International Journal of Commerce and Management Research

International Journal of Commerce and Management Research


International Journal of Commerce and Management Research
International Journal of Commerce and Management Research
Vol. 7, Issue 4 (2021)

Role and challenges of the financial service sectors in economic development of India


CM Tembhurnekar

The Financial Institutions and Banking system play an important role in the economy. First and foremost is in the form of catering to the requirement of credit for all the sections of society. The recent economies in the world have developed mostly by making best use of the credit availability in their systems. An efficient banking system must accommodate to the needs of high end investors by making available high amounts of capital for vast projects in the industrial, infrastructure & service sectors. At the same time, the medium and small projects must also have credit available to them for new investment and extension of the existing units. Rural sector in a country like India, and Pakistan can grow only if inexpensive credit is available to the farmers for their short and medium term needs. This expected potential help the investors for the introduction of more Financial Institutions in the country. Still, financial sector in India is mostly a banking sector with commercial banks accounting for more than 64% of the total assets held by the financial system. Fund raising from the equity market grew by 116% to Rs. 1.78 lakh crore in Initial public offering (IPOs), Offer for Sale (OFS) and other market issuances in 2020. In FY20, the number of listed companies on the NSE and the BSE were 1,795 and 5,377, respectively. In this paper examines the growth and Role of financial service sectors in India, as well as the various Benefits, classification of service sectors, contribution, various challenges, key risk areas and strategies of financial service sector.
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How to cite this article:
CM Tembhurnekar. Role and challenges of the financial service sectors in economic development of India. International Journal of Commerce and Management Research, Volume 7, Issue 4, 2021, Pages 01-08
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