RBI Classification of Money

Dr.K.Chakrapati

In 1975, the Reserve Bank of India divided money into 4 categories based on liquidity. Liquidity consists of the degree to which money is used for monetary purposes. In addition to the currency in circulation in modern times, bank money also meets the monetary requirements. The Reserve Bank divides all these on the basis of liquidity level .The RBI has introduced four types of money supply concepts. These are called money aggregation measures or monetary aggregates

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