Landing a job at Axis Bank, one of India’s leading private sector banks, is a dream for many. Whether you’re applying for a banking officer, relationship manager, analyst, or customer service executive, the interview process plays a crucial role in your selection. But don’t worry—we’ve got you covered!
In this guide, we’ll walk you through the most important and frequently asked Axis Bank interview questions along with their detailed answers. Whether you’re a fresher or an experienced professional, these insights will help you prepare thoroughly.
Expect questions on banking fundamentals, customer handling, sales & marketing, and problem-solving scenarios. Along with technical knowledge, Axis Bank values communication skills, confidence, and adaptability.
So, let’s dive in and explore the top Axis Bank interview questions to help you stand out and secure your dream job!
Axis Bank Interview Questions – Ace Your Interview with Confidence!
1. Tell me about yourself.
Answer:
This is one of the most common interview questions. Your response should be structured, confident, and relevant to the banking industry.
How to Answer:
- Start with your name and background.
- Mention your education and relevant skills.
- Highlight any banking knowledge or experience.
- End with why you are interested in Axis Bank.
Example:
“My name is [Your Name], and I recently completed my [degree] in [stream] from [university]. During my studies, I developed a strong interest in the banking and finance sector. I have good analytical and communication skills, which I believe are essential for this role. I have also completed a certification in financial services, which has enhanced my understanding of banking operations. I am highly motivated to start my career in Axis Bank because of its excellent reputation and commitment to customer service. I am eager to learn and contribute to the team.”
2. Why do you want to join Axis Bank?
Answer:
The interviewer wants to assess your knowledge about the bank and your motivation for joining.
How to Answer:
- Talk about the reputation and growth of Axis Bank.
- Mention career opportunities and learning potential.
- Align your skills and goals with the bank’s vision.
Example:
“Axis Bank is one of the leading private sector banks in India, known for its innovation, customer-centric approach, and strong financial performance. I am eager to work in an organization that provides opportunities for growth and learning. I am particularly impressed by Axis Bank’s digital banking initiatives and its focus on providing excellent customer service. I believe that my skills in communication, problem-solving, and financial management align well with the bank’s objectives. I am confident that working at Axis Bank will help me develop my career while contributing to the organization’s success.”
3. What do you know about Axis Bank?
Answer:
Researching the company before an interview is crucial.
Key Points to Include:
- Axis Bank was established in 1993 and is one of India’s top private banks.
- It provides retail, corporate, and digital banking services.
- Headquarters: Mumbai, Maharashtra.
- CEO: Amitabh Chaudhry (as of 2024).
- Strong presence with thousands of branches and ATMs across India.
Example:
“Axis Bank, established in 1993, is one of India’s leading private sector banks, known for its diverse banking solutions. It offers services such as retail banking, corporate banking, loans, and digital banking. The bank has over [X] branches and [X] ATMs across the country, making it easily accessible to customers. Axis Bank is recognized for its customer-centric approach, innovation in digital banking, and strong financial performance. Under the leadership of CEO Amitabh Chaudhry, the bank continues to grow and expand its reach. I am excited about the possibility of contributing to such a dynamic and customer-focused organization.”
4. What are the different types of bank accounts?
Answer:
Banks offer various types of accounts based on customer needs.
Types of Bank Accounts:
- Savings Account: For individuals to save money and earn interest.
- Current Account: For businesses with high transaction needs.
- Fixed Deposit (FD) Account: Offers higher interest rates for a fixed period.
- Recurring Deposit (RD) Account: Allows customers to deposit a fixed amount monthly and earn interest.
- Salary Account: Provided by employers for salary credit.
- NRI Accounts: For non-resident Indians (NRE/NRO accounts).
Example:
“If a student wants to save money, a Savings Account is ideal. If a business needs frequent transactions, a Current Account is more suitable. Understanding these accounts helps customers make better financial decisions.”
5. What is KYC and why is it important?
Answer:
KYC (Know Your Customer) is a process banks use to verify customer identity.
Importance of KYC:
- Prevents fraud, money laundering, and illegal activities.
- Ensures secure transactions and compliance with RBI guidelines.
- Helps in maintaining a transparent banking system.
Example:
“If a person wants to open a bank account, they need to submit their Aadhaar Card, PAN Card, and address proof. This process ensures that the customer is genuine and not involved in fraudulent activities.”
6. What is the difference between a Credit Card and a Debit Card?
Answer:
| Feature | Credit Card | Debit Card |
|---|---|---|
| Source of Funds | Borrowed money from the bank | Own bank account funds |
| Interest | Charged if payment is delayed | No interest |
| Usage | Used for purchases, EMI, and bill payments | Direct transactions from an account |
| Example | Buying a phone on EMI | Withdrawing cash from an ATM |
Example:
“If you buy a mobile phone for ₹20,000 using a Credit Card, the bank lends you the money, and you can repay later. If you use a Debit Card, the amount is directly deducted from your account.”
