Financial inclusion is increasingly being recognized as one of the decisive factors towards economic growth and an important tool to address the issue of equitable growth and helpful in minimizing the problem of poverty. This study is an attempt to examine financial inclusion dimensions of the Indian banking sector in terms of penetration, accessibility and usage, and their impact on economic growth. VAR model is applied to measure the linkage of various financial inclusion dimensions with GDP per capita. The study also conducts causality analysis to examine the finance growth linkage in association with financial accessibility and economic growth. The time taken for the study is 2006 to 2019. Granger causality test found that all the explanatory carried unidirectional relation with GDP and none of the parameter demonstrated bidirectional relation with GDP. The existence of unidirectional relation between numbers of deposits accounts for GDP is found at a 10% significance level.
Financial system is the backbone of the Indian economy. RBI holds the controlling power of the Indian financial system and takes measure to bring the stability by controlling the supply. Due to COVID 19 pandemic, Indian economy are going through very tough period and during this period main supportive hand raise by RBI by safeguarding the interest of the borrowers. The tool implemented by RBI was moratorium to support the borrowers by stake outing with know or unknown consequences. The paper focus on the current status of the Indian banks and the highlighted the negative and positive impact of moratorium on RBI. The paper highlights the measure taken by RBI to combat the stiff situation and also emphasis the role of RBI in reducing the risk of commercial banks.
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