Impact of Covid-19 on Banking Sector: An Ethical dilemma of loan moratorium

This article aims to investigate the impact of Covid-19 pandemic on banking sector regarding loan moratorium in India. Covid-19 first detected in Chine in the end of 2019 and spread all over the world which started on 24 March 2020 for 21days and further it extended up to three months. To prevent the spread of pandemic various governments have imposed lockdown. Banking sector was one of the sectors which was badly affected by the lockdown. People also faced problem to pay their debts. RBI permitted three-month moratorium for all kind of banks in India. This relief was provided to shield businesses from the economic impact caused by covid-19 induced lockdown. Despite the fact that the lockdown was important and inescapable to forestall the quicker spread of this infection, which influences the different area of the economy, which brought about friendly disengagement with in the nations, shut boundaries, loss of business, loss of work, industry wide closure, and a lot more unfriendly financial impact. The paper offers a pragmatic response to the Covid-19 impact on the issues of loan moratorium based on three-factor stakeholders ethical perspective involving the government, bank and the loan holders.