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explain the functions of indian financial system....pelase tell me

The financial system of India is a system of borrowing and lending of funds or the demand for and the supply of funds of all individuals, institutions, and companies and of the government.

Role or Function of Indian Financial System

All the functions of Indian Financial System comes under 3 main functions which are given below

1) Increase the savings

-> It provides a measures for managing and controlling the risk involved in mobilizing savings and allocating credit.

-> It promotes the process of capital formation by bringing together the supply of saving and the demand for investible funds.

-> It helps in lowering the cost of transaction and increase returns.

2) Mobilization of savings

->It is a link between savers and investors. It utilizes mobilized savings of savers ( who are not organized / scattered )in more efficient and effective manner.

->It provides payment mechanism for exchange of goods and services.

-> It facilitate for the transfer of resources across geographic boundaries.

-> It provides detailed information to the operators/ players in the market such as individuals, business houses, Governments etc.

3) Proper Investment

->It assists in the selection of the projects to be financed and also reviews the performance of such projects time to time .

->It channelises flow of saving into productive investment.

Mention few institutions of indian financial system

Distinguish between money market and stock market

Originally Posted by Unregistered

explain the functions of indian financial system....pelase tell me

The functions of Indian financial system are given below:

1.Savings of capital under regulating body.

2.Use of capital for mobilisation under the rules and regulations.

For more production, better growth of the society by bringing the exchange system among all business and services.

3.Allocation of capital among lenders and borrowers through financial system.

A Financial System is a network of Financial Institutions, Financial Markets, Financial Instruments and Financial Services to facilitate the transfer of funds.

The functions of Indian Financial System are to help Production, Capital Accumulation, and Growth by:-
1) Encouraging Savings.

2) Mobilising Them.

3) Allocating Them.

Originally Posted by Unregistered

Mention few institutions of indian financial system

These are financial institutions which are regulating according to there sector of work:

- IIFCL

-EXIM Bank.

-SIDBI

-NHB

-SMERA

-IFCI

-CMDs

Originally Posted by Unregistered

Distinguish between money market and stock market

Hi,

Thanks for reaching out us here. I hope you are aware of these things,

Money market is the place where you get the money through banks or the place where you buy and sell the commodities for money.

Stock market or share market is the place where buyers and sellers of shares aggregate and do trading of these shares privately.

Thanks.