discuss the evolution of financial services in india. What are the problems faced by financial service inddustry in india
Answers
Financial Services means all those services that are provided in monetary or financial terms where the essential commodity is money. These services include banking, purchases, venture capital, leasing, insurance, mutual funds, stock broking etc.
Earlier in the 1960’s, the banking services in India included merchant banking that was followed by insurance and leasing finances in the 1970s. Later on, the mutual funds, discounting, credit rations, venture capitals came into existence and were trending till 1990. Post liberalization in 1990, deposits, dematerialization, paperless tracking, online trading, foreign investors investing in the capital market, and booking of buildings were the contemporary issues till 2002.
Currently, there is a lot of evolution in the Indian financial sector as it is converting to dynamism, with the emergence of the primary equity market, the process of demonetization, the concept of internet banking and e-brokerage etc.
However, the RBI is worried about facing 6 important issues in the Indian financial sector. They are credit crunches, market abuse, the regime of the senior persons, macro-politics, changing culture and shifting borders.