How much gold reserves do RBI keep in India? Central Bank slows down in bringing home gold from foreign vaults
The Reserve Bank of India brought only 1.53 tonnes of gold home in the second half of the financial year ending March 2025.
The central banks acquire gold as a strategy to diversify their foreign exchange holdings and use it as protection against inflation and currency value changes. During the period of global uncertainty and political instability, gold remains a reliable investment option.
In February 2022, after the outbreak of the Russia-Ukraine conflict, the pace to get the gold back in India increased.
The latest RBI report states that by March 2025, its total gold holdings were 879.59 MT. Of this, 511.99 MT tonnes were stored within India, while 348.62 MT of Bank of England and Bank for International Settlements (BIS) were in custody. Additionally, 18.98 MT was maintained as gold deposits.
India’s total foreign exchange reserves saw an increase in the ratio of gold, which increased from 9.32 percent in the end of September 2024 to about 11.70 percent by March 2025.
In response to increased geopolitical risk and international stress, central banks have increased their gold acquisition globally after the Kovid epidemic.
Also read India has the 7th largest gold reserves in the world! Why RBI is buying gold and how does it help Indian economy
Additional components of the store, foreign exchange property, many currencies include holdings.
At the end of March 2025, $ 485.53 billion was placed in securities, from $ 567.56 billion total foreign currency assets, $ 45.68 billion was held with other central banks and BIS, while $ 36.34 billion was placed as deposits with foreign commercial banks. External asset managers handle a small ratio of reserves to ensure portfolio diversification.
