IIBF Certificate Course in MSME: Exam Pattern and Syllabus

IIBF MSME Certificate Course

The IIBF MSME Certificate Course is designed to provide banking professionals with a comprehensive understanding of Micro, Small and Medium Enterprises (MSMEs). The course covers important concepts related to MSME finance, credit assessment, lending practices, government schemes, and regulatory guidelines. It is useful for banking professionals and candidates preparing for the IIBF certification examination. Understanding the course syllabus and examination pattern can help candidates prepare effectively and improve their chances of success.

Examination Objective

• Considering the growing importance of MSME finance in the Banking Industry, this course is intended to equip practicing banking and finance professionals to have in depth knowledge in the field of MSME finance.

IIBF MSME Exam Eligibility

• Members and Non-Members of the Institute.
• Candidates must have passed the 12th standard examination in any discipline or its equivalent or Candidate who have completed BC/BF examination conducted by IIBF

Examination Fees*

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.

IIBF MSME Examination Pattern

Registration

1) Application for examination should be registered online from the Institute’s

2) website http://www.iibf.org.in. The schedule of examination and dates for registration will be published on IIBF website.

3) At the time of registration, the candidate will select date/time of the examination.

4) At the time of registration, the candidate can register for e-learning/e-book, if required, by paying the requisite additional fees.

5) The study material can be in the form of e-book and/or e-learning.

6) Based on the option selected (e-book/e-learning) the candidate will be provided login ID password to access the study material.

7) On successful registration admit letter will be generated. Candidates can download it.

IIBF MSME Examination Syllabus

UNIT 1: INTRODUCTION TO MSMEs

Introduction – Definition, types and new classification of MSMEs, Criteria and Characteristics – Importance and role of MSMEs in Economic Development – Growth, Impact and Development of MSMEs – 7-Ms of MSME – Global and local MSME landscape – MSME inherent Constraints and Challenges

UNIT 2: MSME POLICY, REGULATORY, LEGAL AND COMPLIANCE FRAMEWORK

Policy framework for MSME in India – Key laws and regulations governing MSME in India -Necessary compliance and documentation for MSMEs – MSME Act 2006 and subsequent amendments – MIRA Report – LLP (Limited Liability Partnership) Act – Importance of CERSAI for MSMES – Forms of Business Organization & KYC Requirements – Starting an Enterprise – Seven Pillars of MSME competitiveness and sustainability – Sustainability Perception Index (SIDBI-D&B SPEX) 2022

UNIT 3: SCHEMES FOR MSME DEVELOPMENT

MSME Schemes of MSME Ministry – Recent initiatives undertaken by Government to promote manufacturing sector: Make in India, Industrial corridor development programme ease of doing business, National single window scheme- National logistic policy, Production linked incentive scheme, PM Viswakarma scheme, Listing on Institutional Trading Platform, MSME Schemes for Women – Central Government Schemes for MSME: MSME Advisory Board, DC-MSME (SIDO), SSI Board, PPDCS, RTCS, CIFTI, NIMSME (NISIET), NSIC – Institutional support system developed by State Government: DICs, State Finance Commission, SIDC/ SIIC, SSIDC – Entrepreneurial Development Institutions: IIE, NIESBUD, EDII – Enabling Artisans and Craft People to Build Enterprises: Government Initiatives, KVIC – Others Agencies: IDEMI, TCO – SSI Associations in India.

UNIT 4: FINANCING SOLUTIONS AND ACCESS TO FINANCE FORMSMEs

Barriers to MSME Lending – Initiatives of Banks for improving MSME credit ecosystem: Cashflow-based lending (CFL), Co-lending NBFCs – National Bank for Agriculture& Rural Development (NABARD) – SIDBI and its schemes for MSME -a chronological overview since its inception: Direct Finance, Indirect Finance, Promotional and Developmental Support, SIDBI subsidiary network for MSME: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME), MUDRA, SVCL, ISARC, ISTSL – Government initiatives for MSME financing- standup India, Online lending plat form, private sector initiative. Stand-Up India Scheme, Startup India Scheme, PMEGP, PM SVANidhi Loan Scheme- Trade Receivables discounting system (TReDs) – Priority Sector Lending-Lending to MSMEs -Portability of MSME Loan – Performance and Credit Rating for Small Industries -Mitigating Risk and Impact Calamity

UNIT 5: CREDIT MANAGEMENT AND LENDING

Credit Management and Lending: Fund Based Facilities, Non-Fund based Facilities, Factoring Credit appraisal process-steps involved in evaluating MSME applications: Credit Appraisal, Financial Appraisal Processes, Ratio Analysis, Financial Appraisal of Micro& Small units with low Investment, Credit Assessment: Working Capital Assessment, Salient Features of Industry Specific Appraisal – Credit risk management of MSME: Understanding Collateral  requirements and their Implications, Documentation, Inspection, Follow-Up Monitoring and Review, BASEL III, Managing the Credit Risk – Credit Scoring Models, Standing and Liquidity Assessment, Credit Pricing of MSME – Alternate Option of Financing MSMEs: Equity Option.

UNIT 6: MARKETING AND SALES

Market Research and analysis-Understanding target Market-competitor Customer analysis Marketing strategies – Branding and Positioning – Traditional Marketing methods- Digital

Marketing and Social media- Sales process and Techniques.

