A Study on Impact of Covid- 19 Pandemic on Indian Banking Sector

Abstract

The banking sector plays a crucial role in the Indian economy. Banks not only provide a flow of finance in the Indian economy but also act as a driver to uplift socio-economic development in India. In 2020, the sudden spread of the COVID-19 virus and the imposition of a nationwide lockdown presented numerous challenges in front of all sectors of the Indian economy, including the banking sector. In this paper, the researcher portrays the impact of COVID-19 on the Indian banking sector and demonstrates various measures that have been taken by the Reserve Bank of India (RBI) to counter the adverse impact of COVID-19 on the Indian banking sector. This study is based on secondary data which has been collected from various newspapers, articles, reports, and published research journals available on the internet. According to this report, the RBI and the government should provide more loans and simplify credit conditions in order to increase liquidity in the economy and lessen financial stress among small and medium businesses. The immediate takeaway from the epidemic is that the government should strengthen our economy in order to absorb the impact of future crises of this nature.