INDIAN INSTITUTE OF BANKING & FINANCE

(An ISO 9001 - 2015 CERTIFIED ORGANISATION)

Kohinoor City, Commercial-II, Tower-1, 2nd Floor, Kirol Road, Kurla (West), Mumbai - 400 070
Website: [Link]

Certificate Examination in Basics of Microfinance:

Foundation Course
Rules & Syllabus 2024

OBJECTIVE
The purpose of this course is to offer a fundamental understanding of microfinance
and how microfinance institutions operate. It will cover the delivery of micro-finance
products and services, as well as the technical skills and behavioral aspects
relevant to people working in microfinance sector. This course will significantly
contribute to enhancing the financial literacy of individuals involved in microfinance,
particularly among frontline employees of microfinance organisations, as well as
the aspirants.

ELIGIBILITY
1. Members and Non-Members of the Institute
2. Candidates must have passed the 12th standard examination in any
discipline or its equivalent.

SUBJECT OF EXAMINATION
Basics of Microfinance: Foundation Course

PASSING CRITERIA
Minimum marks for pass in the subject is 50 out of 100.

EXAMINATION FEES*:
Particulars For For Non-
Members Members
First attempt Rs.1,100/- * Rs.1,600/- *
Subsequent each attempt Rs.1,100/- * Rs.1,600/- *
* Plus Convenience charges and Taxes as applicable.
Please Note: Candidates are required to Register for every attempt separately.

While registering online for the examination candidates will have to choose
examination date / time slot of his/her choice, the exam date/time will be allotted on
first-cum-first-serve basis. Candidates are required to take utmost care and
precaution in selecting Exam Date and Time slot, as there is no provision to change
the Exam date and Time slot in the system. Hence no request for change of Exam
date and time slot will be entertained for any reason.
The fee once paid will NOT be refunded or adjusted on any account.

MEDIUM OF EXAMINATION
Examination will be conducted in English only.

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 PATTERN OF EXAMINATION
(i) Question Paper will contain 100 multiple choice questions for 100 marks.
(ii) The examination will be held in remote proctored mode only.
(iii) There will NOT be negative marking for wrong answers.
(iv) The examination will be held quarterly.

DURATION OF EXAMINATION
The duration of the examination will be of 2 hours.

PERIODICITY
Examination will be conducted on quarterly basis, on pre-announced dates
published on IIBF Web Site. Institute conducts the examination on 2nd & 4th
Saturday and on all Sunday’s. However, periodicity of the examination may be
changed depending upon the requirement of banking industry.

PROCESS

Registration
1) Application for examination should be registered online from the Institute’s website
[Link]. The schedule of examination and dates for registration will be
published on IIBF website.
2) At the time of registration, the candidate will select date/time of the examination.
3) At the time of registration, the candidate can register for e-learning/e-book, if
required, by paying the requisite additional fees.
4) The study material can be in the form of e-book and/or e-learning.
5) Based on the option selected (e-book/e-learning) the candidate will be provided
login ID password to access the study material.
6) On successful registration admit letter will be generated. Candidates can download
it.

Examination
1) Candidates will take examination under remote proctored mode on predetermined
date/time from a secured environment. (refer Do’s and Don’ts section for more
information)
2) Candidates should login to the system half an hour before the exam start time.
3) The examination proctor will verify the candidate’s face with the registered photo
image of the candidate.
4) Candidate will also be asked to display any valid original photo id-card (Aadhaar
card/e-Aadhaar/Employer's card/ PAN Card/ Driving License/ Election voter's card/
Passport etc.) for verification purpose. After successful verification the proctor will
allow the candidate to start the examination.
5) Candidate may be required to show 360° view of the exam area using the webcam.
So that the proctor can identify the object/check the suitability of the exam
area/environment. A clear desk/table has to be ensured for appearing for the
examination. No reference materials, books, notes, periodicals, mathematical
tables, slides rules, stencils, post-its, chits, mobile phones, headsets (wired/
wireless), any other electronic gadgets are allowed to be kept on the table or the
desk.
6) Both sides of the rough sheet (if it is going to be used) should be shown to proctor
before and after the examination.
7) Once the examination begins live remote proctoring of the candidate’s activities will
take place throughout the examination period.
8) Under remote proctoring candidate’s activities will be monitored using webcam, mic
etc. Computer screen, browser, mouse, keyboard etc. will be monitored.

