PART I – FINANCIAL STATISTICS, Summaries of Statistics

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Monetary Statistics

PART I – FINANCIAL STATISTICS

Monetary Statistics

1.1 INTRODUCTION

The Reserve Bank of India has a long tradition

of compilation and dissemination of monetary

statistics, since July 1935. In view of the

ongoing changes in the Indian economy as well

as the developments in monetary sector, working

groups were set up periodically to review and

refine the monetary aggregates. Three working

groups were set up so far, viz., the First Working

Group on Money Supply (FWG) (1961), the

Second Working Group (SWG) (1977) and the

“Working Group on Money Supply: Analytics and

Methodology of Compilation” (WGMS) (Chairman:

Dr. Y.V. Reddy) (1998). Monetary statistics at

present are compiled on a balance sheet

framework with data drawn from the banking

sector and postal authorities. The rationale and

analytical foundations behind the compilation

of monetary aggregates have been provided to

the public through various reports, especially

through the reports of the various working

groups. Monetary aggregates are published on

a regular basis in most of the major publications

of RBI, such as Bank’s Annual Report, Report

on Currency and Finance, Handbook of

Statistics, RBI Bulletin, Weekly Statistical

Supplement, etc.

There is no unique definition of ‘money’, either

as a concept in economic theory or as

measured in practice. Money is a means of

payment and thus a lubricant that facilitates

exchange. Money also acts as a store of value

and a unit of account. In the real world,

however, money provides monetary services

along with tangible remuneration. It is for this

reason that money has to have relationship

with the activities that economic entities

pursue. Money can, therefore, be defined for

policy purposes as the set of liquid financial

assets, the variation in the stock of which

could impact on aggregate economic activity.

As a statistical concept, money could include

certain liquid liabilities of a particular set of

financial intermediaries or other issuers. Thus,

like other countries, a range of monetary and

liquidity measures are compiled in India.

1. MONETARY STATISTICS

1.2. CONCEPTS AND DEFINITIONS

Various monetary and liquidity aggregates are

compiled in India and their definitions are set

out Table 1.

Table 1.1: Measures of Monetary and

Liquidity Aggregates

Reserve Money = Currency in circulation + Bankers’ deposits with the RBI

• ‘Other’ deposits with the RBI = Net RBI credit to the Government + RBI credit to the commercial sector + RBI’s claims on banks + RBI’s net foreign assets + Government’s currency liabilities to the public

• RBI’s net non-monetary liabilities

M 1 =^ Currency^ with^ the^ public^ + Demand deposits with the banking system + ‘Other’ deposits with the RBI. M 2 = M 1 + Savings deposits of post office savings banks M 3 = M 1 + Time deposits with the banking system = Net bank credit to the Government + Bank credit to the commercial sector + Net foreign exchange assets of the banking sector + Government’s currency liabilities to the public

• Net non-monetary liabilities of the banking sector

M 4 = M 3 + All deposits with post office savings banks (excluding National Savings Certificates). NM 1 = Currency with the public + Demand deposits with the banking system + ‘Other’ deposits with the RBI. NM 2 = NM 1 + Short-term time deposits of residents (including and up to the contractual maturity of one year). NM 3 = NM 2 + Long-term time deposits of residents + Call/Term funding from financial institutions.

Monetary Statistics

(CGRA), Contingency Reserve and Asset

Development Reserve. The reserves, viz .,

Contingency Reserve, Asset Development Reserve,

CGRA and EEA reflected in ‘Other Liabilities’ are

in addition to the ‘Reserve Fund’ of Rs.6,

crore held by the Reserve Bank as a distinct

balance sheet head. Gains/losses on valuation

of foreign currency assets and gold due to

movements in the exchange rates and/or prices

of gold are not taken to Profit and Loss Account

but instead booked under a balance sheet head

named as CGRA. The balance represents

accumulated net gain on valuation of foreign

currency assets and gold. CGRA was earlier

known as Exchange Fluctuation Reserve (EFR).

