RBI data on Friday showed India’s foreign exchange reserves rose $12.4 bln in
the week to Aug. 21 to a record $729.3 bln, above February’s $728.5 bln peak.
The rise follows large dollar inflows after the Reserve Bank of India introduced
capital-attraction measures in early June, including a special deposit scheme
for non-resident Indians that had drawn $72.8 bln by Aug. 21; these inflows have
helped avert an unprecedented third straight annual shortfall in India’s
external liquidity metrics.