There are 4 concepts of money supply: M1, M2, M3 and M4 1) M1 = C + DD + OD C- Is the currency held by the public. (Public money means that money which is held by everybody other than the government and the banks. It includes companies, general organisations, households. It does not include inter-bank or government deposits in banks) DD- Means net demand deposits with banks. ‘Net’ here indicates the deposits of only the public in banks. OD- Means other deposits.These are the deposits with the RBI, held by certain individuals and institutions • Individuals - like the former governors of the RBI • institutions- like IMF deposits 2) M3 = M1 + TD = C + DD + OD + TD (Broad money)