A sound, robust and resilient financial system is a prerequisite for a modern economy. Weeks ago, the Modi government announced the mega merger of 10 Public Sector Banks (PSBs) into four, in a bid to consolidate and create stronger banking entities. Meanwhile, India’s growth rate has decelerated for five straight quarters to its weakest level since 2013, and the economy is crying out for reforms.
Reforms are an on-going process. This year marks the 50th anniversary of bank nationalisation, arguably the biggest structural reform introduced in the financial sector during the post-Independence period.
Evolution of banking in India