In a significant shift in reserve management strategy, the Reserve Bank of India (RBI) has repatriated 104.23 metric tonnes of gold from London to domestic vaults during the half-year ending March 2026, marking one of the largest such transfers in decades.
The move comes at a time of heightened global volatility, signalling a strategic effort by the central bank to reduce dependence on overseas custodians and strengthen domestic control over critical reserves.
India has historically maintained a portion of its gold reserves abroad due to logistical and financial considerations. However, recent trends indicate a steady shift. Data shows that gold held within India rose from 511.99 metric tonnes in March 2025 to 575.82 metric tonnes by September 2025, before increasing further following the latest repatriation.
Until September 2025, around 290.37 metric tonnes of India’s gold reserves were held with institutions such as the Bank of England and the Bank for International Settlements (BIS). A substantial portion of this has now been moved back to India as part of the RBI’s revised approach.
According to the central bank’s latest half-yearly report on foreign exchange reserve management, India’s total gold holdings rose marginally to 880.52 tonnes as of March 2026, compared with 880.18 tonnes in September 2025. Of this, 680.05 tonnes are now held domestically, while 197.67 tonnes remain with overseas institutions.
The report also highlights a sharp increase in gold’s share within the country’s foreign exchange reserves, rising to 16.7 per cent in March 2026 from 13.92 per cent six months earlier. This increase has been supported by a rally in global gold prices, enhancing the valuation of existing holdings.
In terms of broader reserve composition, India’s foreign currency assets stood at USD 552.28 billion. Of this, USD 465.61 billion is invested in securities, USD 46.83 billion is held with other central banks and the BIS, and USD 39.84 billion is deposited with commercial banks. The RBI’s net forward assets were reported at USD 103.06 billion at the end of March 2026.
The repatriation underscores a growing global trend among central banks to increase gold holdings and bring them closer to home, amid geopolitical tensions and evolving financial risks. For India, where gold holds both economic and cultural significance, the move also reflects a broader strategy to enhance financial resilience while maintaining trust in its reserve management framework. |
