In India, the term "money supply" has four definitions: M1, M2, M3, and M4. The liquidity of these is shown in descending order. As a result, M1 has the most liquidity and M4 has the least.
Now,
M1 = C+DD+OD.
Where,
C is the country's official currency.
Demand deposits (DD) are accepted by banks.
The other form1s of deposits in the RBI are known as OD.
Also
M2 = M1 + The savings made by customers at post offices.
M3 = M1 + The banks' net time deposits.
M4 = M3 + All deposits held at post offices other than NSC (National Savings Certificate).