As per the data from the Reserve Bank of India (RBI) indicated that there has been a surge in forex reserves by$3.6 billion to $405.64 billion as on March 15. In the earlier week, the reserves also have been reported to increase by$258.8 million to $401.776 billion.
FCAs or foreign currency account, which is held in key currencies such as the likes of the US dollar, euro, Japanese yen and pound sterling also surged by $3.54 billion to $377.773 billion.
This increase is partly attributable to an increase in rising investments by foreign investors in Indian equities markets.
And when it comes to FCA, there is an increase or decrease in the account due to sale or purchase of foreign exchange by the apex bank, income due to deployment of forex reserves as well as external aid receipts of the government and revaluation of assets.