Generally, these interventions did not inject large amounts of liquidity on a net basis, and the increase in bank reserves has not as yet translated into a generalised increase in broad money supply.
The size of the Reserve Bank’s balance sheet, however, increased significantly in 2009–10 (July–June) 6 as we exited from the liquidity enhancing measures undertaken during the period of crisis. It is interesting to note that unlike the advanced economies, India did not have to use large scale policy stimulus to bail out failing institutions and freezing markets.