The balance in EEA represents provision made

for exchange losses arising out of forward

commitments. Contingency Reserve represents

the amount set aside on a year-to-year basis for

meeting unexpected and unforeseen

contingencies including depreciation in value of

securities, exchange guarantees and risks arising

out of monetary/ exchange rate policy

compulsions. In order to meet the internal capital

expenditure and make investments in

subsidiaries and associate institutions, a further

specified sum is provided and credited to the

Asset Development Reserve.

‘Net non-monetary liabilities (NNML) of the

Reserve Bank’ are liabilities which do not have

any monetary impact. These comprise items such

as the Reserve Bank’s paid-up capital and

reserves, contribution to National Funds (NIC-

LTO Fund and NHC-LTO Fund), RBI employees’

PF and superannuation funds, bills payable,

compulsory deposits with the RBI, RBI’s profit

held temporarily under other deposits, amount

held in state Governments Loan Accounts under

other deposits, IMF quota subscription and other

payments and other liabilities of RBI less net

other assets of the RBI. Similarly, NNML of

banks include items such as their capital,

reserves, provisions, etc. NNML of the banking

sector includes NNML of the Reserve Bank and

that of other banks.

‘Currency with the public’ is currency in

circulation less cash held by banks. ‘Demand

deposits’ include all liabilities which are payable

on demand and they include current deposits,

demand liabilities portion of savings bank

deposits, margins held against letters of credit/

guarantees, balances in overdue fixed deposits,

cash certificates and cumulative/ recurring

deposits, outstanding Telegraphic Transfers (TTs),

Mail Transfers (MTs), Demand Drafts (DDs),

unclaimed deposits, credit balances in the Cash

Credit account and deposits held as security for

advances which are payable on demand. Money

at Call and Short Notice from outside the

Banking System is shown against liability to

others.

‘Time deposits’ are those which are payable

otherwise than on demand and they include fixed

deposits, cash certificates, cumulative and

recurring deposits, time liabilities portion of

savings bank deposits, staff security deposits,

margin money held against letters of credit if

not payable on demand, India Millennium

Deposits and Gold Deposits.

‘Net bank credit to Government’ comprise the

RBI’s net credit to Central and State

Governments and commercial and co-operative

banks’ investments in Central and State

Government securities. ‘Bank credit to

commercial sector’ include RBI’s and other

bank’s credit to commercial sector. Other banks’

credit to commercial sector includes banks’ loans

and advances to the commercial sector (including

scheduled commercial banks’ food credit) and

banks’ investments in “other approved”

securities.

The acronyms NM 1 , NM 2 and NM 3 are used to

distinguish the new monetary aggregates [as

proposed by the Working Group on Money

Supply: Analytics and Methodology of

Compilation (WGMS) (Chairman: Dr. Y.V. Reddy),

June 1998] from the existing monetary

aggregates. NM 2 and NM 3 are based on the

residency concept and hence do not directly

reckon non-resident foreign currency repatriable

fixed deposits in the form of FCNR(B) deposits,

Resurgent India Bonds (RIBs) and India

Millennium Deposits (IMDs). Residency

essentially relates to the country in which the

holder has a centre of economic interest.

Currency and deposits held by the non-residents

in the rest of the world sector would be related

Manual on Financial and Banking Statistics

to balance of payments considerations such as

international capital flows rather than to the

domestic demand for monetary assets or to the

use of money in domestic transactions. While

there is a need to categorise deposit liabilities

by residency, it may not be appropriate to

exclude all categories of non-resident deposits

from domestic monetary aggregates as non-

resident rupee deposits are essentially integrated

into the domestic financial system. Therefore,

only non-resident repatriable foreign currency

fixed deposits are excluded from deposit liabilities

and treated as external liabilities. Accordingly,

from among the various categories of non-

resident deposits, FCNR(B), Resurgent India

Bonds (RIBs), and India Millennium Deposits

(IMDs) were classified as external liabilities and

excluded from the domestic money stock. Other

major features of the new monetary and liquidity

aggregates are as follows:

1. Compilation of four measures of monetary

aggregates, and three measures of liquidity

aggregates besides a comprehensive

financial sector survey. NM 0 is essentially

the monetary base, compiled mainly from

the balance sheet of the Reserve Bank of

India; NM 1 purely reflects the non-interest

bearing monetary liabilities of the banking

sector; NM 2 includes besides currency and

current deposits, saving and short-term

deposits reflecting the transactions balances

of entities. NM 3 was redefined to reflect

additionally to NM 2 the call funding that the

banking system obtains from other financial

institutions.

2. Bank credit is often specifically referred, in

monetary economics, as a critical variable

affecting consumption and capital formation

in a direct manner. As such it is often

regarded as a more useful indicator of real

sector activity than money supply. In India,

one of the objectives of monetary policy is

clearly stated in official documents as one

of ensuring adequate flow of credit to the

productive sectors of the economy. While

credit to government from the banking

system is clearly identified, bank credit to

the commercial sector, includes only

advances in the form of loans, cash credit,

overdrafts, bills purchased and discounted,

and investments in approved securities

other than government securities. However,

commercial banks have in recent years been

investing in securities such as commercial

paper, shares and debentures issues by the

commercial sector, which are not reflected

in the conventional credit aggregates. The

definition of bank credit has been broadened

to include such investments.

3. Net foreign exchange assets (NFA) of the

banking sector comprise the RBI’s net

foreign exchange assets and the net foreign

currency assets of the banking system. Net

foreign currency assets of the banking

system comprise their holdings of foreign

currency assets net of i) their holdings of

non-resident repatriable foreign currency

fixed deposits which is presently defined to

include FCNR(B) deposits and ii) overseas

foreign currency borrowings.

4. In the new monetary aggregate NM 3 , capital

account consists of paid-up capital and

reserves. ‘Other Items (net)’ is the residual,

balancing the components and sources of

the monetary and banking accounts and

includes other demand and time liabilities,

net inter-bank liabilities, etc., as applicable.

1.3 COVERAGE

At present monetary aggregates are compiled

based on the data from the scheduled

commercial banks, cooperative banks, urban

cooperative banks and the post offices. The

coverage of co-operative banks has increased over

time (Table 1.2). As regards co-operative banks,

data up to February 1970 include State co-

operative banks, while the data from March 1970

onwards are inclusive of central co-operative

banks and primary co-operative banks.

1.3.1 Changes in the Compilation

There was a change in the treatment of

apportionment of savings deposits into its two

components - demand and time in March 1978.

Savings bank accounts are bifurcated into demand

and time portions depending on whether interest

is actually paid on such deposits. Banks are

required to report such classification on the basis

Manual on Financial and Banking Statistics

First Working Group Second Working Group Working Group on Money REMARKS (FWG) (1961) (SWG) (1977) Supply (WGMS) (1998)

1 2 3 4

C.II.1 Demand Deposits with banks (including inter-bank demand deposits with state co- operative banks)

C.II.2 Time Deposits with banks (including inter- bank time deposits with state co-operative banks)

C.III. ‘Other’ deposits with the RBI (C.III.1-C.III.2)

C.III.1 Other Deposits with the RBI

C.II.1 Demand Deposits with the banking system.

C.II.2 Time Deposits with the banking system.

C.III. ‘Other’ deposits with the RBI (C.III.1- C.III.2-C.III.3-C.III.4- C.III.5)

C.III.1 Other Deposits with the RBI

C.II.1 Demand Deposits with the banking system.