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9) Proctor, if required, can convey information/ instructions to the candidate using chat
box.
10) If a candidate indulges in unfair practices/suspicious acts, the proctor will intervene
and warn the candidate through chat box or can cancel/stop the examination
immediately as the case may be.
11) After completion of the examination/submission, provisional scorecard will be
displayed on the screen.
12) RESULT ADVICE/ CONSOLIDATED MARKSHEET/ FINAL CERTIFICATE
13) Result Advice of candidates will be hosted on Institute's website on declaration of
result, which can be downloaded by the candidates.
14) Consolidated mark sheet for candidates completing examination having more than
one subject, will be available on the Institute's website after the declaration of
results. Candidates can download the same after entering login credentials using
their membership number and edit profile password.
15) For passed candidates, digitally signed certificate will be sent through e-mail
registered with the Institute within 3 weeks after the declaration of result. The Paper
Certificate issued by the Institute is discontinued.

Minimum System Requirement:

Desktop/Laptop:
a. Browser: Google Chrome version 75 & above, with cookies & popups enabled
b. Video/Audio: Webcam and a good quality Mic is required
c. Operating system: Windows 8 or 10
d. RAM & Processor: 4 GB+ RAM, i3 5th Generation 2.2 Ghz or
equivalent/higher
e. Pop-up blocker: Disabled II)
f. Internet Connection: Stable internet connection with at-least 2 mbps+ upload
speed.
g. Examination not allowed on mobiles or tablets

Do’s and Don’ts

1. The candidate will take the examination from a secured environment.

i. Place having desk and chair preferably with plain backdrop (area behind the
candidate) with adequate lighting so that the candidate is visible to the proctor.
The place should be noise free with no public movement in the surroundings.
All the items should be removed from the desk except computer/external webcam
(if internal webcam is not available) /keyboard/mouse, other permitted items, if
any.
ii. Examination will not be conducted if the examination area is a Public place, a
noisy environment, having inadequate lighting, having public movement in
examination area/around the candidate, having other computer or similar device
in the examination area.
iii. The examination cannot be taken sitting on a couch, bed or on the floor.
2. Candidate’s will take examination on a registered date/time from a secured
environment.
Candidate who tries to appear after the scheduled examination date/time will not
be allowed to appear for the examination.
3. Candidate’s should login to the system half an hour before the examination start
time.
4. No other persons are allowed in the examination area during the examination.
5. Candidate must keep ready his/her original photo identity card that has name and
photo on the same side, admit letter, rough sheet, pen/pencil and calculator.
6. Candidates must dress decently as though they are in a public place and will be
video recorded
7. Candidates must not talk to anyone during the examination period or talk/read to
oneself loudly.
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8. In case of emergency he/she can talk to helpdesk in case of any technical issue
with permission from proctor.
9. Candidates must not use headphones, ear buds, or any other type of listening
equipment.
10. Candidates must not communicate with any other person by any means.
11. Candidates must not use any phone for any reason.
12. Candidates must not leave the room/examination area during the examination for
any reason without the permission of the proctor. Leaving the room/examination
area or moving to another room/area during the examination for any reason will
be treated as a violation of examination rules.
13. Candidates must not setup the computer at the time of examination. All the
settings need to done much before the examination time and tested properly. For
any failure of the computer system during the examination period, Institute will
not be responsible and candidate will lose his/her attempt.
14. Candidates must not switch off the webcam or mic or cover the webcam during
the examination.
15. Candidates must not navigate away from examination window.
16. Candidate’s face must be positioned in the middle of the camera view and
candidate’s face must be visible throughout the Examination.
17. Don't Position camera too low, too high or hooked onto a different monitor. Weird
camera angles can be very distracting and unflattering during examination. The
candidate should make sure that the camera is at eye level and on the monitor
which is used for the examination.
18. Candidate must not look away from laptop/desktop screen, must face computer
screen.
19. Candidate must not seek any assistance or refer study material/mobile/ for
answering the questions.
20. Candidate must ensure that he/she has attempted every question and reviewed
the accuracy of his/her answers before submitting the paper. Once submitted
(even by mistake), re-examination will not be permitted.
21. On the exam day candidate is advised to ensure that the Laptop is fully charged
and in case of Desktop it is connected to an uninterrupted power source for
smooth conduct of examination.
22. Candidates are not permitted to logout/switch-off the computer for the sake of
going to washroom and if they log out/switch-off, re-login will not be permitted.
23. Candidates will be allowed to use battery operated portable calculator during the
examination. The calculator can be of any type up to 8 functions i.e. (Addition,
Subtraction, Multiplication, Division, Percentage, Sq. root, Tax+ and Tax-), having
12 digits. Attempt to use any other type of calculator not complying with the
specifications indicated above or having more features than mentioned above
shall tantamount to use of unfair means. Scientific/Financial calculator is NOT
allowed.

