India's foreign exchange reserves increased on a weekly basis, with annual growth also seen in bank credit and deposits.

Traders Union
All News
Central Banks
Growth in foreign exchange reserves and bank credit

Highlights

On July 17, 2026, India's total foreign exchange reserves rose by $1,080 million week-on-week to $676,237 million, though this is $14,871 million lower than at the end of March 2026.
As of July 15, 2026, total deposits of scheduled commercial banks rose 12.7 percent year-on-year to ₹26,284,574 crore, and bank credit increased 17.7 percent to ₹21,733,383 crore.
During July 13-19, 2026, the RBI absorbed net liquidity of ₹80,972 crore on July 17 and ₹159,575 crore on July 19 from the secondary market.

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

Reserve and Banking Trends in Weekly RBI Data

According to the Reserve Bank of India's weekly statistical supplement, as of July 17, 2026, India's total foreign exchange reserves stood at ₹6,511,163 crore, or $676,237 million. This reflects a week-on-week increase of ₹74,942 crore, or $1,080 million, though it remains ₹42,698 crore, or $14,871 million, lower than at the end of March 2026.

Foreign currency assets reached ₹5,305,830 crore, or $551,057 million, with a weekly rise of ₹96,005 crore, or $4,549 million. Gold reserves stood at ₹979,689 crore, or $101,749 million, showing a weekly decline of ₹23,458 crore, or $3,480 million, while SDRs and the reserve position in the IMF saw a marginal increase.

In RBI's liabilities and assets data, loans and advances to state governments stood at ₹20,629 crore on July 17, 2026, up ₹550 crore from the previous week but ₹5,666 crore lower than a year ago. For the central government, this item remained at zero.

Industry Impact on Credit, Deposits, and Liquidity

As of July 15, 2026, total deposits of scheduled commercial banks stood at ₹26,284,574 crore. This decreased by ₹259,710 crore in the fortnight, but has increased by ₹745,105 crore so far in FY 2026-27 and shows a year-on-year growth of ₹2,958,868 crore, or 12.7 percent.

During the same period, bank credit stood at ₹21,733,383 crore. It declined by ₹197,015 crore in the fortnight, but has increased by ₹225,920 crore so far in the fiscal year and shows a year-on-year growth of ₹3,263,490 crore, or 17.7 percent, keeping credit flow to the commercial sector strong.

The broad measure of money supply, M3, stood at ₹31,646,426 crore as of July 15, 2026, up 12.5 percent year-on-year. Currency with the public rose by 13.0 percent and time deposits with banks by 12.2 percent, while demand deposits also registered a 13.6 percent annual increase.

On the liquidity operations front, RBI's daily actions between July 13 and July 19, 2026, showed net absorption. On July 17, net absorption was ₹80,972 crore and on July 19, ₹159,575 crore, indicating the need to absorb surplus liquidity from the system.

Our previous report discussed the sharp expansion in economic activity based on high-frequency indicators for June 2026 and the GDP growth estimate for Q1 FY2027. That article also noted that despite better volume performance, high energy/commodity prices and limited input availability in some sectors could put pressure on costs and margins, potentially moderating the pace of growth in the near term.

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.