C.II.2 Time Deposits held by Residents with the banking system. (CII.2.1+C.II.2.2+ C.II.2.3)

C.II.2.1 Certificates of Deposit (CDs)

C.II.2.2 Short-term^1 time deposits

C.II.2.2.1 Foreign Currency Repatriable short-term^1 ‘Fixed Deposits held by Non- Residents

C.II.2.3 Long-term 2 time deposits

C.II.2.3.1 Foreign Currency Repatriable long-term^2 Fixed Deposits held by Non- Residents

C.II.3 Savings Accounts

C.II.3.1 Time Liabilities portion of Savings Accounts

C.III. ‘Other’ deposits with the RBI (C.III.1-C.III.2- C.III.3-C.III.4-C.III.5)

C.III.1 Other Deposits with the RBI

(WGMS): Analytics and Methodology Compilation. The WGMS recommended that aggregate deposits should be on residency basis, thereby excluding repatriable foreign currency fixed deposits held by non-residents, e.g. , FCNR(B) deposits, from money supply.

The WGMS recommended a break-up of time deposits into CDs and other time deposits on the basis of maturity structure partitioned at one year.

Monetary Statistics

First Working Group Second Working Group Working Group on Money REMARKS (FWG) (1961) (SWG) (1977) Supply (WGMS) (1998)

1 2 3 4

C.III.2 IMF Deposits with RBI in Account No.1 *

C.IV. Money Supply with the Public (=C.I+C.II.1+C.III)

C.III.2 IMF Deposits with RBI in Account No.1 *

C.III.3 RBI Employees’ Pension/ Provident/Co- operative Guarantee Funds

C.III.4 Compulsory Deposits with RBI

C.III.5 Profits of the RBI held temporarily under other deposits and subscriptions to state governments’ loans pending allotment

C.IV. Post Office Total Deposits

C.IV.1 Post Office Savings Deposits

C.V. Narrow Money (M 1 )(=C.I+C.II.1+C.III)

C.III.2 IMF Deposits with RBI in Account No.1 *

C.III.3 RBI Employees’ Pension/ Provident/Co- operative Guarantee Funds

C.III.4 Compulsory Deposits with RBI

C.III.5 Profits of the RBI held temporarily under other deposits and subscriptions to state governments’ loans pending allotment

C.IV. Post Office Total Deposits

C.IV.1 Post Office Savings Deposits

C.V. Call/Term Money Borrowings by Scheduled Commercial Banks from non-bank sources (excluding PDs)

C.VI. Narrow Money (M 1 )(=C.I+C.II.1+C.III)

Balances under Reserve Bank Employees’ Pension/Provident and Co-operative Guarantee Funds have been excluded from money supply since January

Balances under Additional Emoluments (Compulsory Deposits) Act 1974 and the Compulsory Deposit Scheme (Income Tax Payers) Act were excluded from money supply effective August 16, 1974 and December 13, 1974, respectively.

Post Office Deposits were included in the monetary aggregates by the SWG. The WGMS recommended that these should be part of liquidity aggregates.

Borrowings represent money at call and short notice obtained from outside the banking system, but exclude refinance from RBI and financial institutions.

There is a break in the M1 series following the reclassification of demand and time

• IMF Account No. 1

The IMF conducts its financial dealings with a member through the fiscal agency and the depository designated by the member. In addition, each member is required to designate its central bank as a depository for the IMF’s holding of the member’s currency, or if it has no central bank, a monetary agency or a commercial bank acceptable to IMF. Most members have designated their central banks as both the depository as well as the financial agency. The depository maintains without any service charge or commission, two accounts that are used to record the IMF’s holdings of the member’s currency the IMF’s account no. 1 and IMF’s account no. 2 The no. 1 account is used for IMF transactions, including subscription payments, purchases and repurchases and repayment of resources borrowed by IMF.