7. What is the Full Form of IFSC, and why is it important?
Answer:
IFSC (Indian Financial System Code) is a unique 11-digit code assigned to each bank branch in India.
Importance of IFSC:
- Identifies specific bank branches for online transactions.
- Required for NEFT, RTGS, and IMPS payments.
Example:
“If you transfer money via NEFT to a friend’s Axis Bank account, you need their account number and IFSC code to ensure the money goes to the correct branch.”
8. What is the role of a Relationship Manager in a bank?
Answer:
A Relationship Manager (RM) builds and maintains relationships with customers.
Key Responsibilities:
- Assisting customers with banking services and investment plans.
- Promoting bank products like loans, credit cards, and insurance.
- Resolving customer queries and improving satisfaction.
Example:
“If a customer wants to open a Fixed Deposit, an RM will guide them on the best investment options, helping them maximize returns.”
9. What are the different types of loans offered by banks?
Answer:
Banks provide various loans based on customer needs.
Types of Loans:
- Personal Loan – For any personal expenses.
- Home Loan – For buying or constructing a house.
- Education Loan – For higher studies.
- Car Loan – For purchasing a vehicle.
- Business Loan – For startups or business expansion.
Example:
“If a customer wants to buy a house, they can apply for a Home Loan, and the bank will provide funds at a fixed interest rate.”
10. What is the difference between NEFT, RTGS, and IMPS?
Answer:
| Feature | NEFT | RTGS | IMPS |
|---|---|---|---|
| Speed | 2-4 hours | Real-time | Instant |
| Minimum Amount | No limit | ₹2 lakh | ₹1 |
| Availability | Working hours | Working hours | 24/7 |
Example:
“If you need to transfer ₹50,000 instantly, you should use IMPS. If you are transferring ₹5 lakh, you can use RTGS for a real-time transfer.”
11. What is the difference between Fixed Deposit (FD) and Recurring Deposit (RD)?
Answer:
FD and RD are both saving instruments offered by banks, but they work differently.
| Feature | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| Investment Type | One-time lump sum deposit | Monthly fixed deposits |
| Interest Rate | Higher than RD | Slightly lower than FD |
| Tenure | 7 days to 10 years | 6 months to 10 years |
| Withdrawals | Premature withdrawal possible (with penalty) | Premature closure allowed with conditions |
| Purpose | Ideal for long-term savings | Ideal for disciplined savings over time |
Example:
“If a person has ₹50,000 and wants to earn interest, they can put it in an FD. If they prefer to save ₹5,000 per month, an RD is a better option.”
12. What are the different types of cheques?
Answer:
Cheques are used for transactions and payments. There are several types:
- Bearer Cheque – Can be encashed by the person holding it.
- Order Cheque – Payable only to a specific person.
- Crossed Cheque – Cannot be cashed directly; must be deposited into a bank account.
- Post-Dated Cheque – A cheque with a future date, which can only be encashed after that date.
- Self Cheque – Issued by an account holder for personal withdrawal.
Example:
“If a company issues a crossed cheque to an employee, they must deposit it in their bank account instead of withdrawing cash directly.”
13. What is the difference between RTGS and NEFT?
Answer:
| Feature | RTGS (Real-Time Gross Settlement) | NEFT (National Electronic Funds Transfer) |
|---|---|---|
| Transaction Speed | Instant settlement | Settled in batches |
| Minimum Transfer Amount | ₹2 lakh | No minimum limit |
| Availability | Bank working hours | Available 24/7 |
| Best For | Large transactions | Small to medium transfers |
Example:
“If a business needs to transfer ₹10 lakh to a supplier urgently, they should use RTGS. If someone wants to send ₹5,000 to a friend, NEFT is sufficient.”
14. What is a Demand Draft (DD)? How is it different from a cheque?
Answer:
A Demand Draft (DD) is a prepaid payment instrument issued by a bank, ensuring that the recipient gets paid.
| Feature | Demand Draft (DD) | Cheque |
|---|---|---|
| Payment Assurance | Guaranteed by the bank | Can bounce due to insufficient funds |
| Issuer | Issued by the bank on request | Issued by the account holder |
| Usage | Common for fee payments, business transactions | Used for personal and business payments |
Example:
“If a student is paying college fees, the institution may request a DD to ensure the payment is guaranteed.”
