Question

Explain the organized and unorganized markets in financial market

Answer 1

The organised sector of the money market consists of the Reserve Bank of India,commercial banks, companies lending money, financial inter­mediaries such as the Life Insurance, Credit and Investments Corporation of India,Unit Trust of India, Land
Mortgage Banks, Cooperative Banks, Insurance Companies etc. and call loan brokers, and stock brokers.
The unorganised sector of the money market is largely made up of indigenous bankers, money lenders, traders, commission agents etc., some of whom combine money lending with trade and other activities.

Answer 2

The organized financial markets are consist of the various banks which are controlled by the Reserve bank of India and the unorganized financial sector are normally controlled by private money lenders or financial companies

Explanation:

Organised financial sector

• The organized private sector are controlled by the Reserve bank of India and it consists various national and private banks in the country
• Reserve bank of India control the credit facility of the banks and the levels of inflation in the market
• The organised sector is affected by any changes in the foreign markets and are bound by number of restrictions on their exchange rates

Unorganized Financial sector

• The unorganized financial sector is not under the control of the RBI and they consist of private money lenders, traders and other forms  of cooperative societies
• These sectors are mainly found in the rural areas and they run through the savings and deposits of the people
• The unorganized sector is not affected by the external markets and they are only concerned with meeting the financial requirements of the people

To know more about the organized financial sector