Bank interview questions with model answers: 30+ questions the IBPS, SBI and RBI boards actually ask

Tell me about yourself.

Good morning. I am Priyanka Sahu from Sambalpur, Odisha. I completed my B.Com from Gangadhar Meher University in 2023 with 72 percent, and for two years I have worked as an accounts executive at a rice mill in Bargarh, handling the cash book, GST filing and the mill's cash-credit account with UCO Bank. Dealing with the bank every month made me want to be on the other side of the counter. My father is a farmer and my mother runs a self-help group, so I have seen a KCC and an SHG loan up close. I cleared IBPS PO mains this year and I am here because a bank is where my training and my background meet.

The panel checks for a place, a number, a job and one reason for banking in under a minute.

Why do you want to join banking?

Three reasons. It fits my training: I have handled a company's bank account, so credit, interest and cash flow are things I already work with. A public-sector bank touches every part of the economy, from a farmer's KCC to a factory's working capital, and I want that range. And it offers a clear path: a PO can become a branch manager within a few years on merit. I also know the hard parts, transfers and targets, and I am ready for them.

Three reasons with one personal link beats a speech about job security.

You are an engineer. Why not an engineering job?

I did try one. I worked fourteen months at a tyre plant in Sriperumbudur as a graduate engineer trainee, and the work I liked most was the costing and capacity planning, not the shop floor. Banking uses the same skills, analysing numbers and assessing whether a project will pay back, applied to businesses across the economy. An engineer who can read a balance sheet is useful when a bank appraises a machinery loan, and that is the officer I want to be.

The panel checks that you are moving towards banking, not just away from engineering.

Will you leave the bank if you clear UPSC or another exam?

I will be honest: I attempted UPSC prelims once in 2024, did not clear it, and have not applied since. I want a career where I start working, learning and earning now, and where promotion depends on performance. If I join as a PO, my plan is to clear JAIIB and CAIIB in the first three years and work towards a branch manager posting, not to keep one foot outside.

Never deny an attempt the board can see on your biodata. Give a plan inside the bank.

What are your strengths and your weakness?

My strength is staying calm with upset people. At the rice mill, truck drivers would come in angry about delayed payments, and the owner sent me to deal with them because I listen first and then say what I can do today. My weakness is that I avoided delegating; I did the GST filing myself even when a junior could have. I have started by teaching the junior the checklist and reviewing only the final return, which freed two days a month.

One strength with a story, one real weakness with a specific fix.

What is the repo rate and what is it now?

The repo rate is the rate at which the RBI lends short-term money to banks against government securities. When the RBI raises it, borrowing becomes costlier for banks and they pass that on to loan customers, which cools demand and inflation; when it cuts, loans become cheaper. The Monetary Policy Committee reviews it every two months. In October 2026 the MPC raised it by 25 basis points to 5.50 percent and moved its stance to calibrated tightening, so repo-linked home and MSME loan rates will rise.

The panel checks the direction and the reason. Follow-up: how does a repo hike reach a home-loan EMI?

Explain CRR and SLR, and why both exist.

The cash reserve ratio is the share of a bank's net demand and time liabilities it must keep with the RBI in cash, earning nothing. The statutory liquidity ratio is the share it must hold itself in liquid assets such as government securities, gold or cash. CRR is a quick liquidity control; SLR is a safety cushion that also funds the government. SLR is 18 percent at present; the CRR has been adjusted more than once in the last two years, so I would quote the figure from the latest RBI statement.

The panel checks that you know who holds the money in each case. Verify the CRR figure on rbi.org.in before you walk in.

What is an NPA? When does a loan become one?

A non-performing asset is a loan on which interest or principal has stayed overdue for more than 90 days. Before that it is a special mention account, SMA-0, 1 and 2 at 1 to 30, 31 to 60 and 61 to 90 days, which is when a good branch acts. Once a loan is an NPA the bank stops booking interest on it and must provide against it, which hits profit. As a PO, the lesson is that NPAs are prevented in the first 60 days by a phone call and a visit, not recovered later in court.

