India's foreign exchange reserves hit record $740.8 billion

India's foreign exchange reserves have reached a new record high of $740.80 billion for the week ending August 28, 2026. This follows a significant increase of $11.47 billion during the week, continuing a trend of growth that has seen reserves rise for nine consecutive weeks.

Key components of the reserve increase include a $9.34 billion rise in Foreign Currency Assets (FCA), bringing them to $600.67 billion. The value of gold reserves also saw an increase, rising by approximately $2.19 billion to reach $116.41 billion. Conversely, Special Drawing Rights (SDR) saw a slight decrease of $43 million, leaving the balance at $18.81 billion.

The growth is attributed in part to the Reserve Bank of India's Foreign Currency Non-Resident (FCNR-B) initiative announced in June. This scheme has facilitated an inflow of over $132 billion in foreign funds to help alleviate pressure on the local currency.