INDIAN FINANCIAL SYSTEM

•Meaning -: IFS is set of interrelated activities/ services

working together to achieve goals…..
• It has different institution, instruments,machenism that
influence capital formation growth,savings.
• Defination -: IFS markets to allocates savings
efficiently in economy for investment in real assets or
for consumption.
Objective -:
-To supply funds 2 various sectors.
-best possible utilisation of resources.

Function -:
-provide link between savings & investments for
creation of new wealth to permitt portfolio
adjustment on the composition of existing
wealth ----- Robinson.
 IFS

savings Finance investment

investment

Capital
formation

Economic
goal
growth

F. system

F.
F. F. F.
marke
instituti instrum services
t
on ents
Function of financial system
Provid payment to system for exchange
goods & services.
Enable the pooling of function for
undertaking large scale of enterprices
Provide way for managing & controlling
risks.
Genrate information to help in
coordinating decentralised decision
making.
 IFS
1. F. assets -: loan ,bonds , equity shares.
2. F.system -: bank , mf, insurance

F. F.
institution F. markets F. services
instruments

3. F. market -: