Indian Financial System
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Indian Financial System as PDF for free.
More details
- Words: 742
- Pages: 19
Joseph Anbarasu, Visiting Scholar, Department of Finance, Banking and Finance, ASU
To
make a historical account of Indian Financial system before and after liberalization; To appreciate the evolutionary process for having attained the present phase; To T evaluate l t each h componentt off th the system t iin a global context; and To loot at your business decisions in the context of prevailing financial system of a state.
Most banks were state-owned B k pension Banks, i ffunds d and d insurance companies were forced to buy State Issued bonds - primary investment. B b St Bombay Stock kE Exchange h g was closed market. Run by Brokers for the benefit of its members. There was no right governance and regulation. There was no single derivative market. All financial transactions were controlled by the RBI and Ministry of Finance
Strict entry barriers in every Big Villains were sub-industry sub-industry. MRTP act, 1969 Difficult to start a bank, a The Capital Issues (control) act, mutual fund, a brokerage 1947 firm, an insurance company, a pension fund, fund a securities Indian Companies Act, 1956 exchange or sub-broking Industries Act, 1956 firm. Foreign Exchange Regulation Act, Foreign firms were restricted 1973 to touch any one of these parts Comprehensive capital control and restrictive leg slat o s legislations Look at a typical bureaucrats of yester years.
Male , Balding head , Ugly stained metal rimmed glasses .
Thick bushy eyebrows[Usually as a mono-brow], Mustache[See pictures], [ p ], No beard.,, Paan Chewing g [ The teeth and tongue are often discolored].
“I-don't-care-what-you-say, I'll-do-it-only-my-way” attitude.
Drinking coffee 10 times a day.
Looking for a slightest opportunity to take bribe. bribe
Take home salary is Rs. 5000[Official] + Rs. 25000[Bribes and Misc. tips].
Taking the rules and law by word and not understanding the true essence of it. Even though the laws usually date back to the 1850 British Colonial period .
No respect for anyone's privacy.
Not taking anyone's ideas on improving productivity even though they are right.
Piles and piles of paper with folders and gem-clips strewn about.
A rotary dial telephone on the desk..
No air-conditioning and a ceiling fan that rotates 6 times in an hour.
Runs errands for his bosses or chats with family during work. Also misuses official equipment.
Is usually in a vital position of authority/ In a position that requires interaction with people everyday.
www.sriraminhell.com
Market
driven All players with integrity and accountability Innovators and Creators flourish Contributes favorably to the Economy No greedy g y Global but not taking external shocks State facilitates rather than suppresses
Eighteen to Three – S h d l d IIndustries Scheduled d ti Eight Hundred to Fifty – SSI MRTP not active Capital Issues Act repealed Foreign Exchange Regulation Act repealed Insurance, Banking Industries open its gates for Private Players MNC allowed
Banking Regulation Act simplified i lifi d Security Exchange Board constituted Foreign Exchange Management Act – passed Company’ss Act – subject Company to scrutiny Private players allowed to do insurance and banking business SEZs opened FDI encouraged
Lender's L d ' risk i kh has d dwindled i dl d substantially Liquidity position is improved Return is certain on his savings (either fixed or variable) Lender gets impetus to save He will get accurate information from specialized financial institutions. Lenders botheration with respect to selecting a prompt borrower is reduced
Borrower certainty in rising funds is soared He needs make less effort and minimum time in questing for an ultimate lender. In whatsoever fashion he needs funds he can procure He can seek professionals and specialized assistance from specialist in the field.
1. Banking financial institutes (RBI, Commercial banks and co-operative banks) 2. Development banks (all India financial institutes like IDBI, IFCI) 3. Investment financial institutes (LIC,GIC,UTI, since 2000 Private insurance companies like SunLife, Allianz Bajaj, ICICI Prudential etc. ) 4. Non-Banking financial institutes (SBI capital services,, Merchant banking g companies p Hirepurchase companies, etc.,) 5. Postal department Financial services ((Recurring g deposits, p , NSC,, KVP,, Postal LifeInsurance etc.).
To
make a historical account of Indian Financial system before and after liberalization; To appreciate the evolutionary process for having attained the present phase; To T evaluate l t each h componentt off th the system t iin a global context; and To loot at your business decisions in the context of prevailing financial system of a state.
