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Overview of Indian Financial Systems

The document discusses the structure and components of the Indian financial system. It notes that the key components include financial institutions, financial markets, and financial instruments. Financial institutions facilitate the flow of funds between investors and borrowers. The financial system provides important services to individuals, businesses, and the government to meet various needs ranging from short-term to long-term capital formation plans. It analyzes how the financial system intermediation facilitates economic growth.

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Ria Mookerjee
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© All Rights Reserved
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0% found this document useful (0 votes)
10 views8 pages

Overview of Indian Financial Systems

The document discusses the structure and components of the Indian financial system. It notes that the key components include financial institutions, financial markets, and financial instruments. Financial institutions facilitate the flow of funds between investors and borrowers. The financial system provides important services to individuals, businesses, and the government to meet various needs ranging from short-term to long-term capital formation plans. It analyzes how the financial system intermediation facilitates economic growth.

Uploaded by

Ria Mookerjee
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ASSMALe

Uate
ASSighmct Poge

NamcLl Maksyu
21026742073
PRN
pcch202-23
piyiscon t

PASCLSS the S7uctutu ot Indarn tnanual


olt a tach « ts constutucrtS SSlim.i2u3

e
Tht
foll
nctu an tnanuial Systerm
compontmI tho cornprus
Fnan ctal INsttutton,
Financal HaKUS

rnancua sirumnts
Pinanctal y t u

aInttuton au-thC otoumcdìary_Who tacutte


A Dth tunctionng t Kan cLalUTm_ bu maKung inv-
tors and koocwi mca6. hey mokbiuzesau
EStors th
Susplus unitsand aluOCOZT TCMÜnPrauctyjtactwitte
moisra bertcx oat Ntu, tructL Indian Firan-
cialSyetomalbPrOVidEA SLUice iD CAdcs Lindividual, bu&
heH, gortunment) oeCRig adyCL VaJuous iosuus anging
Ton ctuetwurto dweWGH catiorn plans Th novidi
hol a u G ETy CTA LOhe entibeJ howant tonaiye
unds Om hc m@kts T clueuheu.

Hhan ciaL Intutions can be clas Thicd nto two cattO

onung Invtiuton
Non-Ban eing Füanctal tnJ tttudon

M reatiatca
thanciaL
maUURma etE Mu oe boddlu
clanihd
tiatta loan
n masttet and of maukttS. The
maytRet marrel h which the lendeT T h tAoan
totm'
rourer oUOnally"anally
nrgottate he
Date
Page

L8 Un
W n
maukd
open
CCment, m thr othet hand 'T
a x d i Zcd
and
m Onal maKT Uh uhhch
kthanctal
hr
a s r rradtd in lutge volumt to hi vauoud
caterinq
Ret are cacdat mayuKts
dtuLO
unks and
ttd theindiuidual,
uwel ay a l o g
Crcdit is Ppid looth on d Short a s
tcxmpou od. for 5horZ
rcauiUmat
Cnthe basis q the trcalit
tom and longtom pusyof, tintnddl MasieCS D
Wided to two categon
Mony makt
capitaL marktt

Tunial Instumtrtt aTt mmtwu, corTd b


ween pawtics, Thcprodut uchane radcol n a
Kancialmaxrtt ar kihani alatt 8cewu D
Ona tyed tuancz'al instnumnls. Thete8 a
lsudi angc lecwb àp the matkes &tnce tht
heed 8 ntcAtor and endit StcRO al
dug ort Financial krumertl can be rcalor
VLtual documevti ymc8eptung cga
agotemet nvow irg any kind rondtoy val
fouty-bucd ianda tntumett rCp
Snt ouuouhp dh AeL Debt baAd uan-
cla nstrumnt
prcstut a loan made by
an invcton to the
Oucnol the asitt. "upu
Pipancaal Ihdtrumd ncudL
Cash n8:toumtNt
ate
ASSMAALe
Pag

f u na n e t a ce
consi8 8Twice
riand uabuity providedbybu
t an aqemUd

hy heup gL manogerm ert Coppauu


OAuiudtundhand
ast Ckelently nvTCO' Ury 038to t iD
that
u n e

acOmbdtion
h nancng and deltu-
up to tht staor 8 tttnd thuit pO
onal 8Cwl eti
Types o Nancdal dOwte n cludewiin g a kerde

wcaltN Management
wtuafurd
, Ins TaNec

The Studtwu o lnduan tunanclaul YEtom is about a


thancial yAtum hteh allpw8 the mohangc
fundi bretwetn invcotor tndeu, and rowu
Inauanfnan cual Sstons polatc at national&
global kwe. 7h COhdist mpln dlaley
rcuocttd SUvicA, makts an tnstiiions untundrd
betwtan
D provdle On exdentand equla Un hage
n VeAso8 and depast ord

