The banking sector is one of the fastest growing sectors in India. Today's banking the sector becomes more complex. Exploring the Banking sector of India is not easy function. There are so many factors, which need to be taken care of when they are isolated good banks from evil. Analyzing the performance of the banking sector by choosing a CAMEL model, that measures the performance of banks from each important parameter such as Capital Adequacy, Asset Quality, Effective Management, Quality and Liquidity. After deciding on the model we selected four national banks. Depending on the importance of each reading the parameter is given equal weights. On the basis of a group rating of 4 Small liquidity parameters, Bank of India was top notch followed by Dena, SBI. PNB was in the last place. Economic growth is very important it depends on the use and the optimal use of resources and more importantly operational efficiency of the various sectors, of which banking sector plays a very vital role. Most importantly the efficiency of the various sectors, its banking sector plays a very important role. The banking sector helps to revitalize the banking system, innovation and monetization in addition to the implementation of monetary policy. It is important to carefully monitor and evaluate the performance of banks to ensure that a healthy financial system and a thriving economy. The current study is trying to do test the performance of public sector banks in India using the CAMEL method. The present study attempts to evaluate the performance of public sector banks in India using CAMEL approach for a five year period from 2016-2020. ___________________________________________________________________________________ Keywords: CAMEL Model, Monetary Policy, Banking Sector, CAMEL Method.