CS Professional · June 2025 · Paper 7.4
CS Professional Banking and Insurance - Laws and Practice June 2025: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICSI; read them on ICSI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a) | 2 | Meaning of the digital rupee as central bank digital currency | Digital Banking |
| 1(b) | 2 | How retail digital rupee can be held and used | Digital Banking |
| 1(c) | 2 | Digital rupee wallet: meaning | Digital Banking |
| 1(d) | 2 | Safety of the digital rupee wallet | Digital Banking |
| 1(e) | 2 | Creation and issuance mechanism of the digital rupee | Digital Banking |
| 1(f) | 2 | Digital rupee compared with UPI payments | Digital Banking |
| 1(g) | 2 | Offline functionality of the digital rupee | Digital Banking |
| 1(h) | 2 | Wholesale versus retail central bank digital currency | Digital Banking |
| 1(i) | 2 | Use cases and benefits of wholesale digital rupee | Digital Banking |
| 1(j) | 2 | Legal tender status of the digital rupee | Digital Banking |
| 2(a)(i) | 2 | Contribution of the national housing finance regulator to affordable housing credit | Overview of Indian Banking System |
| 2(a)(ii) | 3 | Role of the National Housing Bank in housing infrastructure growth | Overview of Indian Banking System |
| 2(b)(i) | 4 | Meaning of digital banking | Digital Banking |
| 2(b)(ii) | 6 | Key features of digital banking | Digital Banking |
| 3(a) | 5 | Borrower liability for shortfall after auction of secured property under SARFAESI, with case law | Advances, Securities and Documentation |
| 3(b) | 5 | RBI roadmap for voluntary transition of small finance banks to universal banks | Banking Operations |
| 3(c) | 5 | Audit check of provisioning across NPA categories and classification despite security or guarantee | Performing and Non Performing Assets |
| 3A(i) | 5 | EMI computation for a term loan | Calculation of Interest and Annuities |
| 3A(ii) | 5 | NRI and PIO definitions and accounts that a foreign tourist may open | Banking Operations |
| 3A(iii) | 5 | Maximum permissible bank finance under Tandon Committee second method | Advances, Securities and Documentation |
| 4(a) | 4 | Utmost good faith: change in health between proposal and acceptance of a life policy | Concept of Insurance |
| 4(b) | 4 | Whether various product guarantees and risk pooling arrangements constitute insurance | Concept of Insurance |
| 4(c) | 4 | Warranty versus representation in insurance contracts | Concept of Insurance |
| 4(d) | 3 | Legal authority of an insurer to repudiate liability | Functions in Insurance and Compliance related thereto (Part I) |
| 4(e) | 3 | Claim denial for misstatement of medical history in a life insurance proposal | Concept of Insurance |
| 4(f) | 2 | Insurable interest after sale of insured property before policy cancellation | Concept of Insurance |
| 5(a) | 4 | Meaning of early claim and its treatment where pre-existing disease was disclosed | Functions in Insurance and Compliance related thereto (Part I) |
| 5(b) | 6 | Objectives and key features of the IRDAI online insurance marketplace initiative | Regulatory Framework in Insurance |
| 5(c) | 5 | Revised IRDAI guidelines on motor third-party insurance obligations | General and Health Insurance |
| 6(a) | 3 | Subject-matter of insurance versus subject-matter of a fire insurance contract | General and Health Insurance |
| 6(b)(i) | 3 | Partial repudiation of a marine claim for overvaluation and suspected deliberate loss | Concept of Insurance |
| 6(b)(ii) | 3 | Insurer rights and duties relating to salvage | Functions in Insurance and Compliance related thereto (Part I) |
| 6(c)(i) | 3 | Rejection of a burglary claim on grounds of fraud and misrepresentation | Functions in Insurance and Compliance related thereto (Part I) |
| 6(c)(ii) | 3 | Why insurers sometimes settle suspicious claims | Functions in Insurance and Compliance related thereto (Part I) |
| 6A(i) | 6 | IRDAI guidelines on handling unclaimed amounts of policyholders | Functions in Insurance and Compliance related thereto (Part II) |
| 6A(ii) | 6 | Key features of the 2024 IRDAI health insurance regulatory framework | General and Health Insurance |
| 6A(iii) | 3 | Insurable interest of a lending bank in a mortgaged property and admissible claim | Concept of Insurance |
What stood out
- Banking (Part I) and insurance (Part II) carried 50 marks each, with alternatives for Q3 and Q6.
- The Q1 case on central bank digital currency was split into ten 2-mark short answers; with the digital banking question in Q2, Digital Banking totalled 30 marks.
- Insurance questions were dominated by application of basic principles (utmost good faith, insurable interest, indemnity, fraud) to short situations, giving Concept of Insurance 23 marks.
- Recent regulatory initiatives were tested repeatedly: the IRDAI online insurance marketplace, motor third-party guidelines, unclaimed amounts, the 2024 health insurance regulatory framework and the RBI roadmap for small finance bank transition.
- Pure computations were limited to the alternative Q3A (EMI and maximum permissible bank finance) and an NPA provisioning check in Q3, so most marks were descriptive.
Practise the chapters that carried the marks
Digital Banking, Concept of Insurance, Functions in Insurance and Compliance related thereto (Part I): study guides and practice questions in the CS Professional format.