THE contemporary business environment has made financial services play a significant role in the Indian economy during the last couple of years as a service sector contributes to the major part of the national income in the country. Financial services involve conversion of the intangible into tangible. In the past, only intangible services were available but the modern process of technology, communication and intense competition have forced the service providers to convert them into products just as banks provide loans, etc. This textbook meant for all business schools covers emerging areas of financial services in India and the latest trends, contemporary information and updated data on financial services.
An economic system consists of various economic agents like households, producers, government and customers who perform activities like production exchange and consumption for survival. This in turn involves mobilisation, allocation, utilisation and generation of funds. But for all this to run smoothly and facilitate the flow of funds between surplus and deficit units in an economic system is known as the financial system.
Financial services were available since time immemorial. Kautilya’s Arthashastra is considered the first organised treatise on financial services where he has amply described the rules and regulations of money and mint management. The old investments like hundi resemble the bill of exchange or promissory note or bearer cheque of contemporary financial markets. It can well be said that there were well-developed financial markets, instruments and intermediaries in ancient India. Sahukari could be an example of financial intermediation. Banking is supposed to be an age-old financial exercise in India started in early 17th century with the incorporation of the East India Company.
Banks are considered the face of financial services and occupy a significant place in the socio-economic area. Today liberalisation, privatisation and globalisation have further strengthened the financial services in India.
The book talks of the two categories of financial services available, namely fund-based activities and non-fund based activities.
Written by a professor and former Director of RA Poddar Institute of Management, the book will interest students of management studies. -MG
(Sage Publications India Pvt Ltd, B1/I-1, Mohan Cooperative Industrial Area, Mathura Road, New Delhi-110 044; www.sagepublications.com)
