The Working Group on Money Supply: Analytics and Methodology of Compilation (Chairman: Dr. Y.V. Reddy), set up to examine the analytical aspects of the monetary survey, submitted its report in June 1998. The Working Group recommended the compilation of comprehensive analytical surveys of the Reserve Bank of India, commercial and co-operative banks and the organised financial sector at regular intervals. An inter-departmental Core Group was set up to implement the recommendations of the Working Group.

The Working Group had recommended that the fortnightly returns submitted by scheduled commercial banks under Section 42(2) of the Reserve Bank of India Act should incorporate data on i) capital accounts, ii) the maturity structure of select assets and liabilities, iii) the total resource flow to the commercial sector including investments in capital and money market instruments (non-approved securities) and iv) the net foreign currency assets of the banking sector. Scheduled commercial banks were issued a circular on August 24, 1998 instructing them to file the expanded Section 42(2) returns with effect from the reporting fortnight ended October 9, 1998. In view of the difficulties in obtaining data from major categories of co-operative banks and the time lags in their reporting, the Working Group recommended that data relating to items of liabilities and assets that have a direct bearing for the monetary survey could be collected through a representative sample of major cooperative banks at monthly frequency, followed by a population survey. Critical urban co-operative banks (with deposits of Rs.25 crore and above) and central co-operative banks (with deposits of Rs.50 crore and above) were instructed to file advance returns on selected assets and liabilities as proposed by the Working Group.

The Working Group recommended that the proposed monetary aggregates should be disseminated from fiscal 1999-2000. However, the monetary series presently in vogue would need to be continued for some time for the purpose of comparability. For convenience, the proposed monetary aggregates would be referred to as the new series and the present ones, the old series.

Sectorisation of the Economy for Money Supply Compilation

The present money supply compilation follows the sectorisation of the first Working Group on Money Supply (1961) which divided the economy into three sectors: i) the banking sector, ii) the government sector and iii) the money holding non-government commercial sector com- prising a) the rest of the domestic sector (including public sector undertakings) and b) the foreign sector for the purpose of M₃ compilation. The Working Group proposed to divide the domestic economy into four exclusive sectors, viz., i) households, ii) non-financial commercial sector, iii) general government and iv) financial corporations and introduced the concept of residency by carving out a rest of the world (RoW) sector which can transact with any of the domestic sectors. The financial corporations sector would comprise i) the banking sector, consisting of the RBI and the banking system in India and ii) the other financial corporations sector (Chart I).

The Concept of Residency

The Working Group recommended the compilation of monetary aggregates on residency basis in line with the best international practices. Non-resident deposit flows related to balance of payments considerations would not constitute domestic demand for money and are therefore, not to be included in money supply. Accordingly, capital flows in the form of non-resident repatriable foreign currency fixed liabilities with the banking system in India such as the balances under the Foreign Currency Non-Resident Repatriable (Banks) (FCNRB) Scheme and Resurgent India Bonds (RIBs) would not be directly reckoned in money supply.

New Monetary Aggregates

The Working Group recommended compilation of four monetary aggregates on the basis of the balance sheet of the banking sector in conformity with the norms of progressive liquidity: M₀(monetary base), M₁ (narrow money), M₂ and M₃ (broad money) (Box I).

Reserve Money (M₀)

The definition of reserve money and its components would remain unaltered. On the sources side, however, the RBI's refinance to the National Bank for Agriculture and Rural Development (NABARD), which was hitherto part of RBI's claims on banks (as it represents on-lending to banks), would be classified as part of RBI credit to commercial sector (as it is an advance to the other financial corporations sector). Further, the Reserve Bank's net non-monetary liabilities would be decomposed into capital account, comprising capital and reserves, and other items (net).

Narrow Money (M₁)

There would be no change in the definition of M₁.

