Cygwin Terminal backspace and arrow keys not working

The best answer I have found so far is to copy Cygwin VIM's sample vimrc file:

cp /usr/share/vim/vim*/vimrc_example.vim ~/.vimrc

Solves all of the weird keymap issues I was seeing plus adds some extras like syntax highlighting.

Source

Here is simple solution for this.

This is about vim and remote shell, but it should work.

Fix arrow keys that display A B C D on remote shell

It says:

1) Open Vim editor,
2) Get the path of your home directory by typing :echo $HOME
3) Check if you have .vimrc file in $HOME location,(if you don't have create it)
4) Add the following line line to .vimrc file
   set nocompatible
        or
   set nocp

If you have vi (not vim) - configuration file is .virc not .vimrc.

I did like this and it has fixed the problem . Open vi editor from $home using :

vi -N .bashrc

then scroll down to the bottom or start a new line, Now in Insert Mode type

alias vim='vi -N'

Now as usual save the file. Type

:wq 

It will fix the issue..