Foreign exchange reserves declined in the RBI bulletin, while bank credit and deposits continued to grow.

Traders Union
All News
Central Banks
RBI foreign exchange and bank growth

Highlights

On June 12, 2026, foreign exchange reserves stood at ₹6,388,464 crore (US$671,625 million), registering a week-on-week decline of ₹82,100 crore (US$9,985 million).
As the source and target language are both English (en to en), and following the rules, here is the output: By May 31, 2026, deposits of scheduled commercial banks reached ₹26,002,106 crore, marking a 12.2% annual increase, while loans stood at ₹21,515,965 crore, reflecting a 17.7% annual growth.
As the source and target languages are both English (en to en), and following the rules, here is the output: On May 31, 2026, the M3 money supply stood at ₹31,362,050 crore, registering a 2.6 percent increase so far in the fiscal year 2026-27 and a 12.0 percent annual growth.

This article was translated from the original. Read the original version by our correspondent here.

Reserves and Liquidity Signals in Weekly Data

According to the Reserve Bank of India’s weekly statistical supplement (Reserve Bank of India), as of June 12, 2026, total foreign exchange reserves stood at ₹6,388,464 crore, or $671,625 million, down ₹82,100 crore, or $9,985 million, week-on-week. This decline was mainly due to a reduction of 100,112 crore in gold reserves, while foreign currency assets saw a weekly increase of ₹18,395 crore.

The reserve position in the IMF is ₹45,930 crore and SDRs are at ₹177,860 crore. In the RBI’s liabilities and assets section, loans and advances to states rose from ₹15,962 crore on June 13, 2025, to ₹18,770 crore on June 12, 2026, though this is down from ₹28,330 crore the previous week.

The RBI’s liquidity operations table shows that between June 8 and June 14, 2026, there was net absorption in the system. On June 12, net absorption was ₹175,835 crore, while on June 14, it was ₹160,769 crore, indicating that the central bank’s short-term liquidity stance remains on the tighter side.

Impact on Banking Business and Money Supply

As of May 31, 2026, total deposits with scheduled commercial banks in India stood at ₹26,002,106 crore, with an increase of ₹313,285 crore during the fortnight. On an annual basis, total deposits rose by ₹2,829,563 crore, a growth rate of 12.2 percent, while bank credit reached ₹21,515,965 crore, showing an annual growth of 17.7 percent.

Food credit stood at ₹137,005 crore and non-food credit at ₹21,378,960 crore, indicating that the main burden of credit expansion remains on the non-food segment. The RBI notes that the data includes the impact of a non-bank’s merger into a bank from July 1, 2023, and that under the Banking Laws (Amendment) Act, 2025, from December 15, 2025, the definition of a fortnight has been revised to the 15th and last calendar day of the month instead of alternate Fridays.

The broad measure of money supply, M3, stood at ₹31,362,050 crore as of May 31, 2026. During FY 2026-27 so far, this has increased by ₹703,348 crore, or 2.6 percent, while the annual growth is 12.0 percent, highlighting the expansion of monetary conditions alongside deposit and credit growth in the banking system.

Our previous report focused on the recent movement and technical picture of USD/INR, where the pair remained above the MA-200 even while staying below the MA-20 and MA-50. It discussed the possibility of consolidation in the ₹93.86–₹94.88 range with oversold oscillators, weak intraday momentum, and highlighted ₹94.88 as a key resistance.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.