RBI's Special Deposit Programme Raises Forex Reserves to Record $729.3 Billion

Key facts

• India's foreign exchange reserves hit a record $729.3 billion in the week ended August 21.
• The reserves rose by $12.4 billion, surpassing the previous high of $728.5 billion in February.
• A special deposit programme for overseas Indians attracted $72.8 billion through August 21.
• The programme helped India avoid a third consecutive year of deficit in its broadest measure of external money flows.
• The RBI bears hedging costs, estimated at $5.7 billion annually, to offer attractive interest rates.
• The RBI closed the programme ahead of schedule due to stronger-than-expected inflows, per Governor Sanjay Malhotra.