The 90-day rule and the SMA stages are the minimum. Follow-up: what would you do when an account slips to SMA-1?

What does the RBI do, in simple words?

The RBI is India's central bank under the RBI Act of 1934. It controls money and inflation through the repo rate and reserve ratios; it regulates and supervises banks and NBFCs; it issues currency; it manages the government's borrowing and acts as its banker; and it manages foreign exchange and the rupee under FEMA. At a branch the RBI reaches us as KYC norms, priority-sector targets, customer-service codes and the ombudsman a customer can approach if we fail them.

Five functions, one line each, then one link to the counter.

What is priority sector lending?

It is the RBI requirement that banks direct a fixed share of lending to sectors the economy needs but markets underserve. For scheduled commercial banks the overall target is 40 percent of adjusted net bank credit, with sub-targets for agriculture, small and marginal farmers, micro enterprises and weaker sections; education loans, affordable housing and renewable energy also count. Regional Rural Banks and small finance banks have a 75 percent target. A shortfall goes into funds like RIDF at low returns, so branches have a real incentive to lend to farmers and small businesses.

The 40 and 75 percent figures and two sub-targets are enough.

What is the difference between a bank and an NBFC?

Both lend, but only a bank can accept demand deposits such as savings and current accounts, issue cheque books and sit directly in the payment system. NBFCs like Bajaj Finance raise money from banks and bonds and lend it on under a lighter RBI framework, and carry no CRR or SLR. For a customer the practical difference is that bank deposits are insured by DICGC up to 5 lakh rupees and NBFC deposits are not.

The DICGC point marks a prepared candidate. The panel may ask what DICGC stands for.

How does the RBI target inflation?

Since 2016 the RBI has a legal mandate to keep CPI inflation at 4 percent with a band of 2 percent either side. The six-member Monetary Policy Committee, three from the RBI and three government appointees, votes on the repo rate every two months with that target in mind. When inflation runs above the band, as in 2022, it raises rates; when growth needs support and inflation is inside the band, it cuts.

The 4 percent target, the 2 to 6 band and the MPC's composition are expected.

How does UPI work, and why has it grown so fast?

UPI is a payment system run by NPCI that moves money between bank accounts instantly using a virtual address or QR code, through any app linked to the account, 24 hours a day, free for the customer. It grew because it was built as a shared public rail every bank and app could plug into, it works on cheap phones, Jan Dhan gave crores of people an account to connect, and a shop needed only a printed QR code. For a branch, UPI has moved small transactions out of the hall, freeing staff for loans and problems.

The panel checks that you know NPCI runs it and the RBI regulates it.

What is the e-rupee, the Central Bank Digital Currency?

The e-rupee is a digital form of currency issued by the RBI itself, a liability of the central bank rather than of a commercial bank. It has been in pilot since 2022: a retail version held in wallets offered by participating banks, and a wholesale version for interbank settlement. Unlike UPI, which moves money between bank deposits, the e-rupee is the money itself, like a digital banknote, and the RBI has tested offline payments and programmable use for specific schemes.

Distinguish it from UPI in one sentence; that is the follow-up every board asks.

A customer says money was debited without his consent. What do you do?

First, block the channel, the card or UPI, from the app or from my side. Second, record the complaint with the time he noticed it, because under the RBI's limited-liability rules a customer who reports an unauthorised electronic transaction within three working days has zero liability if it was not caused by his own negligence. Third, ask him to report on the cybercrime portal and helpline 1930 so the money can be frozen in the receiving account. Then follow up with our fraud cell and keep him informed.

The three-day rule and the 1930 helpline are what the panel listens for. Do not promise a refund you cannot authorise.

What is a mule account and how would you spot one?

A mule account receives and moves money for someone else, usually fraud proceeds, with the holder paid a small cut or tricked into it. Warning signs: a quiet account that suddenly receives many small credits from unrelated people and drains the same day by UPI or ATM, a student or daily-wage holder whose turnover makes no sense, several accounts sharing one mobile number, and a customer who cannot explain the inflows. I would raise a suspicious-transaction alert through our AML system, not confront the customer.

