Now Reading: India’s forex reserves touch $716.9 bn, bank deposits grow 15.4%
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India’s forex reserves touch $716.9 bn, bank deposits grow 15.4%
India’s forex reserves touch $716.9 bn, bank deposits grow 15.4%
The Story in Brief
India's foreign exchange reserves rose by $9.9 billion to $716.9 billion in the week ending August 14, 2026, according to the Reserve Bank of India's weekly statistical supplement. The increase was driven by a $7.2 billion rise in foreign currency assets and a $2.7 billion jump in gold reserves. On a year-on-year basis, reserves are up $21.8 billion.
Scheduled commercial banks' aggregate deposits grew 15.4% year-on-year to Rs 269.4 lakh crore as of July 31, 2026, with time deposits contributing Rs 30.3 lakh crore of the increase. Bank credit expanded 19.3% year-on-year to Rs 220.8 lakh crore, driven by non-food credit growth of 19.3%. The data reflects the impact of a bank merger effective July 1, 2023, and a revised definition of 'fortnight' under the Banking Laws (Amendment) Act, 2025.
Indian Opinion Analysis
India's forex reserves have crossed the $700 billion mark for the first time, providing a buffer against external shocks such as oil price spikes or capital outflows. The RBI typically intervenes in the forex market to curb volatility, and a larger reserve cushion gives it more room to manage the rupee's exchange rate without depleting reserves. Bank credit growth of 19.3% signals robust demand from businesses and consumers, but deposit growth at 15.4% means banks may face pressure to raise lending rates to attract more deposits. Watch for the RBI's next monetary policy statement for any signal on liquidity management or interest rates.
Source: rbi.org.in
This story was synthesised by AI from the source linked above. Methodology and corrections.
