India forex reserves surge $10.51 billion to $692.87 billion: RBI
Synopsis
India's forex reserves surged $10.51 billion in a single week to $692.87 billion — the fastest weekly gain in months — putting the $700 billion milestone within striking distance. With $36.7 billion already mobilised through FCNR deposits and the RBI's swap facility running until September, the reserve cushion is rebuilding faster than most analysts projected after this year's earlier dip.
Key Takeaways
India's forex reserves rose by $10.512 billion to $692.866 billion for the week ended 31 July 2026 , per RBI data.
Foreign currency assets — the largest reserve component — increased by $8.750 billion to $564.680 billion .
Gold reserves climbed $1.685 billion to $104.743 billion ; SDRs rose $48 million to $18.666 billion .
Indian banks have mobilised $36.7 billion via FCNR (B) deposits as of 31 July 2026 , steadying the rupee.
RBI Governor Sanjay Malhotra confirmed no plan to prematurely close the FCNR (B) scheme; the swap facility runs until 30 September 2026 .
Reserves peaked at an all-time high of $728.494 billion in the week ended 27 February 2026 ; the $700 billion mark is expected to be recrossed soon.
India's foreign exchange reserves jumped by $10.512 billion to $692.866 billion for the week ended 31 July 2026, the Reserve Bank of India (RBI) reported on Friday, 7 August. The latest rise extends a sustained upward trend and keeps the country on course to breach the $700 billion milestone in the coming weeks.
Week-on-Week Breakdown
The gain builds on a $6.118 billion rise recorded for the week ended 24 July, signalling back-to-back weeks of robust accretion. Foreign currency assets — the largest component of the reserves — climbed by $8.750 billion to $564.680 billion. These figures, expressed in dollar terms, incorporate the appreciation or depreciation of non-US currencies such as the euro, pound, and yen held within the reserve basket.
Gold reserves added $1.685 billion to reach $104.743 billion, while Special Drawing Rights (SDRs) rose by $48 million to $18.666 billion for the same reported week, according to the RBI's weekly statistical supplement.
FCNR Deposits Driving Capital Inflows
A significant driver behind the reserve build-up is the Foreign Currency Non-Resident (Bank) — or FCNR (B) — deposit incentive scheme. Indian banks have mobilised $36.7 billion through FCNR deposits as of 31 July 2026, according to RBI data, providing a steady stream of foreign capital inflows.
RBI Governor Sanjay Malhotra stated this week that there is no proposal to prematurely close the scheme. The concessional zero-cost swap facility offered by the RBI remains fully operational and is scheduled to run through its original deadline of 30 September 2026.
Rupee Stability and the Oil Price Context
The FCNR inflows have played a meaningful role in steadying the Indian rupee against the US dollar at a period when the currency had begun to slide amid rising global oil prices. A stronger reserve buffer gives the RBI greater capacity to intervene in currency markets if volatility resurfaces.
Context: Recovery From Earlier Decline
India's forex reserves had touched an all-time high of $728.494 billion during the week ended 27 February 2026, before retreating amid heightened global uncertainties earlier this year. The current trajectory represents a meaningful recovery, with reserves now within roughly $7.6 billion of the $700 billion mark — a threshold analysts expect to be crossed in the near term if FCNR-driven inflows continue at their current pace.
With the FCNR scheme intact and gold reserves near record levels, India's external buffer appears well-positioned heading into the second half of 2026.
Point of View
But the structural story is the FCNR (B) scheme — $36.7 billion mobilised in a short window is an extraordinary capital-raising exercise that has quietly done more for rupee stability than any direct RBI intervention this year. The risk is concentration: if global risk appetite turns and FCNR deposits mature without renewal, the reserve cushion could deflate as fast as it inflated. The RBI's decision to keep the scheme open until September buys time, but the exit strategy — and what replaces these flows — remains the unanswered question mainstream coverage is not pressing hard enough.
NationPress
7 Aug 2026
Frequently Asked Questions
What are India's current foreign exchange reserves?
India's foreign exchange reserves stood at $692.866 billion for the week ended 31 July 2026, after rising by $10.512 billion in a single week, according to RBI data released on 7 August 2026.
What is driving the surge in India's forex reserves?
The primary driver is robust capital inflows through the Foreign Currency Non-Resident (Bank) — FCNR (B) — deposit incentive scheme, under which Indian banks mobilised $36.7 billion as of 31 July 2026. Gold reserve appreciation and rising foreign currency assets have also contributed.
Will India's forex reserves cross $700 billion?
According to reports, India's forex reserves are expected to cross the $700 billion milestone in the coming weeks, driven by continued FCNR deposit inflows. The current level of $692.866 billion is approximately $7.1 billion short of that threshold.
What is the FCNR (B) scheme and is it continuing?
The FCNR (B) scheme allows Indian banks to accept foreign currency deposits from non-resident Indians, with the RBI offering a concessional zero-cost swap facility to hedge the exchange risk. RBI Governor Sanjay Malhotra confirmed this week that there is no proposal to close the scheme early; it is scheduled to run until 30 September 2026.
What was India's all-time high in forex reserves?
India's forex reserves reached an all-time high of $728.494 billion during the week ended 27 February 2026, before declining amid global uncertainties. The current upward trend represents a recovery toward that peak.
