CAIIB · Bank Financial Management · Module A — International Banking
CAIIB BFM Unit 10 — Technology in International Banking: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 29 October 2026 · Paper II of the December 2026 cycle (Saturday 12 December 2026)
This is the free practice page for CAIIB BFM Unit 10 — Technology in International Banking (Module A — International Banking). The CAIIB Mock Centre holds 180 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five practice questions with explanations, and the traps that cost marks.
BFM · Module A180 MCQs in the Mock Centre5 free belowPaper on 12 December
Key facts examiners test from this unit
Going digital — competition and regulation push banks to go digital in five steps, from strategy to roadmap; India moved from manual ledgers (before 1969) to digital banking.
Online platforms — banks run four portals: inward and outward remittances, trade finance and forex rates, each with its own users, steps and limits.
EDPMS, IDPMS and FIRMS — RBI's systems match every export and import with its payment, and FIRMS collects foreign investment reports.
Changed since the textbook
RBI to explore cross-border CBDC pilots (29 May 2026). RBI's Annual Report said it will explore cross-border CBDC pilots in 2026-27; the digital rupee pilots began with wholesale e₹ on 1 November 2022 and retail e₹ on 1 December 2022. Source: Business Standard
SWIFT ends MT/ISO 20022 coexistence for cross-border payments (22 Nov 2025). SWIFT ended the coexistence of MT and ISO 20022 messages for cross-border payments: the customer transfer that was MT 103 now travels as pacs.008, and MT 202/202 COV as pacs.009, with structured data. Source: PaymentExpert
5 free practice questions — tap an option
Five practice questions from this unit. Answers lock on the first tap, exactly as in the exam, and an explanation opens underneath. The Mock Centre has all 180 questions on this unit, from easy to tough, with caselets and key-in numericals, why every other option is wrong and the exam tip — and tracks your score and revision dates.
Question 1 of 5
For online outward remittances, the customer's log-in ID and password are:
Why (c): 10.4.2 says the bank generates the log-in ID and password and sends them to the customer's registered e-mail ID. (a) is wrong: The textbook says they are e-mailed. (b) is wrong: The textbook says they are e-mailed, not posted. (d) is wrong: The bank, not RBI, issues them.
Question 2 of 5
To support e-BRCs, AD banks update EDPMS with export proceeds:
Why (b): The textbook says AD banks update EDPMS with export proceeds "as and when realized", so that e-BRCs come only from EDPMS data. (a) is wrong: Updates are made as money is realised, not yearly. (c) is wrong: The update does not wait for the exporter's request. (d) is wrong: Updates are not held back to quarter-end.
Question 3 of 5
For imports through EDI ports, the AD bank gets the Bill of Entry by:
Why (d): The textbook says banks download the BoE issued by EDI ports from the BoE Master in IDPMS, based on the AD code declared by the importer. (a) is wrong: EDI data comes into IDPMS electronically. (b) is wrong: The shipping line does not issue the Bill of Entry. (c) is wrong: Manual reporting is for non-EDI ports.
Question 4 of 5
Which return is filed through the Single Master Form on FIRMS?
Why (d): The Single Master Form on FIRMS, in use from 1 September 2018, brings together foreign investment returns such as FC-GPR, FC-TRS, LLP-I and LLP-II, ESOP, CN, DI, DRR and InVi; the FLA return and ECB forms are filed separately. (a) is wrong: The FLA return is filed separately, not in the SMF. (b) is wrong: ECB forms are filed separately. (c) is wrong: Shipping data flows into EDPMS.
Question 5 of 5
The IBBIC system verifies transaction data using:
Why (d): 10.7.4 says the system verifies data using invoices on the GST system and e-way bills, speeding up transactions and cutting fraud. (a) is wrong: The textbook names GST invoices and e-way bills. (b) is wrong: The textbook names GST invoices and e-way bills. (c) is wrong: EDPMS covers exports, while IBBIC's platform is for inland trade.
0 of 5 answered.
Traps in this unit
Roadmap is step 5, not step 1.
FDI goes to FIRMS, not EDPMS.
Practise all 180 questions on Unit 10. The free CAIIB demo opens Units 1–2 of every paper with full explanations; the BFM Online Mock Centre unlocks all 7,600+ BFM questions, the full-length papers with caselets and key-ins, module mocks and Smart Revision for 18 months (₹1,499).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. CAIIB content follows rules and developments up to IIBF's cut-off of 30 June 2026 (where a rule changed later, the update box says so); verify from official sources before relying on them in practice.