Curated interview practice questions with answers. These are practice scenarios, not a verified list of past interview questions.
About Paytm hiring for SQL roles
Paytm, operated by One 97 Communications, is an Indian digital payments and financial services company offering UPI payments, merchant soundboxes, payment gateway, lending distribution and ticketing. Its technology teams work on payments infrastructure, risk and merchant services. It hires for software engineers, QA engineers, data analysts and data scientists.
For SQL roles, this Paytm practice set focuses most on Database Design (6), Window Functions (5), Transactions and Advanced SQL (4), Joins (4). It has 3 easy, 20 medium, 7 hard questions, so you can start easy and work up to the harder ones.
Company type
Fintech
Headquarters
Noida, India
Main India offices
Noida, Bengaluru, Mumbai
Paytm SQL interview process
Online assessment (coding + MCQs)
Technical round 1
Technical round 2
Hiring manager round
HR round
Typical pattern based on public candidate experiences. Rounds vary by role, team and year.
Solved for PaytmStart practicing
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A materialised view stores the result of a query physically, unlike a normal view. Reads are fast because data is precomputed, which suits heavy aggregations for dashboards. The trade-off is staleness, so it must be refreshed on schedule, on commit or incrementally depending on the database. PostgreSQL uses REFRESH MATERIALIZED VIEW, and SQL Server offers indexed views with similar benefits.
02
A reporting team wants to query the production OLTP database directly. What are the risks and alternatives?
Heavy analytical queries can lock rows, use CPU and slow customer transactions, and normalised schemas make reporting complex. Alternatives are a read replica for reporting, a data warehouse loaded by ETL or CDC with a star schema, or materialised summary tables. Grant read-only access with limits if direct access is unavoidable, and schedule heavy jobs off-peak.
1NF: each column holds atomic values and there are no repeating groups, so no comma-separated phone numbers. 2NF: in 1NF and every non-key column depends on the whole composite key, so product name should not sit in an order_items table keyed by order and product. 3NF: in 2NF with no transitive dependency, so city should not determine state inside the employees table.
04
A query with a correlated subquery in SELECT runs for every row and is slow. How do you improve it?
Rewrite the correlated scalar subquery as a join to a pre-aggregated derived table or CTE, for example aggregate order counts per customer once and LEFT JOIN it. Alternatively use a window function. Ensure the correlation column is indexed if you keep the subquery. Compare execution plans and timing before and after to confirm the improvement.
05
You need to update 50 million rows in production. How do you do it safely?
Avoid one huge transaction that locks the table and fills the log. Test on a copy first, take a backup, and update in batches of a few thousand rows using a key range, committing each batch and pausing briefly to reduce load. Run during low traffic, monitor replication lag and locks, keep a rollback script, and verify counts after completion.
06
Tell me about a time you significantly improved query performance.
Situation: a daily settlement report took 45 minutes and often missed its deadline. Task: bring it under ten minutes. Action: I studied the execution plan, replaced a non-SARGable date filter, added a composite covering index, pre-aggregated a large join in a temp table and updated statistics. Result: runtime dropped to six minutes, and the finance team received reports on time every day.
FIRST_VALUE returns the first value in the window frame, LAST_VALUE the last, and NTH_VALUE the nth. A common trap is LAST_VALUE with the default frame, which ends at the current row, so it returns the current row's value. Specify ROWS BETWEEN UNBOUNDED PRECEDING AND UNBOUNDED FOLLOWING to get the true last value of the partition.
08
How do you read an EXPLAIN ANALYZE output in PostgreSQL?
EXPLAIN ANALYZE
SELECT * FROM orders WHERE customer_id = 101;
Read the tree from the innermost node outward. Check node types such as Seq Scan, Index Scan or Hash Join, compare estimated rows with actual rows, and look at actual time per node. Large estimate errors suggest stale statistics, and Seq Scan on a selective filter suggests a missing index.
09
Write a query to show each employee with their manager's name.
SELECT e.emp_id,
e.name AS employee,
m.name AS manager
FROM employees e
LEFT JOIN employees m
ON e.manager_id = m.emp_id;
The same table is used twice with different aliases. LEFT JOIN ensures the CEO, who has no manager, still appears with a NULL manager name.
A Common Table Expression is a named temporary result defined with WITH before the main query. It improves readability by breaking a complex query into named steps, can be referenced multiple times in the same statement, and supports recursion. Example: WITH high_value AS (SELECT * FROM orders WHERE amount > 10000) SELECT customer_id, COUNT(*) FROM high_value GROUP BY customer_id.
