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Indian Financial System

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Indian Financial System
FINANCIAL MANAGEMENT ASSIGNMENT ON INDIAN FINANCIAL SYSTEM & SOURCES OF LONG TERM AND SHORT TERM FINANCES

SUBMITTED BY, PREMJITH.A P10144 PGDM 2010-12

INDIAN FINANCIAL SYSTEM
The financial system in india refers to the system of borrowing and lending of funds or the demand for and the supply of funds of all individuals, institutions, companies and of the government. Commonly the Indian financial system is classified into: * Industrial finance: funds required for the conduct of industry and trade * Agricultural finance: funds needed and supplied for the conduct of agriculture and allied activity * Development finance: funds needed for development; actually it includes both industrial finance and agricultural finance * Government finance: relates to the demand for a nd supply of funds to meet government expenditure
The mobilization of savings and the effective distribution of the savings among all those who demand the funds for investment purposes. * The banking system, the insurance companies, mutual funds, investment funds and other institutions which promote savings among the public, collect their savings and transfer them to the actual investors * The investor in the country composed of individuals investors, industrial investors, industrial and trading companies and the government, these enters in the financial system as borrowers.
FUNCTIONS OF INDIAN FINANCIAL SYSTEM
The Indian financial system performs a crucial role in economic
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