Managerial Aspects of Emerging Indian Financial System: An Assessment

The economic development of a nation depends on the soundness of the nation’s financial system. It induces generation and transformation of savings into entrepreneurial efforts. The Indian financial system is undergoing restructuring process for efficient mobilization and allocation of resources and can be segmented into the organized, unorganized and semi-organized systems. The organized system has money and capital markets as the major components and also has a set of facilitators facilitating financial intermediation. This increases capital accumulation through the institutionalization of savings and investment. The banking sector, a major player in this system, is concentrated mainly in the urban regions. Strategic alliance with postal department’s financial services division and swiftly emerging semi-organized sector can result in covering the uncovered.