PostgreSQL and standard SQL:
SELECT department_id,
PERCENTILE_CONT(0.5) WITHIN GROUP (ORDER BY salary)
AS median_salary
FROM employees
GROUP BY department_id;
SQL Server uses PERCENTILE_CONT as a window function with OVER (PARTITION BY department_id). Median resists outliers better than average for salary analysis.
12
Calculate a 7-day moving average of daily active users.
SELECT activity_date, dau,
ROUND(AVG(dau) OVER (
ORDER BY activity_date
ROWS BETWEEN 6 PRECEDING AND CURRENT ROW
), 1) AS dau_7d_avg
FROM daily_users
ORDER BY activity_date;
This assumes one row per day; fill missing dates with a calendar table first, or ROWS will span more than seven days.
13
You need customers who bought both product A and product B. How would you write it?
Group by customer and count distinct matching products: SELECT customer_id FROM order_items WHERE product_id IN ('A', 'B') GROUP BY customer_id HAVING COUNT(DISTINCT product_id) = 2. Alternatively use INTERSECT of two queries, or two EXISTS conditions. The HAVING approach is concise, scans the table once and is easy to extend to three or more products.
IN checks whether a value matches any value in a list or subquery result. EXISTS checks whether a correlated subquery returns at least one row and stops at the first match. Modern optimisers often treat them similarly, but EXISTS is clearer for correlated checks and handles NULLs safely. For large subquery results, EXISTS with an index on the join column is usually efficient.
Boyce-Codd Normal Form requires that for every functional dependency, the determinant is a candidate key. 3NF allows a dependency where the dependent attribute is part of a candidate key, while BCNF does not. For example, if a teacher teaches only one subject but a student-subject pair determines the teacher, the table is in 3NF but not BCNF and should be split.
16
How do you get the top 3 rows in different databases?
MySQL and PostgreSQL:
SELECT * FROM products ORDER BY price DESC LIMIT 3;
SQL Server:
SELECT TOP 3 * FROM products ORDER BY price DESC;
Standard SQL:
SELECT * FROM products ORDER BY price DESC
FETCH FIRST 3 ROWS ONLY;
Always use ORDER BY, otherwise the top rows are not guaranteed.
LIKE matches string patterns. The percent sign matches any sequence of characters and the underscore matches exactly one character. name LIKE 'Ra%' finds names starting with Ra, and code LIKE 'A_1' matches A01 or AB1. Leading wildcards such as LIKE '%kumar' prevent index use and are slow on large tables. Case sensitivity depends on the database collation.
Avoid indexes on small tables where scans are cheap, on columns with very low selectivity such as a boolean flag used alone, on tables with heavy writes and few reads, and duplicates of existing indexes. Every index slows inserts and updates and uses memory and storage. Review unused indexes periodically with database statistics and drop them after checking dependencies.
19
Describe a time you found and fixed a wrong number in a report.
Situation: a monthly dashboard showed 30 percent higher revenue than finance figures. Task: find the cause before the leadership review. Action: I traced the SQL, found a join to the shipments table that duplicated orders with split shipments, rewrote it with a pre-aggregated CTE and reconciled totals with finance. Result: numbers matched exactly and I added a row-count test to the report pipeline.
20
Calculate the time each user spent between consecutive events.
SELECT user_id, event_time, event_name,
event_time - LAG(event_time) OVER (
PARTITION BY user_id ORDER BY event_time
) AS gap_since_prev
FROM events
ORDER BY user_id, event_time;
Gaps above 30 minutes can start a new session using a SUM of a flag over the same window, a common sessionisation pattern.
21
A retention report needs the percentage of users active in each month after signup. How would you build it in SQL?
Compute each user's signup month with MIN over their activity, then derive month number as the difference between activity month and signup month. Group by cohort month and month number, counting distinct users. Divide by the cohort size using FIRST_VALUE or a window SUM over month zero within each cohort. Validate with a few known users and handle users with no activity.
Normalisation organises data into tables to reduce redundancy and avoid insert, update and delete anomalies. For example, storing customer address in every order row means updating it in many places. By separating customers and orders and linking with keys, each fact is stored once. Common forms are 1NF, 2NF, 3NF and BCNF, and most transactional systems target 3NF.
23
Your running total jumps by large amounts on some dates instead of row by row. Why?
