TABLE 3.2

                                          Sources of Change in Reserve Money
                                                    Variations during1
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	                                   Financial Year	  Annual	     Financial Year	      Annual
                                      _______________________  _______________  _______________________  ________________
		         Outstanding  1995-96 1995-96 1996-97  1995-96 1996-97	1995-96	1995-96	1996-97	 1995-96 1996-97
		         as on March   Mar.31  Mar.31  Mar.31	Jan.20	Jan.19	 Mar.31	 Mar.31	 Mar.31	  Jan.20  Jan.19			
                            31, 1995	   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)_
1. Net RBI credit to
   Government2	             101478	19871	14961	 3987    21122	 8897	  19.6	  14.7	  3.3	   22.2     7.6
2. RBI credit to
   banks3	              13470	 8485   -2270  -15349	  2543	-4594	  63.0	 -16.9	-69.9	   29.4	  -41.0
3. RBI credit to
   commercial sector4	       6593	  262	  -93	 -568	   -72	 -213	   4.0	  -1.4	 -8.3	   -1.1	   -3.3
4. Net foreign exchange
   assets of RBI5	      74720	 -628	 -458	11482	  5344	11312	  -0.8	  -0.6	 15.5	    7.8	   15.2
5. Government’s currency
   liabilities to the public   2379	    7	   58	  461	   271	  410	   0.3	   2.4	 19.3	   12.5	   16.8						
6. Net non-monetary
   liabilities of RBI	      29358	 2943	 5436	 5584	 11589	 3091	  10.0	  18.5	 17.3	   49.9	    8.9
7. Reserve Money
   (1+2+3+4+5-6)	     169282	25054	 6762	-5571	 17619	12721	  14.8	   4.0	 -2.9	   11.1	    7.2
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1. Variations are worked out on the basis of March 31 data after closure of  Governments accounts.  Figures for  1995-96
   and 1996-97 are provisional.
   provisional.
2. Includes special securities.
3. Includes claims on NABARD.
4. Excludes, since the establishment of NABARD, its refinance to banks.
5. Variations are inclusive of appreciation in the value of gold  following  its revaluation  close  to the international 
   market price since October17, 1990. Such appreciation has a corresponding effect on RBI’s net non-monetary liabilities.
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