1 / 13

TYPES OF FINANCIAL INSTITUTIONS

TYPES OF FINANCIAL INSTITUTIONS. Commercial banks. These are represented by group of societies registered under the act of the states relating to co-operative societies. Co-operative banks. Set up in India since British days.

rafael
Download Presentation

TYPES OF FINANCIAL INSTITUTIONS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TYPES OF FINANCIAL INSTITUTIONS

  2. Commercial banks

  3. These are represented by group of societies registered under the act of the states relating to co-operative societies Co-operative banks

  4. Set up in India since British days. • These are the banks which are registered outside India but have their operations and branches in India. • Example : Barclays bank, CITI bank etc. Foreign Banks

  5. Forefathers of modern commercial banks. • Local bankers. • Raise the funds from the public and lend it also. • E.g.GujratiShroffs or Marwari, in South India they may be called Chettiars, In North India they may be called Sahukars etc. • Provide finance for productive purposes to trade, industries and agriculturalists. Indigenous bankers

  6. Depend entirely on their own funds for the working capital. • May be rural or urban, professional or non-professionals. The main characteristics of money lenders are: • They use their own funds • Their clients are mainly the weaker sections of the society. • Their loans are highly exploitative because they charge high rate of interest. • Their operations are highly regulated. • The credit is prompt and flexible. Money lenders

  7. Financial institutions set up for the development of the economy. • Provide medium to long term funds so as to meet long term growth of the nation. • E.g. IDBI, SIDBI etc. Development Finance Institutions

  8. Includes those financial institutions which mobilize savings of the public at large and invest in corporate and government securities. • These include: LIC, GIC, etc. Investment Institutions

  9. These include NBFCs providing whole range of financial services. • The principal business is receiving of deposits under any scheme or arrangement in any manner or lending in any manner. • E.g. hire purchase companies, investment companies etc. UNORGANIZED FINANCIAL INSTITUTIONS

More Related