Abstract:

The meaning of “System” in financial system implies the set of nexus and closely linked institutions, agents, practices, market, transactions, liabilities and claims in the economy. Money, credit, and finance form the foundation of the financial system. Each of the three words is closely linked to the others, yet they are also distinct. Money refers to the means of payment. Credit or loan is the sum of capital to be returned with interest, it refers to the liability of economic unit. Finance is a monetary resource comprising debt and ownership, funds of the state, company or persons. All of these measures have had an impact on the banking industry and the financial markets. As a result, it is critical to examine the financegrowth relationship both before and after liberalisation. India is contributing considerably to the increase in trade and economic activity, and consequently to global economic development, due to its size and improving economic performance in the previous decade or so. As a result, it's critical to consider how India's financial growth has progressed and how it has influenced the contours of India's economic advancement, as well as how it has been impacted by it. It will also be useful to look at what else India has to do to join the league of countries with well-functioning financial markets and financial sectors.

Description:

Financial Development, India, banking industry, financial markets, global economic development