MUMBAI, December 10: The Reserve Bank of India (RBI) has set up a working group on money supply to re-examine the analytical aspects of monetary survey which may include introduction of other financial assets apart from the present parameters.

The working group, on "Money supply: analytics and methodology of compilation", would be headed by the RBI deputy governor Y V Reddy and is set up by the central bank in view of changing dimensions and depth of the financial sector. The terms of reference of the working group, which is to submit its report in three months, are to examine the adequacy of the existing money stock measures for appropriate reflecting of the liquidity in the economic system and in this context also consider the possibility of including any other financial assets.

The committee would suggest improvements in the existing reporting system and recommend new reporting systems where necessary, from the relevant economic entities. The group would also suggest suitable arrangements for effecting transition from the present system of reporting, compilation, and dissemination of data to the recommended system.

It would also examine the appropriate form of presentation of data to the public in the light of widely prevalent practices of central banks.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.