INDIAN FINANCIAL SYSTEM- AN OVERVIEW
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What is the primary function of an Indian financial system?
The Indian financial system facilitates the mobilisation of savings and channelling them into productive investments, thereby promoting economic growth and development.
What is the full form of NBFC in the Indian financial system?
Non-Banking Financial Company operating without a banking licence.
Which apex regulatory body oversees the Indian banking sector?
The Reserve Bank of India (RBI), established under the RBI Act 1934, is the apex regulatory body that oversees the Indian banking sector.
Which act governs the establishment and functioning of the Reserve Bank of India?
The Reserve Bank of India Act, 1934 governs RBI.
What does the term 'financial intermediation' mean in the context of the Indian financial system?
Financial intermediation refers to the process by which financial institutions like banks and NBFCs act as middlemen between savers (surplus units) and borrowers (deficit units), transferring funds efficiently.
What is the meaning of 'financial sector reforms' in the Indian context?
Liberalisation measures to improve efficiency and stability of financial institutions.
What are the two broad segments of the Indian financial system?
The Indian financial system is broadly divided into the formal (organised) sector, comprising regulated institutions like banks and insurance companies, and the informal (unorganised) sector, comprising moneylenders and chit funds.
What is the role of the Securities and Exchange Board of India (SEBI)?
SEBI regulates and protects investors in the Indian securities market.
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