Indian Financial System

Discuss the structure of Indian Financial System.
What is a financial system? * A financial system is the orderly mechanism and structure in an economy to mobilize the monetary resources from various surplus sectors and allocate the same to the needy sectors. * A financial system transforms “savings” into “investments” and consumption”. * “Financial intermediaries” like banks, financial institutions, mutual funds etc. undertake the task of this transformation. * Organized Sector – Nationalized Banks, Cooperative Banks, DFIs, Private/Foreign Banks, Insurance/Investment companies * Unorganized Sector - Money Lenders, Indigenous Bankers, Pawn Brokers, Traders
STRUCTURE OF INDIAN FINANCIAL SYSTEM

R B I
OTHER INSTITUTIONS
COMMERCIAL BANKS
COOPERATIVE BANKS

PUBLIC
PRIVATE
SLDB
SCB
GOVT.
NSO
PO
EPFO

Pub Sec
LIC
GIC
UTI
DIC
ECGC
EXIM
IDBI
IFCI
NABARD
SIDBI
IDFC

Pvt. Sec
CHITS
NIDHIS
HP
LEASE
MBC
SE
NBFC
RFC

FOREIGN
BANKS
OLD/NEW
PVT.
NON SCH.
BANKS

SBI
SBI ASSO.
NATIONALISED
RRB

DCCB
PUCB
PACS

FSS

Q1. Discuss the structure of Indian Financial system?
INDIAN FINANCIAL SYSTEM The economic development of a nation is reflected by the progress of the various economic units, broadly classified into corporate sector, government and household sector. While performing their activities these units will be placed in a surplus/deficit/balanced budgetary situations.
There are areas or people with surplus funds and there are those with a deficit. A financial system or financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus to the areas of deficit. A Financial System is a composition of various institutions, markets, regulations and laws, practices, money manager, analysts, transactions and claims and liabilities.
Financial System; |

The word "system", in the term "financial system", implies a set of complex and closely connected or