Question

Difference between organised and unorganised money market

Answer 1

Unorganized market is old Indigenous market mainly made of indigenous bankers, money lenders etc. Organized market is that part which comes under the regulatory purview of RBI and SEBI. The nature of the money market transactions is such that they are large in amount and high in volume.

Answer 2

The following are the differences between the organised and unorganized money market:

1. In the organized market, the employment terms are fixed and regular, whereas, in the unorganized market the workers are paid on a daily bases.

2. The workers in the organized market get assured work and some basic facilities whereas, workers in the unorganized market does not get assured work and no basic facilities such as medical policies are not provided to them.

3. The organized market is the one that is combined with the relevant administration or government and comprehends its rules and regulation. On the other hand, the unorganized market is not associated with the government and therefore, no rules are expected to be followed.