Financial System is a platform where the savers and borrowers come together and this results in the smooth functioning of economic activities.

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Presentation transcript:

Financial System is a platform where the savers and borrowers come together and this results in the smooth functioning of economic activities.

 Financial Intermediation  Financial Disintermediation  Payment mechanism for exchange of goods and services.  Capital Formation  Provides liquidity to financial assets  Intermediary between lenders and borrowers Cont…………………

 Provides detailed information.  Lowering cost of transactions and increasing returns.  Mechanism for transfer of resources across geographical boundaries.

There are four major components in Indian Financial System

 Financial Institutions  Financial Markets  Financial Instruments/ Assets  Financial Services

REGULATORS These are the regulatory authorities who regulate and control all transactions in a financial system It consists of…

The major regulating authorities in Indian Financial System are……  Ministry of Finance (MOF)  Reserve Bank of India (R B I)  Securities and Exchange Board of India (SEBI)  Insurance Development and Regulatory Authority (IRDA)

Also known as Financial Intermediaries because they act as an intermediary between savers and borrowers.

Banking Institutions  Commercial Banks  Co operative Banks  Regional Rural Banks Non Banking Institutions  Development Financial Institutions  Investment Institutions  Non Banking Financial Companies

 A financial agencies that provide medium and long-term financial assistance and engaged in promotion and development of industry, agriculture and other key sectors.