Important India

Discover India with Important India

  • Home
  • About
  • History
  • Important India
  • Categories
  • TOU
  • Contact Us

4 Major Defects of Indian Money Market

On August 23, 2014 By Anamika Sethi Category: Economy of India

Defects of Indian Money Market

The main defects of the Indian money market are the following:

1. Narrow coverage:

The organized banking system is still a very large component of the Indian money market. The Indian banking system widely covers metropolitan cities and the towns. But, The organized sector of the banking system is conspicuous by its absence in many rural areas.

This means that lower income groups in many rural areas still do not enjoy banking facilities.

2. Imbalance between demand and supply:

The Indian money market is characterized by inadequate supply of short-term assets. This creates a peculiar situation.

On the one hand banks with surplus funds cannot invest them profitably short period. On the other hand, those who require short-term funds are unable to raise them from the market at competitive rates.

3. Lack of co-ordination:

There is hardly any co-ordination between the different segments of the money market. The reason in easy to find out. The different segments of the money market are very loosely interrelated at present. As a consequence there exist different interest rates in different sub-markets.

4. Only domestic coverage:

Finally, the Indian money market mainly targets domestic market. So, it is very difficult to attract foreign funds. The main reason seems to be that rupee is not a major currency in the leading foreign exchange markets of the world.

Related posts:

  1. Money Markets and Capital Markets
  2. Indian Money Market
  3. Features of Indian Money Market
  4. Characteristics and Features of Indian Money Market
  5. Different Types of Banks in India
  6. Short Note on Money
  7. Money Bills in Indian Parliament under Indian Constitution
  8. Top 10 Major Problems of Indian Agriculture
  9. Major Problems of Indian Economy and their Solutions

Category: Economy of India

Related Posts

  1. Money Markets and Capital Markets
  2. Indian Money Market
  3. Features of Indian Money Market
  4. Characteristics and Features of Indian Money Market
  5. Different Types of Banks in India
  6. Short Note on Money
  7. Money Bills in Indian Parliament under Indian Constitution
  8. Top 10 Major Problems of Indian Agriculture
  9. Major Problems of Indian Economy and their Solutions

Search ImportantIndia.com

Tag Cloud

Women In India Water Tribal People of India Tradition Tourism Short Moral Stories for Children Science and Technology Rivers in India Pollution Minerals in India Maratha Empire Mahatma Gandhi Indian Festivals Indian Constitution History of Akbar Freedom Fighters of India Family System Education Ecosystem Delhi Communication Buddhism Battles and Wars in India Art and Architecture Agriculture in India

Categories

  • Categories
  • History of India
    • History of Ancient India
    • History of Medieval India
    • History of Mughal Empire
    • Modern History of India
  • Important India
    • Administration in India
    • Indian Constitution
    • Parliament of India
  • Indian Geography
  • Indian Government
  • Indian Literature
  • Blog
  • About Us
  • Report an Article
  • Sitemap
  • Contact Us
  • Terms of Use, Privacy Policy, Cookie Policy, and Copyrights.

Copyright 2013 -2017 · Discover the Importance of India ·