Reserve Money for the fortnight ended February 15, 2026

Key Insight

RBI’s fortnightly rise in Reserve Money signals tightening liquidity ahead

Key Facts

1. Reserve Money (M0) = currency with public + banks’ cash balances.
2. Fortnight ending 15 Feb 2026: Reserve Money = ₹42.8 lakh crore, up ₹1.2 lakh crore (≈2.9%) from previous fortnight.
3. Data released by RBI on 20 Feb 2026 as part of its bi‑weekly monetary‑aggregate bulletin.
4. M0 growth outpaced credit‑growth rate of 1.8% in the same period.
5. Higher M0 usually puts upward pressure on inflation, prompting RBI to consider policy tightening.
6. RBI monitors M0 to adjust repo rate, open‑market operations and cash‑reserve‑ratio (CRR).
7. Since Jan 2026, reserve money has risen for 5 consecutive fortnights, indicating persistent liquidity excess.

Background

Reserve Money is a primary monetary‑aggregate used by the RBI to gauge liquidity in the economy. Its trends feed into the broader macro‑economic framework of inflation targeting, credit expansion and monetary‑policy transmission, core topics of GS‑3.

Mains Angle

In GS‑3, candidates can assess how the recent upward trend in reserve money influences inflation dynamics and credit growth, and evaluate the RBI’s policy options.