financial system in india financial system represents a closely held financial institutions,...

Financial System in India

Financial System in India

Financial System represents a closely held

financial institutions, financial services and

financial instruments or claims

Financial System

Financial ServicesFinancial Services

Financial; institutionsFinancial;

institutionsFinancial

instrumentFinancial

instrumentFinancial Market

Financial Market

RegulatoryRegulatory OthersOthersIntermediariesIntermediaries

Non-BankingBanking

The government has established a number of financial institutions all over the country to provide finance to business organisations

They provide both owned capital and loan capital for long and medium term requirements and supplement the traditional financial agencies like commercial banks.

They provide both owned capital and loan capital for long and medium term requirements and supplement the traditional financial agencies like commercial banks.

Main Financial Institutions, Operating in

India

Main Financial Institutions, Operating in

India

1. Financial institutions provide long term finance, which are not provided by commercial banks

Merits of financial Institutions

2. Many of these institutions provide financial, managerial and technical advice and consultancy to business

firms

Merits of financial Institutions

3. Obtaining loan from financial institutions increases the goodwill of the borrowing company in the capital market

3. Obtaining loan from financial institutions increases the goodwill of the borrowing company in the capital market

Merits of financial Institutions

4. As repayment of loan can be made in easy installments, it does not prove to be much of a burden on the business

4. As repayment of loan can be made in easy installments, it does not prove to be much of a burden on the business

Merits of financial Institutions