RBI Reintroduces 104MT of Gold as a Safe Haven for Companies
The Reserve Bank of India (RBI) significantly increased its gold reserves between October 2025 and March 2026, bringing back over 104 metric tonnes of gold to the country. This move comes amid rising gold prices and a decrease in foreign currency assets, resulting in a notable increase in the share of gold within India’s foreign exchange reserves. The RBI’s total gold holdings rose slightly, reflecting a broader trend among central banks to repatriate gold amid geopolitical tensions.
Increase in Domestic Gold Holdings
During the six-month period from October 2025 to March 2026, the RBI’s domestically held gold surged from 575.8 metric tonnes to 680 metric tonnes. This increase of 104.2 metric tonnes marks a significant step in the RBI’s strategy to enhance its gold reserves. In contrast, the amount of gold held in safe custody abroad, specifically with the Bank of England and the Bank for International Settlements, saw a decline from 290.4 metric tonnes to 197.7 metric tonnes. The RBI’s total gold holdings, which include both domestic and foreign assets, rose marginally from 880.2 metric tonnes valued at $97.4 billion to 880.5 metric tonnes valued at $115.4 billion by the end of March 2026.
Gold’s Rising Share in Foreign Exchange Reserves
The share of gold in India’s total foreign exchange reserves has increased significantly, climbing from 13.9% to 16.7% in value terms. This shift highlights the growing importance of gold as a stable asset amid fluctuating foreign currency assets. The RBI’s foreign currency assets decreased from $579.2 billion at the end of September 2025 to $552.3 billion by March 2026. This decline in foreign currency assets coincides with the RBI’s strategy to bolster its gold reserves, reflecting a broader trend among central banks globally.
Global Trends in Gold Repatriation
The trend of repatriating gold reserves has gained momentum among central banks worldwide, driven by heightened geopolitical tensions and the desire to mitigate risks associated with foreign custody. For instance, France’s Banque de France successfully transferred 129 metric tonnes of gold from the New York Federal Reserve to its vaults in Paris in early 2026. Similarly, Serbia’s National Bank repatriated its entire gold stock, valued at approximately $6 billion, in July 2025. The World Gold Council reported that by 2025, 59% of central banks had increased their onshore gold holdings, up from 50% in 2020, particularly among emerging markets wary of potential sanctions.
Stability in Foreign Currency Asset Allocation
Despite the decline in total foreign currency assets, the RBI maintained a stable deployment pattern for its reserves, which include a multi-currency portfolio comprising the US dollar, euro, pound sterling, and Japanese yen. The investment in securities saw a slight decrease from $489.5 billion, representing 84.5% of foreign currency assets, to $465.6 billion, or 84.3%. Meanwhile, deposits with other central banks and the Bank for International Settlements increased slightly from $46.1 billion to $46.8 billion, while deposits with commercial banks overseas fell from $43.5 billion to $39.8 billion. This stability in asset allocation reflects the RBI’s cautious approach in managing its foreign currency reserves amidst changing global economic conditions.
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