NATIONALISATION VS PRIVATISATION OF BANKS: A COMPREHENSIVE REVIEW OF THE INDIAN BANKING LANDSCAPE

The Indian banking sector has undergone significant transformations since independence, prominently marked
by two major policy shifts: the nationalisation of banks in 1969 and 1980, and the gradual trend towards
privatisation post-1991. These opposing approaches have had profound impacts on financial inclusion, credit
outreach, economic development, and banking efficiency. This review paper critically examines the rationale,
achievements, and limitations of nationalised and privatised banking regimes in India. Through an analysis of
empirical data, policy outcomes, and global trends, it evaluates the long-term implications of each model on the
Indian economy and provides an informed perspective on the path forward for the sector.