Reserve Bank of India

Reserve Bank of India data reveals a complex interplay of factors shaping the Indian financial landscape. Foreign exchange reserves declined significantly in the first quarter of fiscal 2026, pressured by valuation losses and portfolio outflows, although foreign investment inflows partially offset this. Simultaneously, bank credit growth is accelerating, rising 16.5% year-over-year, driven by increased private corporate borrowing, while the weighted average lending rate has eased. The central bank continues to manage liquidity through variable rate reverse repo auctions and government securities issuance, reflecting ongoing efforts to balance monetary policy objectives amidst evolving economic conditions.