Globalised Financial System and Its Impact on Indian Business

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National Seminar: Paper Presentation On Globalised Financial System and Impact on Indian Business Miss. Reshma Ramesh Nirbhavane Mr. Makarand M. Dharkar Roll no. -15 Roll No. 13 First Year MMS/MBA Student C.K Thakur Institute Management Studies, New Panvel - Navi Mumbai. GLOBAL FINANCIAL SYSTEM Definition The global financial system (GFS) is the financial system consisting of institutions and regulators that act on the international level, as opposed to those that act on a national or regional level. The main players are the global institutions, such as International Monetary Fund and Bank for International Settlements, national agencies and government departments, e.g., central banks and finance ministries, private…show more content…
These basic forces have shaped the evolution of international finance for centuries. Global integration of money and capital markets is the essence of international finance; through such channels purchasing power over real resources today is transferred from areas of the world where expected rates of return are lower to areas of the world where expected rates of return are higher. (At least that is the theory.) This process, in turn, is facilitated in important respects by technical changes that have helped to speed not only the flow of funds but also the flow of information about investment opportunities. ROLE OF FINANCIAL SYSTEM IN INDIA India has a financial system that is regulated by independent regulators in the sectors of banking, insurance, capital markets, competition and various services sectors. In a number of sectors Government plays the role of regulator. Ministry of Finance, Government of India looks after financial sector in India. Finance Ministry every year presents annual budget on February 28 in the Parliament. The annual budget proposes changes in taxes, changes in government policy in almost all the sectors and budgetary and other allocations for all the Ministries of Government of India. The annual budget is passed by the Parliament after debate and takes the shape of law. Reserve bank of India (RBI) established in 1935 is the Central bank. RBI is regulator for financial and banking system, formulates monetary policy
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