Monetary Statistics

First Working Group Second Working Group Working Group on Money REMARKS (FWG) (1961) (SWG) (1977) Supply (WGMS) (1998)

1 2 3 4

S.I.1.1 Loans and Advances to the Central Government

S.I.1.2 Bills Purchased and Discounted

S.I.1.3 Investments in Treasury Bills

S.I.1.4 Investments in Government of India Securities

S.I.1.5 Rupee coins held by the RBI

S.I.1.6 Deposits of the Central Government with the RBI

S.I.1.7 Loans and Advances to State Governments

S.I.1.8 Deposits of State Governments

S.I.2 Other Banks’ credit to Government (S.I.2.1 + S.I.2.2)

S.I.2.1 Other Banks’ investments in Government securities

S.I.2.2 Government’s Currency Liabilities to the Public adjusted for balances in treasuries

S.II. Total Bank Credit to Private Sector (S.II.1+S.II.2)

S.I.1.1.3 + S.I.1.1.4 +

S.I.1.1.5 - S.I.1.1.6)

S.I.1.1.1 Loans and Advances to the Central Government

S.I.1.1.2 Bills Purchased and Discounted

S.I.1.1.3 Investments in Treasury Bills

S.I.1.1.4 Investments in Central Government Securities

S.I.1.1.5 Rupee coins held by the RBI

S.I.1.1.6 Deposits of the Central Government with the RBI

S.I.1.2 Net RBI credit to the State Government (S.I.1.2.1-S.1.2.2)

S.I.1.2.1 Loans and Advances to State Governments

S.I.1.2.2 Deposits of State Governments

S.I.2 Other Banks’ credit to Government (=S.I.2.1)

S.I.2.1 Other Banks’ investments in Government securities

S.II. Total Bank Credit to Commercial Sector (S.II.1+S.II.2)

S.I.1.1.3 + S.I.1.1.4 +

S.I.1.1.5-S.I.1.1.6)

S.I.1.1.1 Loans and Advances to the Central Government

S.I.1.1.2 Bills Purchased and Discounted

S.I.1.1.3 Investments in short-term^1 Central Government securities

S.I.1.1.4 Investments in long-term^2 Central Government Securities

S.I.1.1.5 Rupee coins held by the RBI

S.I.1.1.6 Deposits of the Central Government with the RBI

S.I.1.2 Net RBI credit to the State Government (S.I.1.2.1-S.I.1.2.2)

S.I.1.2.1 Loans and Advances to State Governments

S.I.1.2.2 Deposits of State Governments

S.I.2 Credit to Government by the Banking System (S.I.2.

• S.I.2.2)

S.I.2.1 Investments in short-term Government securities by the Banking System

S.I.2.2 Investments in long-term^2 Government securities by the Banking System

S.II. Bank Credit to Commercial Sector (S.II.1+S.II.2)

Treasury Bills are to be valued at carrying cost.

Government’s currency liabilities to the Public were carved out as an independent source of money stock in October

The nomenclature “private sector” was changed into “commercial

Manual on Financial and Banking Statistics

First Working Group Second Working Group Working Group on Money REMARKS (FWG) (1961) (SWG) (1977) Supply (WGMS) (1998)

1 2 3 4

S.II.1 RBI Credit to Commercial Sector (S.II.1.1+S.II.1.2+S.II.1.3)

S.II.1.1 RBI’s investments in shares/ bonds of financial institutions, ordinary debentures of co- operative sectors, CLMB debentures etc.

S.II.1.2 Loans to financial institutions

S.II.1.3 Internal Bills (under Bills Rediscounting Scheme)

S.II.2 Credit to the Commercial Sector by the Banking System (S.II.2.1 + S.II.2.2+ S.II.2.3 + S.II.2.4)

S.II.2.1 Bank Credit

sector” in 1970, as bank credit included credit given to commercial/ manufacturing enterprises in the public sector too.

On the establishment of National Bank for Agriculture and Rural Development (NABARD) on July 12, 1982, certain assets and liabilities of the RBI were transferred to NABARD, necessitating some reclassification of aggregates on the sources side of money stock since that date. The WGMS recommended the reclassification of the RBI’s refinance to NABARD as credit to commercial sector rather than as claims on banks as had been the practice hitherto.

