To enable the government to borrow funds at a lower rate of interest 2. To ensure stability by striking a balance between the economic growth and inflation 3. To mobilize savings in the economy 4. To support specific sector through concessional lending rates.
What are the main objectives of financial system regulation?
Following are the prime objectives of the financial regulators in India: Financial Stability: protection and enhancement of financial stability in the country. Consumer Protection: protecting the appropriate degree of consumers. Market Confidence: maintaining the confidence in the financial system.
What is meant by Indian financial system?
Meaning of Indian financial system. The financial system enables lenders and borrowers to exchange funds. India has a financial system that is controlled by independent regulators in the sectors of insurance, banking, capital markets and various services sectors.
What are the objectives of financial service?
Objectives of Financial Inclusion
Financial inclusion intends to help people secure financial services and products at economical prices such as deposits, fund transfer services, loans, insurance, payment services, etc. It aims to establish proper financial institutions to cater to the needs of the poor people.
What are the main features of financial system in India?
Features of Financial System:
- It plays a vital role in economic development of a country.
- It encourages both savings and investment.
- It links savers and investors.
- It helps in capital formation.
- It helps in allocation of risk.
- It facilitates expansion of financial markets.
- It aids in Financial Deepening and Broadening.
What are the main components of a financial system?
Five Basic Components of Financial System
- Financial Institutions.
- Financial Markets.
- Financial Instruments (Assets or Securities)
- Financial Services.
What are the objectives of financial services Wikipedia?
The five key functions of a financial system in a country are: (i) information production ex ante about possible investments and capital allocation; (ii) monitoring investments and the exercise of corporate governance after providing financing; (iii) facilitation of the trading, diversification, and management of risk; …
What is financial system and explain the features of financial system?
A financial system is an economic arrangement wherein financial institutions facilitate the transfer of funds and assets between borrowers, lenders, and investors. Its goal is to efficiently distribute economic resources to promote economic growth and generate a return on investment (ROI) for market participants.