India’s foreign exchange reserves rose by USD 10.470 billion to USD 636.095 billion in the week that ended on March 8, as per the latest data released by the Reserve Bank of India (RBI). The foreign exchange kitty rose for a third straight week to hit an over two-year high.
Before March 8 week, the foreign exchange reserves rose by USD 6.554 billion to USD 625.626 billion, data showed.
During the latest week, India’s foreign currency assets (FCA), the biggest component of the forex reserves, rose by USD 8.21 billion to USD 562.352 billion, the central bank’s weekly statistical data showed. Gold reserves during the week declined USD 2.299 billion to USD 50.716 billion.
In the calendar year 2023, the RBI added about USD 58 billion to its foreign exchange kitty. In 2022, India’s forex kitty slumped by USD 71 billion cumulatively.
Forex reserves or foreign exchange reserves (FX reserves), are assets that are held by a nation’s central bank or monetary authority.
It is generally held in reserve currencies, usually the US Dollar and, to a lesser degree, the Euro, Japanese Yen, and Pound Sterling.
In October 2021, the country’s foreign exchange reserves touched an all-time high of about USD 645 billion. Much of the decline, though marginal on a cumulative basis, since then can be attributed to a rise in the cost of imported goods in 2022.
Also, the relative fall in forex reserves could be linked to the RBI’s intervention, from time to time, in the market to defend the uneven depreciation in the rupee against a surging US dollar.
Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, to prevent a steep depreciation in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
On Saturday (16th March), Prime Minister Narendra Modi took to his X handle to appeal to the people in the country to register for the PM Surya Ghar Muft Bijli Yojana. He also informed that since the scheme was launched last month, over a crore households have already applied for it. The free electricity scheme encouraging people to set up roof-top solar electricity generation panels was launched in February 2024 by the government of India.
Prime Minister Narendra Modi wrote in his post, “Outstanding news! In about a month since it was launched, over 1 crore households have already registered themselves for the PM-Surya Ghar: Muft Bijli Yojana. Registrations have been pouring in from all parts of the nation. Assam, Bihar, Gujarat, Maharashtra, Odisha, Tamil Nadu and Uttar Pradesh have seen over 5 lakh registrations. Those who haven’t registered yet should also do so at the earliest.”
He further wrote, “This initiative promises substantial reductions in electricity expenses for households, along with ensuring energy production. It’s poised to encourage Lifestyle for Environment (LiFE) on a grand scale, contributing to a better planet.”
The central government has initiated numerous schemes aimed at benefiting the general populace, many of which entail subsidies for recipients. One such initiative is the PM-Surya Ghar: Free Electricity scheme, which aims to install solar panels on the rooftops of 1 crore households. This is PM Modi’s dream project, which has been started under the Ministry of New and Renewable Energy. This scheme was launched by PM Modi on 15th February 2024.
This is expected to greatly benefit the rural people. Under this scheme, the solar system is connected to the existing grid connection. The household uses electricity from the solar panels, and if there is any excess electricity generated, it is fed to the grid, and the household is paid for this electricity by the distribution company. Similarly, if the generation is less than the use, the excess power is drawn from the grid. At the end of the month, the household is billed for the net power drawn from the grid. In case more power was contributed than drawn, the house gets paid instead.
The central govt is providing subsidies to install the systems. However, obtaining the subsidy requires adherence to a detailed application process beyond the mere installation of solar panels.
How to apply?
To initiate the process, one needs to access the official website. From there, navigate to the “Apply for Rooftop Solar” section. Then proceed by selecting the respective state, electricity distribution company, electricity consumer number, mobile number, and email address. Upon clicking “Proceed,” users will be directed to a login page where they must input their consumer number and mobile number. Following this step, a form will appear allowing individuals to apply for a rooftop solar panel, following the provided guidelines.