**Executive Summary**
This press release from the Reserve Bank of India, dated December 01, 2025, details the sources of variation in India's foreign exchange reserves during April-September 2025. The report compares these figures with the corresponding period in 2024 using balance of payments (BoP) data. The data is available on the RBI website.
**Key Points / Main Content**
* **Data Release:** The Reserve Bank of India released balance of payments (BoP) data for the second quarter (Q2), i.e., July-September of 2025-26.
* **Sources of Variation in Foreign Exchange Reserves (April-September):**
* **Current Account Balance:** Shifted from -US$ 25.3 billion in 2024 to -US$ 15.1 billion in 2025.
* **Capital Account (net):** Decreased from US$ 49.2 billion in 2024 to US$ 8.6 billion in 2025.
* **Foreign Investment:** Decreased from US$ 24.2 billion in 2024 to US$ 3.6 billion in 2025. Foreign Direct Investment increased, while Portfolio Investment decreased.
* **Banking Capital:** Decreased from US$ 9.0 billion in 2024 to US$ 0.3 billion in 2025, with NRI Deposits decreasing.
* **Short-term Credit:** Decreased from US$ 7.5 billion in 2024 to US$ 2.9 billion in 2025.
* **External Assistance:** Decreased from US$ 3.5 billion in 2024 to US$ 1.2 billion in 2025.
* **External Commercial Borrowings:** Increased from US$ 3.5 billion in 2024 to US$ 4.5 billion in 2025.
* **Valuation Change:** Increased from US$ 35.5 billion in 2024 to US$ 38.2 billion in 2025, primarily reflecting higher price of gold, depreciation of US dollar against major currencies and lower bond yields.
* **Total Impact:** The total increase in reserves was US$ 31.8 billion during April-September 2025, compared to US$ 59.4 billion during the same period in 2024.
* **Foreign Exchange Reserves (BoP basis):** Decreased by US$ 6.4 billion during April-September 2025, compared to an increase of US$ 23.8 billion during the same period in 2024.
**Impact Analysis**
**Key Stakeholders:** Indian Economy, Investors, Policymakers, and Financial Analysts.
**Impact:**
* **Indian Economy:** Gives insight into balance of payments, capital flows, and reserve management.
* **Investors:** Provides details of the nature of investments and the performance of the economy.
* **Policymakers:** Highlights trends that may require further policy interventions.
**Action Required:**
* **Policymakers:** Monitor the data and take appropriate actions if negative trends are observed.
* **Financial Analysts:** Analyze the data and update forecasts and recommendations.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for releasing the balance of payments data and managing foreign exchange reserves.
Balance of Payments (BoP): A statistical record of a country's international transactions, used to analyze sources of variation in foreign exchange reserves.
Foreign Exchange Reserves: The assets held by the Reserve Bank of India in foreign currencies, used to manage the exchange rate and maintain liquidity.
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
December 01, 2025
Sources of Variation in India’s Foreign Exchange Reserves
during April-September 2025
Today, the Reserve Bank of India released the balance of payments (BoP) data
for the second quarter (Q2), i.e., July-September 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-September 2025 are detailed below in Table 1.
Table 1: Sources of Variation in Foreign Exchange Reserves*
(US$ billion)
April-
April-
Items September
September 2024
2025
I. Current Account Balance -25.3 -15.1
II. Capital Account (net) (a to f) 49.2 8.6
a. Foreign Investment (i+ii) 24.2 3.6
(i) Foreign Direct Investment (FDI) 3.4 7.7
(ii) Portfolio Investment 20.8 -4.1
b. Banking Capital 9.0 0.3
of which: NRI Deposits 10.2 6.1
c. Short-term Credit 7.5 2.9
d. External Assistance 3.5 1.2
e. External Commercial Borrowings 3.5 4.5
f. Other Items in Capital Account 1.4 -3.9
III. Valuation Change 35.5 38.2
IV. Total (I+II+III) @ 59.4 31.8
Increase in reserves (+) / Decrease in
reserves (-)
*: Based on the old format of BoP (BPM5) 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/imports, funds held abroad, advances received pending issue of shares under
FDI, capital receipts not included elsewhere, and rupee denominated debt.
On a balance of payments basis (i.e., excluding valuation effects), foreign
exchange reserves decreased by US$ 6.4 billion during April-September 2025 as
against an accretion of US$ 23.8 billion during April-September 2024. Foreign
exchange reserves in nominal terms (i.e., including valuation effects) increased by
US$ 31.8 billion during April-September 2025 as compared with an increase of US$
59.4 billion in April-September 2024 (Table 2).2
Table 2: Comparative Position of Variation in Reserves
(US$ billion)
April-September April-September
I tems 2024 2025
Change in Foreign Exchange Reserves 59.4 31.8
1.
(i.e., Including Valuation Effects)
Valuation Effects 35.5 38.2
2.
[Gain (+)/Loss (-)]
Change in Foreign Exchange Reserves on 23.8 -6.4
3. BoP basis (i.e., Excluding Valuation
Effects)
Notes: 1. Increase in reserves (+)/Decrease in reserves (-).
2. Difference, if any, is due to rounding off.
The valuation gain, primarily reflecting higher price of gold, depreciation of US
dollar against major currencies and lower bond yields, increased to US$ 38.2 billion
during April-September 2025 from US$ 35.5 billion during April-September 2024.
(Brij Raj)
Press Release: 2025-2026/1599 Chief General Manager