The Reserve Bank of India (RBI) has brought back 100.32 metric tonnes of gold to India from its overseas vault, taking the total physical holding of gold in India to 200.06 metric tonnes by the end of the financial year 2024-25.
The overseas gold holdings of India fell to 367.60 metric tonnes as on March 31, 2025, from 413.79 metric tonnes as on March 31, 2024.
The increase in physical gold holdings in India has come at a time of global uncertainty, especially in the world’s largest economy, the US, which has undergone political changes, imposed tariffs, and faces recession risks and a potential economic slowdown.
Usually, rising uncertainties lead to central banks increasing their focus on safe-haven assets such as gold. Holding gold in India also allows the RBI to control local gold prices by using some of it if required.
While gold holdings in overseas vaults make it easier for India to trade, engage in swaps and earn returns, there are risks involved, especially during times of geopolitical tensions and war.
India's gold reserves are primarily stored in the Bank of England, where the security protocols are very tight. The central bank also stores a portion of its gold reserves at the Bank for International Settlements (BIS) in Basel, Switzerland, and the Federal Reserve Bank of New York in the US.
Rise in value
The central bank has said that the value of gold (including gold deposits) held as an asset of the Banking Department increased by 57.12 percent from Rs 2,74,714.27 crore as on March 31, 2024, to Rs 4,31,624.80 crore as on March 31, 2025.
This increase is due to the addition of 54.13 metric tonnes of gold, a rise in gold prices, and the depreciation of the Indian rupee.
As on March 31, 2025, the total gold held by the Reserve Bank was 879.58 metric tonnes as compared to 822.10 metric tonnes as on March 31, 2024, reflecting an increase of 57.48 metric tonnes of gold.
Of the total 879.58 metric tonnes as on March 31, 2025, 311.38 metric tonnes of gold is held as an asset of the Issue Department as compared to 308.03 metric tonnes as on March 31, 2024. The remaining 568.20 metric tonnes as on March 31, 2025, is treated as an asset of the Banking Department as compared to 514.07 metric tonnes on March 31, 2024.
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