India’s forex reserves rise $7.26 billion to $674.193 billion

India’s foreign exchange reserves rose by $7.26 billion, reaching $674.19 billion for the week ending July 3, after a drop the prior week, as reported by the Reserve Bank of India on Friday.

During the same period, India’s gold holdings increased by $2.669 billion, totaling $105.205 billion.

India’s Special Drawing Rights (SDRs) with the IMF grew by $65 million, amounting to $18.623 billion.

In the previous week, reserves had dropped, falling $5.65 billion to $666.93 billion for the week ending June 26.

Even with recent fluctuations, India’s reserves stay among the world’s largest, though they are still under the peak of $728.494 billion hit in the week ending February 27.

Banks have seen a steady rise in overseas inflows following the RBI’s updated FCNR‑B deposit scheme, and they anticipate stronger collections this month as NRI awareness improves.

Reports indicate that banks have already mobilized roughly $3‑4 billion via FCNR‑B deposits, with expectations that inflows will pick up in the coming weeks, especially from NRIs in the Gulf.

Bankers estimate that the revised scheme could draw $40‑50 billion in new FCNR‑B deposits over time, noting that higher interest rates and the RBI’s commitment to cover hedging costs should boost mobilization.

Banks have stepped up outreach to promote the updated FCNR‑B scheme to overseas depositors, with lenders engaging more actively with NRI clients in major markets to drive participation.

Bankers anticipate that the Gulf region will provide a substantial portion of the additional FCNR‑B deposits, fueled by Indian expatriates residing and working there.