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.
Money-lenders and indigenous bankers have informal dealings with their borrowings.
Money-lenders and indigenous bankers keep their accounts in a very simple and indigenous form in the vernacular language.
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.