Indian Financial System

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.

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).

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.

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers

<p>Insurance Regulatory and Development Authority of India (IRDAI)</p> Signup and view all the answers

<p>Offering loans, advances, and investment products</p> Signup and view all the answers

<p>Public sector banks</p> Signup and view all the answers

<p>Institutions, agents, markets, transactions, claims, and liabilities related to money, credit, and finance</p> Signup and view all the answers

<p>Securities and Exchange Board of India (SEBI)</p> Signup and view all the answers