The Reserve Bank of India (RBI) has increased its foreign exposure in overseas securities by investing more amounts in overseas bonds during last half year. The move was taken despite declining foreign exchange reserve during the period. The country's forex reserve stood at $277.3 billion at the end of September 2008, while amount in overseas securities was recorded at $111.2 billion.

The apex bank invested $134.8 billion in securities out of the total foreign currency assets of $241.4 billion, according to Half Yearly Report on Foreign Exchange Reserves, released by the bank.

The report said: "The foreign currency assets are invested in multi-currency, multi-asset portfolios as per the existing norms which are similar to the best international practices followed in this regard."

The central bank deposited $101.9 billion, out of total reserve, with international institutions such as Bank of International Settlements (BIS) and the International Monetary Fund (IMF), while the remaining amount worth $4.7 billion was deposited in other commercial banks.

The bank has about 357 tonnes of gold, which constitutes about 3.8 per cent of the total foreign exchange reserves held by RBI till March 31, 2009. Out of total gold, the government perked 65 tonnes with the Bank of England and the BIS in 1991; and it is currently lying in the safe custody of these financial institutions.