1.
Presentation on Financial
Services
Submitted To
Ms.Alka Sood
Assistant Professor
Prepared By- Rohit Mahajan
Bupin No.-15PBA012
MBA-4th Semester

2.
What is Financial Services
Financial Services is a term used to refer to the
services provided by the finance market. Financial
Services is also the term used to describe
organizations that deal with the management of
money. Examples are the Banks, investment banks,
insurance companies, credit card companies and
stock brokerages.

3.
Financial Services Institution
• Financial services firms not only helps to raise the
require funds but also assure the efficient
deployment of funds.
• They Assist in Deciding Financial Mix.
• They extent their services up to the stage of servicing
of lender.

4.
Importance of Financial Services
• Vibrant Capital Market.
• Expands activities of financial markets.
• Benefits of Government.
• Economic Development.
• Economic Growth.
• Ensures Greater Yield.
• Maximizes Returns.
• Minimizes Risks.
• Promotes Savings.
• Promotes Investments.
• Balanced Regional Development.
• Promotion of Domestic & Foreign Trade.

5.
Features of Financial Services
• It is a Customer Intensive Industry.
• It is Intangible in nature.
• Production and Supplier of financial Services must be
perform Simentenously.
• Financial Services always be-proactive in visualizing
in advance what the market wants or reactive to the
needs and wants of the customer.

6.
Types of Financial Services
• Banking – Under this an individual can deposit his or her
money and can get return in the form of interest and also
borrowers can get loan by paying interest to bank
periodically.
• Insurance – By using this one can get peace of mind as one
can buy insurance policies like life insurance, fire, marine,
health and general insurance which ensures that person in
the event of any mishap can get his or her money back
from insurance company.
• Stock Market – One can invest his or her funds into stock
market also where one gets dividends and also capital
appreciation, if one makes right investment decision than
return from equity markets are much greater than that of
fixed deposits parked in banks.

7.
Types of Financial Services
• Treasury or Debt instruments – Under this one can invest
his or her money into government bonds and also debt
instruments of private and public firms.
• Wealth Management – There are many firms where one
can jus park their money and then these companies invest
money across different assets classes like commodity,
derivatives, money market, currency etc… in order to
generated superior returns for their clients.
• Mutual Funds – These funds track asset class and generate
returns accordingly so a debt fund will track returns of debt
and money market, an equity mutual fund would give
returns according to performance of stock market and so
on.

8.
What is RBI
• The Reserve Bank of India (RBI) is the central bank of
India, which was established on April 1, 1935, under
the Reserve Bank of India Act. The Reserve Bank of
India uses monetary policy to create financial
stability in India, and it is charged with regulating the
country's currency and credit systems.

9.
Functions of RBI
• 1. Issue of Bank Notes:
The Reserve Bank of India has the sole right to issue
currency notes except one rupee notes which are issued
by the Ministry of Finance. Currency notes issued by the
Reserve Bank are declared unlimited legal tender
throughout the country.
• 2. Banker to Government:
As banker to the government the Reserve Bank
manages the banking needs of the government. It has
to-maintain and operate the government’s deposit
accounts. It collects receipts of funds and makes
payments on behalf of the government. It represents
the Government of India as the member of the IMF and
the World Bank.

10.
Functions of RBI
• 3. Custodian of Cash Reserves of Commercial Banks:
The commercial banks hold deposits in the Reserve Bank
and the latter has the custody of the cash reserves of the
commercial banks.
• 4. Custodian of Country’s Foreign Currency Reserves:
The Reserve Bank has the custody of the country’s reserves
of international currency, and this enables the Reserve
Bank to deal with crisis connected with adverse balance of
payments position.
• 5. Lender of Last Resort:
The commercial banks approach the Reserve Bank in times
of emergency to tide over financial difficulties, and the
Reserve bank comes to their rescue though it might charge
a higher rate of interest.

11.
Cont.