With ORDER BY and no explicit frame, the default frame is RANGE UNBOUNDED PRECEDING, which treats all rows with the same order value as peers and includes them together. When several rows share the same date, the running total adds them all at once. Specify ROWS BETWEEN UNBOUNDED PRECEDING AND CURRENT ROW, or add a unique tiebreaker to ORDER BY.
Never build SQL by concatenating user input. Use parameterised queries or prepared statements, where input is sent separately from the SQL text, or ORMs that do this automatically. Validate and whitelist inputs such as sort column names, give application users least privilege, and avoid dynamic SQL in procedures unless parameters are bound. Input like ' OR 1=1 -- then cannot change the query logic.
25
A COUNT(DISTINCT) query on a huge events table is very slow. What options do you have?
Exact distinct counts need sorting or hashing all values, which is expensive. Options are filtering the date range tightly, pre-aggregating daily distinct users into a summary table, indexing the columns involved, or using approximate functions such as APPROX_COUNT_DISTINCT or HyperLogLog where small error is acceptable. Explain the accuracy trade-off to stakeholders before switching to approximations.
26
Finance asks for the count of customers whose total spend crossed 1 lakh in each city. How do you write it?
Aggregate in two levels. First compute total spend per customer and city in a CTE: SELECT city, customer_id, SUM(amount) AS spend FROM orders GROUP BY city, customer_id. Then in the outer query: SELECT city, COUNT(*) FROM cte WHERE spend > 100000 GROUP BY city. Trying to do it in one GROUP BY by city fails because the threshold applies to each customer, not each city.
A trigger is code that runs automatically before or after INSERT, UPDATE or DELETE on a table. It is used for auditing changes, enforcing complex rules and maintaining derived data. Triggers are hidden from application developers, can slow writes and make debugging hard, especially when they cascade. Use them sparingly, document them well, and prefer constraints or application logic when possible.
28
Two systems store customer IDs differently, one as INT and one as VARCHAR with leading zeros. How do you join them?
Convert consistently, for example CAST(b.cust_code AS INT) = a.customer_id, but understand this prevents index use on b.cust_code and fails on non-numeric values. Better options are a computed or persisted column with the converted value and an index, or a mapping table built during ETL. Also validate unmatched rows to catch formatting issues such as spaces.
29
Product prices change often, but old orders must keep the price at the time of purchase. How do you design it?
Store the unit price, discount and tax in order_items when the order is created instead of reading the current product price, so history is not affected by updates. Maintain a product_price_history table with effective_from and effective_to dates for analysis. Reports on past orders use order_items values, while catalogue pages use the current price.
30
What are referential actions such as ON DELETE CASCADE?
Referential actions define what happens to child rows when a parent row is deleted or updated. CASCADE deletes or updates children automatically, SET NULL sets the foreign key to NULL, SET DEFAULT uses the default value, and RESTRICT or NO ACTION blocks the change. CASCADE is convenient for dependent data like order items but risky on important data, because one delete can remove many rows.
Tips to crack the Paytm SQL interview
Learn UPI flow basics, including the role of NPCI, PSP apps and banks, for payments domain questions.
Practise testing scenarios for payment failures, refunds and timeouts if applying for QA roles.
Read about Paytm's merchant business like Soundbox and payment gateway, which are major parts of its strategy.
Keep a one-minute story ready for every project on your CV: problem, your part, tools, result.
Practise the hard questions on this page aloud; Paytm interviewers usually ask follow-ups on your first answer.
Frequently asked questions
How many rounds are there in the Paytm SQL interview?
Candidates usually go through 5 stages: Online assessment (coding + MCQs); Technical round 1; Technical round 2; Hiring manager round; HR round. The exact rounds change with the role, team, location and your experience, so confirm the process with the recruiter.
Which topics should I prepare for the Paytm SQL interview?
This practice set leans on Database Design (6), Window Functions (5), Transactions and Advanced SQL (4), Joins (4). Revise those first, then practise explaining one or two of your own projects end to end, because most Paytm interviewers ask you to walk through real work.
Are these the exact questions asked at Paytm?
No. These are curated practice questions that match the skills and difficulty usually tested in fintech interviews like Paytm's. They are not a leaked or verified list of past questions.
Where does Paytm hire SQL professionals in India?
Paytm has large teams in Noida, Bengaluru, Mumbai. Openings and locations change often, so check the Paytm careers page and filter by city and experience.