With the introduction of the Bills Rediscounting Scheme, the commercial banks started discounting the internal bills with the RBI which have been included in the RBI credit to commercial sector since June 1971.

Includes loans, cash credit and overdrafts and internal and foreign bills purchased and

S.II.1 RBI Credit to Private Sector (S.II.1.1+S.II.1.2)

S.II.1.1 RBI’s investments in shares/bonds of financial institutions, ordinary debentures of co- operative sectors, Central Land Mortgage Bank (CLMB) debentures etc.

S.II.1.2 Loans to financial institutions

S.II.2 Other Banks’ net credit to Private Sector (S.II.2.1 + S.II.2.2-S.II.2. -S.II.2.4-S.II.2.5)

S.II.2.1 Bank Credit

S.II.1 RBI Credit to Commercial Sector (S.II.1.1+S.II.1.2+S.II.1.3)

S.II.1.1 RBI’s investments in shares/ bonds of financial institutions, ordinary debentures of co- operative sectors, CLMB debentures etc.

S.II.1.2 Loans to financial institutions

S.II.1.3 Internal Bills (under Bills Rediscounting Scheme)

S.II.2 Other Banks’ credit to Commercial Sector (S.II.2.1 + S.II.2.2)

S.II.2.1 Bank Credit

Manual on Financial and Banking Statistics

First Working Group Second Working Group Working Group on Money REMARKS (FWG) (1961) (SWG) (1977) Supply (WGMS) (1998)

1 2 3 4

S.II.2.5 Time deposits held by Banks (including inter-bank time deposits held by state co-operative banks)

S.III Net Foreign Exchange Assets of the Banking Sector (S.III.1+S.III.2)

S.III.1 Net Foreign Exchange Assets of the RBI (S.III.1.1 + S.III.1.2 + S.III.1.3-S.III.1.4-S.III.1.5)

S.III.1.1 Gold Coin and Bullion

S.III.1.2 Foreign Securities

S.III Net Foreign Exchange Assets of the Banking Sector (S.III.1+S.III.2)

S.III.1 Net Foreign Exchange Assets of the RBI (S.III.1.1 + S.III.1.2 + S.III.1.3-S.III.1.4- S.III.1.5)

S.III.1.1 Gold Coin and Bullion

S.III.1.2 Foreign Securities

S.III Net Foreign Exchange Assets of the Banking Sector (S.III.1+S.III.2)

S.III.1 Net Foreign Exchange Assets of the RBI (S.III.1.1 + S.III.1.2- S.III.1.3+S.III.1.4)

S.III.1.1 Gold Coin and Bullion

S.III.1.2 Foreign Currency Assets of the RBI(S.III.1.2.1+S.III.1.2.2)

S.III.1.2 Foreign Securities

This adjustment was considered necessary since the FWG was concerned with M1. The presentation of data on bank credit to commercial sector on net basis was changed into gross basis in May 1974, as (i) time deposits are used not only for financing bank credit to commercial sector but also for lending to the Government and (ii) these are not owned by commercial enterprises who largely borrow from banks.

Inclusive of valuation of Gold following its revaluation close to international market price effective October 17,

1990. Such revaluation has a corresponding effect on Reserve Bank’s net non-monetary liabilities (capital account)

Since July 1996, foreign currency assets are being valued at the exchange rate prevailing at the end of every week. Such revaluation has a corresponding effect on Reserve Bank’s net non- monetary liabilities (capital account).

Certain foreign securities e.g. , IBRD shares, Commonwealth bonds etc. which were part of RBI’s claims on

Monetary Statistics

First Working Group Second Working Group Working Group on Money REMARKS (FWG) (1961) (SWG) (1977) Supply (WGMS) (1998)

1 2 3 4

S.III.1.3 Balances held abroad

S.III.1.4 IMF A/c No.

