Indian Financial system: At a Glance

Financial system occupies an important place in Indian Economy as one of the industries. It outperforms certain essential functions for the economy including managing of payment system, collection & allocation of the savings of society and creation of a variety of stores of wealth to suit the preferences of savers. Finance is the flowing blood in the body of financial system in any country. It bridges gap between the saving & investments by providing the mechanism through which savings of savers are pooled and are put into the hands of those able & willing to invest by financial agencies. Hence, the role of financial system is to promote savings and their channalisation in the economy through financial assets that are more productive than the physical assets. Therefore, the workings of financial system are vital to pace and sustainable growth of the economy. Financial system plays a momentous role in access the rate of economic development, which is to improving general
standard of living & higher social welfare in the country.