Debarment/Cancellation of examination:
1) If a candidate indulges in unfair practices/suspicious acts, the proctor will
intervene and warn or cancel the test.
2) For any case of misconduct, the proctor can warn/cancel the test
immediately as the case may be.
3) For any unfair act (cheating) during the examination, the result of such
examination may be cancelled and he/she will be liable for punishment.
Institute will also inform the employer of the candidate by giving the details
of unfair practice and punishment levied on the candidate.
4) If the unfair act is determined after the examination, the result of such
examination will be cancelled and he/she will be liable for punishment.

4
 5) If any candidate attempts copying Onscreen question, takes photoshots or
violates any of the examination rules, it will be considered to be an act of
misconduct and he/she will be liable for punishment.
6) PLEASE REFER INSTITUTE'S WEBSITE UNDER THE MENU “EXAM
RELATED” FOR DETAILS OF DEBARMENT PERIOD FOR UNFAIR
PRACTICES ADOPTED BY CANDIDATES DURING CONDUCT OF
INSTITUTE'S EXAMINATIONS.

Privacy
During the remote proctored examination, Images/Videos/Sounds of the candidates
and their computer systems will be captured and stored for examination proctoring
purposes. It is envisaged that candidates who register for the remote proctored
examinations agree for the same.

STUDY MATERIAL/ COURSEWARE

The Institute has developed a courseware to cover the syllabus. The courseware
(book) for the subject/s will be available at outlets of publisher/s. Please visit IIBF
website [Link] under the menu “Exam Related” for details of book/s and
address of publisher/s outlets. Candidates are advised to make full use of the
courseware. However, as banking and finance fields are dynamic, rules and
regulations witness rapid changes. Therefore, the courseware should not be
considered as the only source of information while preparing for the examinations.
Candidates are advised to go through the updates put on the IIBF website from
time to time and go through Master Circulars/ Master Directions issued by RBI and
publications of IIBF like IIBF Vision, Bank Quest, etc. All these sources are
important from the examination point of view. Candidates are also to visit the
websites of organizations like RBI, SEBI, BIS, IRDAI, FEDAI etc. besides going
through other books & publications covering the subject/exam concerned etc.
Questions based on current developments relating to the subject/exam may also
be asked.

CUT-OFF DATE OF GUIDELINES/ IMPORTANT DEVELOPMENTS FOR

EXAMINATIONS
The Institute has a practice of asking questions in each exam about the recent
developments/ guidelines issued by the regulator(s) in order to test if the candidates
keep themselves abreast of the current developments. However, there could be
changes in the developments/ guidelines from the date the question papers are
prepared and the dates of the actual examinations.
In order to address these issues effectively, it has been decided that:
(i) In respect of the examinations to be conducted by the Institute for the period
March to August of a calendar year, instructions/ guidelines issued by the
regulator(s) and important developments in banking and finance up to 31st
December will only be considered for the purpose of inclusion in the
question papers".
(ii) In respect of the examinations to be conducted by the Institute for the
period September to February of a calendar year, instructions/ guidelines
issued by the regulator(s) and important developments in banking and
finance up to 30th June will only be considered for the purpose of inclusion
in the question papers.

The table given below further clarifies the situation:

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 Particulars Cut-off Date of Guidelines/ Important
Developments for Examination/s Developments for Examination/s
For the examinations to be conducted 31st December 2024
by the Institute for the period March
2025 to August 2025

For the examinations to be conducted 30th June 2025

by the Institute for the period September
2025 to
February 2026

SYLLABUS
The details of the prescribed syllabus which is indicative are furnished in the booklet.
However, keeping in view the professional nature of examinations, all matters falling
within the realm of the subject concerned will have to be studied by the candidate
as questions can be asked on all relevant matters under the subject. Candidates
appearing for the examination should particularly prepare themselves for answering
questions that may be asked on the latest developments taking place under the
various subject/s of the said examination although those topics may not have been
specifically included in the syllabus. The Institute also reserves to itself the right to
vary the syllabus/ rules/ fee structure from time to time. Any alterations made will be
notified from time to time. Further, questions based on current developments in
banking and finance may be asked.
Candidates are advised to refer to financial newspapers/ periodicals more
particularly “IIBF VISION” and “BANK QUEST” published by the Institute.

