RBI's weekly data shows a decline in forex reserves, while bank credit growth remains strong

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RBI forex reserves and credit growth

Highlights

As of June 19, 2026, India's total forex reserves stood at $672,587 billion, with a weekly increase of $963 million but a decline in rupee terms.
On June 15, 2026, total bank credit of scheduled commercial banks stood at ₹21,547,116 crore, registering a sharp year-on-year increase of ₹3,233,153 crore.
RBI absorbed daily net liquidity of ₹143,642-161,636 crore during June 15-21, 2026, showing continued absorption of surplus liquidity from the banking system.

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

Key Indicators from the Weekly Statistical Supplement

According to the Reserve Bank of India's weekly statistical supplement, as of June 19, 2026, total forex reserves stood at the equivalent of $672,587 billion, marking a weekly increase of $963 million, but a decrease of ₹42,457 crore in rupee terms. Foreign currency assets declined by ₹70,702 crore, while gold reserves increased by ₹30,818 crore. There was also a slight decrease in SDRs and the IMF reserve position.

In the RBI's liabilities and assets section, loans and advances to state governments fell from ₹18,770 crore on June 12, 2026, to ₹9,211 crore on June 19, 2026. The data also notes that all figures are provisional and any differences are due to rounding.

According to the business of scheduled commercial banks in India, as of June 15, 2026, total deposits stood at ₹25,841,605 crore. This was a decrease of ₹160,500 crore in the fortnight, but an increase of ₹2,771,771 crore year-on-year. During the same period, bank credit stood at ₹21,547,116 crore, registering an increase of ₹31,175 crore in the fortnight and ₹3,233,153 crore year-on-year. Non-food credit reached ₹21,413,222 crore, remaining the main component of credit expansion.

Impact on Liquidity, Money Supply, and the Banking Sector

The broad measure of money supply, M3, stood at ₹31,220,737 crore as of June 15, 2026, down ₹141,312 crore in the fortnight, but up 11.9 percent year-on-year. Currency with the public was ₹4,229,342 crore and outstanding time deposits were ₹23,515,220 crore, indicating that the resource base of the banking system remains strong.

On the sources side, net bank credit to the government was ₹9,342,692 crore and bank credit to the commercial sector was ₹22,393,423 crore. This indicates that credit flow continues to both the government and private sectors within the banking system, although the pace of growth varies across periods.

RBI's liquidity operations from June 15 to June 21, 2026, show consistent net absorption. On June 15, net absorption was ₹161,636 crore, while on June 21, it was ₹143,642 crore. During this period, the use of the Standing Deposit Facility remained high, indicating that RBI is regularly absorbing surplus liquidity from the banking system.

Our previous report discussed the EUR/INR pair's movement and the factors influencing the near-term outlook for the rupee, including RBI's changes to onshore-offshore forex rules and relaxation in net open position calculations. The article also noted that amid liquidity expectations, crude oil prices, and potential RBI intervention, the EUR/INR may remain range-bound, while technical indicators signal caution due to overbought conditions.

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