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226 Financial Management
Financial System
Financial
Institutions
Financial
Markets
Financial
Services
Financial
Instruments
Fig. 13.1 Financial System
Financial Institutions
Financial institutions are the major part of the Indian financial system. Hence, it is more
importance than other component of the 1FS because all the components of IFS are directly
or indirectly related with the financial institutions. Financial institutions are providing
various services to the economic development with the help of issuing of the financial
instruments.
Financial institutions can be classified into banking and non-banking institutions. Now
in India, all the financial institutions are systematically regulated and controlled by respective
act.
Financial Institutions
.
Commercial
Banks
Banking
Cooperative
Banks
Non-banking
Financial Institutions
Fig. 13.2 Financial Institutions
Non-banking
Non-banking
Non-financial
Institutions
Banking Institutions
Banking institutions are the key part of the economic development of the nation. Any
country’s financial transaction should be properly arranged from investors to the needed
industrialist. Banking institutions play a major role in the field of savings and investments
of money from public and lending loans to the business concern.
Indian Banking institutions may be classified into two board categories :
(1) Commercial Banks (2) Cooperative Banks
Commercial Banks
Commercial Banks are the most important deposits mobilisation and disbursers of finance.
Indian commercial banks are the oldest, biggest and fastest growing financial institutions.
The main function of the commercial banks are accepting deposits and rendering loans to
the public. Indian commercial banks can be classified into the following categories:
Scheduled Commercial Banks
Scheduled banks are those which are included in the second scheduled of Banking Regulation