S.III.1.5 Special Currency withdrawn from Gulf States held under Other deposits of the RBI if any.

S.III.2 Net Foreign Exchange Assets of Banking System

S.IV. Net non-monetary Liabilities of the Banking Sector (S.IV.1+S.IV.2)

S.IV.1 Net non-monetary Liabilities of the RBI (S.IV.1.1 + S.IV.1.2 + S.IV.1.3 + S.IV.1.4 + S.IV.1.5 - S.IV.1.6 + S.IV.1.7)

S.IV.1.1 Paid-up Capital

S.IV.1.2 Reserves

S.III.1.3 Balances held abroad

S.III.1.4 IMF A/c No.

S.III.1.5 Quota subscription in rupees.

S.III.2 Net Foreign Exchange Assets of Banking System (Authorised Dealers’ Balances)

S.IV. Government’s Currency Liabilities to the Public

S.V. Net non-monetary Liabilities of the Banking Sector (S.V.1+S.V.2)

S.V.1 Net non-monetary Liabilities of the RBI (S.V.1.1 + S.V.1.2 + S.V.1.3 + S.V.1.4 + S.V.1.5 + S.V.1.6 + S.V.1.7 + S.V.1.8 - S.V.1.9)

S.V.1.1 Paid-up Capital

S.V.1.2 Reserves

S.III.1.2.2 Balances held abroad

S.III.1.3 IMF A/c No.

S.III.1.4 Quota subscription in rupees.

S.III.2 Net Foreign Currency Assets of Banking System(S.III.2.1- S.III.2.2-S.III.2.3)

S.III.2.1 Foreign Currency Assets of the Banking System

S.III.2.2. Overseas Borrowings of the Banking System

S.III.2.3 Non-Resident Repatriable Foreign Currency Fixed Deposits with the Banking System (C.II.2.2.1+C.II.2.3.1)

S.IV. Government’s Currency Liabilities to the Public

S.V. Capital Account of the Banking Sector (S.V.1+S.VI.2)

S.V.1 Capital Account of the RBI (S.V.1.1 + S.V.1.2 + S.V.1.3 + S.V.1.4 + S.V.1.5 + S.V.1.6)

S.V.1.1 Paid-up Capital

S.V.1.2 Reserves

Government were reclassified as part of its foreign assets by the SWG.

Includes balances held abroad ( i.e. , the cash component of nostro accounts, etc. ) and investments in eligible foreign securities and bonds.

Net of Indian currency returned by Pakistan awaiting adjustment.

The WGMS has bifurcated the non- monetary liabilities of the banking sector into the capital account and other items (net).

Monetary Statistics

First Working Group Second Working Group Working Group on Money REMARKS (FWG) (1961) (SWG) (1977) Supply (WGMS) (1998)

1 2 3 4

S.VI.1.5 Contingency ReservesS.VI.1. Exchange Fluctuation Reserve / Currency and Gold Revaluation Account

S.VI. 1.7 Exchange Equalisation Account

S.VI.1.8 IMF Quota Subscription and other payments in rupees included in IMF A/c No.

S.VI.1.9 Other Assets net of Gold in Banking department

S.VI.2 Other items (net) of the Banking System (residual)

1. Of contractual maturity of one year or less.
2. Of contractual maturity of above one year.

Source: Report of the Working Group on Money Supply: Analytics and Methodology of Compilation (Chairman: Dr. Y.V. Reddy) (1998), Reserve Bank of India.

References

Report of the Second Working Group (Chairman

M. L. Ghosh) on “ Money Supply in India:

Concepts, Compilation and Analysis ”, Reserve

Bank of India, Bombay, 1977.

Report of the Working Group (Chairman Y. V.

Reddy) on “ Money Supply: Analytics and

Methodology of Compilation ”, Reserve Bank of

India, Mumbai, June 1998.