A Study of the Interconnection between the Growth of Financial System and Information Technology and the Challenges Ahead

Bidyanand Choudhary1
  • 1 Assistant Professor, Department of Economics,St. Xavier’s College of Management and Technology, Digha Haat, Patna

Abstract

The integration of information technology, the liberalization process, and the subsequent opening of the Indian economy ushered in significant transformations, both quantitative and qualitative, within the financial system. This era witnessed heightened competition and improved investment conditions, leading to a remarkable surge in transaction volumes across various sectors. Particularly noteworthy was the emergence of Demat accounts, which substantially bolstered the participation of retail investors in India, thereby contributing to enhanced financial inclusivity. Moreover, this development played a pivotal role in augmenting the financial literacy levels among the populace, albeit within certain limitations. The paper proposes that the advent of information technology brought a revolutionary change in the financial market in India. It also claims that both in the primary and secondary segments it hugely increased the market participation which increased the volume of capital formation and its mobilization The paper adopts a historical and exploratory research methodology to establish its claims and uses vast sources of data from credible institutions both within and outside India.

PUBLISHED
2024-05-07
ISSUE
Vol 3 Special Issue (2024)

Journal Details

   ISSN : 2583 – 7117

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