The Reserve Bank of India (RBI) has increased the share of foreign exchange reserves invested in overseas bonds even as the reserves have declined during the last six months of 2008-09, a report released by central bank said.

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As at end-March 2009, out of the total foreign currency assets of $241.4 billion, $134.8 billion was invested in securities, an increase of $23.5 billion over September 2008, said Half Yearly Report on Foreign Exchange Reserves released by the RBI today.

However, the forex reserves at the end of September 2008 stood at $277.3 billion and the investment in the overseas securities was to the tune of $111.2 billion.

"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 report said.

Of the total forex reserve at the end of March 2009, $101.9 billion was deposited with other central banks, Bank of International Settlements (BIS) and the International Monetary Fund (IMF) and remaining $4.7 billion was parked as deposits with foreign commercial banks or funds placed with the External Asset Managers (EAMs)

The report added a small portion of the reserves is assigned to the EAMs with the objective of gaining access to and delivering benefit from their expertise and market research.

Giving the break up of the forex investment at the end of September 2008, the RBI report said, $160.5 billion was in the form of deposits with other central banks, BIS and IMF. Remaining $5.4 billion was parked in deposits with foreign commercial banks or funds placed with EAMs.

On the gold deposits, the report said, the RBI holds about 357 tonnes of gold forming about 3.8 per cent of the total foreign exchange reserves in value terms as on March 31, 2009.

Of these, 65 tonnes are being held abroad since 1991 in deposits or safe custody with the Bank of England and the BIS, it added.

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