India's Forex Reserves Hit Record USD 729.3 Billion

What Happened?

The Reserve Bank of India's weekly data, released on 28 August 2026, showed that India's foreign exchange reserves climbed by USD 12.4 billion to an all-time high of USD 729.3 billion for the week ended 21 August 2026, surpassing the previous record of about USD 728.5 billion set in February 2026.

Key Highlights

• Foreign Currency Assets (FCA), the largest component, rose by about USD 9.5 billion to USD 591.3 billion.
• Gold reserves rose by about USD 2.8 billion to USD 114.2 billion.
• Special Drawing Rights (SDRs) held with the IMF rose to about USD 18.85 billion.
• The surge was aided by RBI's special deposit scheme for overseas citizens, introduced in June 2026, which drew about USD 72.8 billion in inflows.

TNPSC Relevance

India's forex reserves comprise four components: Foreign Currency Assets, Gold, SDRs, and the Reserve Tranche Position with the IMF. RBI publishes this data in its Weekly Statistical Supplement.

3 TNPSC MCQs

1. India's forex reserves touched a record high of how much in the week ended 21 August 2026?
   (a) USD 690 billion (b) USD 700 billion (c) USD 729.3 billion (d) USD 750 billion
   Answer: (c) USD 729.3 billion
   Explanation: RBI data released on 28 August 2026 confirmed this record level.
2. Which is the largest component of India's forex reserves?
   (a) Gold (b) Foreign Currency Assets (c) SDRs (d) Reserve Tranche Position
   Answer: (b) Foreign Currency Assets
   Explanation: FCA is the largest component, standing at USD 591.3 billion.
3. Special Drawing Rights (SDRs) are issued by which institution?
   (a) World Bank (b) IMF (c) WTO (d) BIS
   Answer: (b) IMF
   Explanation: SDRs are an international reserve asset created by the IMF in 1969.