The decision to change the recruitment process follows Prime Minister Narendra Modi's directive that there was no need for holding interviews for lower level posts.
"PSBs may explore other alternatives to strengthen written examination such as by including psychometric tests, etc. To replace interview mechanism," the Department of Financial Services said in a communication to Chief Executives of all the 27 state-owned banks.
The PSBs were asked to take "necessary action" to discontinue interviews in the recruitment process for the clerical and sub-staff posts by December 31, 2015.
Modi had announced that from January 1, 2016 there would be no interviews for central government jobs in Class-III and IV categories. He had termed it as a "New Year Gift" to the youth and a major step to curb corruption.
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Recently, the Department of Personnel and Training had said that skill test or physical test may continue as it is different from interview. "However, these tests will only be of qualifying nature. Assessment will not be done on the basis of marks for such tests," it had said.
The ministries have been asked to send a consolidated report to the DoPT by January 7 in this regard.