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This is the complete JAIIB PPB mock test series for 2027, covering Principles & Practices of Banking module by module and chapter by chapter. Every test follows the IIBF objective pattern, shows the correct answer the moment you choose an option, and explains why the other options are wrong. Answers appear instantly with explanations, there is no negative marking, and you can practise the free tests without creating an account.
Scroll down for free sample questions with answers, the JAIIB exam pattern and marking scheme, and a FAQ covering pass marks, question counts and how many mocks to attempt.
Try these 12 sample questions right now — no signup, no payment. Click Show answer to reveal the correct option and the reasoning behind it. They are taken directly from the free tests listed above.
According to Sec 5(b) of the Banking Regulation Act, 1949, which of the following is an essential requirement to be called a bank?
Correct answer: C — Accepting deposits for the purpose of lending or investment
The Banking Regulation Act, 1949, strictly defines banking as accepting deposits of money from the public for the purpose of lending or investment, which are repayable on demand or otherwise.
What are the three universally recognized stages of the money laundering cycle?
Correct answer: A — Placement, Layering, and Integration
The money laundering cycle comprises three distinct stages: Placement (introducing illegal funds into the financial system), Layering (moving funds to obscure the audit trail), and Integration (reintroducing funds into the legitimate economy).
When a customer opens a savings or current deposit account with a bank, what is the primary legal relationship established between the bank and the customer?
Correct answer: C — Debtor and Creditor
When a customer deposits money, the customer becomes the lender (creditor) and the bank becomes the borrower (debtor). The bank owes the deposited money back to the customer.
Group Question: A branch manager observes suspicious transaction patterns in a newly opened NGO account. Q1: What are the distinct stages involved in the Financing of Terrorism (TF) that the manager should be aware of?
Correct answer: B — Raising, Moving, Storing, Using
Unlike money laundering, the financing of terrorism operates through four stages to fund future acts: Raising funds, Moving them to locations, Storing them in the interim, and finally Using them for terror activities.
Identify the incorrect statement regarding the Banker-Customer relationship in different transactions.
Correct answer: B — When granting a loan, the bank is the debtor and the customer is the creditor.
When a bank grants a loan, the bank lends money to the customer. Therefore, the bank is the creditor and the customer is the debtor. The statement reverses this relationship.
Group Question: A branch manager observes suspicious transaction patterns in a newly opened NGO account. Q2: If the NGO receives a cash deposit of ₹12,00,000, under which report must it be mandatorily submitted to FIU-IND?
Correct answer: C — Cash Transaction Report (CTR)
A Cash Transaction Report (CTR) must be filed for cash transactions exceeding ₹10 Lakhs (or its equivalent in foreign currency) in a month, or a series of integrally connected cash transactions aggregating over ₹10 Lakhs.
Which of the following are true regarding Lease Financing? (I) The lessee benefits by not investing funds in capital cost (II) Lease rentals are accounted as revenue expenses (III) Ownership of the asset is held by the lessee.
Correct answer: A — (I) and (II) only
In lease financing, ownership is retained by the lessor (the financing institution), not the lessee. The lessee enjoys the use of the asset without incurring capital cost, and lease rentals are treated as business revenue expenses.
Group Question: A branch manager observes suspicious transaction patterns in a newly opened NGO account. Q3: If the manager determines a transaction is inherently suspicious, what is the maximum time allowed to file an STR to FIU-IND?
Correct answer: B — Within 7 days of arriving at a conclusion of suspicion
Banks are required to report any suspicious transaction to FIU-IND within exactly 7 days from the date of arriving at a firm conclusion that the transaction is of a suspicious nature.
Group Question: Mr. Sharma visits his bank branch to conduct a series of transactions. First, he deposits a cheque drawn on another bank into his savings account for clearing. What is the relationship between the bank and Mr. Sharma for this specific transaction?
Correct answer: B — Agent and Principal
When a bank collects a cheque on behalf of a customer, it acts as an agent performing a service for the principal (the customer), under Section 182 of the Indian Contract Act.
Under the Prevention of Money Laundering Act (PMLA) 2002, what is the prescribed punishment for a money laundering offence?
Correct answer: B — Rigorous imprisonment for 3 to 7 years
Section 4 of PMLA stipulates rigorous imprisonment for not less than 3 years but up to 7 years, along with fines. The term can extend to 10 years if connected with narcotics offences.
