India’s gold reserves: RBI gets home 64 tonnes of gold in first half of FY2026 – why move is important in era of global financial warfare
India’s gold reserves are increasingly being stored in the country – a significant move in an era where countries use financial warfare to mount pressure and settle scores. The Reserve Bank of India (RBI) has intensified its efforts to transfer gold reserves back to India, bringing approximately 64 tonnes during the six months of this financial year.According to an ET report, countries around the world are growing increasingly cautious about maintaining sovereign assets abroad. As of September-end, out of the total gold holdings of 880.8 tonnes, the RBI maintained 575.8 tonnes within India, whilst 290.3 tonnes remained in the custody of the Bank of England and Bank of International Settlements (BIS). Additionally, the RBI has 14 tonnes in gold deposit arrangements.
Why RBI’s move to bring home gold is important
Since March 2023, RBI has transported 274 tonnes of gold back to India’s domestic vaults. This swift repatriation initiative started after the Russia-Ukraine conflict and Afghanistan’s transition to Taliban control, particularly after G7 nations froze the foreign currency reserves of both Russia and Afghanistan.Also Read | Gold reserves vs dollar assets: Why RBI is buying gold & reducing investments in US treasury securities – top points to knowIndia’s central bank ought to speed up bringing gold back home, particularly given today’s world where international laws were disregarded and G-7 nations seized Russia’s foreign exchange reserves, Ritesh Jain, founder of Pinetree Macro told ET.“We are, in fact, surprised that a huge quantity is still lying outside India. I am firmly of the opinion that in this Brave new world, if the gold is not in your custody, then it is not your Gold,” he further stated.The rise in gold prices has also elevated the precious metal’s proportion in total reserves to 13.9%.By September 2025, the foreign currency assets of around $579.18 billion were allocated as follows: $489.54 billion in securities investments, $46.11 billion in deposits with other central banks and BIS, whilst $43.53 billion remained in deposits with overseas commercial banks.As at March 31, RBI’s gold holdings stood at 879 tonnes, with 512 tonnes stored within the country and 348.6 tonnes held under custodial arrangements with the Bank of England and Bank of International Settlements.The central bank has indicated that it engages external asset managers to handle a modest portion of reserves to investigate alternative reserve management strategies and products, whilst diversifying the portfolio. These activities are conducted within the framework permitted by the RBI Act, 1934.