Box I : New Monetary Aggregates

Weekly Compilation

M₀

=

Currency in Circulation + Bankers' Deposits with the RBI + 'Other' Deposits

with the RBI

Fortnightly Compilation

M₁

=

Currency with the Public + Demand Deposits with the Banking System

+ 'Other' Deposits with the RBI

=

Currency with the Public + Current Deposits with the Banking System

+ Demand Liabilities Portion of Savings Deposits with the Banking System

+ 'Other' Deposits with the RBI

M₂

=

M₁ + Time Liabilities Portion of Savings Deposits with the Banking System

+ Certificates of Deposit issued by Banks + Term Deposits of residents with

a contractual maturity of up to and including one year with the Banking

System (excluding CDs)

=

Currency with the Public + Current Deposits with the Banking System

+ Savings Deposits with the Banking System + Certificates of Deposit issued

by Banks + Term Deposits of residents with a contractual maturity up to

and including one year with the Banking System (excluding CDs) + 'Other'

Deposits with the RBI

M₃

=

M₂ + Term Deposits of residents with a contractual maturity of over one

year with the Banking System + Call/Term borrowings from 'Non-depository'

Financial Corporations by the Banking System

The proposed Intermediate Monetary Aggregate (NM₂)

The Working Group proposed a new intermediate monetary aggregate, to be referred to as NM₂, comprising currency and residents' short-term bank deposits which would stand in between narrow money (M₁) (which includes only the non-interest bearing monetary liabilities of the banking sector) and broad money (M₃) (an all encompassing measure that includes long-term time deposits). The recommendation implied the partition of the maturity structure of bank deposits into short-term and long-term time deposits at one year of contractual maturity in order to elicit information about depositors' preferences in holding money in various degrees of liquidity.

Data on the maturity structure of time deposits partitioned at the contractual maturity of one year are not readily available with banks. Collection of such information has required the banks to set up a reporting system for the purpose at the branch-level. The data received are new and would have to be over time subjected to tests of robustness and stability. For the present, therefore, such data had to be estimated based on the reporting by a representative sample of large public sector banks. The proportion of short-term time deposits (with a contractual maturity of up to and including one year) in total time deposits for the sample banks worked out to about 45.0 per cent. Pending the census data, this ratio has been applied to the aggregate time deposits of the banking system to obtain estimates of NM₂.

Broad Money (NM₃)

The new broad money aggregate (referred to here as NM₃ for purpose of clarity) in the Monetary Survey would comprise in addition to NM₂, long-term deposits of residents as well as call/ term borrowings from non-bank sources which have emerged as an important source of resource mobilisation for banks. The critical difference between M₃ and NM₃, essentially, lies in the treatment of non-resident repatriable fixed foreign currency liabilities of the banking system in the money supply compilation. The difference owing to banks' call/term borrowings from non-bank sources is, at present, negligible on reporting Fridays as such liabilities are fully subject to reserve requirements. The divergence between the estimates of M₃ and NM₃ would, there- fore, essentially depend on the magnitude of the non-resident inflows to the banking system in India. Table I provides data on new monetary aggregates along with the present aggregates for comparison purposes for March-end of the last three years. The difference between the growth rates of M₃ and NM₃ vary within a range of 0.1 to 1.7 percen- tage points on a point-to-point financial year basis. The difference is more or less the same when monthly data are averaged for the same period, viz., 0.3 to 1.6 percentage points (Table II).

The Working Group classified the liabilities of the banking system in India to others broadly in terms of i) demand liabilities, ii) time liabilities and iii) other demand and time liabilities (ODTL) in line with the existing practice. Of these liabilities, demand and time deposits are included in money supply as the monetary liabilities of the banking sector. The balances under ODTL are essentially non-deposit liabilities, which together with balances under such liabilities as paid-up capital and reserves constitute the net non-monetary liabilities (NNML) of the banking sector. One of the important items appearing under ODTL is the Pension and Provident Funds of the banking system, wherever such funds are not managed by separate entities and, as a result, reflected in the balance sheet of the banks. Pension and Provident Funds are essentially a portfolio of assets created to provide old age and retirement benefits and are, therefore, treated as different from deposits, in line with international practices.

TABLE I : PRESENT AND NEW MONETARY AGGREGATES

(Rupees crore)

March 31

Old Series

New Series

Reserve

M₁

M₃*

M₀=RM

NM₁=M₁

NM₂$

NM₃

Money (RM)

1997

1,99,985

2,40,615

7,01,848

1,99,985

2,40,615

4,51,564

6,70,043

1998

2,26,402

2,67,844

8,28,257

2,26,402

2,67,844

4,77,993

7,89,166

1999

2,59,371

3,08,315

9,80,382

2,59,371

3,09,328

5,50,807

9,25,530

Data are provisional.

