NBFC profitability.

Complete a set of 10 numerical problems on CRAR, NPA provisioning, and LTV, with step-by-step solutions.

Week 6

Outline the compliance function in NBFCs: role of Compliance Officer, compliance risk assessment, and reporting to the Board.
Describe the internal audit and statutory audit requirements, including RBI's guidelines on concurrent audit and LFAR.
Explain the AML/CFT framework: PMLA obligations, KYC norms, transaction monitoring, and STR filing.
Summarize corporate governance norms for NBFCs: Board composition, committees, and disclosure requirements.

Create a compliance calendar for an NBFC covering key RBI returns and AML reporting deadlines for a financial year.

Week 7

Analyze the RBI's supervisory review process and the risk-based supervision framework for NBFCs.
Detail the penalty and enforcement actions for non-compliance, including recent RBI directions.
Explain the whistleblower policy and internal controls for fraud prevention.
Review the role of the Board in setting risk appetite and ensuring compliance culture.

Draft a mock board note on a compliance breach, including root cause analysis and corrective action plan.

Week 8

Revise all domains through a comprehensive mock test simulating the exam pattern.
Identify weak areas from mock test results and revisit those topics.
Practice case-based questions integrating multiple domains.
Memorize key regulatory thresholds, timelines, and penalties.

Score at least 70% on a full-length mock test (100 questions) and prepare a one-page summary of all key numbers and deadlines.

Week 2: Can explain SBR layers and prudential norms without notes, scoring 80% on self-test.

Week 4: Can solve a liquidity gap analysis case and interpret ALM statements accurately.

Week 6: Can list at least 10 compliance deadlines and AML reporting requirements from memory.

Week 8: Achieve 70%+ on full-length mock test and demonstrate mastery of key regulatory numbers.