Ngcebo Sizwe Mamba, B.B.A.LL.B., KIIT School of Law, Bhubaneswar, India
Dr. Snigdha Sarkar, Assistant Professor, KIIT School of Law, Bhubaneswar, India
ABSTRACT
This report aims at addressing the covid-19 crisis more specifically, how it devastated Banking systems in India. Banks are an important part of the flow of money, anything affecting people’s freedom to spend and invest money eventually affects banks. This article will look at what Covid -19 is and why it affected the economy as deeply as it did. Before looking at the effect of Covid-19 on the banking system in India the current article will also briefly cover the Banking systems in India and their importance in the country. Due to banks being divided into different types they represent different types of revenue losses in the pandemic. This report will also discuss the condition of banks in India before the pandemic, to see the effect from the effect after. The pandemic affected banks in different ways, it affected people’s ability to go to the bank, people’s ability to make income and therefore deposit money in accounts, it affected government funding and support for those people living in struggling areas and more factors. The report will further cover how the banking system was able to sustain itself, by using technology, getting government assistance and along with other methods aimed at decreasing the spread of the virus. To conclude the report, the current situation will be analyzed and how well the Banking systems are doing and the changes the banking systems went through after the pandemic will be discussed.
Keywords: Central bank, Commercial banks, Covid-19, Pandemic, Repo rate, Reverse repo rate
