India Foreign Exchange Reserves Reach 692.9 Billion Dollars

The Reserve Bank of India reported a 10.5 billion dollar increase in foreign exchange reserves for the week ending July 31, 2026, bringing the total to 692.9 billion dollars. This marks the fifth consecutive weekly rise and moves the total closer to the historic peak of 728.5 billion dollars established in February.

The growth is driven by overseas borrowings and foreign currency deposits enabled by special measures from the central bank. These initiatives have already attracted 40.8 billion dollars and are projected to bring in another 40 billion dollars.

Simultaneously, the central bank proposed new regulatory constraints for shadow banks. The proposal would restrict these institutions to term loans with fixed repayment schedules and prohibit the use of flexible credit lines. Following the announcement, shares of Bajaj Finance, the largest shadow bank in the country, fell 5.8% on Friday.