Money Supply M3 (y/y) in India

M3 is India's broad money aggregate: currency held by the public plus the demand and time deposits of the banking system. The Reserve Bank of India (RBI) monitors it as a benchmark for monetary conditions.

It is compiled by the RBI from its weekly balance sheets and the fortnightly returns of commercial banks, and published in the Weekly Statistical Supplement. The year-on-year rate compares the stock with the same period a year earlier.

Growth in M3 and credit anticipates the demand pressure that the RBI's Monetary Policy Committee watches. A faster-than-expected acceleration points to greater inflationary pressure and can firm up rate expectations; a slowdown suggests looser conditions and room to ease policy.

It is a provisional figure that is revised in later releases. Its link with inflation is indirect and lagged, and the swings may reflect base effects or one-off deposit movements rather than an underlying shift in demand.