BANKING SECTOR DURING COVID 19: ISSUES AND CHALLENGES

Abstract

The devastation caused by the global outbreak COVID-19 threw the whole world's market economy into disarray. Yet the most horrific moment of time that humanity has only ever witnessed. Whether there's a developing nation, an undeveloped nation, or the world's foremost economy, no country is immune. The COVID-19 Pandemic has had a significant impact on the economy. The Reserve Bank of India, India's central bank, implemented appropriate policy modifications with the assistance of experts in order to combat the COVID-19 epidemic. The whole Indian banking system has suffered and continues to confront several obstacles, including liquidity issues and the Reserve Bank of India's reduction of the REPO rate, to mention a few. Because individuals are striving to earn a living, the Reserve Bank of India opted to offer customers a break by extending the term for re-payment. The goal of this article is to investigate the modifications made by the RBI in its regulation as a result of COVID-19, as well as how COVID-19 has influenced the Indian banking sector in general. Furthermore, a method is provided for the Indian banking sector to deal with the damage incurred by the COVID-19 Outbreak. According to the findings of the study, the Indian banking sector has implemented a number of initiatives in response to the COVID-19 Pandemic in order to make the financial system more efficient and effective.