RBI Brought Back 77% of Gold Reserves as Global Risk Drives Shift to Domestic Holdings

Reserve Bank of India has significantly increased domestic custody of its gold reserves, reflecting a broader strategic shift in response to global geopolitical developments and financial system uncertainties. 

Scale of Repatriation and Current Holdings 

As per news reports, by the end of March 2026, the central bank had repatriated nearly 77% of its total gold reserves. Out of 880.52 metric tonnes, around 680 tonnes are now held within India.  

The remaining 197.67 tonnes continue to be stored overseas with the Bank of England and the Bank for International Settlements. In addition, the RBI holds 2.8 tonnes in the form of gold deposits. 

The pace of repatriation has accelerated in recent months. Six months earlier, about 65.4% of the reserves had been brought back.  

During the October 2025 to March 2026 period alone, the RBI repatriated 104.23 tonnes of gold, reducing overseas holdings from 290 tonnes at the end of September 2025 to about 197.6 tonnes by March 2026. 

Earlier data shows that in March 2023, only 301.1 tonnes, or 37% of total reserves, were held domestically. 

Drivers Behind the Shift 

The move gained momentum following global geopolitical developments, including the Russia–Ukraine conflict and the Taliban’s takeover of Afghanistan.  

In both cases, foreign currency reserves held overseas were frozen by G7 nations, raising concerns over the safety of sovereign assets stored abroad. 

Impact on Forex Composition and Reserves 

The increasing domestic holding of gold is also reflected in its rising share within India’s foreign exchange reserves.  

In value terms, gold accounted for 16.70% of total reserves as of March 2026, up from 13.92% at the end of September 2025. 

During the same period, overall foreign exchange reserves declined to $691.1 billion from $700 billion.  

The data was published in the RBI’s Half-Yearly Report on Management of Foreign Exchange Reserves for the period October 2025 to March 2026. 

Read More: India Gold Imports Drop to 30-Year Low in April Amid Tax Disruption and Demand Shift! 

Conclusion 

The RBI’s accelerated repatriation of gold highlights a strategic shift towards greater control over reserve assets, as countries reassess global risks and prioritise financial security in an uncertain environment. 

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