India's money supply registered a year-on-year growth of 20.1 per cent to Rs 8,81,598 crore for the fortnight ended August 28, 1998, the Reserve Bank of India's (RBI) weekly statistical supplement (WSS) said.
The rise, amounting to Rs 17,254 crore, included accretions of Rs 17,945 crore which arose out of proceeds form the State Bank of India's (SBI) Resurgent India Bonds (RIB) scheme, the RBI said.
The scheme, floated in August, mopped up $4.16 billion from the non-resident Indian (NRI) community.
Excluding these proceeds, the year-on-year growth in money supply would work out to 17.7 per cent, the RBI said.
Among the components of money supply, time deposits with banks rose by Rs 19,958 crore to Rs 6,15,836 crore, and demand deposits rose by Rs 1,000 crore to Rs 1,11,325 crore, the WSS said.
As regards the sources, the growth was mainly noted in the net foreign exchange assets of the banking sector which grew by Rs 3,401 crore or 2.7 per cent during the fortnight to stand at Rs 1,28,157 crore, it added.
A year ago, money supply stood at Rs 7,33,115 crore.
Reserve money rose by Rs 9,819 crore or 4.4 per cent during the week to stand at Rs 2,31,926 crore on September 4. The year-on-year growth was 10.8 per cent.
The most significant growth registered by the components was in bankers' deposits with the central bank, which saw a growth of Rs 8,433 crore or 13.6 per cent to Rs 70,558 crore.
The proceeds from the RIBs were also reflected in the rise in foreign exchange assets.
The country's foreign exchange reserves rose by $493 million in the week ended September 11, 1998, to stand at $29.048 billion.
Of the various reserves, the foreign currency assets stood at $26.093 million, a weekly rise of $493 million, gold stood unchanged at $2,941 million, and statutory drawing rights (SDRs) was also unchanged at $14 million.
The reserves, however, were marginally lower compared to the previous year's figures of $29.319 billion. However, the central government's recourse to ways and means advances (WMA) from the central bank rose to Rs 5,096 crore in the week ended September 4, the WSS said. It was nil in the previous week.
Loans and advances to scheduled commercial banks also rose sharply to Rs 4,689 crore compared to Rs 1,075 crore, reflecting recourse to refinance by banks during that week, market players said.
Bank credit stood at Rs 3,23,670 crore for the fortnight ended August 28, 1998. Investments stood at Rs 2,44,778 crore, and aggregate deposits stood at Rs 6,52,198 crore. Total accommodation provided by scheduled commercial banks to commercial sector in the form of bank credit and investments in commercial sector debt was Rs 3,47,422 crore.
