RBI brings back huge gold reserves to India amid global conflicts

Mumbai: In a significant shift in reserve strategy, the Reserve Bank of India is repatriating a large portion of its gold holdings from abroad. Itbrought 104.37 metric tonnes back to India so far. The move, detailed in the central bank’s latest report, signals a decisive push to strengthen domestic control over critical assets amid ongoing global uncertainties.

The data shows a sharp rise in gold’s share within India’s foreign exchange reserves. By the end of March 2026, gold accounted for 16.7% of total reserves, up from 13.92% in September 2025—an increase of nearly three percentage points in just six months. This rapid shift underlines a clear recalibration of reserve composition, with gold emerging as a more prominent safeguard.

India’s total gold holdings now stand at 290.37 metric tonnes. At the same time, the country’s foreign exchange assets, valued at $552.28 billion, remain heavily invested in financial instruments, with $465.61 billion parked in securities. Additional allocations include $46.83 billion held with other central banks and the Bank for International Settlements, and $39.84 billion deposited in foreign commercial banks.

However, the latest adjustments indicate a subtle but important shift away from these traditional channels. The RBI has marginally reduced its exposure to securities and foreign commercial bank deposits, redirecting focus toward physically held gold. The move reflects growing caution in the face of global economic volatility and geopolitical tensions.

By accelerating the return of gold to domestic vaults, the central bank appears to be prioritising security and stability over conventional investment routes. The scale and speed of the repatriation highlight an increasingly defensive posture, suggesting that safeguarding reserves against external risks has become a pressing priority for India’s financial authorities.