<h1>India's Public Sector Banks Urged to Consolidate for Efficiency, Competitiveness, and Economic Growth by Narasimham Committee.</h1> The Indian banking system, dominated by Public Sector Banks (PSBs) with over 70% market share, is seen as fragmented and in need of consolidation to enhance efficiency and competitiveness. With 27 PSBs of varying sizes, consolidation is suggested to achieve economies of scale, improve risk diversification, and meet the growing credit demands of India's expanding economy. Historical recommendations, such as those from the Narasimham Committee, support this view. The process should be market-driven and voluntary, with government support, and consider potential challenges like cultural integration and maintaining competition. Consolidation could also involve focusing on specific business areas rather than just mergers.