RBI reports a decline in forex reserves while bank credit grows steadily.
RBI Reports Decline in Forex Reserves, Bank Credit Growth Rises
RBI reports a decline in forex reserves while bank credit grows steadily.
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RBI Reports Decline in Forex Reserves, Bank Credit Growth Ri · NewsDarpan AI
The Reserve Bank of India (RBI) released its latest Weekly Statistical Supplement on June 12, 2026, highlighting key financial indicators. The report shows a decline in India's foreign exchange reserves, which stood at ₹64,70,564 crore (US$681.61 billion) as of June 5, 2026. This marks a weekly drop of ₹13,114 crore (US$711 million) and a year-on-year decrease of ₹83,297 crore (US$9.5 billion).
Gold reserves, however, saw a notable increase, rising by ₹17,686 crore (US$1.98 billion) over the week. Meanwhile, foreign currency assets, the largest component of forex reserves, fell by ₹30,803 crore (US$2.7 billion) during the same period.
In the banking sector, aggregate deposits in scheduled commercial banks grew by 2.6% fortnight-over-fortnight, reaching ₹26,00,21,106 crore as of May 31, 2026. Bank credit also showed robust growth, increasing by 0.7% fortnight-over-fortnight and 17.7% year-on-year, driven primarily by non-food credit.
The report also highlighted liquidity operations by the RBI, with significant absorption through the Standing Deposit Facility (SDF). For instance, on June 5, 2026, the RBI absorbed ₹1,97,766 crore via SDF operations.
These figures provide insights into the evolving dynamics of India's financial system, reflecting both global pressures on forex reserves and domestic credit expansion. The data underscores the RBI's active role in managing liquidity and supporting economic growth.
Source: Reserve Bank of India press release, Fri, 12 Jun 2026 17:00:00. http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62921