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Components of Indian Finacial System: Dr. Pratima Jain

The document defines the Indian financial system and its major components. It provides definitions for key terms like financial institutions, financial instruments, financial markets, and financial services. Charts are included that outline the major financial institutions in India, types of financial instruments, financial markets, and financial services. The document concludes by noting some deficiencies of the Indian financial system such as a lack of coordination, monopolistic market structures, and an inactive capital market.

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Kunika Jaiswal
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54 views15 pages

Components of Indian Finacial System: Dr. Pratima Jain

The document defines the Indian financial system and its major components. It provides definitions for key terms like financial institutions, financial instruments, financial markets, and financial services. Charts are included that outline the major financial institutions in India, types of financial instruments, financial markets, and financial services. The document concludes by noting some deficiencies of the Indian financial system such as a lack of coordination, monopolistic market structures, and an inactive capital market.

Uploaded by

Kunika Jaiswal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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COMPONENTS OF INDIAN

FINACIAL SYSTEM

DR. PRATIMA JAIN


Definition of INDIAN FINACIAL SYSTAM

Definition -:

“ The primary function of the financial system


is to provide link between savings and investment for
the creation of new wealth and to permit portfolio
adjustment in the composition of the existing wealth “
According to Prof. Robinson

DR. PRATIMA JAIN


Introduction of INDIAN FINACIAL SYSTAM

Introduction -:
Financial System comprises , a set of sub-systems of
financial institutions, financial markets, financial
instruments and services which help in formation of
capital. It provides a mechanism by which savings are
transformed into investment. The financial system is
characterized by the presence of an integrated , orga-
- nized and regulated financial market and institution
that meet the short term and long term financial need of
both the household and corporate sector.

DR. PRATIMA JAIN


Chart of INDIAN FINACIAL SYSTAM

DR. PRATIMA JAIN


Chart of major component of Indian financial system

DR. PRATIMA JAIN


Meaning of FINANCIAL INSTITUTION

Meaning -:

Financial institution are business organization that


deposit the saving from the people who have extra
fund and then mobilize these saving to the people ho
need fund on credit. FI provide service and product to
those customer who are unable to get it directly form
market and act as intermediates between ultimate
borrow and ultimate lender.

DR. PRATIMA JAIN


Chart of financial institution

Financial Institutions

Intermediaries Non-Intermediaries

Banking Non-Banking Developmental Other Public


Financial Sector FIs
Institutions

Commercial Bank
Insurance MFs IDBI POSB
Co-operative Bank
IFCI NABARD
Rural Bank SFC NHB

DR. PRATIMA JAIN


Meaning of FINACIAL INSTRUMENT

Meaning -:

A financial instrument/asset/security is a claim, against


a person or an institution, for the payment of a sum of
money or a periodic payment in the form of interest or
dividend, at a specified future date.

DR. PRATIMA JAIN


Chart of FINANCIAL INSTRUMENT

 Financial Instruments

Term Type

Short Term Primary Securities


Medium Term Secondary Securities
Long Term Innovative Securities

DR. PRATIMA JAIN


Meaning of FINACIAL MARKET

Meaning -:

A Financial Market can be defined as the market in which


financial assets are created or transferred. As against a
real transaction that involves exchange of money for real
goods or services. A financial transaction involves
creation or transfer of a financial asset. Financial Assets
or Financial Instruments represents a claim to the
payment of a sum of money sometime in the future
and /or periodic payment in the form of interest or
dividend.
DR. PRATIMA JAIN
Chart of FINANCIAL MARKET

Financial Market

Money Capital
Market Market

Primary Market
Call Money
Secondary Market
Treasury Bill
Denvative Market
Commercial Bill

DR. PRATIMA JAIN


Meaning of FINACIAL SERVICES

Meaning -:

Financial services are the activities, benefits and


satisfactions, connected with the sale of money, that
offer to users and customers, financial related value .

DR. PRATIMA JAIN


Chart of FINANCIAL SERVICES

Financial Service

Fund based Fee based

Leasing
Merchant Banking
Hire Purchase
Credit Rating
Loan
Mergers, BANK
Cash credit,
LOCKER, PAYMENT
overdraft, FDR
OF ELECTRICITY
ETC
BILL, LETTER OF
CREDIT ETC
UNDERWRITING

DR. PRATIMA JAIN


Deficiencies of INDIAN FINANCIAL SYSTEM

Lack of coordination.
Monopolistic market structure.
Dominance of developing bank.
Inactive capital market.
Lack of control.

DR. PRATIMA JAIN


THANK YOU
DR. PRATIMA JAIN

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