Basics of Microfinance: Foundation Course

Chapter 1: Introduction to Financial Sector in India
1. Introduction
2. Major Sectors in Indian Economy
3. Urban Rural Divide – Causes of Rural Distress
4. Infrastructure Push
5. Financial Sector in India
6. Evolution of Banking Sector in India
7. Functions of Banks
8. Channels of Services of Banks
9. Modes of Banking Transactions
10. Types of Schedule Commercial Banks in India
11. Types of Bank Accounts
12. Insurance for Deposits in Banks
13. Regulation in Financial Sector
[Link]-Banking Finance Companies
15. Classification of NBFCs
16. Priority Sector Lending
17. Recent Developments in Banking and Financial Services
18. Other Financial Services
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19. KYC (Know Your Customer) & Anti Money Laundering
20. Customer & Customer Acquisition
21. Various Types of Customers
Chapter 2: Microfinance in India
1. What is Microfinance?
2. Why Microfinance is Important?
3. Scope for Microfinance in India
4. Microfinance and Women
5. Microfinance & Micro-Credit
6. History of Microfinance
7. Structure of Microfinance in India
8. Types of Micro Lenders
9. Functioning of MFIs
10. Technology in MFI operations
11. Old Regulatory Framework for MFIs
[Link] Regulatory Guideline for Microfinance loans applicable on all REs
13. Industry Code of Conduct
Chapter 3: FINANCIAL INCLUSION
1. Financial Inclusion-Meaning
2. Objectives of Financial Inclusion
3. Various initiative on Financial Inclusion
4. Business Correspondents model
5. Co-lending of loans by Banks and NBFCs for lending to the priority sector
6. Self-help groups (SHGs)
7. Formation of SHGs-guidelines
8. National Rural Livelihood Mission (NRLM)
9. Promotion of Joint Liability Groups (JLGs) and their Financing by Banks
10. Microfinance through Joint Liability Groups
11. Difference between JLG and SHG models of Microfinance
12. Old Regulatory Guidelines applicable on NBFC-MFIs
13. New Regulatory Framework for Microfinance Loans
14. Performance of MFIs sector
Chapter 4: DELIVERY OF FINANCIAL PRODUCTS AND SERVICES
1. Introduction
2. Financial products offered by MFIs
3. Non-financial services offered by MFIs
4. Designing Microfinance Products
5. Process of Loans
6. Liquidity Management
7. Government Sponsored Schemes supporting JLG borrowers
Chapter 5: TECHNICAL SKILLS AND BEHAVIOURAL ASPECTS
1Introduction
2. Technical Skills
3. Behavioral and Interpersonal Skills
4. Customer Grievance Redressal Mechanism (GRM)
5. Dos and Don’ts for handling customer complaints

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MULTIPLE CHOICE QUESTIONS (MCQS) AND ANSWERS
The Institute conducts its examinations through Multiple Choice Questions
(MCQs). These MCQs are part of the Question Bank of the Institute and its
Intellectual Property. As a matter of policy, these MCQs and their answers will not
be shared by the Institute with the candidates or others and no correspondence in
this regard will be entertained.

CONTACT DETAILS:
Register your queries through website [Link] > Members/ Candidates
Support Services (Help) or email all your queries to care@[Link].

MEMBER SUPPORT SERVICE OFFICE:

Indian Institute of Banking &
Finance 191-F, Maker Towers,
19th Floor, Cuffe Parade,
Mumbai - 400 005
Tel.: 022-2218 3302/ 2218 5134

FOR TRAINING/ CONTACT CLASSES RELATED QUERIES CONTACT:

Leadership Centre
Indian Institute of Banking & Finance
Kohinoor City, Commercial-II, Tower-I, 3rd Floor,
Kirol Road, Off L. B. S. Marg, Kurla West, Mumbai 400
070. Tel.: 022-6850 7000
E-mail: training@[Link]

PROFESSIONAL DEVELOPMENT CENTRES:

South Zone North Zone East Zone West Zone

Indian Institute of Indian Institute of Indian Institute of Indian Institute of
Banking & Finance Banking & Finance, Banking & Finance Banking & Finance
No.94, Jawaharlal C-5/30, Safdarjung Avani Heights, 2nd 192-F, Maker
Nehru Road, Development Floor, Towers,
(100 Feet Road), Area(SDA), 59A, Jawaharlal 19th Floor, Cuffe
[Link] Ambica Near SDA Local Nehru Road, Parade
Empire, Vadapalani, Shopping complex Kolkata - 700020 MUMBAI - 400005
Chennai - 600 026. Outer Ring Road, Tel: 033-46032850
Tel:044 Opp IIT Delhi, Email:iibfwz@iibf.o
24722990/24727961 NEW DELHI-110 Email:iibfez@iibf.o [Link]
016 [Link]
Email:iibfsz@iibf.o Tel:011-2653 2194 /
[Link] 2191 (office)

Email:iibfnz@iibf.o
[Link]

CORPORATE OFFICE: Indian Institute of Banking & Finance, Kohinoor City,

Commercial-II, Tower-1, 2nd Floor, Kirol Road, Kurla (West), Mumbai - 400 070
Tel.: 022-6850 7000