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.


 Banking system, Covid 19, Reserve Bank of India, Financial institutions


  • Manikyam, K. R. (2014). Indian Banking sector-Chailenges and Opportunities. IOSR Journal of Business and Management, 16(2). pp 52-61.

  • Goyal, K. A. & Joshi, V. (2012). Indian Banking Industry: Challenges and Opportunities. International Journal of Business Research and Management (IJBRM), 3(1)

  • Singhal, N., Goyal, S., & Singhal, T. (2020). Insurance–growth nexus: empirical evidence from emerging Asian markets. Transnational Corporations Review, 12 (3), pp 237-249.

  • Singhal, N., Goyal, S., & Singhal, T. (2021). The relationship between insurance and economic growth in Asian countries: a regional perspective. Macroeconomics and Finance in Emerging Market Economies, 1-22.

  • Singh, J., & Bodla, B. S. (2020). Covid-19 pandemic and lockdown impact on India’s banking sector: A systematic literature review. In book COVID-19 Pandemic: A Global Challenge (pp.21-32), Aryan Publication: New Delhi

  • Thakor, C. P. (2020). A study on impact of COVID-19 on banking sector: An Indian perspective. Paripex Indian Journal of Research, 9(6).

  • Mateev, Tariq & Sahyouni. (2021). Competition, capital growth and risk-taking in emerging markets: Policy implications for banking sector stability during COVID-19 pandemic. PLOS One, DOI: 10.1371/journal.pone.0253803

  • Kumar, V., & Kumar, S. (2021). Impact of Covid-19 on Indian Economy with Special Reference to Banking Sector: An Indian Perspective. International Journal of Law, Management and Humanities, 4(1). Pp. 12-20.

  • Saldanha and Nitin (2020). Impact of the Covid-19 Pandemic on the retail banking sector. Ushus Journal of Business Management, 20(2). Doi: 10.12725/ujbm.55.1

  • Brodeur, A., Gray, D. Islam, A. & Bhuiyan, S. (2021). A literature review of the economics of COVID-19. Journal of Economic Surveys, 35(4). pp. 1007-1044.

  • Aum, S., Lee, S. Y., & Shin, Y. (2021). Inequality of fear and self-quarantine: Is there a trade-off between GDP and public health? Journal of Public Economics, 194,

  • Baccini, L., & Brodeur, A. (2021). Explaining governors’ response to the Covid-19 pandemic in the United States. American Politics Research, 49(2), 215– 220.

  • Baccini, L., Brodeur, A., & Weymouth, S. (2021) The COVID-19 pandemic and the 2020 U.S. presidential election. Journal of Population Economics, 34, 739– 767.

  • Baker, S. R., Bloom, N., & Davis, S. J. (2016). Measuring economic policy uncertainty. Quarterly Journal of Economics, 131(4), 1593– 1636.

  • Baker, S. R., Farrokhnia, R. A., Meyer, S., Pagel, M., & Yannelis, C. (2020). How does householdspending respond to an epidemic? Consumption during the 2020 COVID-19 pandemic. The Review of Asset Pricing Studies, 10(4), 834– 862.

  • Binder, C. (2020). Coronavirus fears and macroeconomic expectations. Review of Economics and Statistics, 102: 721– 730.