(4) The Financial System of Indiarefers to the system of borrowingand lending of funds orthe demand for and the sup-ply of funds to all individuals,institutions, companies, and ofthe government. The financialsystem is classified into: • Industrial Finance: Funds requiredfor the conduct of industryand trade; • Agricultural Finance Fundsneeded and supplied for theconduct of agriculture and alliedactivity; • Development Finance: Fundsneeded for development; actually,it includes both industrialfinance and agricultural finance;and • Government Finance: Relatesto the demand for and supplyof funds to meet governmentexpenditure.