Which are known as financial assets when it comes to Indian Banking scenario?
· Financial assets are considered as claims on others.
· Financial assets can be classified into Primary assets or direct financial assets and secondary assets or indirect assets
· Primary or direct assets are those securities which represent financial claims against real sectors
· Primary assets are bills, bonds, shares, book debts etc.,
· Secondary or indirect securities are financial claims against financial intermediaries that are created when the financial intermediaries mobilize funds from the public
· They are – new currency notes and coins issued by RBI, bank deposits, life insurance policies, units of UTI, IDBI bonds etc.,
· The most significant financial assets of Indian financial system are – currency notes, coins, bank deposits, post office savings deposits, life insurance policies, contribution to public provident fund, government and corporate sector bonds, bills, hundies, shares in companies, deposits in companies and investment companies, deposits with merchant bankers, mutual funds, National savings certificates, infrastructure bonds, Indira Vikas Patras, Kisan vikas patras etc.,
