IIBF SFB study guide
IIBF SFB · Work through your exam, one topic at a time.
The IIBF Small Finance Bank (SFB) Certification Examination is a professional certification offered by the Indian Institute of Banking & Finance, an institute established in 1928 as a Company under Section 26 of the Indian Companies Act, 1913, whose stated mission is to develop professionally qualified and competent bankers and finance professionals through education, training, examination and continuing professional development. The credential suits staff of small finance banks and aspirants moving into the SFB segment who need working command of the sector's distinct rulebook: RBI licensing and regulatory expectations, priority sector lending and financial inclusion obligations, deposit mobilisation and customer service, microfinance and small business credit appraisal, risk management, ALM and prudential norms, and KYC/AML/CFT and fraud risk compliance. The IIBF SFB study guide has 7 sections and about 2,699 words.
01Regulatory Framework and Licensing of Small Finance Banks
SFB licensing sits at the junction of the Companies Act, 2013, the Banking Regulation Act (BR Act), 1949 and RBI policy. Expect questions on entry capital, promoter shareholding and lock-in, permitted versus prohibited activity, the listing trigger and conversion into a universal bank.
437 words, about 2 min02Priority Sector Lending and Financial Inclusion Obligations
The two quantitative obligations unique to SFBs - 75% of Adjusted Net Bank Credit (ANBC) in priority sector lending and 50% of the loan book in small-ticket loans - plus the rural branch obligation and the instruments used to bridge shortfalls. PSL target: 75% of ANBC, against 40% for universal banks.
383 words, about 2 min03Deposit Mobilisation, Liabilities and Customer Service
An SFB is a deposit-funded institution, not a pure MFI. Questions test the liability mix, deposit safeguards, insurance cover and the customer-service framework binding an SFB.
413 words, about 2 min04Credit Appraisal, Microfinance and Small Business Lending
How an SFB underwrites borrowers without audited accounts: the microfinance rules, household cash-flow logic, small-business working capital and the appraisal framework. A microfinance loan is a collateral-free loan to a household with annual household income of Rs 3 lakh or less, whatever the delivery mode and end-use.
365 words, about 2 min05Risk Management, ALM and Prudential Norms
The prudential and ALM numbers an SFB must live with: capital adequacy, asset classification and provisioning, exposure ceilings, liquidity and interest-rate risk management. Capital: minimum CRAR of 15% of risk-weighted assets (against 9% for universal banks under Basel III), with Tier-I of at least 7.5%.
335 words, about 2 min06Compliance
Compliance in an SFB means governance machinery - board oversight, an independent compliance function, audit, RBI inspection readiness and accurate regulatory reporting - not merely an advisory desk. The board owns compliance: a board-approved compliance policy, an independent Chief Compliance Officer (senior, functionally independent, not running a business line) and periodic compliance certification to the board or Audit Committee of the Board (ACB).
358 words, about 2 min07KYC/AML/CFT and Fraud Risk Management
KYC/AML obligations on an SFB as a reporting entity under the PMLA, 2002, and the fraud classification and reporting framework, including digital-channel fraud. Governance: appoint a Principal Officer reporting to the board and a Designated Director; maintain a board-approved KYC/AML policy, staff training and records for five years from the transaction.
408 words, about 2 min