Indian Financial System
Indian financial system is one of the most important aspects of the economic development of our
country.
Indian financial system has four pillars.
1. Financial Institutions
2. Financial Markets
3. Financial Services
4. Financial Instruments
1. Financial Institutions:- These are the intermediaries who ensure the flow of money from one part of
the economy to other part. Financial institutions include Banks, Insurance companies, Brokerage,
Firms and Investment dealers etc.
2. Financial Markets:- These are the places where trading of securities occurs, financial markets include
Stock markets, bond markets, forex market and derivatives markets etc.
3. Financial Services:- All types of activities which are of a financial nature, traded in financial markets.
These activities include Retail banking, insurance, credit services, transaction services, mortgages, tax
preparations and planning, accounting and investment, pension, mutual fund etc.
4. Financial Instruments:- These are the real or virtual documents that represent a legal agreement
involving any kind of monetary value. Treasury bills, checks, bonds, shares, stocks, receivables,
debentures etc. are the some of the financial instruments.
Indian financial system is one of the most important aspects of the economic development of our
country.
Indian financial system has four pillars.
1. Financial Institutions
2. Financial Markets
3. Financial Services
4. Financial Instruments
1. Financial Institutions:- These are the intermediaries who ensure the flow of money from one part of
the economy to other part. Financial institutions include Banks, Insurance companies, Brokerage,
Firms and Investment dealers etc.
2. Financial Markets:- These are the places where trading of securities occurs, financial markets include
Stock markets, bond markets, forex market and derivatives markets etc.
3. Financial Services:- All types of activities which are of a financial nature, traded in financial markets.
These activities include Retail banking, insurance, credit services, transaction services, mortgages, tax
preparations and planning, accounting and investment, pension, mutual fund etc.
4. Financial Instruments:- These are the real or virtual documents that represent a legal agreement
involving any kind of monetary value. Treasury bills, checks, bonds, shares, stocks, receivables,
debentures etc. are the some of the financial instruments.
