The Indian money market
Keywords:India, banking system, structure, money market, credit, integration, financial organisation, commercial centres
The article presents a picture of banking organisation in India where commercial banks of the Western type are operating side by side with institutions which derive from indigenous banking practice with a tradition going back many hundreds of years. The author outlines the structure and activity of the two groups and their respective fields of action; emphasises the crucial problem of the links between the institutions of the central money market and the credit needs of both the rural village and the smaller artisans in the towns; and refers to the efforts now being made to set up a more unified system. Indeed, in his opinion, the development of the Indian money market and its degree of integration are two closely related problems. In this framework, special attention is devoted to an examination of the financial organisation of the two main commercial centres, Bombay and Calcutta.
JEL: G15, G21