The document discusses financial services and the Indian financial system. It defines financial services as those provided by financial institutions, such as banking services, foreign exchange services, investment services, and insurance services. It then describes the key components of the Indian financial system: financial services, financial markets, financial instruments, and financial institutions. It provides details on various financial concepts such as financial intermediaries, instruments, and markets. Finally, it briefly discusses types of financial services in India and international financial services.
FINANCIAL SERVICES
Financialservice is part of financial system
that provides different types of finance
through various credit instruments, financial
products and services.
In financial instruments, we come across
cheques, bills, promissory notes, debt
instruments, letter of credit, etc.
3.
Importance of Financial
Services
Vibrant Capital Market.
Expands activities of financial markets.
Benefits of Government.
Economic Development.
Economic Growth.
Ensures GreaterYield.
Maximizes Returns.
Minimizes Risks.
Promotes Savings.
Promotes Investments.
Balanced Regional Development.
Promotion of Domestic & ForeignTrade.
IMPORATNCE OF FINANCIAL
SERVICES
1.promoting investment.
2. Promoting savings
3. Minimizing the risks
4. Maximizing the Returns
5. Ensures greaterYield
6. Economic growth
7. Economic development
8. Benefit to Government
9. Expands activities of Financial Institutions
10. Capital Market
6.
FUNCTIONS OF FINANCIALSERVICES
Good financial system search in the following
ways :
1. Promotion of liquidity.
2. Link between savers and investors
3. Information available
4. Helps in projects selection
5. Allocation of risk
7. Reduce cost of transaction and borrowing
8. Financial deepening and broadening
7.
Key Features forFinancial
Services
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9.
Indian Financial System
The basic structure of Indian Financial System
is divided into four components which are:
Financial Services
Financial Markets
Financial Instruments
Financial Institutions
Financial Services
10.
financial services
The servicesprovided by the Financial Institutions.These services
generally include the banking services, Foreign exchange services,
investment services, insurance services and few others. Following
is a very brief description of the services
Banking Services – Includes all the operations provided by the
banks including to the simple deposit and withdrawal of money
to the issue of loans, credit cards etc.
Foreign Exchange services – this includes the currency
exchange, foreign exchange banking or the wire transfer
Investment Services – It generally includes the asset
management, hedge fund management and the custody services
Insurance Services – It deals with the selling of insurance
policies, brokerages, insurance underwriting or the reinsurance
Some of the other services include the advisory services, venture
capital, angel investment etc.
11.
Financial Intermediaries
Afinancial intermediary is an institution which
connects the deficit and the surplus.The best
example of an intermediary can be a bank which
transforms the bank deposits to bank loans.The role
of financial intermediary is to channel funds from
people who have extra inflow of money i.e., the
savers to those who do not have enough money to
fulfill the needs or to carry out the basic activities i.e.
the borrowers.
Functions of Financial Intermediaries
Maturity transformation
Risk transformation
Convenience denomination
12.
Financial Instrument
FinancialInstrument is a trade-able asset which
can be in terms of cash, agreement, evidence of
an ownership in an entity; or a contractual right
which has the right to deliver cash or any kind of
asset.
The types of financial instrument used
worldwide are in the form deposits, stock, and
debt.
Deposits
Stock.
Debts
13.
Financial Market
FinancialMarket is a mechanism that allows
people to indulge themselves in the buying
and selling i.e. trade of financial securities (for
example stocks and bonds), commodities (for
example precious metals) at prices that
reflect the market’s effectiveness.
14.
Types of Financialservices in
India
Banking services
Foreign exchange services
Investment services
insurance