The document summarizes the Indian financial system. It describes the key components as real assets, equity instruments, debt instruments, deposits, insurance policies, pension reserves, and financial assets. It notes the financial system links savings to investment, accelerates savings and investment through financial services and instruments, and leads to larger production and economic growth. The system consists of individuals, intermediaries, markets, and users of savings. India's financial system has both a formal, organized sector and an informal, unorganized sector regulated by entities like the Ministry of Finance and Reserve Bank of India. Recent reforms have included deregulating bank deposit interest rates, online stock trading, new financial instruments, and measures to improve financial soundness, market integrity, and transparency

1. INDIAN FINANCIAL SYSTEM

2. Land Building Equipments Inventories Durables Financial Assets Real Assets Equity Instruments Debt Instruments Deposits Insurance Policies Units Pension Reserves

3. Surplus Units Household Rest of the world Deficit Units Government Corporate Financial System

4. Role of Financial System Linking saving and investment Accelerating the rate of savings & investment by offering diversified financial services and instruments Larger production of goods and services Economic Growth

5. FINANCIAL SYSTEM A financial system is a set of : * institutions, * instruments and * markets which foster savings and channels them to their most efficient use. The system consists of : * individuals (savers), * intermediaries, * markets and * users of savings.

6. Indian Financial System Formal / Organized Financial System Informal / Unorganized Financial System Regulators MoF, RBI, SEBI , IRDA Financial Markets Capital Market Money Market Financial Intermediaries Banking Institutions Non Banking Institutions Money lenders Local Bankers Traders Landlords Pawn Brokers

7. 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

8. 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 Dematerializing share Wide dissemination of the information

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