This paper is an attempt to demonstrate both the obvious and implicit costs to the economy, of India’s government-owned banking model. Using research findings of other scholars, the paper also demonstrates that the so-called social or national objectives have not been achieved even after more than 40 years of India’s experiment with nationalisation of the sector, despite the huge amount of money paid by Indian taxpayers all this time. The paper concludes by calling for an immediate denationalisation of Public Sector Banks in India (PSBs).