* Includes banks' pension and provident funds.

$

NM₂ data have been estimated for end-March 1998 and 1999 by working out the share of short-term time deposits in total residents' time deposits for select nationalised banks which stood at about 45.0 per cent as at end-March 1999. In case of March 1997, the estimate of the Working Group report has been retained.

#

The difference is owing to different co-operative estimation methods as recommended by the Working Group.

TABLE II: M₃ AND NM₃ GROWTH RATES

Year

NM₃

M₃*

(New Series)

(Old Series)

Variation

Absolute

Per cent

Absolute

Per cent

1

2

3

4

5

1993-94

: March-end

64,629

17.7

67,562

18.4

: Monthly Average

15.6

15.9

1994-95

: March-end

90,532

21.2

97,019

22.3

: Monthly Average

18.4

19.8

1995-96

: March-end

61,980

12.0

72,581

13.7

: Monthly Average

14.4

15.7

1996-97

: March-end

89,914

15.5

97,841

16.2

: Monthly Average

15.0

16.3

1997-98

: March-end

1,19,123

17.8

1,26,409

18.0

: Monthly Average

16.6

17.0

1998-99

: March-end

1,36,364

17.3

1,52,125

18.4

: Monthly Average

18.0

19.1

Average

: March-end

16.9

17.8

: Monthly Average

16.3

17.3

Data are provisional.

* Includes Pension and Provident Funds (PF) with banks.

Credit Aggregates

Bank credit to the commercial sector comprises the RBI credit to the commercial sector and the credit from the banking system to the commercial sector. As far as the RBI credit to the commercial sector is concerned, the only change proposed by the Working Group is the inclusion of RBI's loans and advances to NABARD. The banking system's credit to the commercial sector would comprise accommodation in the form of i) loans, cash credit and overdrafts in both rupees as well as in foreign currency, ii) inland and foreign bills purchased and discounted (which together constitute what is commonly known as bank credit), iii) investment in all securities other than government securities and iv) net lending to primary dealers (PDs).

In recent years, banks have been increasingly investing in non-SLR securities with the liberalisation of restrictions on their portfolio management. The Reserve Bank has been publishing data on banks' investments in Commercial Paper (CP), shares, bonds and debentures issued by the public and the private corporate sectors (excluding public financial institutions and mutual funds). The Working Group recommended that banks' 'other investments in securities', i.e., securities not reckoned for the maintenance of statutory liquidity ratio (SLR), such as CP, units of UTI and other mutual funds, and shares/ debentures/bonds of the public and private non-bank sector (including public financial institutions and mutual funds) should be included in bank credit to the commercial sector. Investments in equity and debt paper issued by public financial institutions and mutual funds represent flows to the non-bank other financial corporations sector, (i.e., area D in Chart I), while the investments in similar instruments issued by the public and the private corporate sector (excluding public financial institutions and mutual funds) essentially represent flows to the non-financial commercial sector (i.e., area F in Chart I) (Table III).

Banks' net lending to PDs is presently classified as part of net inter-bank assets as PDs are notified as part of the banking system in India. However, as the Working Group has treated PDs as part of the other financial corporations sector, banks' net lendings to PDs would be part of bank credit to commercial sector.

TABLE III: SCHEDULED COMMERCIAL BANKS' OTHER INVESTMENTS

(Rs. crore)

Instrument

Outstanding as on

March 26, 1999

1

2

I.

Commercial Paper

4,832

II.

Units of Unit Trust of India and

Mutual Funds

3,235

III.

Shares issued by

5,463

III.1

Public Sector Undertakings

1,298

III.2

Private Corporate Sector

3,093

III.3

Public Financial Institutions

1,074

IV.

