India forex reserves hit record $740.803 billion in week ended Aug 28
Synopsis
India's foreign exchange war chest just hit a record $740.803 billion — up $11.475 billion in a single week and $46.574 billion higher than a year ago. The RBI's June inflow measures, including a special dollar-rupee swap facility that alone mobilised $136.38 billion, are clearly paying off at scale.
Key Takeaways
India's forex reserves reached an all-time high of $740.803 billion in the week ended 28 August , up $11.475 billion on the week.
Foreign currency assets (FCA) rose $9.337 billion to $600.67 billion , the largest component of the reserve pool.
Gold reserves climbed $2.191 billion to $116.409 billion , up $29.641 billion from a year earlier.
FCNR(B) deposits contributed $127.23 billion to total inflows as of 31 August ; the RBI's dollar-rupee swap facility mobilised $136.38 billion .
Reserves are up $49.696 billion from end-March and $46.574 billion higher year-on-year.
Loans to state governments fell to ₹10,788 crore as of 21 August , down ₹3,437 crore from the prior week.
India's foreign exchange reserves surged by $11.475 billion to an all-time high of $740.803 billion in the week ended 28 August, according to data released by the Reserve Bank of India (RBI) on Friday, 4 September. The milestone marks a $49.696 billion jump from end-March levels and a $46.574 billion rise compared with the same period a year earlier.
Foreign Currency Assets Lead the Surge
Foreign currency assets (FCA), the largest component of India's reserves, climbed $9.337 billion during the week to reach $600.67 billion. FCA holdings are up $48.387 billion from end-March and $16.73 billion higher than a year ago, underlining sustained inflow momentum across the financial year.
Gold Reserves and IMF Holdings
Gold reserves rose by $2.191 billion on the week to $116.409 billion, with holdings up $1.014 billion since end-March and a notable $29.641 billion higher than a year earlier — reflecting both price appreciation and accumulation. India's Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) stood at $18.81 billion, marginally down $43 million from the previous week but up $188 million from end-March. The country's reserve position with the IMF decreased by $11 million during the week to $4.914 billion, though it remains $106 million above end-March levels.
What Drove the Record Build-Up
The record reserves were supported by strong foreign currency inflows following measures introduced by the RBI in June, including a special deposit programme for Indians and non-resident customers. As of 31 August, foreign currency non-resident deposits — FCNR(B) — contributed $127.23 billion to total inflows. Overseas foreign currency borrowings (OFCBs) accounted for another $5.26 billion, while external commercial borrowings (ECBs) added $3.89 billion. Separately, the RBI noted that India's banking system mobilised $136.38 billion in foreign currency inflows through the central bank's special dollar-rupee swap facility.
State Government Lending Declines
In a separate data release, RBI figures showed loans and advances to state governments declined to ₹10,788 crore as of 21 August, down from ₹14,225 crore a week earlier — a drop of ₹3,437 crore. Outstanding advances to state governments were also sharply lower than the ₹27,463 crore recorded in the corresponding period last year.
What This Means for India's Economic Resilience
At $740.803 billion, India's reserves now comfortably cover more than 11 months of projected imports, providing a substantial buffer against external shocks, currency volatility, and global capital flow reversals. This comes amid a broader global environment of elevated interest rates and geopolitical uncertainty, making the reserve build-up a significant signal of macroeconomic stability. The RBI's proactive measures since June appear to have meaningfully accelerated the accumulation pace.
Point of View
But the composition tells a more nuanced story. A significant portion of the build-up is tied to RBI-engineered inflows — FCNR(B) deposits and the dollar-rupee swap facility — rather than purely organic current-account improvement. That makes the headline number partly a policy artefact. The gold reserve jump of $29.641 billion year-on-year also reflects global price appreciation as much as deliberate accumulation. The real test of reserve quality is whether FCA growth is sustained once the special deposit windows close. For now, the buffer is real and meaningful; the durability question deserves closer scrutiny than the record headline invites.
NationPress
4 Sept 2026
Frequently Asked Questions
What is India's current foreign exchange reserve level?
India's foreign exchange reserves reached an all-time high of $740.803 billion in the week ended 28 August, according to RBI data released on 4 September. This was an increase of $11.475 billion from the previous week.
What drove India's forex reserves to a record high?
The surge was driven by strong foreign currency inflows following RBI measures introduced in June, including a special deposit programme for resident and non-resident customers and a dollar-rupee swap facility that mobilised $136.38 billion. FCNR(B) deposits alone contributed $127.23 billion to total inflows as of 31 August.
How much have India's gold reserves changed?
India's gold reserves rose $2.191 billion in the week to $116.409 billion, and are $29.641 billion higher than a year earlier. The increase reflects both global price appreciation and RBI accumulation.
What are India's Special Drawing Rights (SDR) holdings with the IMF?
India's SDR holdings with the IMF stood at $18.81 billion as of the week ended 28 August, down $43 million from the prior week but up $188 million from end-March levels.
How do India's current forex reserves compare with a year ago?
India's forex reserves are $46.574 billion higher than in the corresponding week a year earlier, and $49.696 billion above end-March levels, reflecting a sustained and accelerating accumulation trend through the financial year.
