What is Negative Marking: First of all, you should know what exactly is the meaning of the Negative Marking? Negative marking implies to deduction of marks in lieu of wrong answer given by you.
In Bank Exams, normally there is a provision of 1/4th negative marking, which means that 1 mark will be deducted for 4 wrong answers or in other words 0.25 marks will be deducted for 1 wrong answer. The purpose of negative marking is to avoid guess work by the students and is to ensure that those who are having sufficient knowledge should only get final selection.
Impact of the Negative Marking: Impact of the negative marking can be huge as far as you final selection is concerned because you may have done well in your exam but while finishing of the exam paper you may have attempted many remaining questions by sheer guess work, it could result in huge deduction of marks due to negative marking.
How to avoid Negative Marking? While giving highly competitive exams such as Bank PO and Bank Clerk, you should try to maximize your marks and the only way for that is to attempt maximum correct answers and to avoid giving answers of those questions on which you are not sure. However in the practical situation some time it becomes difficult because of the time pressure you are not always sure of the correct answers and there are always few questions which you are not sure about.
What should be the best strategy? Best strategy is quite simple, you should not make blind guess at all. For the questions, about which you do not know anything, the best way is to skip those. Attempting such questions may result in deduction of your marks. However about the questions which are familiar to you but you are not sure about the answer between the two options than you can attempt such questions. For example, if there are five answer options given for a question and you are sure that three of them are wrong and of the remaining two, one is the correct answer. You can always attempt such questions as overall probability will always remain high, for getting additional marks. Because even if you get 40% of these questions as correct you will end up getting crucial extra marks.
Final Tip: Do not ever make a blind guess when there is a provision of Negative Marking but there is nothing wrong in making intelligent guesses.