Image Source: Hindustan Times
The Reserve Bank of India (RBI) has reported a 9.6% yearonyear growth in India’s broad money supply (M3) as of June 27, 2025, reflecting a stable monetary environment and supportive liquidity conditions.
Key Highlights
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M3 includes currency in circulation, demand deposits, time deposits, and other liquid assets held by the public.
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The fortnightly data shows continued expansion in bank deposits, driven by strong retail inflows and corporate treasury placements.
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Currency with the public rose moderately, indicating balanced cash demand amid digital payment adoption.
Monetary Context
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The growth aligns with RBI’s recent 50 bps repo rate cut to 5.50%, aimed at boosting credit and investment.
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Liquidity remains ample, supported by phased CRR reductions and benign inflation, which stood at 2.9% in Q1 FY26.
Outlook
Analysts expect M3 growth to remain in the 9–10% range through FY26, barring any major shifts in fiscal or monetary stance.
Sources: RBI Bulletin June 2025, Outlook Money, 5paisa, Adda247, PIB Monetary Policy Update June 2025
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