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    Indian Financial System

    Uploaded by

    manoranjanpatra

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    Indian Financial System

    Uploaded by

    manoranjanpatra
    81 views8 pages

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    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    81 views8 pages

    Indian Financial System

    Uploaded by

    manoranjanpatra

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 8

    Indian Financial System

    • Provides the intermediation between savers


    and investors and promotes faster economic
    development
    • Functions
    – Provision of liquidity
    – Mobilisation of savings
    Financial concepts
    • Financial assets
    • Financial intermediaries
    • Financial markets
    • Financial rates of return
    • Financial instruments
    Financial assets

    Marketable securities Non-marketable securities


    Shares Bank deposits
    Govt. Securities PF
    Bonds LIC schemes
    M F Units Co. Deposits
    UTI units
    PO Certificates
    Bearer Debentures

    Or
    1. Money or cash asset
    2. Debt asset
    3. Stock asset
    Financial intermediaries in India
    Organised sector Unorganised sector

    Money Indigenous Pawn Traders &


    lenders bankers brokers landlords

    Capital market intermediaries Money market intermediaries

    RBI Commercial Co-op PO Govt


    banks banks SB bills

    Development Ins. UTI Agrl Govt IRBI Exim NBFC


    banks cos fin inst PF, bank
    NSC

    Hire purchase Leasing cos Investment co Finance


    cos cos
    Financial markets

    Organised market Unorganised market

    Capital market Money market

    Industrial Govt Long term Call Comm. Treasury Short term


    securities securities loan market money bill bill loan market
    market market market market market
    Term
    Primary loan
    market market
    Market Money
    Secondary for lenders,
    market mortgages indigenous
    bankers etc
    Market for
    financial
    guarantees
    Financial rates of return
    • Interest rates
    – Enable govt to borrow comparatively cheaply
    – Ensure stability in the macro economic system
    – Support certain sectors through preferential
    lending rates
    – Mobilise savings
    Financial instruments
    • Primary securities
    • Secondary securities
    weakness
    • Lack of co ordination between different
    financial institutions
    • Monopolistic market structures
    • Dominance of development banks in
    industrial financing
    • Erratic capital market
    • Imprudent financial practice

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