How Much Gold Does the RBI Hold? A Glimpse into India’s Strategic Reserves

As of March 2025, the Reserve Bank of India (RBI) held 879.59 metric tonnes of gold in its reserves. This figure marks a strategic accumulation aimed at safeguarding India’s financial stability amidst global uncertainties.

Of this, 511.99 tonnes were stored domestically, while 348.62 tonnes remained overseas, specifically with the Bank of England and the Bank for International Settlements (BIS). Additionally, 18.98 tonnes were classified as gold deposits.

Slower Repatriation of Gold Reserves

In the second half of FY 2024–25, RBI repatriated only 1.53 tonnes of gold from its foreign vaults a sharp decline from the 102.15 tonnes returned in the first half of the fiscal year. This marks a significant shift in pace, especially considering the earlier momentum sparked by geopolitical risks post the Russia-Ukraine conflict in early 2022.

The trend highlights a more measured approach, possibly reflecting logistical, strategic, or risk-based considerations around the location of reserve assets.

Why Central Banks Hold Gold Reserves

Gold plays a pivotal role in the foreign exchange reserve portfolios of central banks, including the RBI. It is seen as:

• A hedge against inflation

• A store of value during currency fluctuations

• A safe haven in times of economic or political instability

With mounting global tensions and fragile geopolitical environments, central banks across the world have increasingly leaned on gold as a buffer asset.

Composition of RBI’s Foreign Exchange Reserves

Gold is just one part of India’s broader foreign exchange reserve composition. As of March 2025:

• Foreign currency assets totalled $567.56 billion
  • $485.53 billion in securities.

  • $45.68 billion with other central banks and BIS.

  • $36.34 billion in deposits with overseas commercial banks.

A small portion of these assets is managed by external asset managers to ensure portfolio diversity and efficiency.

Gold’s Rising Share in India’s Forex Basket

Interestingly, the share of gold in India’s total foreign exchange reserves rose notably, from 9.32% in September 2024 to approximately 11.70% by March 2025. This rise reflects both valuation changes in the gold market and the RBI’s gradual yet firm commitment to keeping gold as a significant part of its monetary arsenal.

Read More: RBI Adds 58 MT of Gold to Reserves in FY25, Raising Share to Near 12%. 

Conclusion

While the pace of repatriating gold has slowed in recent months, the RBI’s overall position in terms of gold reserves has strengthened. As central banks worldwide continue to build gold positions to fortify themselves against economic shocks, India remains a prominent player in this global trend, blending caution with calculated action.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.