India forex reserves rise $963 million to $672.5 billion in week ended June 19
Synopsis
India's forex reserves bounced back by nearly $1 billion to $672.587 billion in the week ended 19 June, driven by a $4.11 billion surge in gold reserves. But the stockpile remains nearly $56 billion below its all-time peak, and the RBI's simultaneous FCNR-B clarifications signal a deliberate push to attract NRI inflows as a longer-term reserve buffer.
Key Takeaways
India's forex reserves rose by $963 million to $672.587 billion in the week ended 19 June , reversing the previous week's decline.
Gold reserves surged by $4.11 billion to $107.930 billion during the same period.
SDR holdings with the IMF fell by $52 million to $18.647 billion .
Reserves remain below the all-time high of $728.494 billion recorded in the week ended 27 February .
The RBI clarified FCNR-B deposit rules, allowing banks to lend against such deposits and undertake forex swaps with tenors under three years.
Market participants expect the RBI's measures to boost NRI inflows in the coming weeks.
India's foreign exchange reserves climbed by $963 million to $672.587 billion in the week ended 19 June, snapping a decline recorded in the prior reporting period, according to data released by the Reserve Bank of India (RBI) on Friday, 26 June. The rebound underscores the resilience of India's external buffers even as global currency markets remain unsettled.
Gold Reserves Surge, SDRs Dip
The value of India's gold reserves jumped by $4.11 billion to $107.930 billion during the week, reflecting a sharp rise in international gold prices. Offsetting this partially, the country's holdings of Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) slipped by $52 million to $18.647 billion.
Context: Still Below Record High
Despite the week-on-week recovery, India's reserves remain well below their all-time peak of $728.494 billion, reached in the week ended 27 February. The stockpile came under pressure in recent months as the RBI intervened in the foreign exchange market — selling dollars to defend the rupee — following the escalation of conflict in the Middle East. This is the latest in a series of volatile swings that have characterised India's reserve position in the current financial year.
RBI Clarifies FCNR-B Deposit Rules
Separately, the RBI this week issued operational clarifications on Foreign Currency Non-Resident Bank (FCNR-B) deposits, addressing queries from banks on deposit mobilisation and related lending. The central bank confirmed that banks may extend loans to FCNR-B account holders and are permitted to mark a lien on such deposits — a move that provides greater operational flexibility for raising foreign currency funds from non-resident Indians (NRIs).
The RBI further stated that banks will be eligible to undertake foreign exchange swaps with tenors of less than three years, subject to having mobilised fresh eligible FCNR-B deposits with a minimum original maturity of three years under the special scheme. Under this arrangement, the RBI will offer a plain buy-sell foreign exchange swap facility, covering only the principal amount of the deposits — not the interest component.
Market Outlook: NRI Inflows Expected to Rise
Market participants believe the combination of higher deposit rates, RBI swap support, and the latest operational clarity could meaningfully boost non-resident inflows in the coming weeks. If sustained, such inflows would add a structural cushion to reserves, reducing the RBI's dependence on market intervention to stabilise the rupee. The central bank is widely expected to continue calibrating its forex strategy against evolving global risk conditions.
Point of View
But the headline number masks a structural story: India's reserves are still nearly $56 billion below their February peak, and the RBI has been burning through that cushion defending the rupee against Middle East-driven volatility. The FCNR-B clarifications are not incidental — they are a deliberate policy signal to pull in NRI dollar deposits and reduce the central bank's reliance on direct market intervention. Whether that bet pays off depends on how competitive India's deposit rates look relative to US yields, which remain elevated. The real test of reserve adequacy will come if global risk-off conditions intensify again.
NationPress
26 Jun 2026
Frequently Asked Questions
What are India's current forex reserves as of June 2025?
India's foreign exchange reserves stood at $672.587 billion as of the week ended 19 June , after rising by $963 million from the previous week, according to RBI data released on 26 June.
Why did India's forex reserves fall in recent months?
India's reserves came under pressure following the escalation of conflict in the Middle East, which increased currency market volatility. The RBI intervened by selling dollars to support the rupee, drawing down the reserve stockpile from its record high of $728.494 billion.
What is the all-time high for India's forex reserves?
India's forex reserves hit an all-time high of $728.494 billion in the week ended 27 February . Current levels remain approximately $56 billion below that peak.
What are FCNR-B deposits and why did the RBI issue new clarifications?
Foreign Currency Non-Resident Bank (FCNR-B) deposits are fixed deposits held by non-resident Indians in foreign currencies with Indian banks. The RBI issued clarifications to address bank queries on deposit mobilisation, confirming that banks can lend against these deposits and undertake foreign exchange swaps — measures aimed at attracting more NRI inflows.
How will the RBI's FCNR-B swap facility work?
Under the scheme, the RBI will offer a buy-sell foreign exchange swap to banks that mobilise fresh FCNR-B deposits with a minimum original maturity of three years. The swap support covers only the principal amount of the deposits and excludes the interest component. Banks can undertake swaps with tenors of less than three years under this arrangement.
