THE BANKING SECTOR'S CRUCIAL ROLE IN THE DEVELOPMENT OF UTTARAKHAND STATE: STRENGTHENING SMALL AND MEDIUM BUSINESSES

Abstract The banking industry and small and medium-sized businesses are intricately linked. In actuality, both have a major impact on the economic growth of any nation or state, surpassing all other constraints. Perhaps both industries benefit from one another, particularly when it comes to their own market expansion or development. In this case, banks are crucial in helping SMEs obtain loans for their growth, and in exchange, SMEs give interest and the money they have earned from the banks to satisfy the requirements. As a developing country, India depends heavily on its SMEs to grow its economy and, as the saying goes, "expansion of SMEs results in the increase of employment, and import and export of the manufactured goods.". This review paper was created with the intention of examining the banking system's vitality and the results of bank-SMEs integration, particularly in the context of the recently created state of Uttarakhand, which is distinguished by its unique geographical relief features. In order to uncover the truth, the researcher primarily consulted previous literature in the form of books, magazine articles, newspaper articles, social media blogs, RBI reports, and other sources. Additionally, the paper highlights the ongoing progress in the relationship between Indian banks (both public and private) and SMEs. The state government's policies to support SMEs in halting migration, which is becoming a major concern, particularly in the state's hilly regions, will be covered in the paper. However, researchers also want to investigate and evaluate how banking policies affect SMEs' growth. Keywords: Healthy Extension, Interwoven, Integration, Migration, Terrain, Micro-economy.