A Term Paper on

WORKING OF BANKS AND FINANCIAL INSTITUTIONS IN INDIA DURING COVID -19

SUBMITTED TO: SUBMITTED BY:

DR. VVS Rumanshi Jain
BBA 3RD SEM
 INTRODUCTION
A bank is a monetary establishments whose is to get stores and loan cash to people and organizations, dispense
instalments, put assets in protections for returns, and shield cash. It administrations investment funds and current
records, give credits to borrowers as advances and through Master cards, and go about as trustees of its customers.
In India the hold bank is the focal financial organization. The RBI manages and works the financial framework in India.
It directs and oversees trade control and banking guidelines and manages the legislature money related
arrangement.
A financial system plays a vital role in the economic growth of a country. It intermediates between those who have
surplus funds and those who need them. It is a complex, well integrated set of subsystems of Financial
Institutions ,markets ,instruments and services which facilitates the transfer and allocation of funds efficiently and
effectively .
 REVIEW OF LITERATURE
To defeat the COVID-19 pandemic, Indian Government announced complete lockdown in the country starting on March 24,
2020 and the equal was loosened up to third May, 2020 in the ensuing stage. Notwithstanding the reality that the lockdown
was fundamental and unavoidable to hinder the faster spread of Novel Coronavirus (Covid-19) and to save presences of
people of the country, it affected the various divisions of our economy cruelly. The Banking and Non-banking cash
associations (NBFCs) which are the spine of India's economy are not extraordinary case to the previously mentioned. This
article is an undertaking to assess the impact of this pandemic on Banks and NBFCs in light of lockdown which has come to
fruition into finish of each business affiliation, informative establishments, public and private working environments,
suspension of techniques for transportation, etc.(Singh and Bodla ,2020) Finance and banking is the existence blood of
exchange, trade and industry. Presently days, the financial area goes about as the spine of present day business.
Improvement of any nation essentially relies on the financial framework. A bank is a monetary establishment which manages
stores and progresses and other related administrations. It gets cash from those who need to spare as stores and it loans
cash to the individuals who need it. Banking is one of the most fundamental also, significant pieces of human life. In the
current quicker way of life people groups may not do appropriate advances without building up the correct bank
organization. The financial System in India is overwhelmed by nationalized banks. The execution of the financial area is more
firmly connected to the economy than maybe that of some other area. (Limbore, Nilesh,2014)
 RESEARCH METHODOLOGY
• In this research paper, different exploration articles on effect of lockdown on banks and budgetary organizations were investigated.
The watchwords were utilized to look in Google for the choice of the article and irregular determination were made. There were
likenesses just as contrasts in different information gathered from different sites

• All articles were concentrated so as to comprehend the impact of COVID-19With the aim of the completion of this project I tried to
go to the banks but I was unsuccessful and somehow I managed to had a little conversation with one of the workers of bank
telephonically regarding covid impact and he made me fully understand about the changes in policies, changes in timing of opening
and closing of bank and how bank’s and other financial institution’s health got affected due to covid
 DATA ANALYSIS
Data analysis done in the form of various graph , through google and different
sources
DATA ANALYSIS
 OBJECTIVES

Decreased productivity and lockdowns have already started to take a toll on the financials of the corporate sector. Supply
chain disruptions, manufacturing hindrances and crippled health systems need s hefty public fund/ stimulus to continue
operations smoothly. With economic growth poised to slow down- the international monetary fund has cut India's GDP
growth estimate to 1.9 percent for 2020-21 - the banking and financial sector, whose prospects are tied closely to the
economy's is bound to bear the unit. There could be a spike in bad loans
"The slowdown could lead to potential job losses , which could cause stress in banks" retail loan books. Income from
tourism, entertainment sectors among many others has already crippled the economic situation. Factors like these are
all adding up to strain the global economy which might also have it repercussions in the year ahead. Asia-Pacific
Governments.,central banks, and supervisory authorities have rolled ot diverse measures to address covid 19 .These
include liquidity injections, targeted loans to affected industries and regions and policy rate cuts."The slowdown could
lead to potential job losses , which could cause stress in banks" retail loan books. Income from tourism, entertainment
sectors among many others has already crippled the economic situation. Factors like these are all adding up to strain the
global economy which might also have it repercussions in the year ahead. Asia-Pacific Governments.,central banks, and
supervisory authorities have rolled ot diverse measures to address covid 19 .These include liquidity injections, targeted
loans to affected industries and regions and policy rate cuts.
 RESULTS AND DISCUSSIONS

As the world is fighting on all fronts against the flare-up of COVID-19, India has likewise been significantly
influenced by the pandemic. So as to contain the spread of the pandemic, Government of India reported a
cross country lockdown beginning from March 25, 2020. The progressing pandemic has represented a
sizeable effect on life just as business of the world's biggest popular government. However, the size of
effect on various areas differs, none of the areas are totally out of the range of its repercussions. The fight
with COVID-19 isn't just to spare the nation and its kin yet in addition to guarantee that the financial
channels are working nonstop to oblige the necessities of general society just as monetary market.
Obviously, that financial framework is the foundation of any nation and its disappointment or stoppage
could prompt numerous issues for agricultural nations like India. Consequently, so as to back out the
unexpected challenges being looked by various areas, Reserve Bank of India (RBI) being the national bank
of the nation thought of various measures and reliefs post cross country lockdown which have been
examined in this article finally.
 CONCLUSION
In spite of the fact that the measures embraced and actualized by RBI are impermanent, so far these have been
extremely viable to settle the unpredictable circumstance going on in the monetary market. As COVID-19 keeps
on spreading, the two borrowers and moneylenders ought to be careful of the consistence prerequisites which
have not been loose and find a way to satisfy such commitments in an ideal way. Albeit, all the past measures
presented by RBI are now an aspect of the Relief Package declared by the Central Government, RBI may
likewise need to think about a level of prudential abstinence as far as different approaches too, which could be
on comparable lines with the Relief Package. RBI may consider presenting the much talked COVID-19 bond
supports. Given the danger of utilizing money notes in the midst of pandemic, boosting advanced instalments
further could be a viable arrangement in the current conditions. Besides, the home-grown economy is likewise
expected to psychologist by and large until the antibody for COVID-19 is created. In light of this and accepting
the impact of the pandemic will proceed past May 31, 2020, it is normal that RBI would think of more extra
measures to contain the monetary pressure.
THANKYOU!