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Financial Intermediaries, Indian Financial system Video Lecture | Indian Financial System - B Com

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FAQs on Financial Intermediaries, Indian Financial system Video Lecture - Indian Financial System - B Com

1. What are financial intermediaries in the Indian financial system?
Ans. Financial intermediaries are institutions or entities that act as a link between borrowers and lenders in the Indian financial system. They play a crucial role in the mobilization and allocation of funds by collecting savings from individuals and channeling them into productive investments.
2. What are the types of financial intermediaries in India?
Ans. There are several types of financial intermediaries in the Indian financial system, including banks, non-banking financial companies (NBFCs), insurance companies, mutual funds, pension funds, and housing finance companies. Each type of intermediary has its own specific functions and plays a distinct role in the financial system.
3. How do financial intermediaries contribute to the development of the Indian financial system?
Ans. Financial intermediaries contribute to the development of the Indian financial system by providing various financial services such as mobilizing savings, facilitating credit creation, managing risks, promoting investment, and offering financial advice. They help to bridge the gap between savers and borrowers, thereby promoting economic growth and stability.
4. What are the benefits of financial intermediaries in the Indian financial system?
Ans. Financial intermediaries offer several benefits in the Indian financial system. They provide a safe and secure environment for individuals to save and invest their money. They also offer convenience by providing a range of financial products and services under one roof. Additionally, financial intermediaries help reduce information asymmetry by conducting due diligence on borrowers, thus mitigating risks for lenders.
5. How are financial intermediaries regulated in the Indian financial system?
Ans. Financial intermediaries in the Indian financial system are regulated by various regulatory bodies such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and Pension Fund Regulatory and Development Authority (PFRDA). These regulatory bodies set guidelines, monitor the activities of financial intermediaries, and ensure compliance with the applicable laws and regulations.
39 videos|39 docs|14 tests
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