In the process, the public sector banks’ efficiency has also increased in an impressive manner and they are playing a very salutary role in financial inclusion. No doubt, there is scope and indeed a compelling need to increase penetration of banking services to all segments of the population and enhance both, efficiency and resilience in the system.
While the stability and efficiency imparted to the large commercial banking system is universally recognised, there are some other segments which warranted restructuring as well. The experience with the urban co-operative banks (UCBs) at the dawn of the decade led to the enforcement of strict prudential parameters, and currently the issue of multiple controls in this sector has been addressed.