Currency with the public has reached a record high level of over Rs 18.5 lakh crore, more than double from a low of about Rs 7.8 lakh crore it had hit post-demonetisation decision in late 2016, as per RBI data. At the same time, the total currency put in circulation by the Reserve Bank of India (RBI) has also more than doubled to over Rs 19.3 lakh crore -- from a low of about Rs 8.9 lakh crore post-demonetisation. The total money supply, described as M3 by the RBI, now stands at over Rs 140 lakh crore -- nearly 11 per cent higher than the year-ago level. It stood at about Rs 120 lakh crore during the demonetisation period and was below Rs 100 lakh crore level before the Modi government came to power, reported Press Trust of India.
The M3 includes currency with the public, deposit money of the public (demand deposits with the banking system plus 'other' deposits with the RBI) and the time deposits with the banking system.
This figure is equivalent to the net bank credit to the government, plus the bank credit to the commercial sector, plus net foreign exchange assets of the banking sector, plus government's currency liabilities to the public, minus the net non-monetary liabilities of the banking sector.
Currency In Circulation Hits Record Level. Ten Points
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