Indian Financial System - Download as Word Doc .doc), PDF File .pdf), Text File .txt) or read online. “Indian Financial System” by M Y medical-site.infoia. Introduction to Indian Financial System. Significance and Definition. Purpose and Organisation. Liberalisation of the Financial System. 2. This book on Indian Financial System gives a comprehensive account of the main strands in the Authors M.Y. Khan; Published: 19/08/; Edition: 9; ISBN .
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Download Indian Financial System Download free online book chm pdf. Read Indian Financial System, 7/e book reviews & author details and more at medical-site.info Free delivery on qualified M Y Khan (Author). out of 5 stars 5. This book on Indian Financial System focuses on presenting to the readers the emerging organizational, structural, institutional, regulatory as well as policy.
Initially, steps were taken to develop the domestic money market and freeing of the money market rates. The interest rates offered on Government securities were progressively raised so that the Government borrowing could be carried out at market-related rates. In respect of banks, a major effort was undertaken to simplify the administered structure of interest rates. Banks now have sufficient flexibility to decide their deposit and lending rate structures and manage their assets and liabilities accordingly.
At present, apart from savings account and NRE deposit on the deposit side and export credit and small loans on the lending side, all other interest rates are deregulated. This was a consequence of the high fiscal deficit and a high degree of monetisation of fiscal deficit.
The statutory minimum of 25 per cent for SLR has already been reached, and while the Reserve Bank continues to pursue its medium-term objective of reducing the CRR to the statutory minimum level of 3. As part of the reforms programme, due attention has been given to diversification of ownership leading to greater market accountability and improved efficiency.
Initially, there was infusion of capital by the Government in public sector banks, which was followed by expanding the capital base with equity participation by the private investors. This was followed by a reduction in the Government shareholding in public sector banks to 51 per cent.
Consequently, the share of the public sector banks in the aggregate assets of the banking sector has come down from 90 per cent in to around 75 per cent in With a view to enhancing efficiency and productivity through competition, guidelines were laid down for establishment of new banks in the private sector and the foreign banks have been allowed more liberal entry.
Since , twelve new private sector banks have been set up.
As a major step towards enhancing competition in the banking sector, foreign direct investment in the private sector banks is now allowed up to 74 per cent, subject to conformity with the guidelines issued from time to time.
Conclusion: The Indian financial system has undergone structural transformation over the past decade.
The financial sector has acquired strength, efficiency and stability by the combined effect of competition, regulatory measures, and policy environment. While competition, consolidation and convergence have been recognized as the key drivers of the banking sector in the coming years Refernce: 1.
Banking Commission Reports Reserve Bank of India Annual Report s Report on Currency Finance Sengupta and M. Vinayakan Banking , A.
Kanishka Publishing, Delhi Panchamukhi, K. Finance therefore represents the resources by way funds needed for a particular activity. We thus speak of 'finance' only in relation to a proposed activity. Finance goes with commerce, business, banking etc.
Finance is also referred to as "Funds" or "Capital", when referring to the financial needs of a corporate body. When we study finance as a subject for generalising its profile and attributes, we distinguish between 'personal finance" and "corporate finance" i. There are areas or people with surplus funds and there are those with a deficit.
A financial system or financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus to the areas of deficit. A Financial System is a composition of various institutions, markets, regulations and laws, practices, money manager, analysts, transactions and claims and liabilities.
Financial System; The word "system", in the term "financial system", implies a set of complex and closely connected or interlined institutions, agents, practices, markets, transactions, claims, and liabilities in the economy.
The financial system is concerned about money, credit and finance-the three terms are intimately related yet are somewhat different from each other. Indian financial system consists of financial market, financial instruments and financial intermediation. As against a real transaction that involves exchange of money for real goods or services, a financial transaction involves creation or transfer of a financial asset.