The coronavirus had a tremendous impact in the health sector in terms of taking the lives of the people. Due to the large population structure of India, it became imperative that India would become the new Corona Hotspot taking close to ten million innocent lives. However, the impact of the Pandemic was somewhat suppressed owing to the early production and manufacturing of vaccines, prior disbursal of medicines prescribed as antibiotics for curing fever and other associated diseases, and a surge in infrastructural recovery has been noticed. The crippling of the financial infrastructure of the country has been significant because the public financial systems have been under temporary lockdown situations for a considerable time frame and people have averted the action of venturing out and conducting business transactions. Owing to the lack of investor sentiment in the economy, the financial irregularities have been exposed thereby making the banks Non-Performing Assets and increasing the quantum of bad loans.
It has been noticed that the Banking and Financial Institutions in the country have a major responsibility for managing and maintaining their finances in a proactive manner to regulate investment liquidity and bring about financial regulation in the functioning of the credit mechanism in the country. India as a financial hub must take measures to introduce efficiency and betterment in the quality of public spending thereby regulating the process of financial management. Further Indian Financial Institution System must encourage the growth of self-dependent mentality and behavior in Public Financial Management Reforms (PFA) at the State Level to be in complete synchronization with the objectives and functions at the Union Government level. Only a perfect harmony between these two operating levels of public works function can enhance operational efficiency.
Therefore, consistent investment behavior and regulatory environment must be encouraged to initiate the process of economic recovery.
