India’s foreign exchange reserves have been witnessing a continuous rise, a trend that has persisted for ten consecutive weeks. The Reserve Bank of India’s (RBI) strategy is proving to be highly successful. Over $136 billion in funds has been mobilized so far under the ‘Foreign Currency Non-Resident (FCNR) Bank’ scheme initiated by the RBI. The country’s foreign exchange reserves saw a significant surge during the week ending September 4.
How much has the foreign exchange reserve increased?
According to data released by the Reserve Bank of India (RBI) on Friday, India’s foreign exchange reserves recorded a massive increase of approximately $44.9 billion during the week ending September 4, 2026. There was an increase of $11.48 billion in the previous week as well. Consequently, the country’s total foreign exchange reserves have risen to reach $785.706 billion. Previously, the reserves stood at an all-time high of $740.803 billion on August 28, 2026—a record that has now been surpassed.
By how much did the Foreign Currency Assets (FCA) reserves increase?
According to weekly data, India’s Foreign Currency Assets (FCA) increased by $47.494 billion during the week ending September 4, 2026. An increase of $9.34 billion had been observed in the preceding week. Following this, the FCA reserves have now risen to $648.186 billion. It is worth noting that Foreign Currency Assets (FCA) constitute a significant component of the country’s total foreign exchange reserves. Expressed in dollar terms, the value of these assets reflects the impact of fluctuations in non-US currencies such as the Euro, Pound, and Yen.
Decline in Gold Reserves:
A slight adjustment in gold prices was observed during the week under review. Consequently, the value of the Reserve Bank’s gold reserves declined by $2.594 billion. In the preceding week, there had been an increase of $12.19 billion. Currently, the value of the country’s gold reserves stands at $113.816 billion. Notably, as of the end of March 2026, the RBI held 880.52 tonnes of gold, accounting for approximately 16.7% of the country’s total foreign exchange reserves. Recent data from the Reserve Bank reveals that over $13.6 billion has been mobilized under this scheme by August. This ‘Concessional Foreign Exchange Swap Initiative’ was launched in June of this year. Under this scheme, Non-Resident Indians (NRIs) deposit funds, and the Reserve Bank bears the full liability for any financial losses arising from foreign exchange fluctuations. Deposits under this scheme are accepted exclusively in foreign currency, not in Indian Rupees. Banks are offering high interest rates of up to 7.4% on these deposits. According to media reports, NRIs are earning returns of up to 15% through this scheme. This is because they are borrowing funds from abroad at very low interest rates and taking advantage of the higher interest rates offered under the FCNR (B) scheme.