15. What is a Bank Guarantee?
Answer:
A Bank Guarantee is a promise by a bank to pay a specific amount if the customer fails to meet their obligations.
Types of Bank Guarantees:
- Financial Guarantee – Ensures loan repayment.
- Performance Guarantee – Ensures completion of a contract.
Example:
“If a company wins a government contract but fails to complete it, the bank will compensate the government under the Performance Guarantee.”
16. What are the functions of RBI (Reserve Bank of India)?
Answer:
RBI is India’s central bank and regulates the banking system.
Main Functions:
- Monetary Policy Regulation – Controls inflation and interest rates.
- Currency Issuance – Manages the printing of Indian currency.
- Banking Regulation – Supervises banks and NBFCs.
- Foreign Exchange Management – Manages forex reserves.
- Financial Stability – Prevents banking crises.
Example:
“When inflation rises, RBI may increase repo rates to reduce money supply and control prices.”
17. What is the difference between Repo Rate and Reverse Repo Rate?
Answer:
| Feature | Repo Rate | Reverse Repo Rate |
|---|---|---|
| Definition | Rate at which RBI lends money to banks | Rate at which RBI borrows from banks |
| Impact on Economy | Higher repo rate makes loans expensive | Higher reverse repo rate encourages banks to save |
| Used For | Controlling inflation | Managing liquidity in the economy |
Example:
“If RBI raises the repo rate, banks increase loan interest rates, making borrowing expensive.”
18. What is CASA in banking?
Answer:
CASA stands for Current Account and Savings Account. Banks use CASA deposits as a cheap source of funds.
Importance of CASA:
- Lower interest payout (compared to Fixed Deposits).
- Helps banks increase profits.
- Encourages more customer transactions.
Example:
“A bank aims to increase its CASA ratio by encouraging customers to open savings and current accounts instead of FDs.”
19. What is the role of a Probationary Officer (PO) in a bank?
Answer:
A Probationary Officer (PO) is a bank’s entry-level officer, responsible for multiple tasks.
Key Responsibilities:
- Handling customer queries and transactions.
- Managing loans and account openings.
- Assisting with marketing and sales of bank products.
- Learning about bank operations and regulations.
Example:
“A newly recruited PO at Axis Bank might start by handling customer queries and gradually move to loan processing and branch operations.”
20. What is Priority Sector Lending (PSL)?
Answer:
Priority Sector Lending (PSL) is a guideline by RBI that requires banks to lend a certain percentage of their loans to priority sectors.
Priority Sectors Include:
- Agriculture
- Micro and Small Enterprises
- Education Loans
- Housing for Low-Income Groups
Example:
“If RBI sets a PSL target of 40%, it means 40% of Axis Bank’s loans must be given to farmers, small businesses, and other priority sectors.”
21. What is a Balance Sheet, and why is it important in banking?
Answer:
A Balance Sheet is a financial statement that provides a snapshot of a bank’s financial position at a given time. It consists of:
- Assets – Loans, cash, investments, and fixed assets.
- Liabilities – Deposits, borrowings, and other payables.
- Equity – Shareholders’ funds and retained earnings.
Importance of a Balance Sheet in Banking:
- Helps in assessing the financial stability of the bank.
- Shows the bank’s ability to lend and generate profits.
- Ensures compliance with regulatory requirements.
Example:
“If Axis Bank’s balance sheet shows high bad loans, it indicates financial stress, affecting profitability.”
22. What is the NPA (Non-Performing Asset) in banking?
Answer:
An NPA (Non-Performing Asset) is a loan where the borrower has failed to pay interest or principal for 90 days or more.
Types of NPAs:
- Substandard Asset – NPA for less than 12 months.
- Doubtful Asset – NPA for more than 12 months.
- Loss Asset – Unrecoverable, but not written off.
Impact of NPAs on Banks:
- Reduces profitability as banks stop earning interest.
- Affects lending capacity, limiting new loans.
- Increases risk, affecting investor confidence.
Example:
“If a business takes a loan of ₹50 lakh but fails to repay for more than 90 days, it is classified as an NPA.”
23. What is the difference between a Public Sector Bank and a Private Sector Bank?
Answer:
| Feature | Public Sector Bank | Private Sector Bank |
|---|---|---|
| Ownership | Owned by the Government | Owned by private entities |
| Example | SBI, PNB, Bank of Baroda | Axis Bank, HDFC Bank, ICICI Bank |
| Customer Base | Large rural outreach | Focused on urban and semi-urban areas |
| Interest Rates | Slightly lower | Competitive rates but higher than PSU banks |
Example:
“Axis Bank is a private sector bank, whereas SBI is a public sector bank controlled by the Government of India.”
