Are time deposits (eg. fixed deposits) included in money supply?
Yes, time deposits are included in money supply.
The RBI uses four measure of money supply denoted as M1, M2, M3, M4.
M1= Currency notes and coins in circulation with public (but not those held by banks) + Net demand deposits with the commercial banks + Other deposits
M2 = M1 + postal saving bank deposits
M3 = M1 + fixed deposit with bank
M4 = M1 + postal saving bank deposits + fixed deposit with bank
In India, M3 is the most commonly used measure of money supply, which does include the fixed deposits with the commercial banks.
The RBI uses four measure of money supply denoted as M1, M2, M3, M4.
M1= Currency notes and coins in circulation with public (but not those held by banks) + Net demand deposits with the commercial banks + Other deposits
M2 = M1 + postal saving bank deposits
M3 = M1 + fixed deposit with bank
M4 = M1 + postal saving bank deposits + fixed deposit with bank
In India, M3 is the most commonly used measure of money supply, which does include the fixed deposits with the commercial banks.