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Finance > Overview > Financial Institutions
Financial institutions
This segment is divided into two types of Institutions:
-
Regulators
-
Intermediaries
Click
here for list of financial institutions
REGULATORS
Regulatory Institutions are statutory bodies assigned with the job of monitoring and controlling different segments of the Indian Financial System (IFS). These Institutions have been given adequate powers through the vehicle of their respective Acts to enable them to supervise the segments assigned to them. It is the job of the regulator to ensure that the players in the segment work within recognised business parameters, maintain sufficient level of disclosure and transparency of operations and do not act against the national interests. At present, there are two regulators directly connected to IFS:
INTERMEDIARIES
Intermediary Financial Institutions are essentially of two types:
A distinguishing characteristic of banking Financial Institutions lies in the fact that, unlike other institutions, they participate in the economy’s payments mechanism, i.e., they provide transaction services, their deposit liabilities constitute a major part of the national money supply, and they can, as a whole, create deposits or credit, which is money. Banks, subject to legal reserve requirements, can advance credit by creating claims against themselves. Financial Institutions, on the other hand, can lend only out of resources put at their disposal by the savers. Indian Financial System boasts of well developed banking Financial Institutions each designated to carry out a specific developmental task. Most FIs, however, work on commercial lines with an eye on the development of the sectors assigned to them.
Financial
institutions have been the primary source of long term lending for large
projects. Conventionally, they raised their resources in the form of bonds
subscribed by RBI, Public Sector Enterprises, Banks and others. With the
drying up of concessional Long Term Operations (LTO) funds from the
Reserve Bank in the early 1990s, Financial Institutions have increasingly
raised resources at the short end of the deposit market.
Complete List of All India Financial Institutions Click Here