Does Covid-19 a Compelling Force for The Growth of Digital Banking in India?

Abstract

Seena Mary Mathew, Sunil.S, Shanimon.S, Vijayan K and Sunil Raj, N. V

The Banking sector in India has been succeeding in implementing IT-enabled techniques for its operation for the last few years. By offering better quality services and products, the banks can able to retain their major customer base and the customers are experiencing feasible banking operations with the help of information technology. The COVID-19 pandemic outbreak has adversely challenged the banking sector in India. Earlier the banking customers used to visit the bank branches to avail banking services. However, during the pandemic period, banks have experienced a shift towards digital or internet banking. The banking sector has been facing a difficult task in understanding the new behaviors to meet the requirements of consumers with relevant products and convenient services and to adapt their business services to social changes related to the pandemic situation. The article throws light on the banking services during the pandemic times and the growth of electronic banking. The general objective of the study is to provide a practical perspective on the impact of COVID-19 on consumer behavior of banking products and services and thereby analyze the growth of digital banking. For this purpose, we have analyzed the total digital payments and settlements in the banking transactions for three years from 2017. The present study highlights the COVID-19 pandemic effect on digital banking and the influence pandemic on digital payments and settlement systems in India.

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