The panel checks that you report rather than confront. Mention KYC re-verification as prevention.

We may post you to a rural branch 400 kilometres from home. Are you ready?

Yes, and I know what it involves. I grew up in Sambalpur district, where the nearest branch to my village is 11 kilometres away, so I know a rural branch means KCC renewals, pension and DBT credits, SHG loans and explaining to first-time account holders why the ATM did not work. It is also where a PO learns the full job fastest, because with fewer staff you do everything. I am unmarried, my parents are supportive, and nothing would keep me from joining wherever the bank sends me.

Specific knowledge of a rural branch beats a loyal yes. The panel checks for a hidden constraint.

You have given preference to Bank of Baroda. Why that bank?

Three reasons. My family has banked with BoB for twenty years; my father's KCC and my mother's SHG account are at the Jharsuguda branch, so I have seen how it serves rural customers. After the 2019 merger with Dena and Vijaya Bank it has a large network across western and eastern India. And its bob World app is a product I use and can describe honestly to customers. That said, I have ranked all participating banks and will gladly join whichever allots me.

Know one fact about the bank you ranked first, and do not insult the bank the panel represents.

What products does a branch actually sell?

Savings and current accounts including Jan Dhan basic accounts; term and recurring deposits; retail loans such as home, vehicle, education and gold; KCC and agricultural term loans; MSME loans including Mudra in the Shishu, Kishore and Tarun categories and CGTMSE-covered loans; government schemes like PM Jeevan Jyoti Bima, PM Suraksha Bima and Atal Pension Yojana; and third-party insurance and mutual funds. A PO must recommend the right one, because mis-selling insurance to a pensioner is the fastest way to lose a customer.

The panel checks that you can name the three Mudra categories and the two insurance schemes without prompting.

Where do you see yourself in ten years in the bank?

As a branch manager of a medium-sized branch, having completed JAIIB and CAIIB in my first three years and done a rural posting, a credit desk and an MSME role on the way. Promotion in public-sector banks is by performance and exams, and a PO who takes credit and recovery seriously can reach Scale III in about that time. Beyond that I would like to specialise in credit, because appraising loans well is the skill the bank values most.

Name JAIIB and CAIIB and one specialisation that matches how the bank promotes.

An elderly customer is shouting because her pension has not been credited. What do you do?

I would seat her away from the queue and look at her passbook, so she feels heard and the hall calms down. Then I would check the account: whether the pension file has arrived, whether her life certificate is pending, which is the most common reason in November and December, or whether there is a KYC hold. If it is the life certificate, I would help her submit it through Jeevan Pramaan that day. If the file has not come, I would give her a date and my name and call her when it is credited.

Diagnose before you soothe. Mentioning the life certificate shows you know pension accounts.

Your manager wants 50 new accounts this month and you are at 20 with a week left. What do you do?

I would not open accounts that will stay dormant; that is a cost and a KYC risk. I would go where the real demand is: the garment unit near the branch with 40 workers without salary accounts, the SHG federation adding members, the school paying teachers by cheque, with forms and the e-KYC tablet. And I would tell my manager honestly what I can close, so she is not surprised at month end. In my last job the owner trusted me more for telling him a payment would be late than for hiding it.

Refuse the shortcut and still show drive. Name a real source of accounts.

A loan customer offers you a gift after his loan is sanctioned. What do you do?

I would thank him and decline, explaining that the bank's conduct rules do not allow officers to accept gifts, so he does not feel insulted. Sweets for the whole branch at a festival I would share with the manager's knowledge. Anything of value I would refuse firmly and, if he insisted, tell my manager in writing. A loan officer who takes gifts cannot say no to that customer when the next instalment is late, and that is where NPAs begin.

Link the refusal to the loan's future; a clean line on ethics without self-righteousness.

A farmer says he cannot repay his KCC because the crop failed. What are his options?

First, check whether the crop was insured under PMFBY and help him with the claim. Second, if the district has been declared drought or flood affected, the RBI's relief measures let the bank convert the short-term crop loan into a term loan with a moratorium and give fresh crop finance for the next season, so I would check whether the declaration covers his block. Third, keep him eligible for interest subvention by paying what he can on time. I would not simply mark the account overdue and wait.