Most banks were state-owned B k pension Banks, i ffunds d and d insurance companies were forced to buy State Issued bonds - primary investment. B b St Bombay Stock kE Exchange h g was closed market. Run by Brokers for the benefit of its members. There was no right governance and regulation. There was no single derivative market. All financial transactions were controlled by the RBI and Ministry of Finance
Strict entry barriers in every Big Villains were sub-industry sub-industry. MRTP act, 1969 Difficult to start a bank, a The Capital Issues (control) act, mutual fund, a brokerage 1947 firm, an insurance company, a pension fund, fund a securities Indian Companies Act, 1956 exchange or sub-broking Industries Act, 1956 firm. Foreign Exchange Regulation Act, Foreign firms were restricted 1973 to touch any one of these parts Comprehensive capital control and restrictive leg slat o s legislations Look at a typical bureaucrats of yester years.
Male , Balding head , Ugly stained metal rimmed glasses .
Thick bushy eyebrows[Usually as a mono-brow], Mustache[See pictures], [ p ], No beard.,, Paan Chewing g [ The teeth and tongue are often discolored].
“I-don't-care-what-you-say, I'll-do-it-only-my-way” attitude.
Drinking coffee 10 times a day.
Looking for a slightest opportunity to take bribe. bribe
Take home salary is Rs. 5000[Official] + Rs. 25000[Bribes and Misc. tips].
Taking the rules and law by word and not understanding the true essence of it. Even though the laws usually date back to the 1850 British Colonial period .
No respect for anyone's privacy.
Not taking anyone's ideas on improving productivity even though they are right.
Piles and piles of paper with folders and gem-clips strewn about.
A rotary dial telephone on the desk..
No air-conditioning and a ceiling fan that rotates 6 times in an hour.
Runs errands for his bosses or chats with family during work. Also misuses official equipment.
Is usually in a vital position of authority/ In a position that requires interaction with people everyday.
www.sriraminhell.com
Market
driven All players with integrity and accountability Innovators and Creators flourish Contributes favorably to the Economy No greedy g y Global but not taking external shocks State facilitates rather than suppresses
Eighteen to Three – S h d l d IIndustries Scheduled d ti Eight Hundred to Fifty – SSI MRTP not active Capital Issues Act repealed Foreign Exchange Regulation Act repealed Insurance, Banking Industries open its gates for Private Players MNC allowed
Banking Regulation Act simplified i lifi d Security Exchange Board constituted Foreign Exchange Management Act – passed Company’ss Act – subject Company to scrutiny Private players allowed to do insurance and banking business SEZs opened FDI encouraged
Lender's L d ' risk i kh has d dwindled i dl d substantially Liquidity position is improved Return is certain on his savings (either fixed or variable) Lender gets impetus to save He will get accurate information from specialized financial institutions. Lenders botheration with respect to selecting a prompt borrower is reduced
Borrower certainty in rising funds is soared He needs make less effort and minimum time in questing for an ultimate lender. In whatsoever fashion he needs funds he can procure He can seek professionals and specialized assistance from specialist in the field.
1. Banking financial institutes (RBI, Commercial banks and co-operative banks) 2. Development banks (all India financial institutes like IDBI, IFCI) 3. Investment financial institutes (LIC,GIC,UTI, since 2000 Private insurance companies like SunLife, Allianz Bajaj, ICICI Prudential etc. ) 4. Non-Banking financial institutes (SBI capital services,, Merchant banking g companies p Hirepurchase companies, etc.,) 5. Postal department Financial services ((Recurring g deposits, p , NSC,, KVP,, Postal LifeInsurance etc.).
Related Documents
Indian-financial-system
April 2020 22
Indian Financial System
October 2019 33
Indian Financial System
May 2020 18
Indian Financial System
May 2020 24
Indian Financial System
November 2019 30
Indian Financial System
December 2019 34More Documents from "Joseph Anbarasu"
India - Perspectives
December 2019 37
Zen: Primer
April 2020 23
Labour
November 2019 40
Materials
December 2019 46
Accounting Standards In India
December 2019 31