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BRILLIANT’S Conceptual Framework of Finance Functions 27

management contributes in promoting an Am°J}ZmBOoeZb ŠbmB_oQ> H$mo à_moQ> H$aZo _| ghm`Vm H$aVm
organizational climate that includes h¡ {Og_| gr{Z`a _¡ZoO_|Q>, eo`S>© d¡ë`yO VWm B{WŠg
commitment for senior management, shared
values and ethics, communication and H$å`y{ZHo$eZ VWm Am°J}ZmBOoeZ b{ZªJ Ho$ {bE H${_Q>_|Q>
organizational learning. em{_b h¡& 

INDIAN FINANCIAL SYSTEM / B§{S>`Z \$m`Z|{e`b {gñQ>_

Q.2. Give a detailed description of the organizations of the Indian Financial system.
B§{S>`Z \$m`Z|{e`b {gñQ>_ Ho$ g§JR>Z H$m {dñV¥V dU©Z H$r{OE&
OR
What is financial system? What are the characteristics of a Indian financial system?
\$m`Z|{e`b {gñQ>_ Š`m h¡>? B§{S>`Z \$m`Z|{e`b {gñQ>_ H$s {deofVmE§ Š`m h¢?
The meaning of Financial system is \$m`Z|{e`b {gñQ>_ H$m AW© {ZåZ àH$ma go dU©Z
described as, "The combination of two words: {H$`m J`m h¡, ''Xmo eãXm|o … (i) \$m`Z|g, (ii) {gñQ>_ H$m
(i) Finance; (ii) System."
g§`moJ&''
The word 'Finance' means capital money, '\$m`Z|g' eãX H$m AW© ny§Or, YZ, \§$S> VWm
fund and the study of their structure, nature CZH$s g§aMZm, àH¥${V VWm ì`dhma H$m AÜ``Z h¡&
and behaviour.
The word 'System' means an ordered, '{gñQ>_' eãX H$m AW© EH$ {deof joÌ go g§~§{YV
organized and comprehensive set of facts, VWm EH$ {deof CÔoí` Ho$ {bE H$m`© H$aZo dmbo VÏ`m|,
principles and components relating to a {gÕm§Vm| VWm KQ>H$m| H$m EH$ ì`dpñWV, g§J{R>V VWm
particular field and working for a specified
purpose. ì`mnH$ g_yh h¡&
However, the word 'system' in the term `Ú{n '\$m`Z|{e`b {gñQ>_' Ho$ AW© _| '{gñQ>_ '
‘Financial system’ represents a set of closely eãX EH$ gmW aIo J`o \$m`Z|[e`b B§ñQ>rQ²>`ye§g,
held financial institutions, financial services \$m`Z|{e`b g{d©gog VWm \$m`Z|{e`b B§ñQ¯>_|Q²>g `m Šb¡åg
and financial instruments or claims. H$m EH$ g_yh àX{e©V H$aVm h¡&
These components are different in nature, `o KQ>H$ àH¥${V, ^y{_H$m VWm H$m`© _| {^ÝZ h¡ qH$Vw
role and functions but finally work as A§VV… AW©ì¶dñWm Ho$ {dH$mg Ho$ {bE EH$ g§aMZm Ho$
interrelated subparts of a structure for the A§V… g§~§{YV ^mJ Ho$ ê$n _| H$m`© H$aVo h¢& \$m`Z|{e`b
development of the economy. This arrangement
of financial institutions, markets and the B§ñQ>rQ²>`ye§g, _mH}$Q²>g VWm B§ñQ¯>_|Q>g H$m `h ì`dñWmnZ
instruments is called the Financial System of a EH$ Xoe H$m \$m`Z|o{e`b {gñQ>_ H$hbmVm h¡&
country.
Hence, the financial system of a country Bg àH$ma EH$ Xoe H$m \$m`Z|{e`b {gñQ>_ H$m`m]
can be defined as a set of organizations, VWm à{H«$`mAm| Ho$ Am°J}ZmBOoe§g, B§ñQ¯>_|Q>²g, _mH}$Q²>g,
instruments, markets, services and methods of
g{d©goO VWm _oWS²>g H$o goQ> Ho$ ê$n _| n[a^m{fV {H `m Om
operations and procedures that are closely
interrelated with each other. gH$Vm h¡ Omo EH$-Xÿgao go {ZH$Q> go g§~§{YV h¢&