RBI Repatriates 100.32 Tonnes of Gold to India Amid Global Economic Uncertainty

 

Overview

In a strategic move to strengthen domestic reserves and reduce reliance on foreign vaults, the Reserve Bank of India (RBI) has repatriated 100.32 metric tonnes of gold from overseas storage to Indian soil in the financial year 2024–25. This brings India’s total physical gold holding within the country to 200.06 metric tonnes by the end of FY25.

Key Highlights

• Gold brought back to India: 100.32 metric tonnes

• Total physical gold in India (FY25-end): 200.06 metric tonnes

• Gold held overseas (as on March 31, 2025): 367.60 metric tonnes

• Gold held overseas (as on March 31, 2024): 413.79 metric tonnes

• Total gold reserves (as on March 31, 2025): 879.58 metric tonnes

• Gold reserves (as on March 31, 2024): 822.10 metric tonnes

• Net increase in gold holdings: 57.48 metric tonnes

Context: Why Now?

This repatriation comes at a time of increasing global economic volatility, especially in the United States, which is facing:

• Political transitions

• Trade tariffs

• Recession risks

• Economic slowdown concerns

These factors have historically prompted central banks to turn toward safe-haven assets like gold.

RBI’s Strategy and Global Storage

While storing gold overseas enables India to earn returns, engage in swaps, and facilitate international trade, geopolitical tensions and war risks can complicate access. Most of India's gold reserves have traditionally been stored with:

• Bank of England (UK)

• Bank for International Settlements (Switzerland)

• Federal Reserve Bank of New York (USA)

Bringing more gold home enhances control, security, and the RBI's ability to intervene in domestic markets if necessary.

Gold Holdings Breakdown (as on March 31, 2025)

Department	Gold Held (in metric tonnes)	Previous Year (FY24)
Issue Department	311.38	308.03
Banking Department	568.20	514.07
Total	879.58	822.10

Increase in Value of Gold Assets

The value of gold held by the RBI’s Banking Department surged by 57.12% — from ₹2,74,714.27 crore on March 31, 2024, to ₹4,31,624.80 crore as of March 31, 2025.
This significant rise is attributed to:

• Addition of 54.13 metric tonnes of gold

• Rise in global gold prices

• Depreciation of the Indian rupee

Conclusion

The RBI’s decision to bring a significant portion of its gold reserves back to India marks a proactive step toward bolstering domestic financial security amidst growing global instability. It reflects a broader global trend of central banks moving assets closer to home to mitigate risks associated with international conflicts and economic disruptions.

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📈 Why This Matters:

India now holds over 200 metric tonnes of gold domestically—a financial buffer in uncertain times and a symbol of growing monetary self-reliance.