What are the Characteristics of the Unorganised Sector of the Indian Money Market?

The unorganised sector of the Indian money market may be differentiated from the orgnaised sector as under:

(1) Blending of Money-lending and Trading:

The unorganised agencies of the money market such as money-lenders and indigenous bankers conduct the mixed business of money-lending and trading.

(2) Informality:

Money-lenders and indigenous bankers have informal dealings with their borrowings.

(3) Simplicity:

Money-lenders and indigenous bankers keep their accounts in a very simple and indigenous form in the vernacular language.

(4) Flexibility:

Their loan operations may be flexible in nature. They may give new loans to the borrowers even before the repayment of the old ones.

(5) Personal Touch:

Their business depends on personal contacts with the borrowers.

(6) Secrecy of Business:

The financial transactions of the money-lenders and indigenous bankers remain a secret affair.

In fine, it is the method of working rather than in the nature of business that indigenous agencies like money-lenders and indigenous bankers stand in marked contrast with modern institutions of the Indian money market.