Not privatisation, there is another way to put Indian banking back on track

A king laying siege to a fortified town ran out of money to pay his soldiers, but had a hundi drawn on a merchant in the besieged fort. He sent word to the merchant, demanding cash. The merchant got permission from his king to honour the request, to stop the fighting and send out the money. 

That tale might not be the literal truth but says much of banking relations in medieval India, the trust depositors had on those who held their money, the readiness to honour that trust and, m ..