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

4.  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…………………

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

6. There are four major components in Indian Financial System

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

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

9. 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)

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

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

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