India’s foreign exchange reserves climbed to $674.19 billion as of July 3, 2026, according to the latest RBI Weekly Statistical Supplement. This marks a weekly gain of $7.26 billion. However, reserves remain $25.54 billion lower compared to the same period last year.
Key Details on India Forex Reserves and Bank Data
Foreign currency assets, the largest component, rose by $4.51 billion during the week to reach $545.58 billion. Additionally, gold reserves increased by $2.67 billion to touch $105.21 billion. Meanwhile, Special Drawing Rights (SDRs) stood at $18.62 billion, adding $65 million over the week.
State governments borrowed ₹40,761 crore from the RBI as of July 3, 2026. This represents a sharp rise of ₹31,971 crore compared to the previous week. As a result, the central bank’s loans and advances to state governments surged significantly in this period.
Scheduled commercial banks reported aggregate deposits of ₹26,53,8493 crore as of June 30, 2026. Year-on-year deposit growth stood at 13.3 percent. Bank credit also grew strongly, rising 18.6 percent year-on-year to reach ₹21,92,8365 crore.
RBI Liquidity Operations Show Strong Absorption
The RBI absorbed significant liquidity from the banking system throughout early July 2026. For example, on July 5, net absorption reached ₹1,89,279 crore via the Standing Deposit Facility. Therefore, the central bank continues to manage surplus liquidity actively in the system.
Broad money supply (M3) grew 13 percent year-on-year, reaching ₹3,18,87,695 crore as of June 30, 2026. Time deposits with banks rose 12.7 percent annually, reflecting strong household savings. Additionally, currency held by the public grew 12.8 percent compared to last year.
Non-food credit expanded by 18.1 percent year-on-year, signalling robust lending demand across sectors. Bank credit to the commercial sector also rose 18.2 percent annually. However, food credit growth moderated slightly during the same period.
Overall, India’s banking system shows healthy deposit and credit growth heading into the second quarter of FY2026-27. The steady rise in india forex reserves further strengthens the country’s external financial position. Analysts and markets will watch upcoming RBI data releases closely for further trends.
Source: RBI Press Releases
