Banking interviews for accounting and finance freshers usually test four things: how banks are regulated (KYC, CRR, SLR), how loans go bad (NPA), everyday operations such as cheques, NEFT and RTGS, and your accounting basics. Learn the questions below, answer in plain words, and back each answer with a small example from your own studies or practice.
The regulatory answers here come from the Reserve Bank of India’s own documents, and each one links to its source so you can check it. Rates and limits change, so we explain the idea and send you to RBI for today’s figure.
What are the most common banking industry interview questions?
Most questions fall into five groups. First, the basics of how a bank works: deposits, loans, KYC, cheques and electronic transfers. Second, regulation and policy terms such as CRR, SLR, repo rate and NPA. Third, accounting questions: bank reconciliation, contra entries and interest. Fourth, questions about your skills, such as Excel and Tally.
Fifth, the usual HR round: why banking, why this bank, and how you handle pressure. Freshers are rarely expected to know everything. Interviewers mainly want to see that you understand the idea behind each term, can explain it in simple words and are accurate with numbers. A short, correct answer with one example beats a long answer that wanders.
The sections below follow this order, so you can revise one group at a time. Each group makes a good revision day in your final week.
What basic banking questions do interviewers ask?
What is KYC, and why does a bank insist on it?
KYC means Know Your Customer. In RBI’s Master Direction on KYC, customer due diligence is identifying and verifying the customer and the beneficial owner using reliable and independent sources. The bank’s KYC policy has four key elements: a customer acceptance policy, risk management, customer identification procedures, and monitoring of transactions. A good answer adds the purpose: KYC helps banks know who they are dealing with and spot unusual transactions.
What is an NPA?
RBI’s prudential norms say an asset becomes non-performing when it stops generating income for the bank. For a term loan, the test is that interest or an instalment of principal remains overdue for more than 90 days. Banks then classify NPAs as substandard, doubtful or loss assets. A strong follow-up point is that a bank should not take interest on an NPA to its income account in the normal way, so NPAs hurt profit directly.
What are CRR and SLR?
CRR is the cash reserve ratio: the share of a bank’s net demand and time liabilities that it must keep as a balance with the Reserve Bank. SLR is the statutory liquidity ratio: the share of liabilities that a bank must hold in liquid assets, such as cash, gold or approved securities, under Section 24 of the Banking Regulation Act. The law caps SLR at 40 per cent (see RBI’s note on CRR and SLR). RBI sets the actual percentages and can change them, so check its site for today’s figures rather than quoting an old one.
What is the repo rate?
RBI describes the repo rate as the interest rate at which the Reserve Bank provides liquidity to banks under its liquidity adjustment facility, against government and other approved securities. The reverse repo is the opposite: the rate at which RBI absorbs liquidity from banks. You can add that these rates are tools of monetary policy.
How long is a cheque valid?
Under an RBI direction effective 1 April 2012, banks do not pay a cheque, draft or pay order presented more than three months after its date. Before that, the period was six months.
What is the difference between NEFT and RTGS?
RBI’s FAQs on NEFT and RTGS say both systems now run round the clock on all days. The difference is how they settle. NEFT processes transfers in batches, at half-hourly intervals. RTGS settles each transaction individually and continuously. If the interviewer asks which to use for a large urgent payment, RTGS is the standard answer, and you can add that your bank sets the limits and charges.
Which accounting questions do banks ask finance freshers?
If you apply for an accounts, operations or credit support role, expect questions from your own subject. These come up most often.
What is a bank reconciliation statement?
It is a statement that explains the difference between the balance in your cash book and the balance in the bank’s passbook. The usual reasons are timing differences and items one side has not yet recorded:
| Reason for the difference | Where it shows first |
|---|---|
| Cheque issued, but not yet presented to the bank | Your cash book |
| Cheque deposited, but not yet cleared | Your cash book |
| Bank charges or interest credited by the bank | Bank passbook |
| Direct deposit or standing instruction not yet entered by you | Bank passbook |
Give a worked example if you are asked. For instance, if the cash book shows ₹50,000 and a cheque for ₹5,000 has been issued but not presented, the passbook still shows ₹55,000 until it clears. The figures here are only for illustration.
What is a contra entry?
It is an entry where both sides of the transaction are cash or bank, such as depositing cash into the bank or withdrawing cash from it. In TallyPrime, contra vouchers are recorded with F4, as shown in our Tally shortcut keys guide.
How does a bank see a customer’s deposit in its own books?
A deposit is a liability for the bank, because it owes the money to the customer. So the bank credits the customer’s account when you deposit. Many freshers get this wrong because the same entry is a debit in your own books. Saying it clearly shows that you understand both sides.
How is interest on deposits treated for tax?
Banks may deduct TDS on interest above prescribed limits. Those limits and section numbers changed when the Income-tax Act, 2025 came into force on 1 April 2026, so confirm them on the Income Tax Department’s website before you quote one. Our TDS guide explains the basics of deduction and returns.
How should you answer the HR and skills questions?
Banks hire for trust as much as for knowledge, so the HR round matters.
- Why banking? Give a real reason, such as an interest in how money moves, and link it to what you studied.
- Why this bank? Read the bank’s own website and name one product or service that you understood.
- Tell me about a mistake. Choose a small, true one, say how you found it and what check you added.
- Which software do you know? Be honest about your level. For accounts roles, Excel and Tally are the usual ones, and our accounting interview questions and answers and Tally interview questions cover that side.
Keep your resume short and accurate, since interviewers pick questions from it. Our resume format for accounting freshers shows how to list skills without overclaiming.
How can you prepare in one week?
- Day 1: read the KYC, NPA and CRR/SLR answers above and say them aloud in your own words.
- Day 2: practise bank reconciliation with two small examples.
- Day 3: revise debit and credit, contra entries and interest.
- Day 4: refresh Excel basics: SUM, IF, lookups and a simple pivot table.
- Day 5: read the job post line by line and match each requirement to something you have done.
- Day 6: do a mock interview with a friend or teacher.
- Day 7: rest, then check the interview address, documents and timing.
For a wider view of where accounts roles are, read our guide to accounting jobs in Delhi for freshers.
How we teach this at IPA
IPA’s 18-month diploma in accounting, banking and finance covers Business Financial Accounting, Tally Prime and BUSY, income tax and GST return filing, payroll, company law, auditing, e-commerce banking, the capital market, Advanced Excel and SAP FICO. It also adds personality development and English speaking, which help in interview rounds. It runs in the classroom at Laxmi Nagar or in live online batches.
If you only need the accounting software side first, the Tally course in Delhi is a 1-month basic or 2-month advanced programme with placement support. IPA’s modules are about accounting and finance skills. We cannot promise that any course leads to a job at a bank.
Frequently asked questions
What are the most asked banking interview questions for freshers?
KYC, NPA, CRR and SLR, repo rate, NEFT versus RTGS, cheque validity, bank reconciliation, and “why banking?” appear most often. Learn each in two or three plain sentences.
How do I explain an NPA in an interview?
Say that a loan becomes an NPA when interest or an instalment stays overdue for more than 90 days for a term loan. Then name the three classes, substandard, doubtful and loss, and add that income is not booked on an NPA in the normal way.
Do banks ask Tally questions?
For accounts roles they can. Know vouchers, ledgers and reports at a basic level and say honestly what you have practised.
Is a commerce degree required for a banking job?
Requirements differ by employer and by exam. Read the recruitment notice for the post you want, and do not assume.
Where can I check current CRR, SLR and repo rates?
On the Reserve Bank of India’s website. Quote the date with any figure you use, since these rates change.