Whet L8 tuhanctau unboumcdiattom oitcaly anayzt


04to hou i i e t tunanctl tomcaiation eititiee
facilutautes caoomiigoowth 2

ftnanctal ntomrdctin 8 trcproceH tranoUungOr


kunde o
orH Om Leonomic agerts csth 8wtpus
to utiuizc thoseunds,
Cagnomdl agrti thtt wold i
Rey to ndetitardur themocey ard thevart 4 funan-
Ceo
CiaL instument Cuuailahle l i in ecaniz NaE
ounch havr VOUy
homic agentt aC a heterejen a
Unv-etrents, kuA UNTAJ
utocent tunanca Pod t
thoLt0t u t u n d d

realon, n

[Link]
thls ntorntaiLOn
unanciol
k ü n a n u l

and
diaolc

hancial ind
h t
aht haa
tUUne dal
Thr n a n pabu
thdtnecds bttuwttn
thid

pmoces channcus tunds


une
and thale
with a Lack
pus t a c l t a e s

that
tntity Such a n
u n t o m t a u 'axy s
an
tnar 8action
betuwecn wo
jpatit

Um
an

a than cial could be


a

or a
mudduman trnuYO QA
Omeddiasy have
they
h t u u n t d i i e s

Ztuton. firancal
aA
maskct
Sybtem
cieint
a
hul tel torthe nyestment:
ttaewet,ut
Channuze
J w n s nto cdto
concen. Thores a tco
b t a caud he bieaT
d ntotmcalaries.

tht actuitu thetko


UL ètotmralau ts to conNU&Ur i
thesr kara
6unctton CommUTal
lvtoumcolasles uki
vebtments.
LD cash and othet Uaui
ProViOLe troge tdeiuttestor
mttalu.
aMet, uke prtalo
wicuudbthg mod
ftnanctal rtoumciasul help

untht Systm
Thy pomotc the habit awingd
Individuals con uat thr 5undu duu emeYn
ft busunMman Can Tasuly qet loans.

TtIndid warets a kttoGDP routh ot, then


finan utal tntomediwue
shoud btabe todo htiu
lous rey Cas uy|
fcquuctodshould haNCmaepouer)to supewit
the furanaal Uttome aubuY
BustneNnanJhauUA e akL AO TOLAE mOny hot
om lhdu'On kuiah al tsmtoutdu buT
zlorom aorod0
Pro plu Shoua b made auuOTte tht btnts
classmate
Date
Page

th unanial tttomnru'au
pcoplu ghaud be able o
gu help dom (han ial

Dis cuAs VCUiousundtuon3 money makL


A mony maskCt is a Cmponen qhe
funan ciol
maskct whoTe kunancLL tntrumCKLS Sth high
ouidiy and voy Shomt matuutia atr tradcd.
monty masket PyoVidW Jr tht 9puK and depen
dable tYangtol o Shouttum debt ngdnumtt
matusuhg in a eas r l c s .
A monmatkplauus an impont troL H the a l o
cartion Q-rcSOeA tn ht cionomy bs pUOTmYng
the touousüg mpantart tuntons
PTOvd funde Ihc moy MoTuR t providts shoyd
toumkundd or bonowÝng od a O T VAtt uttus
The public Jprivatr n8TUDON8 Can bomraw money
Tom the monUy masURt to
tHoan ce captl TC9uUY-
menti &tund badCd erouth through theSys tam
ki an cc bils 4 mmuuLal papUL.
TheAOVUthmtnL
canalse boryow tundsS rorn the
montymasURet
Use 8ustplus Fundy! Themomty maktt provides
plotorm wnUT te bane oth Lunduhg
hd
tiubn can &era TcUS monuy {ora
pouo trL and corn pregtP 3host
main ob
(mB kuuA th
ectwe
ThecBmmtUa bank, it to
Csty
uhcomt{rann rewes ab welamaint cun
ujucuty to mtt thT COLAh VLULd or
transdcttoN8. dgu
developcd