Bonds/Debentures issued by

57,473

I V .1

Public Sector Undertakings

22,454

I V .2

Private Corporate Sector

15,541

I V .3

Public Financial Institutions

19,477

Total Other Investments

71,004

Memo Item:

Investments in Shares/Bonds/Debentures

of the Public and Private Corporate Sector

42,386

Net Foreign Assets of the Banking Sector

Net Foreign Assets (NFA) of the banking sector comprise the net foreign exchange assets of the Reserve Bank of India and the net foreign currency assets of the banking system in India. The Working Group recommended that the net foreign currency assets of the banking system in India should be computed as the banks' gross foreign currency assets net of their i) overseas foreign currency borrowings and ii) nonresident repatriable foreign currency fixed liabilities with the banking system in India such as, the balances under the Foreign Currency Non-Resident Repatriable (Banks) (FCNRB) Scheme and Resurgent India Bonds (RIBs). The data received from the commercial banks in this regard show that their foreign currency assets are more or less matched by their foreign currency liabilities (adjusted for RIBs which are foreign currency liabilities of the State Bank of India and to the extent of the swapped portion, foreign currency assets of the RBI).

Capital Account

Net non-monetary liabilities (NNML) of the banking sector presently include i) capital and reserves, ii) revaluation on account of price and exchange rate changes, iii) net inter-bank liabilities, iv) other non-deposit sources including call money borrowings from non-bank parties and v) other net liabilities such as, net branch adjustments and other sundry items. The Working Group's proposal to replace the current concept of NNML in the monetary survey, with i) capital accounts comprising capital and reserves and (ii) the balancing item of other items (net) is essentially to be in conformity with the international practices. The sources (assets) side can be functionally depicted by i) domestic credit comprising a) net credit to the government and b) credit to commercial sector, ii) net foreign assets (NFA), iii) government's currency liabilities to the public, iv) capital account and v) other items (net).

The net non-monetary liabilities of other banks (excluding the RBI) have thus far been computed as a residual balancing the sources and components of money stock. Since the Working Group has recommended the inclusion of data on banks' capital and reserves, which comprise the capital account, the only balancing item in the NM₃ compilation would be "other items (net)". The link between the old residual item of net non-monetary liabilities of other banks and other items (net) of the banking system in India is shown in Box II.

Based on the above methodology and availability of data from banks, the estimates of the new monetary aggregates - both from the components and sources sides - are presented in Statements I, III and IV. Statement II presents a link series in respect of the NM₃ aggregate.

This article is prepared essentially to introduce the new monetary aggregates and to provide the methodology and analytical basis for the new monetary aggregates. Any comments on this article and suggestions for improving the presentational and methodological issues relating to the new monetary aggregates would be welcome.

Box II : Link between the NNML of Other Banks and Other Items (net) of the Banking System

NNML of Other

=

Net Bank Credit to Government + Bank Credit to Commercial

Banks (residual

Sector + NFA of the Banking Sector (=RBI's NFA +

as per present

Authorised Dealers' Balances) + Government's Currency

practice)

Liabilities with the

Public - RBI's NNML - M3

Other Items

=

Net Bank Credit to Government + Bank Credit to Commercial

(net) of the

Sector (New) (= Bank Credit to the Commercial Sector (old) +

Banking

RBI's Loans and Advances to NABARD + Other Investments

System

(in non-SLR securities) + Net Credit to Primary Dealers) +

(residual as

NFA of the Banking Sector (= RBI's NFA + Foreign Currency

recommended)

Assets of the Banking System - FCNRB Deposits - RIBs -

Overseas Borrowings by the Banking System) + Government's

Currency Liabilities with the Public - Capital Account {= RBI's

Capital Account + Capital Account of the banking System -

RBI's Other Items (net)} - NM3 (=M3 - FCNRB Deposits- RIBs

+ Other Borrowings from non-bank sources - Banks' Pension

and Provident Fund accounts)

=

NNML of Other Banks + RBI's Loans and Advances to

NABARD + 'Other' Investments + Net Credit to Primary

Dealers + Foreign Currency Assets of the Banking System -

Authorised Dealers' balances - Overseas Borrowings by the

Banking System - Capital Account of the Banking System -

Other Borrowings from non-bank sources + Banks' Pension

and Provident Fund accounts (since, RBI's Capital Account

+ RBI's Other Items (net) = RBI's NNML).

*

Prepared in the Division of Money and Banking of the Department of Economic Analysis and Policy.

