RBI Brings Back Over 100 Tonnes of Gold to India in FY25

The Reserve Bank of India (RBI) brought back 100.32 metric tonnes of gold from its overseas vaults during the 2024–25 financial year, bringing India’s domestic holdings to 200.06 tonnes by 31 March 2025. Overseas holdings decreased from 413.79 to 367.60 tonnes over the same period, reflecting a strategic reshuffle of its gold reserves.

Rationale Behind the Move

Central banks often switch to safe-haven assets like gold during periods of instability. Holding more gold domestically gives the RBI greater control over local gold prices and provides flexibility to deploy reserves if needed. At the same time, maintaining overseas gold reserves ensures smoother trading, swaps and potential returns, although this exposes holdings to geopolitical and war-related risks.

Asset Value Surge and Reserve Allocation

By 31 March 2025, RBI’s gold assets (Banking Department) surged by 57.12% in value—from ₹274,714.27 crore to ₹431,624.80 crore—driven by an addition of 54.13 tonnes, rising international gold prices, and rupee depreciation. 

Total gold reserves climbed from 822.10 tonnes to 879.58 tonnes. Of that total, 311.38 tonnes are under the Issue Department and 568.20 tonnes under the Banking Department, both showing year-on-year increases.

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Conclusion

RBI’s combined strategy of increasing domestic gold holdings while preserving a significant overseas reserve balances risk and liquidity, responding to global tensions and economic uncertainty. This robust gold reserve management strengthens monetary stability and offers tactical flexibility for future economic challenges.

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