Globalised Financial System and Its Impact on Indian
Business
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.
[email protected]
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,
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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