Group Question: Mr. Sharma visits his bank branch to conduct a series of transactions. Next, he purchases a demand draft favoring a university for his son's admission fee. What is the relationship between the bank and the payee (the university) before the draft is presented?
Correct answer: C — Trustee and Beneficiary
Once a draft is purchased, the bank holds the funds specifically for the payee. The bank acts as a trustee, and the payee is the beneficiary. If the bank fails, these funds are treated as preferential debts.
Which of the following are obligations of a Reporting Entity (RE) under PMLA? (I) Maintain records of transactions for 10 years (II) Verify the identity of clients using Aadhar or specified modes (III) Report suspicious transactions to FIU-IND.
Correct answer: B — (II) and (III) only
Under PMLA, the record maintenance period is strictly 5 years (not 10 years). The RE must verify identity through prescribed modes and report suspicious transactions to FIU-IND.
Our mock tests mirror the pattern below so that your practice score is a fair predictor of your real score. IIBF revises the syllabus and pass criteria from time to time, so treat this as a working summary and confirm the current rules on the official IIBF website before your exam.
| Particular | Details |
|---|---|
| Conducting body | Indian Institute of Banking & Finance (IIBF) |
| Mode | Online, at designated test centres |
| Number of papers | 4 |
| Marks per paper | 100 |
| Duration per paper | 120 minutes (2 hours) |
| Question type | Objective multiple choice, including case studies and numerical problems |
| Negative marking | None |
| Minimum per paper | 45 marks out of 100 |
| Aggregate to pass | 50 per cent across all papers in one attempt |
| Paper credit | A paper scored at 50 or above is normally carried forward if the aggregate is not cleared |
| Attempts allowed | Four consecutive attempts within the membership validity period |
| Medium | English and Hindi |
| Paper | Full name | Mock tests here | Practise |
|---|---|---|---|
| IE-IFS | Indian Economy & Indian Financial System | 46 | JAIIB IE-IFS mock test → |
| PPB | Principles & Practices of Banking | 55 | JAIIB PPB mock test → |
| AFM | Accounting & Financial Management for Bankers | 35 | JAIIB AFM mock test → |
| RBWM | Retail Banking & Wealth Management | 26 | JAIIB RBWM mock test → |
Most candidates fail JAIIB not because the syllabus is hard but because they read passively and never test recall under time pressure. The fastest correction is to reverse the order: attempt the chapter test first, score badly, and then read the chapter. You will remember far more, because you now know exactly what you did not know.
Work through one module at a time using the accordion above. Each chapter test is short enough to finish in a break between shifts. When you get a question wrong, do not simply note the right answer — read the explanation and write one line in your own words about why your choice was wrong. That one line is what survives to exam day.
In the last two weeks, switch to full-length timed papers. Sit for the whole 120 minutes without pausing, keep your phone out of reach, and do not check answers until you submit. The goal at that stage is not knowledge, it is stamina and pacing: roughly one question per minute with twenty minutes left over for the numerical questions in AFM.
A practical target is 65 per cent or better on every chapter test before you attempt a full paper, and a consistent 60 per cent on full papers before exam day. That margin absorbs the difficulty gap between practice questions and the real IIBF paper.
Yes. Every test marked FREE opens with no payment and no signup. You can also practise the sample questions on this page instantly. Premium tests unlock the full 1,100+ question bank along with detailed explanations for every option.
Each JAIIB paper carries 100 marks and is normally set as 100 objective questions to be answered in 120 minutes. Some papers include case-study and numerical questions that carry more than one mark, so the question count can be slightly under 100. Always confirm the current pattern on the official IIBF website before your exam.
A candidate must score a minimum of 45 out of 100 in each paper, with an aggregate of 50 per cent across all papers taken in a single attempt. If you score 50 or more in an individual paper but fail the aggregate, that paper is normally credited and carried forward. Verify the current rule with IIBF, as pass criteria have been revised in the past.
No. IIBF does not apply negative marking in JAIIB, so you should attempt every question rather than leaving blanks. Our mock tests follow the same rule so your practice score reflects your real score.
Work chapter by chapter first, then move to full-length papers. A realistic target is one chapter test a day for six weeks, then one full-length timed paper every second day in the final fortnight. Reviewing every wrong answer matters more than the number of tests.
No account is needed to take a free test. Creating a free account only adds score history, best-score tracking per test and a coverage bar so you can see which chapters you have not touched yet.
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