Accelerating the rate of savings & investment by offering diversified financial services and instruments
Larger production of goods and services
A financial system is a set of :
* instruments and
which foster savings and channels them to their most efficient use.
The system consists of :
* individuals (savers),
* markets and
* users of savings.
Indian Financial System Formal / Organized Financial System Informal / Unorganized Financial System Regulators MoF, RBI, SEBI , IRDA
Non Banking Institutions
RECENT REFORMS IN THE INDIAN FINANCIAL SYSTEM
Deregulation of interest rates paid on deposits with commercial banks by RBI
Introduction of on-line trading in capital mkt .
Measures taken to protect the investors and improve the transparency
Introduction of modern financial instruments to elicit interest from broad range of savers
Improving financial soundness and credibility of banks by adopting capital adequacy norms in relation to the risks to which the banks are exposed . Prudential norms for income recognition and provision of bad debts.
Measures to control volatility
Laying down insider regulations to protect integrity of markets