PMFBY, calamity restructuring and interest subvention are the three things the panel listens for.

A customer wants to deposit 12 lakh rupees in cash. What will you do?

I would accept it after the requirements: PAN is mandatory for a cash deposit above 50,000 rupees in a day, KYC must be current, and a cash transaction report goes to the FIU for cash of 10 lakh and above in a month. I would ask politely about the source, such as a property sale, and note it, because the bank must be able to show it asked. I would not refuse a legitimate deposit, and I would not help split it into smaller amounts to avoid reporting, which is itself a red flag under PMLA rules.

PAN above 50,000 and the 10 lakh CTR threshold are expected; neither refuse nor help evade.

Aap banking mein kyon aana chahte hain, jab aapki degree engineering ki hai?

Sir, maine engineering ke baad chaudah mahine ek plant mein kaam kiya, aur wahan mujhe sabse zyada costing aur planning ka kaam pasand aaya, machine ka nahi. Banking mein wahi skill, numbers ko samajhna aur risk ko dekhna, poori economy ke business par lagti hai. Ek engineer jo balance sheet padh sakta hai, woh machinery loan appraise karte waqt bank ke kaam aata hai. Isliye main shift kar raha hoon, bhaag nahi raha.

Hindi mein bhi wahi structure: pehle kya kiya, phir kyon banking, phir ek example.

Repo rate kya hota hai aur iska aam aadmi par kya asar padta hai?

Repo rate woh rate hai jis par RBI banks ko short-term loan deta hai. Jab RBI repo rate badhata hai, banks ke liye paisa mehenga hota hai, unke home loan aur business loan ke rate badhte hain, EMI badhti hai aur log kharch kam karte hain, isse mehengai control hoti hai. October 2026 mein RBI ne repo rate 25 basis points badha kar 5.50 percent kiya hai. Jab rate ghatta hai to EMI kam hoti hai aur loan lena aasaan hota hai.

Panel EMI tak ka link sunna chahta hai. Figure interview ke din subah rbi.org.in par check karein.

Agar aapko gaon ki branch mein posting mili to kya aap jaayenge?

Ji sir, bilkul, aur main jaanta hoon wahan kaam kya hota hai. Mere gaon se sabse paas ki branch gyarah kilometre door hai, isliye mujhe pata hai ki rural branch mein KCC renewal, pension aur DBT credit, SHG loan aur pehli baar account kholne waalon ko samjhana, yahi roz ka kaam hai. Rural posting mein PO sab kuch khud karta hai, isliye seekhne ka sabse accha mauka wahi hai. Mere ghar mein koi majboori nahi hai jo mujhe rokegi.

Sirf haan nahi, rural branch ke kaam ka naam lein.

Ek customer counter par chilla raha hai ki uska paisa kat gaya. Aap kya karenge?

Pehle main use queue se alag baitha kar uska passbook ya app dekhunga, taaki pata chale kaunsa transaction hai. Agar unauthorised UPI ya card transaction hai to turant block karwaunga, complaint register karunga, aur use 1930 helpline aur cybercrime portal par report karne ko kahunga, kyunki teen working days ke andar report karne par RBI ke niyam se customer ki liability zero hoti hai. Phir fraud cell ko forward karke customer ko apna naam aur ek date dunga ki main khud follow-up karunga.

Teen din ka niyam aur 1930 helpline Hindi mein bhi bolna zaroori hai.

NPA kya hota hai, ek line mein samjhaiye?

NPA matlab non-performing asset: aisa loan jiska byaaj ya principal nabbe din se zyada overdue ho gaya ho. Uske baad bank us loan par income book nahi karta aur provision rakhna padta hai, jisse profit kam hota hai. Isse pehle ke stage SMA-0, 1 aur 2 kehlaate hain, aur ek accha PO pehle saath din mein phone aur visit karke account ko NPA hone se rokta hai.

Nabbe din, SMA stage aur provisioning, teen cheezein Hindi mein bhi utni hi zaroori hain.