Which of the following components is not included in M₁ measure of the money supply?

Interbank deposits of commercial banks

In India, there are 4 measures of money supply i.e. M1, M2, M3, and M4:

• M1 -> C + DD + OD (It is the narrow money) where C is the currency held by the public. DD is the net demand deposits of the bank. OD are other deposits with RBI.
• M2 -> M1 + Saving deposits with post offices savings bank
• M3 -> M1 + Net time deposits with commercial banks
• M4 -> M3 + Total time deposits with the post offices

Inter-bank deposits do not count as part of the money supply because they are not used in the economy's currency circulation.