An overview of indian financial system

Objectives of financial system

Along with the development in the financial system, in India, financial intermediaries have also widened. Number of pages - 41 Financial Services Financial Services is concerned with the design and delivery of financial instruments, advisory services to individuals and businesses within the area of banking and related institutions, personal financial planning, leasing, investment, assets, insurance etc. The securities are issued in the form of bonds and credit notes. Financial Markets The financial markets are classified into two groups: Capital Market: A capital market is an organised market which provides long-term finance for business. Finance refers to the source which provides funds for any particular activity. When money is lent for a day it is known as Call Money. The best example of an intermediary is a bank which transforms the bank deposits to bank loans. In simple words, finance is a term equivalent to money. This helps to accelerate the rate and volume of savings. In September , SEBI asked for recommendations to strengthen rules which will enhance the overall governance standards for issuers, intermediaries or infrastructure providers in the financial market. The brief review on various money market instruments are also covered in this study. As of August , two branches out of branches are already operational. Thus, ensuring the smooth flow of financial transactions. The financial system works in favour of economic development of the country. They can also sell financial products.

Funds are provided to corporate customers so that they can expand their respective businesses. The term short-term means generally a period of one year substitutes for money is used to denote any financial asset which can be quickly converted into money.

Finance therefore represents the resources by way funds needed for a particular activity.

evaluation and development of financial system in india

The insurance industry has been expanding at a fast pace. It can be divided into two groups: primary and secondary.

An overview of indian financial system

The banking regulator has allowed new entities such as payments banks to be created recently thereby adding to the types of entities operating in the sector. If you buy or sell financial assets, you will participate in financial markets in some way or the other. Functions Each of the function performed by the Indian Financial System is unique and important. Financial Intermediaries A financial intermediary is an institution which connects the deficit and surplus money. There are two types of financial institutions: Banking or depository institutions: These institutions are banks and credit unions that collect money from the public. The best example of an intermediary is a bank which transforms the bank deposits to bank loans. On issuing commercial paper the debt is transformed into an instrument. With a combined push by both government and private sector, India is undoubtedly one of the world's most vibrant capital markets. Thus, ensuring the smooth flow of financial transactions. No collateral security is required to cover these transactions. Over the coming quarters there could be a series of joint venture deals between global insurance giants and local players.

In simple words, finance is a term equivalent to money. Finance refers to the source which provides funds for any particular activity. August 22, Financial System of any country consists of financial markets, financial intermediation and financial instruments or financial products.

It helps economic development and raising the standard of living of people and promotes the development of the weaker section of society through rural development banks and co-operative societies.

Rated 6/10 based on 33 review
Download
Financial Services in India: Sector Overview, Market Size & Growth