The country's foreign exchange reserves surged by $ 2.563 billion to touch a record high of $ 581.131 billion in the week to December 18, RBI data showed.
In the previous week, the reserves had declined by $ 778 million to $ 578.568 billion.
In the reporting week, the increase in reserves was due to a rise in foreign currency assets (FCAs), a major component of the overall reserves.
FCAs rose by $ 1.382 billion to $ 537.727 billion, the Reserve Bank of India's (RBI) weekly data showed.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
The gold reserves increased by $ 1.008 billion in the reporting week to $ 37.020 billion in the week ended December 18, the data showed.
The special drawing rights (SDRs) with the International Monetary Fund (IMF) rose by $ 12 million to $ 1.515 billion.
The country's reserve position with the IMF also rose by $ 160 million to $4.870 billion.
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