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I am in my final year and don't want to waste time interning if it won't lead to a placement. Any insights would be helpful.
This does not reflect a general change in their PPO process. More likely, it means that the team you worked with does not have any vacancy.
This means that there's no vacancy in the concerned team. Happened with a friend in the Direct Taxation team in Delhi last year.
Don't go ahead. You're basically cheap labour for them then if they can't even take the pain to assess you