The financial system consists of a set of institutions, markets, and instruments that work together to channel savings into investments. It includes both organized and unorganized sectors. The organized sector comprises banking systems, cooperative systems, money markets, financial institutions, and development banks. The unorganized sector includes chit funds, nidhis, loans and finance companies, and money lenders. Key components of the financial system include financial markets, institutions, instruments, and services. Financial markets are divided into money markets for short-term debt and capital markets for long-term securities. Financial institutions include banking institutions that facilitate payments and non-banking institutions like LIC and SIDBI. Main financial instruments are money market instruments like treasury bills and