Statement I : Monetary Survey

(Rupees crore)

Outstanding as on

Item

March 31,

April 9,

April 23,

May 7,

May 21,

June 4,

June 18,

1999

1999

1999

1999

1999

1999

1999

1

2

3

4

5

6

7

8

Monetary Aggregates

M₁ (C.I + C.II.1 + C.III)

3,09,328

3,13,816

3,13,913

3,15,905

3,10,787

3,09,975

3,11,242

NM₂ (M₁+C.II.2.1)

5,80,851

5,90,165

5,91,476

5,95,327

5,92,027

5,92,647

5,96,413

NM₃ (M₂+C.II.2.2+C.IV= S.I+S.II+S.III-S.IV-S.V)

9,25,530

9,35,886

9,39,408

9,46,082

9,41,219

9,45,800

9,51,770

Components

C.I

Currency with the Public

1,69,203

1,75,091

1,79,041

1,85,241

1,84,917

1,85,352

1,85,021

C.II

Aggregate Deposits of Residents

7,51,366

7,55,516

7,55,151

7,55,562

7,51,751

7,55,706

7,60,239

(C.II.1+C.II.2)

C.II.1

Demand Deposits

1,36,304

1,34,764

1,31,664

1,27,590

1,22,839

1,21,779

1,21,098

C.II.2

Time Deposits of Residents

6,15,062

6,20,752

6,23,487

6,27,972

6,28,912

6,33,927

6,39,141

(C.II.2.1+C.II.2.2)

C.II.2.1

Short-term Time Deposits

2,71,523

2,76,349

2,77,563

2,79,422

2,81,240

2,82,672

2,85,171

C.II.2.1.1

Certificates of Deposit (CDs)

5,255

2,989

3,006

3,165

1,770

2,595

2,442

C.II.2.2

Long-term Time Deposits

3,43,539

3,44,403

3,45,924

3,48,550

3,47,672

3,51,255

3,53,970

C.III

'Other' Deposits with the RBI

3,821

3,961

3,208

3,074

3,031

2,844

5,123

C.IV

Call/Term Funding from Financial

Institutions

1,140

1,318

2,008

2,205

1,520

1,898

1,387

Sources

S.I

Domestic Credit (S.I.1+S.I.2)

9,74,742

9,67,407

9,95,253

10,11,096

10,05,868

10,09,971

10,13,446

S.I.1

Net Bank Credit to the Government

3,88,404

3,96,861

4,01,912

4,08,574

4,07,688

4,10,308

4,14,683

(S.I.1.1+S.I.1.2)

S.I.1.1

Net RBI credit to the Government

1,52,539

1,53,513

1,55,963

1,58,103

1,55,178

1,54,952

1,55,968

S.I.1.2

Credit to the Government by

the Banking System

2,35,865

2,43,348

2,45,949

2,50,471

2,52,510

2,55,356

2,58,715

S.I.2

Bank Credit to the Commercial Sector

5,86,338

5,70,546

5,93,341

6,02,522

5,98,180

5,99,663

5,98,763

(S.I.2.1+S.I.2.2)

S.I.2.1

RBI Credit to the Commercial Sector

17,875

13,724

15,354

17,250

14,633

15,225

13,760

S.I.2.2

Credit to the Commercial Sector by

the Banking System

5,68,463

5,56,822

5,77,987

5,85,272

5,83,547

5,84,438

5,85,003

S.I.2.2.1

Other Investments (non-SLR Securities)

79,783

65,716

80,908

87,165

86,792

88,590

88,920

S.II

Government's Currency Liabilities

to the Public

3,846

3,846

3,846

3,846

3,846

3,846

3,846

S.III

Net Foreign Exchange Assets of

the Banking Sector (S.III.1+S.III.2)

1,15,750

1,13,945

1,17,318

1,18,667

1,16,291

1,27,558

1,24,556

S.III.1

Net Foreign Exchange Assets of the RBI

1,37,954

1,39,213

1,39,157

1,40,819

1,42,973

1,43,515

1,43,537

S.III.2

Net Foreign Currency Assets of

the Banking System

- 22,204

- 25,268

- 21,839

- 22,152

- 26,682

- 15,957

- 18,981

S.IV

Capital Account

1,20,620

1,21,002

1,20,959

1,21,381

1,12,996

1,13,167

1,14,835

S.V

Other items (net)

48,188

28,310

56,050

66,146

71,790

82,408

75,243

Note :

1.

Data are provisional.

2.

Monetary aggregates as at end-March incorporate data on i) scheduled commercial banks as on the last reporting Friday and ii) the Reserve Bank of India pertaining to the last working day of the fiscal year.

