GS3 › Money, Banking and Monetary Policy

Revision note: Money, Money Supply and the Reserve Bank of India

  • Money: medium of exchange, unit of account, store of value, deferred payment; fiat money; minimum reserve system ₹200 crore (gold ₹115 crore)
  • ₹1 note: Ministry of Finance; other notes: RBI; coins: Government
  • Demonetisation 8 Nov 2016 (~99% returned); ₹2,000 withdrawn 2023 (still legal tender); e₹ pilots 2022
  • M0 = high-powered money; M1 = currency + demand deposits; M3 = M1 + time deposits; multiplier = M3/M0
  • RBI: Hilton Young 1926; est. 1 Apr 1935 (Act 1934); nationalised 1 Jan 1949; HQ Mumbai since 1937
  • Functions: monetary policy, currency, banker to government and banks, regulator, forex (FEMA 1999), development
  • Jalan Committee 2019 (economic capital framework); record surplus transfer for 2024–25
Revision card summarising Money, Money Supply and the Reserve Bank of India
One-page visual summary of the key points to revise.

Source: https://upscprep.in/upsc/gs3/money-banking-and-monetary-policy/money-money-supply-and-the-reserve-bank-of-india/ · UPSCPrep.in

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