24. What is CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio)?
Answer:
| Feature | CRR (Cash Reserve Ratio) | SLR (Statutory Liquidity Ratio) |
|---|---|---|
| Definition | Percentage of total deposits banks must keep with RBI | Percentage of deposits banks must maintain in cash, gold, or securities |
| Purpose | Controls liquidity in the economy | Ensures financial stability of banks |
| Effect on Lending | Higher CRR reduces loan availability | Higher SLR limits lending capacity |
Example:
“If RBI increases CRR, banks have less money to lend, controlling inflation.”
Here are the next 21-30 Axis Bank interview questions and answers, explained in detail with examples to help freshers understand easily.
21. What is a Balance Sheet, and why is it important in banking?
Answer:
A Balance Sheet is a financial statement that provides a snapshot of a bank’s financial position at a given time. It consists of:
- Assets – Loans, cash, investments, and fixed assets.
- Liabilities – Deposits, borrowings, and other payables.
- Equity – Shareholders’ funds and retained earnings.
Importance of a Balance Sheet in Banking:
- Helps in assessing the financial stability of the bank.
- Shows the bank’s ability to lend and generate profits.
- Ensures compliance with regulatory requirements.
Example:
“If Axis Bank’s balance sheet shows high bad loans, it indicates financial stress, affecting profitability.”
22. What is the NPA (Non-Performing Asset) in banking?
Answer:
An NPA (Non-Performing Asset) is a loan where the borrower has failed to pay interest or principal for 90 days or more.
Types of NPAs:
- Substandard Asset – NPA for less than 12 months.
- Doubtful Asset – NPA for more than 12 months.
- Loss Asset – Unrecoverable, but not written off.
Impact of NPAs on Banks:
- Reduces profitability as banks stop earning interest.
- Affects lending capacity, limiting new loans.
- Increases risk, affecting investor confidence.
Example:
“If a business takes a loan of ₹50 lakh but fails to repay for more than 90 days, it is classified as an NPA.”
23. What is the difference between a Public Sector Bank and a Private Sector Bank?
Answer:
| Feature | Public Sector Bank | Private Sector Bank |
|---|---|---|
| Ownership | Owned by the Government | Owned by private entities |
| Example | SBI, PNB, Bank of Baroda | Axis Bank, HDFC Bank, ICICI Bank |
| Customer Base | Large rural outreach | Focused on urban and semi-urban areas |
| Interest Rates | Slightly lower | Competitive rates but higher than PSU banks |
Example:
“Axis Bank is a private sector bank, whereas SBI is a public sector bank controlled by the Government of India.”
24. What is CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio)?
Answer:
| Feature | CRR (Cash Reserve Ratio) | SLR (Statutory Liquidity Ratio) |
|---|---|---|
| Definition | Percentage of total deposits banks must keep with RBI | Percentage of deposits banks must maintain in cash, gold, or securities |
| Purpose | Controls liquidity in the economy | Ensures financial stability of banks |
| Effect on Lending | Higher CRR reduces loan availability | Higher SLR limits lending capacity |
Example:
“If RBI increases CRR, banks have less money to lend, controlling inflation.”
25. What are the different types of risks in banking?
Answer:
- Credit Risk – Risk of customers defaulting on loans.
- Market Risk – Loss due to fluctuations in interest rates or currency value.
- Operational Risk – Loss due to fraud, errors, or system failures.
- Liquidity Risk – Bank’s inability to meet short-term obligations.
- Interest Rate Risk – Impact of changing interest rates on profitability.
Example:
“If a borrower fails to repay a ₹10 lakh loan, the bank faces credit risk.”
Here are the next 21-30 Axis Bank interview questions and answers, explained in detail with examples to help freshers understand easily.
21. What is a Balance Sheet, and why is it important in banking?
Answer:
A Balance Sheet is a financial statement that provides a snapshot of a bank’s financial position at a given time. It consists of:
- Assets – Loans, cash, investments, and fixed assets.
- Liabilities – Deposits, borrowings, and other payables.
- Equity – Shareholders’ funds and retained earnings.
Importance of a Balance Sheet in Banking:
- Helps in assessing the financial stability of the bank.
- Shows the bank’s ability to lend and generate profits.
- Ensures compliance with regulatory requirements.
Example:
“If Axis Bank’s balance sheet shows high bad loans, it indicates financial stress, affecting profitability.”
22. What is the NPA (Non-Performing Asset) in banking?
Answer:
An NPA (Non-Performing Asset) is a loan where the borrower has failed to pay interest or principal for 90 days or more.
Types of NPAs:
- Substandard Asset – NPA for less than 12 months.
