The subject of Financial Markets and Institutions is an essential part of understanding how modern economies function. It explains the structure and working of financial systems, including banks, non-banking financial companies (NBFCs), and the role of the central bank. This project has been undertaken to gain a comprehensive understanding of these concepts and their importance in economic development.The content of this project is primarily based on the book "Financial Markets and Institutions" written by two authors, along with other reliable sources such as educational websites and study materials. Every effort has been made to present the topics in a clear, simple, and organized manner so that they are easy to understand.Through this project, I have learned about the functioning of banking institutions, the role of the Reserve Bank of India (RBI), the importance of monetary policy, and the growing significance of NBFCs in the Indian economy. It has also helped me understand current trends, challenges, and developments in the financial sector.I hope this project proves to be informative and useful in understanding the key aspects of financial markets and institutions.