**Summary:**
This press release from the Reserve Bank of India (RBI), dated September 01, 2025, details the sources of variation in India's foreign exchange reserves during April-June 2025 (Q1 2025-26).
During this period, foreign exchange reserves increased by US$29.8 billion, which includes valuation effects, compared to an increase of US$5.6 billion during April-June 2024. Excluding valuation effects (i.e., on a Balance of Payments basis), the reserves increased by US$4.5 billion, compared to an increase of US$5.2 billion during the same period in 2024.
The current account balance stood at US$2.4 billion, down from US$8.7 billion in the same period last year. The capital account (net) was US$6.9 billion, a decrease from US$13.9 billion in April-June 2024.
Within the capital account:
* Foreign Investment was US$7.3 billion (US$7.2 billion in 2024), with Foreign Direct Investment (FDI) at US$5.7 billion (US$6.2 billion in 2024) and Portfolio Investment at US$1.6 billion (US$0.9 billion in 2024).
* Banking Capital was US$1.6 billion (US$2.9 billion in 2024), with NRI Deposits at US$3.6 billion (US$4.0 billion in 2024).
* Short-term Credit was US$0.7 billion (US$2.2 billion in 2024).
* External Assistance was US$0.7 billion (US$1.4 billion in 2024).
* External Commercial Borrowings were US$4.5 billion (US$1.5 billion in 2024).
* Other Items in Capital Account were US$4.9 billion (US$1.3 billion in 2024).
A significant valuation gain of US$25.3 billion was recorded during April-June 2025, primarily due to the depreciation of the US dollar against major currencies and higher gold prices, compared to a gain of US$0.4 billion in the same period of the previous year.
For further information, contact Puneet Pancholy, Chief General Manager, at the Department of Communication, Reserve Bank of India, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001. The email address is helpdoc@rbi.org.in, and the phone number is 022-2266 0502. The RBI's website is www.rbi.org.in.
Key Entities Referenced
US dollar: The currency against which the valuation of foreign exchange reserves is measured.
Reserve Bank of India: The central bank of India, responsible for releasing the balance of payments data.
Foreign Exchange Reserves: The assets held by the Reserve Bank of India in foreign currencies.
April-June 2025: The period for which the balance of payments and variation in foreign exchange reserves are being reported.
Balance of Payments (BoP): A statement of all transactions made between entities in one country and the rest of the world over a defined period of time.
Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.
Foreign Institutional Investment (FII): Investment in financial assets of a country by institutions from outside of that country.
Mumbai, Maharashtra: Location of the Central Office of the Reserve Bank of India.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
September 01, 2025
Sources of Variation in India’s Foreign Exchange Reserves
during April-June 2025
Today, the Reserve Bank of India released the balance of payments (BoP) data
for the first quarter (Q1), i.e., April-June of 2025-26 on its website (www.rbi.org.in).
On the basis of these data, the sources of variation in foreign exchange reserves
during April-June 2025-26 are detailed below in Table 1.
Table 1: Sources of Variation in Foreign Exchange Reserves*
(US$ billion)
Items April-June 2024 April-June 2025
I. Current Account Balance -8.7 -2.4
II. Capital Account (net) (a to f) 13.9 6.9
a. Foreign Investment (i+ii) 7.2 7.3
(i) Foreign Direct Investment (FDI) 6.2 5.7
(ii)Portfolio Investment 0.9 1.6
of which:
Foreign Institutional Investment 0.9 2.5
(FII)
ADR/GDR 0.0 0.0
b. Banking Capital 2.9 -1.6
of which: NRI Deposits 4.0 3.6
c. Short-term Credit 2.2 0.7
d. External Assistance 1.4 0.7
e. External Commercial Borrowings 1.5 4.5
f. Other Items in Capital Account -1.3 -4.9
III. Valuation Change 0.4 25.3
IV. Total (I+II+III) @ 5.6 29.8
Increase in reserves (+) / Decrease in
reserves (-)
*: Based on the old format of BoP which may differ from the new format (BPM6) in the treatment of
transfers under the current account and ADRs/ GDRs under portfolio investment.
@: Difference, if any, is due to rounding off.
Note: ‘Other Items in Capital Account’ apart from ‘Errors and Omissions’ includes SDR allocation, leads
and lags in exports, funds held abroad, advances received pending issue of shares under FDI, capital
receipts not included elsewhere, and rupee denominated debt.2
On a balance of payments basis (i.e., excluding valuation effects), foreign
exchange reserves increased by US$ 4.5 billion during April-June 2025 as compared
to an accretion of US$ 5.2 billion during April-June 2024. Foreign exchange reserves
in nominal terms (i.e., including valuation effects) increased by US$ 29.8 billion
during April-June 2025 as compared with an increase of US$ 5.6 billion in April-June
2024 (Table 2).
Table 2: Comparative Position of Variation in Reserves
(US$ billion)
I tems April-June 2024 April-June 2025
Change in Foreign Exchange Reserves 5.6 29.8
1.
(i.e., Including Valuation Effects)
Valuation Effects 0.4 25.3
2.
[Gain (+)/Loss (-)]
Change in Foreign Exchange Reserves 5.2 4.5
3. on BoP basis (i.e., Excluding Valuation
Effects)
Note: Increase in reserves (+)/Decrease in reserves (-).
Difference, if any, is due to rounding off.
The valuation gain, primarily reflecting depreciation of US dollar against major
currencies and higher price of gold, amounted to US$ 25.3 billion during April-June
2025 as compared with a valuation gain of US$ 0.4 billion during April-June 2024.
(Puneet Pancholy)
Press Release: 2025-2026/1014 Chief General Manager