MONEY AND BANKING- Slack Demand for Credit

Slack Demand for Credit THERE has been acceleration in the expansion of money stock M1 both in absolute and percentage terms in the current financial year upto October. M1 recorded an increase of Rs 1,492 crore or 3.4 per cent. The expansion in M1 was shared by currency and deposits in the proportions of 70.4 per cent and 29,6 per cent respectively. the respective proportion in the comparable period of last year were an expansion of 180 per cent in currency and a fall of 80 per cent in deposits, especially other deposits with RBI. M3 grew by Rs 9,078 crore during April-October, Rs 1,013 crore more than the growth recorded in the first seven months of the last fiscal Year (Table 1). A lower growth in time deposits of 10.2 per cent as compared to 12.4 per cent last year brought down the rate of expansion in M3.