India overtakes Russia in forex reserves after record weekly gain

India's foreign exchange reserves rose by a record $45 billion in the week ended September 4, reaching $785.71 billion and overtaking Russia for the fourth spot globally.

The surge was driven by unexpectedly high inflows of FCNR(B) deposits under an RBI concessional swap scheme, prompting the central bank to close the scheme a month early on August 31.

While higher reserves grant the RBI greater capacity to defend the rupee, experts note that these inflows represent borrowings that will require future repayment.