India's gold hoard up 7% at 879.59 tonnes in FY25

Gold Reserves

The Reserve Bank of India (RBI) increased its gold reserves to 879.59 tonnes in FY25, the central bank said in its annual report released on May 29.

The country’s gold reserves were at 854.73 tonnes in September 2024.

The surge in reserves has been attributed to a combination of fresh purchases of 54.13 tonnes, a 30 percent increase in gold prices, and the depreciation of the rupee against the dollar.

The RBI's gold holdings are divided between domestic and overseas storage.

Approximately 511.99 tonnes are held within India, while 348.62 tonnes are stored abroad, primarily with the Bank of England and the Bank for International Settlements (BIS).

Additionally, 18.98 tonnes are maintained as gold deposits.

In FY25, the RBI repatriated 38.64 tonnes of gold to India, continuing the trend of bringing back a portion of its overseas holdings. This move aligns with the central bank's strategy to enhance domestic control over its reserves.

The increase in gold reserves has significantly impacted the RBI's balance sheet, which expanded by 8.2 percent to Rs 76.25 lakh crore by March 31, 2025.

Gold holdings contributed substantially to this growth, with the value of gold assets rising by 52.09 percent during the fiscal year.