{"id":11548,"date":"2019-06-08T12:09:07","date_gmt":"2019-06-08T06:39:07","guid":{"rendered":"https:\/\/www.antworksmoney.com\/blog\/?p=11548"},"modified":"2019-06-08T12:09:28","modified_gmt":"2019-06-08T06:39:28","slug":"how-does-the-financial-system-work-in-india","status":"publish","type":"post","link":"https:\/\/www.antworksmoney.com\/blog\/how-does-the-financial-system-work-in-india\/","title":{"rendered":"How does the financial system work in India?"},"content":{"rendered":"\n

A financial system of any\ncountry comprises of end users, financial institutions like banks, markets (national\nstock exchange \/ other stock exchanges), bond market etc. These institutions together\nwith the users compile the financial system.<\/p>\n\n\n\n

The\nIndian financial sector<\/strong><\/p>\n\n\n\n

The Indian financial sector is diversified\nand is undergoing fast expansion. The rapid growth is both in terms of development\nof existing financial service firms as well new entities coming into the\nmarket. <\/p>\n\n\n\n

The financial sector consists of\ncommercial banks, non-banking financial companies, pension funds, insurance\ncompanies, mutual funds, co-operatives, and other smaller monetary entities. <\/p>\n\n\n\n

A new entity like the payment banks is\nadded to the types of institutions functioning in the sector. Though, the\nmonetary sector in India is mainly a banking sphere with commercial banks making\nmore than 64% of the total assets that is held by the Indian financial system.<\/p>\n\n\n\n

The financial system is qualified by the presence of incorporated, coordinated and governed financial markets, as well as institutions. These markets and institutions meet both the short term plus long term financial necessities of the household in addition to the corporate sector. Both financial markets and financial institutions<\/a> operate in close combo with each other.<\/p>\n\n\n\n

Structure of\nIndian financial system <\/strong><\/p>\n\n\n\n

The Indian financial system is arranged\ninto 2 major segments \u2013 Formal and Organised Financial System regulated by the\nministry of finance, SEBI, RBI and other regulatory bodies and the Un-Organised\nfinancial system. <\/p>\n\n\n\n

Un-organised financial system comprises of Individual moneylenders other private financial institutions, etc. Apart from this one can also find groups who collect money and lend it to the poor and needy. They collect interest for this service from those who borrow money.\u00a0 This sector also includes the local brokers, chit fund companies, non-bank financial companies<\/a>, and investment companies<\/p>\n\n\n\n

Working of Indian financial\nsystem <\/strong><\/p>\n\n\n\n

Indian Financial System speeds the rate as well as volume of savings via\nthe provision of several fiscal instruments and well-organized mobilization of\nsavings. It helps in raising the national end product of the country by rendering\nfunds to corporate customers to enhance their business. It assists in the\neconomic development and raises the living standard of the people. The sector\nalso promotes the growth of the weaker section through rural development banks as\nwell as co-operative societies. <\/p>\n\n\n\n

Conclusion<\/strong><\/p>\n\n\n\n

The\nIndian monetary system has experienced structural shift over the past decade. It\nhas gained strength, efficiency as well as stability due to the aggregate\nresult of competition, regulatory measures, plus policy environment. Competition,\nconsolidation plus convergence are the most important drivers of the banking\nsector and this has helped in raising the quality of the working of the\nfinancial system on the whole.<\/p>\n","protected":false},"excerpt":{"rendered":"

A financial system of any country comprises of end users, financial institutions like banks, markets (national stock exchange \/ other stock exchanges), bond market etc. These institutions together with the users compile the financial system. The Indian financial sector The Indian financial sector is diversified and is undergoing fast expansion. The rapid growth is both … Continue reading “How does the financial system work in India?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":11549,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[81],"tags":[],"class_list":["post-11548","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-institutions"],"yoast_head":"\r\nHow does the financial system work in India?<\/title>\r\n<meta name=\"description\" content=\"The Indian financial system is made up of financial intermediaries, financial instruments and financial markets. 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