RBI's Foreign Gold Reserves Drop to 22% from 40% in One Year
The Reserve Bank of India reports a significant decrease in gold reserves held abroad, reflecting a strategic shift in asset management.
RBI's gold reserves abroad fell to 22% from 40% over the past year.
Total gold reserves amount to 880 tonnes, with 198 tonnes held overseas.
The dollar value of gold in reserves increased from 13.92% to 16.7% in six months.
As of March 2026, the Reserve Bank of India (RBI) reported that only 22% of its gold reserves were stored abroad, a notable decline from approximately 40% a year prior. This information was revealed through an RTI request filed by a Nagpur resident, Abhay Kolarkar, and is supported by official RBI data. At the close of the last fiscal year, the RBI held around 198 tonnes of its total 880 tonnes of gold in safekeeping with the Bank of England and the Bank for International Settlements (BIS).
The RBI's half-yearly report on the management of foreign exchange reserves indicates that the remaining 680 tonnes of gold are stored within India, while an additional 2.8 tonnes are maintained as gold deposits. In March 2025, the RBI had approximately 349 tonnes of its gold reserves abroad, which has since decreased significantly. By the end of September 2025, the amount of gold held overseas was reported to be around 290 tonnes.
The report also highlights the increasing significance of gold in the country’s overall reserves. The dollar value of gold's share in total foreign exchange reserves rose from 13.92% at the end of September 2025 to approximately 16.7% by the end of March 2026. The value of gold fluctuated considerably during this period, peaking at $132 billion in February 2026 before settling at around $115 billion by March.
In terms of total foreign exchange reserves, there was a decline from $700.09 billion at the end of September 2025 to $691.11 billion by March 2026. This decline was accompanied by a drop in foreign currency assets, which fell from $579.18 billion to $552.28 billion. Despite these reductions, valuation gains of $50.2 billion contributed to a nominal increase in reserves by $19.4 billion during this timeframe.
Looking ahead, the RBI's strategy regarding gold reserves may continue to evolve, particularly in light of changing global economic conditions. The upcoming reports will likely provide further insights into the central bank's asset management strategies and the implications for India's financial stability.