UNIT 7: HUMAN RESOURCE MANAGEMENT

Recruitment and staffing – Hiring strategies -Developing Job description – Training and Development programmers for employees – Performance Management – Labour laws and Regulation – Workplace Safety and Health – The 3 M Bridges of Coaching programme for Woman entrepreneurs.

UNIT 8: CLUSTERS AND CLUSTER DEVELOPMENT

Why clusters? Concept of clusters, Types of clusters and Role of clusters – Advantages and disadvantages – Setting of clusters-Approaches to develop cluster strategies – Measuring cluster development-critical successful factors: Typology based on stage of development, Evaluation – Policy environment-successful clusters India and Global: Micro and Small Enterprises- Cluster Development Programme (MSE-CDP), Government – Supportive of clusters through its general framework, Scheme of Fund for Regeneration  of Traditional Industries (SFURTI), Other Nodal Agencies appointed by the Ministry of MSME, Cluster Financing Approach, Marketing & Export Promotion, Global Sourcing for Value Addition of Exports, Successful Clusters in India, Revenue Model for Sustainability, Successful Clusters Globally.

UNIT 9: DIGITAL ONBOARDING OF MSMEs

Digital lending models – Key Features of the Digital Lending Model for MSMEs – Steps in the Digital Lending Process for MSMEs – Digital lending process – New Technologies adopted for digital lending – MSME digital lending player – Strategies Adopted by MSME Digital Lending Players – Regulatory Guidelines: Customer Protection and Conduct requirements, Technology and Data Requirement, Regulatory Framework.

UNIT 10: MSME RECEIVABLE MANAGEMENT: TREDS INITIATIVE

MSME Challenges on Trade Receivables: Challenges in Trade Receivables for MSMEs, Government Initiatives to address Trade Receivables challenges, Strategies to tackle Trade Receivable challenges – Trends in invoice discounting: Global Trends in Discounting, Trends in Discounting in India – Trade Receivables Discounting System: Key Objectives of TReDS, Features of TReDS, Key Participants of TReDS, RBI Regulatory Framework – Mechanism/ Process for onboarding of Buyers and Sellers on the TReDS: Process for onboarding of Buyers and Sellers on the TReDS, Functionalities of TReDS Platforms – Entities Licensed by RBI for TReDS: Receivables Exchange of India Limited (RXIL), A.TReDS (Invoice Mart), M1xchange.

UNIT 11: COMPLIANCE AND ETHICS

Ensuring MSME loans and services comply with legal and regulatory standards – Targets/ sub-targets for lending to MSME sector – Collateral – General Credit Card (GCC) Facility – Streamlining flow of credit to MSEs for facilitating timely and adequate credit flow during their ‘Life Cycle’ – Debt Restructuring Mechanism for MSMEs – Framework for Revival and Rehabilitation of MSMEs – Structured Mechanism for monitoring the credit growth to the MSE sector – Ethical practices in lending and customer interactions – Specialized MSME branches – Empowered Committee on MSMEs of RBI – Banking Codes and Standards Board of India (BCSBI) – Micro and Small Enterprises Sector – The imperative of Financial Literacy and consultancy support – Cluster Approach – Delayed Payment.

UNIT 12: OPERATIONAL CHALLENGES AND SOLUTIONS

Common challenges – Operational, Financial and Market challenges faced by MSMEs – Solutions and best practices – Unlocking potential and key strategies to overcome common problems, improve operational efficiency and accelerate development – Effective practices in MSME lending – Building successful Banker-MSME relationship.

UNIT 13: CASE STUDIES AND REAL-WORLD APPLICATION

Case Studies-Analysis of Successful and Unsuccessful MSME ventures – Lessons Learned Key take aways from case studies and their implications for bankers – Best practices for

Bankers.

UNIT 14: DETECTION OF MSME SICKNESS AND REHABILITATION

Sickness, Symptoms, Early warning signals – Measures to be taken for effective follow-up receipt of statements, inspection, onsite and offsite monitoring – Diagnosis and prescription,  rehabilitation restructuring, holding on operation – Framework for Revival and Rehabilitation of MSMEs – Prudential Framework for Resolution of Stressed Assets – Prudential Guidelines – NPA management, recovery options, legal aspect options – Calling Up of Advances – NPA – Recovery – Legal and Non-Legal Process of Recovery – Resolution Process for MSMES under IBC 2016: Pre-Packaged Insolvency Resolution Process for MSMEs – Securitization and Exit Options/ Alternatives – Setting up of NARCL.

UNIT 15: EMERGING ISSUES, TRENDS, OPPORTUNITIES AND DEVELOPMENTS OF MSMEs

Emerging Trends-latest trends affecting the MSME sector – Relationship building and its Impact in MSME development – MSME linkages with Agriculture and Industry – Impact of

Globalization-How Global Economic Changes including WTO impacts MSMEs – Impact of Global Economic Challenges on MSMEs – Impact of WTO Agreements on MSMEs – Indian Industry Specific Impact of WTO- Digital Transformation and FinTech Innovation – Digital Transformation – Sector-wise Analysis on FinTech Adoption in MSMEs – Climate Challenges – Future Challenges and Opportunities for MSMEs.

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