1. What is it?
1.1. An Institutional Framework existing in a country to enable financial transactions.
1.1.1. Helps in formation of capital, which fosters savings and help the major stakeholders for efficient use.
2. Composition
2.1. Financial Markets
2.1.1. Arrangements made for trading of financial assets and credit instruments such as currencies, deposits, bills, bonds, etc.
2.2. Financial Institutions
2.2.1. Banking
2.2.2. Non-Banking
2.3. Financial Instruments
2.3.1. Bonds, bills, deposits, currencies
2.4. Financial Services
2.4.1. Activities, benefits and satisfaction connected with the sale of money that offers the users and customer financial related value.
2.4.1.1. **Suppliers**
2.4.1.1.1. Banks and FI's
2.4.1.1.2. Insurance companies
2.4.1.1.3. Credit card issuer companies
2.4.1.1.4. Mutual Funds and Investment Trusts
3. Types of securities
3.1. Primary Securities
3.2. Secondary Securities
4. Key elements of a well functioning financial system
4.1. Stable Money
4.2. Central Bank
4.3. Well functioning securities market
4.4. Sound banking system
4.5. Strong legal and regulatory environment
4.6. All informative system
4.7. Sound public finances and public debt management
5. Narasimham Committee Recommendations
5.1. I
5.1.1. Removal of dual control
5.1.2. Stop the directed credit program
5.1.3. Interest rate determination
5.1.4. More freedom to banks
5.2. II
5.2.1. Robust banking system
5.2.2. NPA's and the concept of narrow banking
5.2.3. Capital Adequacy Ratio
5.2.4. Foreign Exchange