Decision Making and Eligibility Criteria Reasoning Notes for Bank

Decision-making questions, also called eligibility criteria or "selection" questions, are a regular feature of the reasoning section in bank PO and clerk exams, insurance exams, and sometimes SSC and other tests. You are given a set of rules for selecting a candidate for a job, a course or a loan, and then a few candidates with their details. You must decide whether each candidate should be selected, rejected or referred to some authority. These questions do not need any difficult mathematics. They need careful reading and a fixed method. This note explains the method, the common types of conditions, a full solved example, the common traps and practice questions, in simple language.

What Does the Question Look Like?

The question has two parts. The first part is the policy or the set of conditions: a list of the requirements, such as the educational qualification, age, experience and the marks in the tests. It also tells what to do in the special cases, for example: "If a candidate satisfies all the conditions except the experience, but has a diploma, the case is to be referred to the Executive Director." The second part has the details of a candidate, and the options are usually: (a) the candidate is to be selected, (b) the candidate is not to be selected, (c) the case is to be referred to a particular authority, (d) the data are inadequate to take a decision, and (e) none of these. You must choose the correct option as per the given rules, and not on the basis of your own views or general knowledge.

A Fixed Method in Five Steps

1. Read the conditions carefully and number them, so that you can tick or cross each one for every candidate.
2. Underline the key words such as "at least", "not more than", "minimum", "maximum", "between", "and", "or", "except" and "only".
3. Check each condition one by one for the candidate, and mark it as met, not met or not given.
4. Apply the special rules only if the condition for them is exactly satisfied.
5. Choose the option: select if all are met; refer if the special rule applies; do not select if a condition fails and no special rule applies; "data inadequate" if a necessary detail is missing.

Common Types of Conditions

A Complete Solved Example

Conditions for the post of Officer in XYZ Bank. The candidate must: (i) be a graduate with at least 60 per cent marks; (ii) be at least 21 years and not more than 30 years of age; (iii) have at least two years of experience in the banking sector; (iv) have secured at least 50 per cent marks in the written test and at least 40 per cent in the interview. Special rules: If a candidate satisfies all the conditions except (iii), but has completed a diploma in banking, the case is to be referred to the Executive Director. If a candidate satisfies all the conditions except (i), but is a post-graduate with at least 55 per cent marks, the case is to be referred to the General Manager. In all other cases, the candidate is not selected.

Common Traps and How to Avoid Them

• Using general knowledge: If the question does not say that the candidate is an Indian citizen but the rule needs it, the answer is "data inadequate" and not "selected".
• Missing "except" in the special rule: The special rule applies only when all other conditions are satisfied. If two conditions fail, no special rule applies, even if one of them matches.
• Boundary values: "At least 60 per cent" includes 60, but "more than 60" does not. "Between 21 and 30" usually includes both unless the question says otherwise.
• Age calculation: Always calculate the age as on the date given in the question, not on the present date.
• Percentage vs marks: Check whether the rule is about the percentage or the total marks.
• Mixing up the authority: Refer to the right person (the Executive Director, the General Manager or the Chairman) for the right case.

Variation: Questions With a Missing Detail

Sometimes, a candidate's details do not mention one of the conditions. For example, the policy asks for a diploma in banking in a special rule, but the candidate's data does not say whether he has it. In such cases, if the missing information is necessary to decide, the answer is "Data inadequate". But if the candidate already fails a condition and the special rule is not applicable even with the missing detail, the answer may still be "not selected". Always ask: "Can I decide with the information that is given?" If yes, decide; if not, choose the inadequate-data option.

Other Types of Decision-Making Questions

• Admission to a course: Conditions on the marks in the previous exam, age and entrance test.
• Loan sanction: Conditions on the income, the age of the applicant and the security.
• Insurance eligibility: Conditions on the age and the health.
• Passing a rule on travel or leave: Conditions on the number of days and the approval.

The method is the same in all of them: list the conditions, test each one and follow the special rules exactly.

Practice Questions With Answers

• Q1. Using the rules of the solved example, Meena is a graduate with 62 per cent, 29 years old, has 2 years in banking, 55 per cent in the written test and 42 per cent in the interview. What is the decision? Answer: Selected, as all the conditions are met.
• Q2. Dev is a graduate with 61 per cent, aged 26, has 1 year in banking but no diploma, and his test marks are good. What is the decision? Answer: Not selected, since (iii) fails and he has no diploma.
• Q3. Sara is a graduate with 59 per cent and a post-graduate with 57 per cent, aged 28, with 3 years in banking and good test marks. What is the decision? Answer: Refer to the General Manager.
• Q4. Imran is a graduate with 70 per cent, aged 22, has 3 years in banking, and the written test marks of 65 per cent, but the interview marks are not given. What is the decision? Answer: Data inadequate.

For similar logical skills, see our notes on syllogism and data sufficiency.

Quick Revision

• Number the conditions, underline the key words and check each condition.
• Apply a special rule only if all the other conditions are met.
• Do not use outside knowledge; choose "data inadequate" when a needed fact is missing.
• Check the boundary values and the date for the age.

Frequently Asked Questions (FAQ)

What are decision-making questions in reasoning?

They are questions in which a set of selection rules is given, and you decide whether a candidate is selected, rejected or referred.

Do these questions need any formula?

No. They need careful reading and a fixed method of checking the conditions.

What does at least 60 per cent mean?

It means 60 per cent or more, so 60 per cent is included.

How should I calculate age in the eligibility questions?

Calculate the age as on the date given in the question, and not as on the present date.

When does a special rule apply?

A special rule applies only when all the other conditions are fully satisfied, except the one named in the rule.

What should I do if a required detail is not given?

If the detail is needed to decide, choose the option data inadequate.

Should I use my general knowledge in these questions?

No. Use only the rules and the facts given in the question.

What does refer to an authority mean?

It means that the candidate is not selected directly but the case is sent to the named officer for a decision, as per the special rule.

What is the first step in solving such a question?

Read the conditions carefully, number them and underline the key words.

What are common traps in these questions?

Boundary values, wrong age date, missing the word except and using outside knowledge are the common traps.

How can I improve speed in these questions?

Practise the five-step method with a table of ticks and crosses and solve a few sets every day.

In which exams are these questions asked?

They appear in bank PO, clerk, insurance and other competitive exams.