- Doubtful Asset – NPA for more than 12 months.
- Loss Asset – Unrecoverable, but not written off.
Impact of NPAs on Banks:
- Reduces profitability as banks stop earning interest.
- Affects lending capacity, limiting new loans.
- Increases risk, affecting investor confidence.
Example:
“If a business takes a loan of ₹50 lakh but fails to repay for more than 90 days, it is classified as an NPA.”
23. What is the difference between a Public Sector Bank and a Private Sector Bank?
Answer:
| Feature | Public Sector Bank | Private Sector Bank |
|---|---|---|
| Ownership | Owned by the Government | Owned by private entities |
| Example | SBI, PNB, Bank of Baroda | Axis Bank, HDFC Bank, ICICI Bank |
| Customer Base | Large rural outreach | Focused on urban and semi-urban areas |
| Interest Rates | Slightly lower | Competitive rates but higher than PSU banks |
Example:
“Axis Bank is a private sector bank, whereas SBI is a public sector bank controlled by the Government of India.”
24. What is CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio)?
Answer:
| Feature | CRR (Cash Reserve Ratio) | SLR (Statutory Liquidity Ratio) |
|---|---|---|
| Definition | Percentage of total deposits banks must keep with RBI | Percentage of deposits banks must maintain in cash, gold, or securities |
| Purpose | Controls liquidity in the economy | Ensures financial stability of banks |
| Effect on Lending | Higher CRR reduces loan availability | Higher SLR limits lending capacity |
Example:
“If RBI increases CRR, banks have less money to lend, controlling inflation.”
25. What are the different types of risks in banking?
Answer:
- Credit Risk – Risk of customers defaulting on loans.
- Market Risk – Loss due to fluctuations in interest rates or currency value.
- Operational Risk – Loss due to fraud, errors, or system failures.
- Liquidity Risk – Bank’s inability to meet short-term obligations.
- Interest Rate Risk – Impact of changing interest rates on profitability.
Example:
“If a borrower fails to repay a ₹10 lakh loan, the bank faces credit risk.”
26. What is the role of a Loan Officer in a bank?
Answer:
A Loan Officer evaluates loan applications and ensures borrowers meet the bank’s criteria.
Key Responsibilities:
- Assess loan eligibility based on income and credit score.
- Verify documents like PAN, Aadhaar, and salary slips.
- Ensure compliance with RBI regulations.
Example:
“A Loan Officer at Axis Bank may reject a home loan if the applicant has a low credit score or insufficient income.”
27. What is a Credit Score, and why is it important?
Answer:
A Credit Score is a numerical representation of a person’s creditworthiness, usually ranging from 300 to 900.
Why It Matters:
- Higher credit scores (750+) increase chances of loan approval.
- Lower scores may result in higher interest rates or loan rejection.
- Used by banks to assess risk before lending money.
Example:
“If a person has a credit score of 800, they can get a home loan with a lower interest rate.”
28. What is EMI (Equated Monthly Installment)?
Answer:
EMI (Equated Monthly Installment) is a fixed monthly payment for repaying a loan, including principal and interest.
Formula:
EMI=P×R×(1+R)N(1+R)N−1EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N – 1}
Where:
- P = Principal Loan Amount
- R = Monthly Interest Rate
- N = Number of Months
Example:
“If you take a ₹5 lakh personal loan for 5 years at 10% interest, your EMI will be calculated based on the formula.”
29. What is a Moratorium Period in a loan?
Answer:
A Moratorium Period is a time during which the borrower is not required to make loan repayments.
Key Points:
- Typically offered for education loans, home loans, and business loans.
- Interest may still accumulate during the period.
Example:
“For an education loan, students can start repaying 6 months after getting a job, which is the moratorium period.”
30. What is a Recapitalization of Banks?
Answer:
Bank Recapitalization is when the government or investors inject funds into a bank to strengthen its financial position.
Why It’s Needed:
- Helps banks recover from bad loans (NPAs).
- Ensures banks meet capital requirements set by RBI.
Example:
“In 2020, the Indian government infused ₹70,000 crore into public sector banks to reduce NPAs and improve lending capacity.”
31. What is the difference between a Debit Card and a Credit Card?
Answer:
Both debit cards and credit cards are used for cashless transactions, but they function differently.
| Feature | Debit Card | Credit Card |
|---|---|---|
| Source of Funds | Directly linked to the bank account | Borrowed from the bank |
| Spending Limit | Limited to available balance | Based on the credit limit set by the bank |
| Interest Charges | No interest (since own money is used) | Interest is charged if dues are not paid on time |
| Usage | Suitable for daily expenses and ATM withdrawals | Useful for emergency expenses and big purchases |
Example:
“If a person buys a ₹10,000 phone, using a debit card, the amount is deducted immediately from their bank account. If they use a credit card, they must repay it later, possibly with interest.”
