Indian Financial System

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What does the term 'financial system' refer to?

The term 'financial system' refers to a set of complex and closely connected institutions, agents, practices, markets, transactions, claims, and liabilities in the economy, concerned with money, credit, and finance.

What are some features of the Indian financial system?

The Indian financial system is characterized by a diversified structure, comprising various institutions and markets such as banks, non-banking financial companies (NBFCs), insurance companies, capital markets, and money markets. It is also regulated by several regulatory bodies like the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority of India (IRDAI).

What is the significance of the banking sector in the Indian financial system?

The banking sector is a significant component of the Indian financial system, with both public and private sector banks coexisting. Public sector banks dominate the market, but private sector banks and foreign banks have gained prominence in recent years.

What role do Non-Banking Financial Companies (NBFCs) play in the Indian financial system?

NBFCs play a crucial role in providing financial services, including loans, advances, and investment products. They cater to specific niches and contribute to financial inclusion. Signup and view all the answers

Name some regulatory bodies that oversee the Indian financial system and their respective areas of regulation.

Regulatory bodies that oversee the Indian financial system include the Reserve Bank of India (RBI) for banks and monetary policy, the Securities and Exchange Board of India (SEBI) for capital markets, and the Insurance Regulatory and Development Authority of India (IRDAI) for the insurance sector. Signup and view all the answers

Which regulatory body in India is responsible for overseeing the insurance sector?

Insurance Regulatory and Development Authority of India (IRDAI) (B) Signup and view all the answers

What is the primary function of Non-Banking Financial Companies (NBFCs) in the Indian financial system?

Offering loans, advances, and investment products (C) Signup and view all the answers

Which sector dominates the market in the Indian banking industry?

Public sector banks (C) Signup and view all the answers

What does the term 'financial system' encompass?

Institutions, agents, markets, transactions, claims, and liabilities related to money, credit, and finance (B) Signup and view all the answers

Which institution regulates the capital markets in India?

Securities and Exchange Board of India (SEBI) (D) Signup and view all the answers

What is the financial system?

A complex network of institutions, agents, markets, practices, and transactions related to money, credit, and finance.

What are the key components of the Indian financial system?

India's financial system is made up of various institutions like banks, NBFCs, insurance companies, and financial markets, regulated by agencies like RBI, SEBI, and IRDAI.

What is the significance of the banking sector in India?

A major part of India's financial system, where both public and private banks operate. Public banks dominate the market.

What do Non-Banking Financial Companies (NBFCs) do in India?

They provide financial services like loans, investments, and advances to individuals and businesses, often filling specific needs.