Narrow money plus time deposits held by commercial banks and the post…

NCERT (2026-27): “Legal Definitions: Narrow and Broad Money …
where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. The word ‘net’ implies that only deposits of the public held by the banks are to be included in money supply. The interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of money supply. M1 and M2 are known as narrow money. M3 and M4 are known as broad money. …”

Glossary: “Broad money - Narrow money + time deposits held by commercial banks and post office savings organisation.”