32. What is a White Label ATM?
Answer:
A White Label ATM (WLA) is an ATM that is owned and operated by non-banking financial companies (NBFCs) instead of a bank.
Key Features:
- Customers of any bank can withdraw cash.
- Operated by private companies under RBI approval.
- Charges may apply for transactions beyond the free limit.
Example:
“Tata Communications runs IndiCash ATMs, which are White Label ATMs, meaning they are not owned by any specific bank but allow withdrawals from multiple banks.”
33. What is KYC (Know Your Customer)?
Answer:
KYC is a mandatory process where banks verify the identity and address of their customers.
Documents Required for KYC:
- Identity Proof – Aadhaar, PAN, Passport.
- Address Proof – Utility Bills, Voter ID.
- Recent Photograph.
Why is KYC Important?
- Prevents fraud and money laundering.
- Ensures only genuine customers use banking services.
- Required for opening bank accounts, loans, and investments.
Example:
“If a customer wants to open a savings account, they must submit Aadhaar and PAN for KYC verification.”
Here are the next 31-40 Axis Bank interview questions and answers, explained in detail with examples to help freshers understand easily.
31. What is the difference between a Debit Card and a Credit Card?
Answer:
Both debit cards and credit cards are used for cashless transactions, but they function differently.
| Feature | Debit Card | Credit Card |
|---|---|---|
| Source of Funds | Directly linked to the bank account | Borrowed from the bank |
| Spending Limit | Limited to available balance | Based on the credit limit set by the bank |
| Interest Charges | No interest (since own money is used) | Interest is charged if dues are not paid on time |
| Usage | Suitable for daily expenses and ATM withdrawals | Useful for emergency expenses and big purchases |
Example:
“If a person buys a ₹10,000 phone, using a debit card, the amount is deducted immediately from their bank account. If they use a credit card, they must repay it later, possibly with interest.”
32. What is a White Label ATM?
Answer:
A White Label ATM (WLA) is an ATM that is owned and operated by non-banking financial companies (NBFCs) instead of a bank.
Key Features:
- Customers of any bank can withdraw cash.
- Operated by private companies under RBI approval.
- Charges may apply for transactions beyond the free limit.
Example:
“Tata Communications runs IndiCash ATMs, which are White Label ATMs, meaning they are not owned by any specific bank but allow withdrawals from multiple banks.”
33. What is KYC (Know Your Customer)?
Answer:
KYC is a mandatory process where banks verify the identity and address of their customers.
Documents Required for KYC:
- Identity Proof – Aadhaar, PAN, Passport.
- Address Proof – Utility Bills, Voter ID.
- Recent Photograph.
Why is KYC Important?
- Prevents fraud and money laundering.
- Ensures only genuine customers use banking services.
- Required for opening bank accounts, loans, and investments.
Example:
“If a customer wants to open a savings account, they must submit Aadhaar and PAN for KYC verification.”
34. What is a SWIFT Code in banking?
Answer:
A SWIFT Code is an international bank code used for cross-border transactions.
Structure:
It has 8 or 11 characters, divided as follows:
- First 4 characters – Bank Code
- Next 2 characters – Country Code
- Next 2 characters – Location Code
- Last 3 characters (optional) – Branch Code
Example:
“Axis Bank’s SWIFT Code for Mumbai branch could be AXISINBB002, where ‘AXIS’ represents the bank, ‘IN’ is for India, and ‘BB002’ represents the branch.”
35. What is a Foreign Exchange (Forex) Market?
Answer:
The Forex Market is a global marketplace where different currencies are traded.
Key Features:
- Open 24/7 across different time zones.
- Influenced by economic policies, global events, and interest rates.
- Used by businesses, governments, and investors.
Example:
“A company importing goods from the USA needs to exchange INR to USD in the Forex market to make payments.”
Here are the next 31-40 Axis Bank interview questions and answers, explained in detail with examples to help freshers understand easily.
31. What is the difference between a Debit Card and a Credit Card?
Answer:
Both debit cards and credit cards are used for cashless transactions, but they function differently.
| Feature | Debit Card | Credit Card |
|---|---|---|
| Source of Funds | Directly linked to the bank account | Borrowed from the bank |
| Spending Limit | Limited to available balance | Based on the credit limit set by the bank |
| Interest Charges | No interest (since own money is used) | Interest is charged if dues are not paid on time |
| Usage | Suitable for daily expenses and ATM withdrawals | Useful for emergency expenses and big purchases |
Example:
“If a person buys a ₹10,000 phone, using a debit card, the amount is deducted immediately from their bank account. If they use a credit card, they must repay it later, possibly with interest.”
