The Reserve Bank has encouraged banks to adopt a structured and planned approach to financial inclusion (FI) with commitment at the highest levels through preparation of board approved financial inclusion plans (FIPs). The first phase of FIPs was implemented over 2010–13. The Reserve Bank has used FIPs to gauge the performance of banks under their FI initiatives.
As in previous months, annual growth in M3 was mainly supported by its most liquid components, with the narrow monetary aggregate M1 expanding at an annual rate of 9.1% in July 2017, down from 9.7% in June. The recovery in the growth of loans to the private sector observed since the beginning of 2014 is proceeding.