archiveReserve Bank of India

India’s foreign exchange reserves provide a crucial cushion against geopolitical turmoil, inflation, and currency pressure, says RBI member. | Photo Credit: iStockphoto India’s $700 billion in foreign exchange reserves gives the economy a crucial cushion against rising geopolitical turmoil, a member of India’s rate-setting panel said, as hostilities in the Middle East continue to deepen. Ram Singh, an external member of the monetary policy committee with the Reserve Bank of India, said in an interview with the Economic Times newspaper that he expects the country’s foreign-exchange buffer to help blunt the...

The monetary policy committee (MPC) voted for a 50 basis points repo rate cut in its last meeting to give a leg-up to private sector investments, which have been weak despite high capacity utilisation and improved corporate balance sheets, and revive consumption demand. The six-member MPC, which met from June 4-6, voted by a 5-1 majority for a front-loaded policy repo rate reduction from 6 per cent to 5.5 per cent amid a benign inflationary outlook, even as they changed the monetary policy stance to “neutral” from “accommodative”. The RBI,...

By Dharamraj Dhutia and Nimesh Vora MUMBAI, June 16 (Reuters) - The direction of Indian government bonds and rupee this week will hinge on how the Israel-Iran conflict unfolds and its impact on crude oil prices, while the extent to which the central bank steps in to manage currency volatility will be crucial. Crude prices had soared on Friday following Israel's attack on Iran. On Monday, Brent crude jumped at open before pulling back. Brent, which climbed past $78 at open on Monday, was last at $74.78. The Israel-Iran conflict...

India’s foreign exchange reserves rose by $5.17 billion to reach $696.66 billion for the week ended June 6, according to data released by the Reserve Bank of India (RBI) on Friday. This marks a rebound after a $1.24 billion decline in the previous week.The increase was primarily driven by a $3.47 billion rise in foreign currency assets, which stood at $587.69 billion. Gold reserves also contributed, increasing by $1.58 billion to $85.88 billion during the week. Special Drawing Rights (SDRs) rose by $102 million to $18.67 billion, while India’s reserve...

India’s forex reserves dropped by $1.237 billion to $691.485 billion for the week ended May 30, the RBI said on Friday. The overall reserves had jumped by $6.992 billion to $692.721 billion in the previous reporting week. The forex reserves had touched an all-time high of $704.885 billion in end-September 2024. Earlier in the day, RBI Governor Sanjay Malhotra said that at $691.5 billion, the reserves are sufficient to fund more than 11 months of goods imports and about 96 per cent of external debt outstanding. For the week ended...

New Delhi , : The Indian bond market is showing signs of strength, driven by easing inflation and expectations of more interest rate cuts from the Reserve Bank of India , says a report by Jefferies. The report highlighted that this environment is creating an attractive setup for domestic bonds, particularly for long-term investors in a shifting global landscape. Consumer price inflation in India has been declining steadily. Over the last fiscal year, it averaged 4.6 per cent, and in April 2025, it fell to just 3.2 per cent, the...

The Reserve Bank of India (RBI) wants Indian banks to give loans to foreigners in rupees .The RBI has approached the Centre asking for permission to do so.The central bank’s move is the latest step towards the internationalisation of the rupee.But what happened? Why is the RBI making this move?Let’s take a closer lookWhat happened?The RBI wants to allow domestic banks to make loans to overseas borrowers in Indian currency.This would be a historic first for the nation.The central bank has already asked the government to allow domestic banks to...

MUMBAI: India’s foreign exchange reserves fell by $4.9 billion to a five-week low of $685.73 billion as of May 16, according to data released by the country’s central bank on Friday. The reserves had risen to a seven-month high by $4.5 billion in the prior week. Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves. For the week ended May 16, the rupee notched its second consecutive weekly drop due to sustained dollar demand from local...

New Delhi: An American proposal to tax money sent abroad by non-US citizens is raising concerns in India. If passed, this 5% tax on remittances could significantly impact Indian households and the country’s currency, potentially causing India to lose between $12 billion and $18 billion annually in foreign currency inflows, according to a report released by trade think tank Global Trade Research Initiative (GTRI) on Sunday.The tax is part of a bigger legislation, dubbed “The One Big Beautiful Bill,” introduced in the US House of Representatives on 12 May. It...

Currency notes aren't museum pieces – at least, not yet - in the digital era.Growth in currency in circulation is higher at 2.4% year to date up to May 2, compared with 1.7 percent in the same period a year ago, showed the latest Reserve Bank of India (RBI) data, reflecting rural demand supported by farmgate prices of agricultural commodities.Currency usage has remained relatively strong despite the absence of a busy election calendar during which cash usage typically climbs.Total currency in circulation is at Rs 38.1 lakh crore as of...