RBI Strikes Gold: Major Addition to Reserves Amid Price Rally

The Reserve Bank of India increased its gold reserves by nearly 25 tonnes in the second half of FY25 during a period of rising gold prices. The central bank now holds 879.59 tonnes, marking the largest yearly addition in seven years. This move is significant amid global geopolitical tensions.

The Reserve Bank of India (RBI) has made a significant move by adding nearly 25 tonnes of gold to its reserves during the second half of FY25, amid a sharp rally in gold prices. This brings the central bank's total gold holdings to 879.59 tonnes, an increase from 854.73 tonnes recorded at the end of September 2024.

Throughout FY25, the RBI added more than 57 tonnes to its reserves—the largest annual increase in seven years—during a period where gold prices surged by 30%. Locally stored gold now comprises 511.99 tonnes, while 348.62 tonnes remain under the safeguard of the Bank of England and the Bank for International Settlements, alongside 18.98 tonnes in gold deposits.

The transfer of gold to local vaults indicates a strategic move amid rising geopolitical tensions, marking the most substantial shift since 1991, when a foreign exchange crisis necessitated a pledge of India's gold holdings. Consequently, gold's share of total foreign exchange reserves rose to 11.70% in March 2025, although overall forex reserves fell to USD 668.33 billion, covering 10.5 months of imports, down from 11.8 months in September 2024.

(With inputs from agencies.)