The study looked at how interbank money flow affects bank lending in India when the government tightens monetary policy. They analyzed data from 40 banks between 1999 and 2018. The researchers found that interbank money flow helps reduce the negative impact of monetary policy tightening on bank lending. They also discovered that the effect of interbank money flow varies between public and private sector banks. The study suggests that managing banks' net money positions is important for the Indian government to achieve its monetary policy goals.