India’s forex reserves jump $12.588 billion to hit record high of $704.885 billion

India’s forex reserves jumped by $12.588 billion to a new all-time high of $704.885 billion for the week ended September 27, the Reserve Bank said on oCtober 4.

The overall kitty had swelled by $2.838 billion to $692.296 billion in the previous reporting week.

The $12.588-billion surge would be one of the highest weekly rises ever, and this is the first time the reserves have crossed the $700-billion mark.

Is There a Case for Higher Deposit Insurance Coverage in India?

These institutions were rescued by takeovers or bailouts, but the failures of several smaller cooperative banks remain a persistent issue. One consequence of banking failures abroad, especially in the US, has been a shift of depositor funds from smaller banks to larger, more stable ones, driven by a trust deficit. A similar trend could emerge in India, putting smaller banks under pressure.