financial_management_[www.accfile.com]

INTRODUCTION
Finance plays a key role in the part of economic and business activities of the country.
Systematic and efficient flow of finance is needed to efficient and effective management of
the business concern. Arrangement of finance to required business concern, should be
properly maintained and channelised through regulated institutions and markets. In India,
with the effect of the new economic policy, emerging needs of financial institution and
markets should be looked after. Indian financial system has developed constantly and
successfully to infuse the new blood to the economic development of the nation. Hence,
the economic growth and development is purely based on the regulated and well established
financial system of the country.
FINANCIAL SYSTEM IN INDIA
Financial system is the basic concept for the industrial development of the nation. Financial
system provides adequate and smooth flow of finance to the needed parts. Indian financial
system consists of the four important components such as:
• Financial Institutions
• Financial Markets
• Financial Instruments
• Financial Services.
Financial system implies a set of complex and closely connected or intermixed
institutions, agent practices, markets, transactions, claims and liabilities in the economy.
The financial system is concerned about the money, loan and finance. These three
parts are very closely interrelated with each other and depend on each parts.