India’s M3 money supply grew 9.6% year-on-year as of October 3, 2025, according to RBI data. The increase reflects stable liquidity, strong deposit growth, and supportive monetary conditions. The trend signals economic resilience and is expected to aid credit expansion and financial stability in the coming quarters.
The Reserve Bank of India (RBI) has reported a year-on-year growth of 9.6% in the country’s M3 money supply as of October 3, 2025. This metric, which reflects the broadest measure of liquidity in the economy, indicates sustained expansion in financial activity and banking deposits.
Key Highlights From The Monetary Update
- M3 money supply, which includes currency in circulation, demand deposits, savings accounts, and time deposits, grew 9.6% compared to the same period last year.
- The growth rate remains consistent with recent trends, suggesting stable liquidity conditions and continued credit expansion.
- The increase reflects higher banking activity, improved deposit mobilization, and a supportive monetary environment.
- RBI’s data shows that the monetary base continues to expand in line with economic recovery and fiscal spending.
Strategic Insights
The steady growth in M3 signals confidence in the banking system and a healthy flow of funds into financial instruments. It also suggests that monetary policy remains accommodative enough to support consumption and investment without triggering inflationary concerns.
Industry Context
M3 is considered the most comprehensive measure of money supply and is closely watched by economists and policymakers. A sustained increase typically correlates with economic expansion, though excessive growth may raise inflation risks. India’s current trajectory reflects a balanced approach to liquidity management.
Market Outlook
Analysts expect the RBI to maintain its calibrated stance on liquidity, balancing growth support with inflation control. The 9.6% growth figure is seen as a positive indicator for credit availability and financial market stability heading into the festive and investment-heavy quarters.
Sources: Reuters, Moneycontrol, RBI Monetary Statistics