India’s foreign exchange reserves fell sharply in the week ending October 16, 2026, according to the latest RBI weekly statistical data. Total reserves dropped by $5,011 million to $721,016 million. This decline reflects pressure on foreign currency assets, which fell by $5,758 million during the week.
RBI Forex Reserves Show Weekly Decline
Foreign currency assets, the largest component of India’s forex reserves, stood at $591,847 million. Gold reserves, however, added $706 million over the week, partially offsetting the fall. Meanwhile, SDRs and the IMF reserve position also edged lower. On a year-on-year basis, total reserves are still up by $18,736 million, indicating overall resilience.
The RBI continued to absorb liquidity from the banking system throughout the week of October 12–18, 2026. Net absorption ranged from ₹1,34,268 crore to ₹2,43,633 crore daily. The central bank used the Standing Deposit Facility heavily, signalling a tight liquidity stance.
Bank Credit and Deposit Trends
Scheduled commercial banks recorded ₹22,74,2777 crore in total bank credit as on October 15, 2026. Year-on-year credit growth stood at 18.2 percent, reflecting strong lending momentum. Non-food credit, additionally, grew by ₹34,59,420 crore on an annual basis.
Aggregate deposits, however, declined by ₹5,19,170 crore in the latest fortnight. Despite this short-term dip, year-on-year deposit growth reached 16.7 percent. Time deposits continued to dominate, accounting for over ₹2,45,76,862 crore of the total deposit base.
Money Supply and Government Lending
Broad money supply (M3) stood at ₹3,33,00,300 crore as on October 15, 2026. It contracted by 1.4 percent in the fortnight but grew 16.0 percent year-on-year. Currency with the public rose modestly by ₹48,468 crore during the same period.
Net bank credit to the government reached ₹94,54,452 crore. Other banks increased their government lending by ₹70,140 crore in the fortnight. As a result, government borrowing from the banking sector remained well-supported. State government advances from the RBI, however, fell sharply by ₹28,869 crore in the week.
Source: RBI Press Releases
