RBI Forex Reserves Rise to $787.51 Billion as of September 4

India’s RBI Forex Reserves rose by ₹35,715 crore, or $4.493 billion, during the week ended September 4, 2026, reaching ₹72,44,473 crore, equivalent to $787.506 billion, according to the Reserve Bank of India’s Weekly Statistical Supplement extract.

Foreign currency assets recorded the biggest increase during the week, rising by ₹39,489 crore or $4.798 billion. Gold reserves, however, declined by ₹3,444 crore or $259 million.

Special Drawing Rights fell by ₹1,725 crore, while India’s reserve position in the International Monetary Fund declined by ₹505 crore during the week.

Foreign currency assets drive rise in reserves

As of September 4, foreign currency assets stood at ₹61,24,821 crore, or $648.168 billion. Gold holdings were valued at ₹10,75,494 crore, equivalent to $113.816 billion.

SDRs stood at ₹1,77,703 crore, while India’s reserve position in the IMF was ₹46,455 crore.

Since the end of March 2026, total reserves have increased by ₹87,612 crore, or $9.599 billion, according to the RBI data.

Bank deposits and credit continue to expand

Separate RBI data showed aggregate deposits of scheduled commercial banks stood at ₹2,78,71,530 crore as of August 31, 2026. Deposits increased by ₹90,184 crore during the fortnight.

Aggregate deposits were up ₹1,64,273 crore in the 2026-27 financial year so far and ₹4,20,714 crore year-on-year. Deposit growth was recorded at 3.5% for the fortnight and 17.8% year-on-year.

Bank credit stood at ₹2,23,87,567 crore, rising by ₹3,79,803 crore during the fortnight. Credit increased by ₹10,27,670 crore during 2026-27 so far and by ₹35,86,891 crore year-on-year.

Money stock rises; RBI liquidity remains in absorption

The RBI data showed broad money supply, or M3, at ₹33,22,1648 crore as of August 31, 2026. M3 rose by ₹92,7145 crore during the fortnight and was up 16.7% year-on-year.

Liquidity operations remained in net absorption. Net liquidity absorption stood at ₹8,30,561 crore on September 4, 2026, compared with ₹7,88,842 crore on September 3.

On September 4, variable rate reverse repo operations stood at ₹60,234 crore, while the Standing Deposit Facility was ₹22,890 crore and Marginal Standing Facility usage was ₹123 crore, according to the RBI’s Weekly Statistical Supplement.

RBI Governor Sees No Overheating in Gold Loans

RBI Governor Sanjay Malhotra said the rapid expansion in gold-backed lending does not currently show signs of overheating. He pointed to gold loan GNPAs of just 0.4%–0.5%, despite strong growth in the segment.

Gold loans from banks nearly doubled to ₹14.63 lakh crore in March 2026, compared with ₹9.84 lakh crore a year earlier, according to parliamentary data. The RBI’s new tiered Loan-to-Value framework, effective from April 2026, caps LTV ratios between 75% and 85%, depending on the loan size.

Malhotra said the combination of very low NPAs and conservative LTV limits provides a cushion against potential declines in gold prices. The framework is designed to maintain limits on lending against gold even as the value of gold-backed loans continues to rise.

SBI Research Warns of Inflation and Rate Hike Risks

SBI Research has called for 25-basis-point rate hikes in both October and December, warning that crude oil prices could reach $123 a barrel within 15 days. The recommendation marks a sharp shift from the near-unanimous view in a July Reuters poll that the RBI would keep rates unchanged at 5.25% through at least early 2027.

The SBI Research Ecowrap report said soaring crude prices and broadening inflationary pressures could overturn expectations of an extended policy pause. It warned that CPI inflation could reach 6.5% if oil prices remain elevated, while cost pressures in pharmaceuticals, electronics and food have yet to fully feed through into inflation.