No hecd to bovmow ban8


dal banpa
non ey maurtt helpl tommU
an
Thr u s t t n C c
Lome SulgTd d tVL
CatabTshed mony makd n r rasU teAL

al lou
Optlon a boouyung manuy
and
th
banK
CttCs and helpd Com
mUlual

Shortage cOan
bank. t h e t t ts a
bamus,
un the cMm al
banics
rom
thoy an caul in somt h thw loans
ntmon-y maskU
P s oVOiN Mcyt hc mOnH m a K d
8 help the govUUh mentt rait mOncy do {
O U t n m e t t pmojcatan pubi*C
WaU
0A)uttsy dulgment. The govtnEMO-
OTow shOrttom tunds byistuipg trcas
[Link] lew jtOTLratto_
elps MONttay folicy p r o p y kunan6-
n monty maaRet heups Ahccerctral bark
Suctesuuy mplme moNdtoy palb ted The
iten te adwelcoed momey masktt hep
n thr Kitenb Functionung and n creas es th
CTttnt the cerdtraLban
ttcp H tAaNdal Mobillty: The mony makrt
helps n naneial mob ty ty y nablung cady
LTansfer tund one eator kothe Dthest
Eouubrimbttuween Demand Juppuy
Pund ! monuy mcoket Tedt a balance
ottuchthr dtmang and suppy oan dhle
kundA. MOny Market luocating
Sawins cRto znY ttm hrou The oney
maskAt

alsn hcamoney OsCti nd Hot


TE he rop
mniy nc(Onomd2 tht u
Cayh. t provid0 a cohNenenl a n d S a r way o trans

OUüng unds rom o r placr to andh u, thteby

mmcndey heyoh (ommOLtr and noludty nThdia

Sallenteatutc TocaJUy BU

Teasty buus aut mohey MauKEL UStrumert, L8Idd


by the Covetnment anol Ote &hot toun d -ebt-undtau
merts ctnd ate presertly ldsuud un rree ttnoS,.
namCy Ldays, 12daus & B6sday. Th ese auezro
CO upon &ccuutie)nd py nd itOTES F They are
8S wed t d dN CSuNt and redeemcd at
kaee ValuL
st matwuty he 1 day bus a e LISud
weekly
uShU aA the 182daua 2 86ydau! art i f uLol l
weckuy heasuy bdd heu ndeplarnert d l
unds kor Vy ohrt potbdi as weu

8 aulert ftotwtes COmmULual papT


COmmLu al papUT, alo khawh aA LP, io a dhost tem -
deos i$ trumt l8suud by ompai) to yaidc tud
entaly tora tume pUtd up to one cat. tt l8 an
ndecutud mohy matk n$toumtt dSuLd Un
ths torm apronoy otc Compauit that ufoy
highruttngs Vn t n g agncits ten at Cksto

Ths wts notDr anaddrtionaU t unent.


thy a tYplcauy t s e d by LOstge b anR
Cor poation& to cove8hcet tom VECNable
ancd noett Shorttoun tnanci al bbUattond, a h
sunding o a huw broed C r haNE a uni
um moturuy dauA and a mminum u p t o
dCCuyut. Ony UUny
couÜtoal

baker by o c d l tadtno
c nol YcLognsed
ma
igh a t t s rypu
burdh SLch commUUal
cCn S e l
atnu

manaq eay
mechanism fEFO. tlay RBI
DisCLLSIthe REPO OpUations
n atU thoUH
monty

tothe t t c a t wlch C o h n t i a
ReoTtt vkoI
ly 8Lng thuT SeauTub to
oanks bOYay mOney
KUUE Bawk
the cendral aMk owI USUtTY 1e:
cadt ohotag
Incia tomauntoun 0quidty, u
MeAEp. t
r d u t to 8ome 8tatttory
und
ktp nlaty to
sone the man kools KBl
tandd tos Kepw
under cOntrol Kepoatt
tYrCEmEt
chasng Ption v kepwTchade

REPo
KBl managci coU MonUy t u thnough
ooULatons un The foloWUng ways

to b vg
tion, K8/ makeA tTon Attmpti
dousn the tlow money h ihertomy Ont way
r r a N t tHC To att. Ths makes kom-

CosLly g {or buomAdED and onduy-


Oustng
storhe, nich h tustn Seus dash tnvedlment
thtmostREL
mony &uppuy un

InercaSn LUNAty Un the mGSKL shen

R nted4 opump (unda edto the Seslm, d


buru tht TpoTAt. coaun, EAYneMd-
and undusliC khd t ch captr to boroW
mancy kor dioCt inveOTmCHt putpost
tt ao incoratts th ovUTaL Suppby money
unthr Onomy. TJ uttum atey b0alti 1l<
rouwth adr thc cronomy

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