1. Role of financial
service in economy &
Institutional frame
framework in Indian
financial system
ajosh m thomas

2. Financial service
The term financial services has been defined
as “ Activities , benefits and satisfactions
connected with the sale of money that offers
to users and customers , financial related
values” .

3. Role of financial services
1.
2.
3.
4.
5.
Economic growth
Promotion of saving
Capital formation
Financial intermediation
Creation of employment opportunities

4. Institutional framework of indian
financial system
Financial system
Financial system may be defined as “ a set of
institutions , instruments and markets which foster
savings and channelize them to their most efficient
use”

5. Components of financial
system
1.
2.
3.
4.
5.
Financial market
Financial institutionas
Financial instruments
Financial services
Unorganized financial market

6. Financial market
A financial market is an institution or
arrangement that facilitates the exchange of
financial assets including deposits and loans
, stocks and bonds ,options and future .
Financial system consist of two financial
market
1. Money market
2. Capital market

7. Financial institution
 Financial institutions are organisations that
mobilize savings and provide finance or
credits to individuals and organisations.
 These institutions are necessary for free , fare
and transparent market operations
 Financial institutions are classified into three
1. Monetary Institutions
2. Nonmonetary Institutions
3. Specialized Institutions

8. • Pension
funds
• LIC
• UTI
• Mutual
funds
• Investment
companies
• Lease
finance
companies
• Housing
banks
Specialized financial institutions
Non- monetary institutions
Monetary institutions
• RBI
• Commercial
Banks
• Regional
rural Bank
• Co-operative
Bank
• Post office
• Savings bank
•
•
•
•
IDBI
NABARD
ICICI
National
small
industries
corporation
• Industrial cooperatives
• State
financial
corporation

9. Financial Instruments
Financial instruments are the intermediaries tha
facilitate transactions on financial claims.
The demand and supply of money by the
participants in the financial market are catered
through these instruments.
Financial instruments are broadly classified into
1. Money market Instruments
2. Capital market Instruments

10. Financial services
Financial services another constituent of
financial syatem are activities , benefits and
satisfactions are connected with sale of
money or money worth.
They facilitate financial transactions of
individuals and institutional investors.

11. Unorganized financial Market
This sector include the money
lenders, traders , landlords who lend the
money to the public and indigeneous banks
also accept the deposits from the public.
The monetary authority of the country does
not have direct control over them

12. Thank you 
ajosh m thomas