India Foreign Reserves Hit Record $729.3 Billion

The Reserve Bank of India reported that foreign-exchange reserves reached an all-time high of $729.3 billion during the week of August 21, 2026. This growth followed a surge in dollar inflows, largely driven by a special deposit program for overseas citizens launched in early June that attracted $72.8 billion.

Governor Sanjay Malhotra accelerated the closure of the diaspora deposit program due to stronger-than-expected flows. While the reserves increase the central bank's ability to support the rupee against oil-price pressures, the debt-funded mobilization carries estimated annual costs of $5.7 billion.

In a separate regulatory action, the Securities and Exchange Board of India banned Copthall Mauritius Investment Ltd., a unit of JPMorgan Chase & Co., and Mansi Share and Stock Broking Ltd. The regulator accused the firms of manipulating a new auction-based system for end-of-day stock prices, which launched on August 3. The firms allegedly placed and then canceled outsized orders to influence closing prices during a period of volatility and liquidity challenges.