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STRUCTURE AND INSTITUTIONAL DEVELOPMENT IN INDIA

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1. The Indian Money Market consists of two types of segments: an Organized segment and an unorganized segment.  

2. In the unorganized segment, interest rates are much higher than in the organized segment.  

3. Organized segment consists of RBI, SBI with its associate banks, Public Sector Banks, Private Sector Commercial banks, Foreign Banks, Regional Rural Banks, Non Scheduled Commercial Banks, apart from Non Banking Financial Intermediaries such as LIC, GIC, etc 

4. The unorganized segment essentially consists of indigenous bankers, money lenders and other non-banking financial intermediaries such as Chit Funds. For these institutions there is no clear cut demarcation between short term and long term and between a genuine trade bill and mere financial accommodation. 

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