RBI's FCNR(B) Scheme Fuels Record FX Reserve Growth

The Reserve Bank of India’s FCNR(B) deposit scheme has paid off, adding $44.9 billion to the country’s foreign‑exchange holdings and pushing total reserves to $785.7 billion. This record level moves India ahead of Russia, making it the world’s fourth‑largest reserve holder after China, Japan and Switzerland. The inflow came despite a $2.59 billion decline in gold reserves, which fell to $113.81 billion as bullion prices slipped. A stronger reserve base gives the RBI latitude to intervene in currency markets, stabilising the rupee against rapid depreciation. In response to the sizable inflows, the central bank announced an open‑market sale of ₹1 lakh crore of government bonds, scheduled for three dates – 17 September (₹50,000 crore), 21 September (₹25,000 crore) and 28 September (₹25,000 crore) – using a multi‑security, multiple‑price auction mechanism.