Statement II : Link Between the New and Old Monetary Series

(Rupees crore)

(Per cent)

Banks'

Resurgent

Call/Term

Year-on-Year

Month

Pension and

India

Borrowings

Growth

NM₃

M₃*

Provident

FCNRB

Bonds

from

NM₃

M₃*

(New Series)

(Old

Funds @

Deposits

Financial

Series)

Institutions

1

2=(3-4-5-6+7)

3

4

5

6

7

8

9

1993-94

April

3,79,014

3,81,783

2,832

0

63

May

3,81,713

3,84,721

3,021

0

13

June

3,82,201

3,84,730

3,030

78

579

July

3,84,999

3,88,167

3,032

169

33

August

3,87,656

3,90,891

3,050

322

137

September

3,91,284

3,94,766

3,056

492

66

October

3,95,817

4,00,214

3,081

1,369

53

November

4,01,772

4,06,518

3,093

1,811

158

December

4,06,978

4,12,259

3,281

2,124

124

January

4,14,743

4,20,390

3,287

2,361

1

February

4,21,217

4,27,123

3,303

2,791

188

March

4,27,617

4,34,407

3,323

3,475

8

1994-95

April

4,42,976

4,50,176

3,341

3,909

50

16.9

17.9

May

4,47,389

4,55,287

3,551

4,370

24

17.2

18.3

June

4,49,476

4,57,672

3,555

4,646

4

17.6

19.0

July

4,55,578

4,64,372

3,553

5,316

75

18.3

19.6

August

4,55,912

4,64,435

3,567

5,747

791

17.6

18.8

September

4,68,301

4,79,342

3,585

7,528

72

19.7

21.4

October

4,76,941

4,88,580

3,605

8,137

103

20.5

22.1

November

4,80,354

4,92,245

3,609

8,389

107

19.6

21.1

December

4,83,421

4,95,191

3,620

8,690

541

18.8

20.1

January

4,85,753

4,98,319

3,589

9,146

170

17.1

18.5

February

4,91,536

5,04,522

3,810

9,430

254

16.7

18.1

March

5,18,149

5,31,427

3,831

9,648

201

21.2

22.3

Average

18.4

19.8

1995-96

April

5,14,951

5,28,701

3,837

10,013

100

16.2

17.4

May

5,19,745

5,34,363

4,088

10,596

67

16.2

17.4

June

5,20,485

5,36,087

4,094

11,573

65

15.8

17.1

July

5,21,956

5,38,150

4,097

12,345

248

14.6

15.9

August

5,26,199

5,42,665

4,119

12,776

430

15.4

16.8

September

5,37,091

5,54,753

4,195

14,028

561

14.7

15.7

October

5,43,254

5,61,988

4,273

14,930

468

13.9

15.0

November

5,42,912

5,63,036

4,602

15,926

404

13.0

14.4

December

5,46,442

5,67,182

4,696

16,448

404

13.0

14.5

January

5,53,929

5,75,615

4,751

17,505

569

14.0

15.5

February

5,58,448

5,81,231

4,776

18,940

933

13.6

15.2

March

5,80,129

6,04,007

4,816

19,648

587

12.0

13.7

Average

14.4

15.7

(Rupees crore)

(Per cent)

Banks'

Resurgent

Call/Term

Year-on-Year Growth

Month

NM₃

M₃*

Pension

FCNRB

India

Borrowings

(Old

and

Deposits

Bonds

from

(New Series)

Series)

Provident

Financial

NM₃

M₃*

M₃*-

Funds @

Institutions

RIBs

1

2=(3-4-5-6+7)