32. What is a White Label ATM?
Answer:
A White Label ATM (WLA) is an ATM that is owned and operated by non-banking financial companies (NBFCs) instead of a bank.
Key Features:
- Customers of any bank can withdraw cash.
- Operated by private companies under RBI approval.
- Charges may apply for transactions beyond the free limit.
Example:
“Tata Communications runs IndiCash ATMs, which are White Label ATMs, meaning they are not owned by any specific bank but allow withdrawals from multiple banks.”
33. What is KYC (Know Your Customer)?
Answer:
KYC is a mandatory process where banks verify the identity and address of their customers.
Documents Required for KYC:
- Identity Proof – Aadhaar, PAN, Passport.
- Address Proof – Utility Bills, Voter ID.
- Recent Photograph.
Why is KYC Important?
- Prevents fraud and money laundering.
- Ensures only genuine customers use banking services.
- Required for opening bank accounts, loans, and investments.
Example:
“If a customer wants to open a savings account, they must submit Aadhaar and PAN for KYC verification.”
34. What is a SWIFT Code in banking?
Answer:
A SWIFT Code is an international bank code used for cross-border transactions.
Structure:
It has 8 or 11 characters, divided as follows:
- First 4 characters – Bank Code
- Next 2 characters – Country Code
- Next 2 characters – Location Code
- Last 3 characters (optional) – Branch Code
Example:
“Axis Bank’s SWIFT Code for Mumbai branch could be AXISINBB002, where ‘AXIS’ represents the bank, ‘IN’ is for India, and ‘BB002’ represents the branch.”
35. What is a Foreign Exchange (Forex) Market?
Answer:
The Forex Market is a global marketplace where different currencies are traded.
Key Features:
- Open 24/7 across different time zones.
- Influenced by economic policies, global events, and interest rates.
- Used by businesses, governments, and investors.
Example:
“A company importing goods from the USA needs to exchange INR to USD in the Forex market to make payments.”
36. What is the role of a Relationship Manager in a bank?
Answer:
A Relationship Manager (RM) is responsible for handling high-value customers and offering personalized banking services.
Key Responsibilities:
- Managing accounts of corporate and wealthy clients.
- Providing investment and loan solutions.
- Ensuring customer satisfaction and building long-term relationships.
Example:
“An Axis Bank Relationship Manager may offer mutual fund investment advice to a high-net-worth individual (HNI) to help grow their wealth.”
37. What is Mobile Banking? How is it different from Internet Banking?
Answer:
Mobile Banking allows customers to perform banking transactions via a mobile app, while Internet Banking is accessed through a web browser.
| Feature | Mobile Banking | Internet Banking |
|---|---|---|
| Platform | Mobile app | Web browser |
| Accessibility | Convenient, works on smartphones | Works on computers and laptops |
| Security | Uses OTP and biometrics | Uses passwords and security questions |
Example:
“A customer can use the Axis Mobile App to check their account balance, while Internet Banking is preferred for detailed account management.”
38. What is the difference between a Term Loan and a Working Capital Loan?
Answer:
| Feature | Term Loan | Working Capital Loan |
|---|---|---|
| Purpose | For long-term investments like equipment, real estate | For short-term business needs like inventory, salaries |
| Duration | 3-10 years | 1 year or less |
| Repayment | Fixed EMIs | Flexible repayment based on business cycle |
Example:
“A factory buying new machinery would take a Term Loan, while a business needing funds to pay monthly salaries might opt for a Working Capital Loan.”
39. What is the difference between MICR and IFSC codes?
Answer:
| Feature | MICR Code | IFSC Code |
|---|---|---|
| Full Form | Magnetic Ink Character Recognition | Indian Financial System Code |
| Purpose | Used for cheque clearing | Used for electronic fund transfers |
| Structure | 9-digit number | 11-character alphanumeric code |
| Where Used | Printed on cheques | Required for NEFT, RTGS, IMPS transactions |
Example:
“To process a cheque, banks use the MICR Code, while for online fund transfers, they require an IFSC Code.”
40. What is an Overdraft Facility?
Answer:
An Overdraft (OD) Facility allows customers to withdraw more money than their account balance, up to a pre-approved limit.
Key Features:
- Works like a short-term loan.
- Interest is charged only on the amount used.
- Available for salary accounts, businesses, and current accounts.
Example:
“If a customer has ₹50,000 in their account but needs ₹70,000, they can use an overdraft facility for ₹20,000, paying interest only on the extra amount used.”
