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Reforms of Public Sector Banks - Has solution become the new problem?

Many banks were nationalized in 1960s and 70s to end crony capitalism and democratize capital.
However, government ownership of banks has now become a problem in 21st century.
As a consequence of government ownership, PSBs are made to share welfare burden of government.
Also, government interferes in major appointments and functioning of these PSBs.

So, has banks nationalization which was a solution in 1960s and 70s not become a problem now??
Does this also reflect the changing nature of economy, from state heavy model to more free markets?
What can be the solutions to this problem?


  • NO one studying for mains right now... Ask after 1 month and there will be million answers for this question.

    You should study for Pre as well if you are appearing this year.

    Good Luck
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