RBI Data: Forex Reserves Fall $1.27 Billion to $719.75 Billion; Bank Credit Growth at 18.2%

India’s Forex Reserves Fall $1.27 Billion to $719.75 Billion; Gold Holdings Decline

The Reserve Bank of India’s foreign exchange reserves declined by $1.269 billion to $719.748 billion in the week ended October 23, 2026, according to the RBI’s Weekly Statistical Supplement.

In rupee terms, total reserves declined by ₹12,655 crore during the week to ₹68.34 lakh crore. Despite the weekly fall, India’s foreign exchange reserves have increased by approximately $24.39 billion year-on-year and by $28.64 billion since the end of March 2026.

The weekly decline was primarily driven by a reduction in gold reserves. The value of India’s gold holdings declined by $2.65 billion to $103.15 billion. Foreign Currency Assets, the largest component of the reserves, increased by $1.358 billion to $593.205 billion.

Special Drawing Rights increased by $27 million to $18.605 billion, while India’s reserve position in the International Monetary Fund declined by $4 million to $4.787 billion.

The data also showed that the RBI’s loans and advances to state governments declined by ₹8,626 crore during the week to ₹21,074 crore as of October 23. Loans and advances to the Central Government remained unchanged at zero.

Bank Credit Growth Reaches 18.2%; Lending Rates and Deposit Rates Ease

RBI data on scheduled commercial banks showed that aggregate deposits stood at ₹278.76 lakh crore as of October 15, 2026, while bank credit reached approximately ₹227.43 lakh crore.

Bank credit increased by 18.2% year-on-year, compared with deposit growth of 16.7%. On a year-on-year basis, bank credit increased by approximately ₹35.07 lakh crore, while aggregate deposits rose by ₹39.93 lakh crore.

During the latest fortnight, deposits declined by ₹5.19 lakh crore, while bank credit fell by ₹2.52 lakh crore. The fortnightly movement included a decline in demand deposits of ₹4.37 lakh crore and a reduction of ₹82,287 crore in time deposits.

Separately, India’s broad money supply, measured by M3, stood at ₹333 lakh crore as of October 15. It declined by ₹46,984 crore, or 1.4%, during the latest fortnight but remained 16% higher year-on-year. Time deposits with banks increased 17.1% year-on-year, while currency with the public grew 14.1%.

The RBI’s latest lending and deposit rate data for October showed a further easing in several borrowing and deposit rates. The weighted average lending rate on outstanding rupee loans remained unchanged at 8.96% in September 2026 compared with August. However, the weighted average lending rate on fresh rupee loans declined to 8.51% from 8.61%.

The one-year median marginal cost of funds-based lending rate (MCLR) of scheduled commercial banks declined to 8.55% in October from 8.61% in September. On the deposit side, the weighted average domestic term deposit rate on outstanding deposits edged down to 6.55% from 6.56%, while the rate on fresh term deposits declined to 5.61% from 5.67%.

The RBI’s liquidity operations also showed continued absorption of funds from the banking system. Net liquidity absorption stood at ₹1.72 lakh crore on October 25, compared with ₹86,036 crore on October 19. The figures reflect the RBI’s liquidity operations through the Liquidity Adjustment Facility and other listed facilities.