3

4

5

6

7

8

9

10

1996-97

April

5,90,046

6,14,115

4,856

20,280

1,067

14.6

16.2

May

5,91,147

6,16,171

4,920

20,836

732

13.7

15.3

June

5,98,107

6,24,777

5,247

22,024

601

14.9

16.5

July

6,00,582

6,27,424

5,259

22,426

843

15.1

16.6

August

6,03,151

6,31,080

5,302

23,097

470

14.6

16.3

September

6,15,788

6,43,686

5,328

23,259

689

14.7

16.0

October

6,18,182

6,46,599

5,356

23,803

741

13.8

15.1

November

6,25,287

6,54,376

5,724

24,162

796

15.2

16.2

December

6,29,679

6,59,292

5,744

24,616

747

15.2

16.2

January

6,45,110

6,75,182

5,771

25,074

773

16.5

17.3

February

6,51,012

6,82,171

5,804

26,125

770

16.6

17.4

March

6,70,043

7,01,848

5,836

26,906

937

15.5

16.2

Average

15.0

16.3

1997-98

April

6,81,658

7,14,376

5,867

27,703

852

15.5

16.3

May

6,88,600

7,22,350

6,298

28,268

815

16.5

17.2

June

6,96,519

7,30,651

6,304

28,665

837

16.5

16.9

July

6,98,028

7,32,534

6,329

29,325

1,147

16.2

16.8

August

7,00,602

7,35,310

6,381

29,674

1,348

16.2

16.5

September

7,14,941

7,50,652

6,400

30,362

1,051

16.1

16.6

October

7,24,551

7,59,258

6,436

29,809

1,538

17.2

17.4

November

7,34,888

7,70,438

6,854

29,783

1,087

17.5

17.7

December

7,39,300

7,75,154

6,850

30,603

1,599

17.4

17.6

January

7,48,017

7,85,467

6,880

31,761

1,191

16.0

16.3

February

7,61,210

7,98,306

6,898

31,619

1,421

16.9

17.0

March

7,89,166

8,28,257

6,925

33,445

1,279

17.8

18.0

Average

16.6

17.0

1998-99

April

8,05,020

8,43,835

6,940

33,176

1,301

18.1

18.1

May

8,10,151

8,49,227

6,970

33,461

1,355

17.7

17.6

June

8,21,574

8,61,866

7,400

34,498

1,606

18.0

18.0

July

8,24,371

8,65,512

7,392

35,193

1,444

18.1

18.2

August

8,29,520

8,85,835

7,398

32,610

17,945

1,638

18.4

20.5

18.0

September

8,44,701

9,01,332

7,408

32,753

17,945

1,475

18.1

20.1

17.7

October

8,57,843

9,15,945

7,890

33,391

17,945

1,124

18.4

20.6

18.3

November

8,65,178

9,20,510

7,901

30,685

17,945

1,199

17.7

19.5

17.1

December

8,73,523

9,28,923

7,910

30,710

17,945

1,165

18.2

19.8

17.5

January

8,83,750

9,40,659

8,144

32,711

17,945

1,891

18.1

19.8

17.5

February

8,90,717

9,48,732

8,173

33,722

17,945

1,825

17.0

18.8

16.6

March

9,25,530

9,80,382

8,178

33,222

17,945

1,140

17.3

18.4

16.2

Average

18.0

19.1

17.6

@

Includes those banks which have reported such data so far.

*

Includes banks' provident and pension funds.

#

figure as reported and that (Rs.9,22,177 crore) derived from the linking formula is on account of the difference in the NM₃ changes in co-operative estimation procedures as recommended by the Working Group.

Note:

1.

Data are provisional.

2.

Monetary aggregates as at end-March incorporate data on i) scheduled commercial banks relating to the last reporting Friday and ii) the Reserve Bank relating to the last working day of the fiscal year.

Statement III : Reserve Bank of India Survey

(Rupees crore)

Outstanding as on

Item

March 31,

April 9,

April 23,

May 7,

May 21,

June 4,

June 18,

1999

1999

1999

1999

1999

1999

1999

1

2

3

4

5

6

7

8

Components

C.I

Currency in Circulation

1,75,846

1,81,499

1,85,328

1,91,545

1,91,281

1,91,823

    1,91,446

C.II

Bankers' Deposits with the RBI

79,703

65,838

71,371

73,128

67,119

66,639

62,650

C.II.1

Scheduled Commercial Banks

77,706

64,000

69,678

71,287

65,248

64,670

60,653

C.III

'Other' Deposits with the RBI

3,821

3,961

3,208

3,074

3,031

2,844

5,123

C.IV

Reserve Money (C.I+C.II+C.III =

2,59,371

2,51,298

2,59,907

2,67,747

2,61,431

2,61,306

2,59,219

S.I + S.II + S.III - S.IV - S.V)

Sources

S.I

RBI's Domestic Credit (S.I.1+S.I.2+S.I.3)

1,78,027

1,69,375