41. What is Priority Sector Lending (PSL) in Banking?
Answer:
Priority Sector Lending (PSL) is a mandated lending policy by RBI where banks must provide a certain percentage of their loans to specific sectors that contribute to economic development.
Sectors under PSL:
- Agriculture
- Small and Medium Enterprises (SMEs)
- Education
- Housing
- Renewable Energy
- Weaker Sections
PSL Requirements:
- Banks must allocate 40% of their total loans to priority sectors.
- Helps in financial inclusion and economic growth.
Example:
“If Axis Bank provides a loan of ₹5 lakh to a farmer for agricultural purposes, it is counted under Priority Sector Lending.”
42. What is the difference between RTGS and NEFT?
Answer:
| Feature | RTGS (Real Time Gross Settlement) | NEFT (National Electronic Funds Transfer) |
|---|---|---|
| Transaction Type | Instant settlement | Batch-wise settlement |
| Minimum Amount | ₹2 lakh | No minimum limit |
| Processing Time | Within seconds | Within 2-4 hours |
| Usage | High-value transactions | Regular bank transfers |
Example:
“A company making a ₹10 lakh payment to a supplier would use RTGS, while a person transferring ₹5,000 to a friend may use NEFT.”
43. What is IMPS (Immediate Payment Service)?
Answer:
IMPS is an instant money transfer service that works 24/7, even on bank holidays.
Key Features:
- No minimum amount limit.
- Available via mobile banking, internet banking, and ATMs.
- Requires MMID (Mobile Money Identifier) or account number & IFSC.
Example:
“If you urgently need to transfer ₹5,000 to a friend at midnight, you can use IMPS for instant transfer.”
44. What is the concept of Digital Banking?
Answer:
Digital Banking refers to online and mobile-based banking services that eliminate the need for visiting a bank branch.
Features:
- Online account opening.
- Fund transfers, bill payments, and investments.
- Loan applications and approvals through digital platforms.
Example:
“Using the Axis Mobile App, customers can check their balance, pay bills, and transfer money without visiting a branch.”
45. What is a Fixed Deposit (FD) and its benefits?
Answer:
A Fixed Deposit (FD) is a safe investment option where money is deposited for a fixed tenure at a predetermined interest rate.
Benefits of FD:
- Higher interest rates than savings accounts.
- Guaranteed returns, no market risk.
- Flexible tenure options from 7 days to 10 years.
Example:
“If you invest ₹1 lakh in a Fixed Deposit for 5 years at 6.5% interest, you will earn assured returns without any risk.”
46. What is Recurring Deposit (RD)? How is it different from FD?
Answer:
A Recurring Deposit (RD) is a savings scheme where customers deposit a fixed amount every month for a specific tenure.
| Feature | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| Deposit Type | One-time lump sum | Monthly installments |
| Interest Rate | Slightly higher | Lower than FD |
| Ideal For | Long-term investors | Regular savers |
Example:
“A person saving ₹5,000 per month in an RD for 2 years will earn interest on their deposits.”
47. What is a Cheque Bounce and its consequences?
Answer:
A cheque bounces when the bank cannot process the payment due to various reasons like insufficient funds, signature mismatch, or expired cheque.
Consequences of Cheque Bounce:
- Penalty charges by the bank.
- Legal action under the Negotiable Instruments Act.
- Affects the credit score of the issuer.
Example:
“If a person issues a cheque for ₹50,000 but has only ₹30,000 in their account, the cheque will bounce, and they may face legal issues.”
48. What is a CASA Account in Banking?
Answer:
CASA (Current Account Savings Account) refers to the deposits banks receive in savings and current accounts.
Why CASA is important for banks?
- Low-cost funds as banks pay lower interest on savings accounts.
- Helps in offering loans at competitive rates.
Example:
“Banks encourage more CASA deposits because they provide a cheap source of funds compared to fixed deposits.”
49. What is a Demand Draft (DD) and how does it work?
Answer:
A Demand Draft (DD) is a prepaid instrument issued by a bank to ensure secure payments.
Key Features:
- Unlike cheques, DDs cannot bounce as they are prepaid.
- Used for making secure payments, especially for large amounts.
Example:
“If a student is paying college fees, they can use a Demand Draft issued by Axis Bank to ensure safe and guaranteed payment.”
50. What is a Merchant Banking Service?
Answer:
Merchant Banking refers to financial services provided to businesses, corporations, and investors, including:
- IPO (Initial Public Offering) management.
- Mergers and acquisitions advisory.
- Debt financing and private equity funding.
Example:
“If a company wants to launch its IPO, it will hire a Merchant Bank to manage the process and attract investors.”
