TABLE 3.1
Sources of Change in Money Stock (M3)
Variations during1
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Financial Year Annual Financial Year Annual
_______________________ _______________ _______________________ _______________
1995-96 1995-96 1996-97 1995-96 1996-97 1995-96 1995-96 1996-97 1995-96 1996-97
Mar.31 Mar.31 Mar.31 Jan.20 Jan.19 Mar.31 Mar.31 Mar.31 Jan.20 Jan.19
to to to to to to to to to to
Mar.31 Jan.19 Jan.17 Jan.19 Jan.17 Mar.31 Jan.19 Jan.17 Jan.19 Jan.17
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(Rs. crore) (Per cent)
I. M1 (Money supply
with the public) 22106 8163 11507 25571 25450 11.5 4.2 5.4 14.6 12.7
II. M3 (Aggregate monetary
resources) 70409 43647 63697 76756 90459 13.2 8.2 10.6 15.4 15.7
i)Currency with the public 17480 15870 13084 18886 14694 17.4 15.8 11.1 19.3 12.6
ii)Demand deposits with
banks 4669 -10649 -2507 3545 12811 5.3 -12.1 -2.7 4.8 16.5
iii)Time deposits with bank 48304 35485 52190 51185 65009 14.2 10.5 13.5 15.8 17.4
iv)Other deposits with RBI -43 2942 930 3140 -2055 -1.3 86.9 27.8 98.6 -32.5
III.Sources of change in M3 (1+2+3+4-5)
1. Net bank credit to
Government (A+B) 34991 28230 29464 35062 36225 15.7 12.7 11.4 16.3 14.5
A) RBI’s net credit to
Government (i+ii)2 19871 14961 3986 21121 8896 19.6 14.7 3.3 22.2 7.6
i) Central Government 19855 17091 5608 21106 8372 20.1 17.3 4.7 22.2 7.2
ii) State Governments 16 -2130 -1622 15 524 0.6 -83.0 -62.8 3.6 120.5
B) Other banks’ credit to
Government 15120 13269 25478 13940 27329 12.5 11.0 18.7 11.6 20.4
2. Bank credit to commercial
sector (A+B) 48179 33964 17974 54413 32189 16.5 11.6 5.3 20.0 9.9
A) RBI’s credit to commercial
sector4 262 -93 -568 -72 -213 4.0 -1.4 -8.3 -1.1 -3.3
B) Other banks’ credit to
commercial sector 47917 34057 18542 54485 32402 16.7 11.9 5.6 20.5 10.1
3. Net foreign exchange assets
of the banking sector5 -628 -458 11481 5345 11311 -0.8 -0.6 14.9 7.4 14.6
4. Government’s currency liabilities
to the public 7 58 461 271 410 0.3 2.4 19.3 12.5 16.8
5. Banking Sector’s net
non-monetary liabilities
other than time deposits 12139 18146 -4317 18335 -10324 19.0 28.4 -5.7 28.8 -12.6
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1. Data for RBI relate to March 31 after closure of Government Accounts. Variations in respect of scheduled
commercial banks are based on data for last reporting Friday of March. The data for 1995-96 are not strictly
comparable with those of 1994-95, as M3 data for 1994-95 include scheduled commercial banks’ data for 27
fortnights while for data for 1995-96 include 26 fortnights.All figures are provisional.
2. Includes special securities.
3. Includes Rs.751.64 crore (equivalent of SDR 211.95 million) incurred on account of Reserve Asset subscription
to the IMF towards the quota increase.
4. Excludes, since the establishment of NABARD on July 12, 1982, its refinance to banks.
5. Inclusive of appreciation in the value of gold following its revaluation close to international market price
effective October 17,1990. Such appreciation has a corresponding effect on RBI’s net non-monetary liabilities.
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From the database of Ministry of Finance disseminated on Internet through NICNET