As the distinguished audience is aware, while NABARD supervises the co-operative credit institutions, Reserve Bank regulates them. This supervisory and regulatory framework involves RBI framing and issuing regulatory instructions and guidelines and NABARD  2  BIS central bankers’ speeches  examining their actual compliance during inspection. Currently, these regulatory instructions and guidelines are scattered across individual circulars containing them.
Consistent with the increase in the KFR, market interest rates increased. The level of broad money supply (M3*) increased by 4.2 percent in 2002, influenced mainly by the growth in net credit to the Government. Reserve money increased significantly in the last two months of the year, due to maturities of Treasury bills by the non-bank private sector.