The financial system of India allows for the exchange of funds between lenders, investors, and borrowers. It helps promote economic development by connecting savings with investment. Financial institutions such as banks serve as intermediaries between savers and borrowers. The financial system includes financial markets that facilitate trading of instruments, as well as a variety of financial services that manage money and provide credit. Overall, India's financial system plays a crucial role in accelerating savings, funding business expansion, and supporting economic growth.