The Reserve Bank of India (RBI) has significantly accelerated the repatriation of its gold reserves, bringing home 274 tonnes of gold since March 2023, including approximately 64 tonnes in the six months leading up to September 2025. This strategic move is primarily driven by mounting geopolitical uncertainty and rising global skepticism over keeping sovereign assets offshore, especially after the G7 nations froze the foreign currency reserves of Russia and Afghanistan.

By the end of September 2025, the RBI’s total gold holdings stood at 880.8 tonnes, with a majority—575.8 tonnes—now held domestically, reflecting a deliberate effort to enhance economic sovereignty and safeguard national wealth from potential financial sanctions or warfare. This repatriation effort, alongside surging gold prices, has also increased gold’s share in India’s total foreign exchange reserves to 13.9%, underscoring the central bank’s focus on diversification and risk mitigation in a fragmented global landscape.

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.