India's forex reserves dropped by $3.71 billion to $701.18 billion for the week ended October 4, the RBI said on Friday.
In the previous reporting week, the reserves had jumped by $12.59 billion to an all-time high of $704.88 billion.
For the week ended October 4, foreign currency assets, a major component of the reserves, decreased by $3.51 billion to $612.64 billion, the data released on Friday showed.
Expressed in terms of dollar, 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.
Gold reserves decreased by $40 million to $65.76 billion during the week, the RBI said.
The Special Drawing Rights (SDRs) were down by $123 million to $18.425 billion, the apex bank said.
India's reserve position with the IMF was down by $35 million to $4.352 billion in the reporting week, the apex bank data showed.