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Heuristic Techniques

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12 views

Heuristic Techniques

Uploaded by

pranjali soni
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Indian Financial System

A financial system plays a vital role in the economic growth of a country. It


intermediates between the flow of funds belonging to those who save a part of
their income and those who invest in productive assets. It mobilises and
usefully allocates scarce resources of a country.

A financial system is a complex, well-integrated set of sub-systems of financial


institutions, markets, instruments, and services which facilitates the transfer and
allocation of funds, efficiently and effectively.

The term financial system includes a complex of institutions & mechanisms


which effect the generation of savings & their transfer to those who will invest.

In other words, financial system may be said to be made up of all those channels
through which savings became available for investment.

Included in the complex of institutions are:


I. Financial institutions/ intermediaries like Banks, Insurance Organizations,
Mutual funds and so on. Which collects capital from savers (investors)
and distribute them to entrepreneurs/ Productive enterprises.
II. What may be called Facilitating institutions/ organizations, comprising
stock exchanges & new issue market.

Financial system aim to establishing a regular, smooth, efficient & cost


effective link between saver & investors.

Objectives Of Financial Systems

1. Mobilization of Savings
The financial system in India aims to mobilize savings from various sectors of the economy and channelize
them into productive investments. This is achieved through various financial institutions such as banks,
non-banking financial companies, and mutual funds.

2. Efficient Allocation of Funds


The financial system in India aims to allocate funds efficiently to various sectors of the economy. This is
achieved through various financial markets such as the stock market, bond market, and commodity market.

3. Development of Financial Markets


The financial system in India aims to develop various financial markets such as the stock market, bond
market, and commodity market. This is achieved through various initiatives such as the introduction of
new financial instruments, improving the regulatory framework, and providing better market
infrastructure.

4. Financial Inclusion
The financial system in India aims to provide financial services to all sections of society, including the
rural population and the economically weaker sections. This is achieved through various initiatives such as
the Jan Dhan Yojana, which aims to provide access to banking services to all households in the country.

5. Financial Stability
The financial system in India aims to maintain financial stability in the economy. This is achieved through
various measures such as the regulation of financial institutions, monitoring of financial markets, and
ensuring the safety of deposits.

6. Promotion of International Trade


The financial system in India aims to promote international trade by providing various financial services
such as trade finance, foreign exchange services, and export credit.

In conclusion, the financial system in India aims to mobilize savings, allocate funds efficiently, develop
financial markets, promote financial inclusion, maintain financial stability, and promote international trade.

Read more at: https://edurev.in/question/1671523/objectives-of-financial-system-in-india-

Components of Indian Financial System

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