CS Professional · June 2026 · Paper 7.4
CS Professional Banking and Insurance - Laws and Practice June 2026: 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) | 4 | Due diligence requirements for lending service providers under the RBI digital lending directions | Digital Banking |
| 1(b) | 2 | Assessing borrower creditworthiness in digital lending | Digital Banking |
| 1(c) | 5 | Mandatory disclosures to borrowers in digital lending, including key fact statement and annual percentage rate | Digital Banking |
| 1(d) | 5 | Digital loan disbursal, servicing and repayment through regulated entity accounts | Digital Banking |
| 1(e) | 4 | Collection, use and third-party sharing of borrower data by digital lending apps | Digital Banking |
| 2(a)(i) | 4 | Use of business correspondents for periodic KYC updation under the 2025 KYC amendment directions | Banking Operations |
| 2(a)(ii) | 4 | Advance notices to customers for periodic KYC updation | Banking Operations |
| 2(b) | 7 | Financial and non-financial risk categories faced by banks | Risk Management in Banks and Basel Accords |
| 3(a)(i) | 8 | Computing drawing power on stock and receivables with tiered margins and comparing with the sanctioned limit | Advances, Securities and Documentation |
| 3(a)(ii) | 2 | Effect of a higher sanctioned cash credit limit on drawing power adequacy | Advances, Securities and Documentation |
| 3(b) | 5 | Accounting treatment of a prior-year inventory loss detected in the current year under accounting standards | Analysis of Financial Statements of Banks |
| 3A(i) | 10 | Nomination changes under the Banking Laws (Amendment) Act 2025: multiple, simultaneous and successive nominations, deposits and lockers | Banking Operations |
| 3A(ii) | 3 | Revised investment and turnover limits for micro, small and medium enterprise classification | Various Government Schemes |
| 3A(iii) | 2 | Distinguishing pledge, hypothecation and mortgage | Advances, Securities and Documentation |
| 4(a) | 3 | Regulatory reforms supporting growth of the Indian insurance sector | Regulatory Framework in Insurance |
| 4(b) | 2 | Features of the Bima Sugam insurance marketplace portal | Regulatory Framework in Insurance |
| 4(c) | 2 | Leading private life and general insurers in India | Concept of Insurance |
| 4(d) | 7 | Steps in designing an insurance product | Functions in Insurance and Compliance related thereto (Part I) |
| 4(e) | 6 | Key factors in designing a life insurance product | Life Insurance |
| 5(a) | 5 | Role of insurance in economic development | Concept of Insurance |
| 5(b)(i) | 2 | Meaning of available solvency margin for insurers | Functions in Insurance and Compliance related thereto (Part I) |
| 5(b)(ii) | 4 | Computing solvency ratio and available solvency margin | Functions in Insurance and Compliance related thereto (Part I) |
| 5(b)(iii) | 4 | Types of solvency ratios used in insurance | Functions in Insurance and Compliance related thereto (Part I) |
| 6(a) | 5 | Documents required to set up an insurance marketing firm | Functions in Insurance and Compliance related thereto (Part III) |
| 6(b)(i) | 2 | Contribution between insurers when the same property is insured with two companies | Concept of Insurance |
| 6(b)(ii) | 3 | Apportioning a claim among co-insurers by share | Concept of Insurance |
| 6(c) | 5 | Distinguishing an insurance broker from an insurance marketing firm | Functions in Insurance and Compliance related thereto (Part III) |
| 6A(i) | 5 | Principle of contribution in insurance | Concept of Insurance |
| 6A(ii) | 5 | Principle of mitigation of loss in insurance | Concept of Insurance |
| 6A(iii) | 5 | Principle of utmost good faith in insurance | Concept of Insurance |
What stood out
- Banking (Part I) and insurance (Part II) were split equally at 50 marks each, and both parts opened with a long extract-based case worth 20 marks.
- The banking case was built entirely on the RBI Digital Lending Directions 2025, and other parts tested the 2025 KYC amendments and nomination changes under the Banking Laws (Amendment) Act 2025.
- Numerical content was limited but present: a 10 mark drawing power computation, a solvency ratio calculation and claim apportionment among insurers.
- Insurance principles (contribution, indemnity, utmost good faith) and distribution channels such as brokers and marketing firms were the recurring theory areas.
- Mark allocations were uneven within questions (2 to 10 marks per part), so time planning by marks was more important than in papers with uniform 5 mark parts.
Practise the chapters that carried the marks
Concept of Insurance, Digital Banking, Banking Operations: study guides and practice questions in the CS Professional format.