The Reserve Bank of India (RBI) brought back over 100 tonnes of gold to India in the six months to March, taking the total gold reserves stored locally to 680 tonnes, as per half-yearly data. At the end of March, the central bank had 880.52 tonnes of gold, largely unchanged from a year ago. Mint takes a look at why RBI and other central banks are bringing gold back home.
What is the size of RBI’s total reserves?
As on 24 April, RBI’s total reserves were at $698.5 billion, an increase of $10 billion over the past year, according to latest available data released on 1 May. While a majority of this—79%—are in foreign currency assets, 17% of the reserves are in gold. The share of gold in total reserves has increased over the years. At the end of April 2025, gold accounted for 12% of reserves, up from 8.7% and 7.8% in April 2024 and 2023, respectively.
In its half-yearly report on foreign exchange reserves last week, RBI said that of the total foreign currency assets of $552.28 billion, $465.61 billion was invested in securities, $46.83 billion was deposited with other central banks and the Bank for International Settlement and the balance $39.84 billion comprised deposits with commercial banks overseas.
Why is RBI bringing back gold?
After the US and allies blocked Russia’s access to $300 billion of in 2022 as part of sanctions following its aggression in Ukraine, central banks became wary of storing gold away from home. India, too, has brought home a large chunk of gold reserves.
In September 2023, 48.5% of the gold reserves were held by the Bank of England and the Bank for International Settlements (BIS), which has now shrunk to 22% as of end-March. By value, India’s share of gold in the total foreign exchange reserves increased from 7.4% as at end-September 2023 to about 16.7% at the end of FY26.
Is RBI the only central bank to bring back gold?
The central bank of France has also repatriated gold stored overseas. Madan Sabnavis, chief economist, Bank of Baroda said countries now prefer to keep their gold reserves at home to tell global investors that it has enough firepower during a crisis. At home, he said, these reserves are also excluded from the global sanction net, with countries doing this especially after the Russia-Ukraine war.
Bloomberg reported in July that Serbia’s central bank plans to bring all of its roughly $6 billion-worth of gold reserves onto its own soil.
Why have central banks been buying gold?
Global central banks, including , have been aggressively raising their gold reserves over the past few years. According to data from the World Gold Council, the National Bank of Poland was the largest purchaser in the first three months of 2026, increasing its gold reserves by 31 tonnes over the quarter to 582 tonnes.
The data showed that central bank gold demand began 2026 strongly, with estimated net purchases of 244 tonnes in Q1 of calendar year 2026. Gaura Sengupta, chief economist at IDFC First Bank, said central banks have been increasing their gold reserves to diversify holdings away from US Treasuries, as yields on US Treasuries have risen. When yields harden, central banks face revaluation loss on forex holdings.
What is the outlook on gold holdings of RBI and other central banks?
Broadly, experts agree that central bank gold buying will continue in 2026. Sengupta said lower gold prices offer a good entry point for central banks to start accumulating more gold reserves and does not see central banks slowing their gold investments.
According to the World Gold Council, central bank buying is expected to be solid at levels close to those in 2025. It said demand by global central banks showed good traction despite price volatility, while continued geoeconomic risks could provide additional upside. However, the World Gold Council does not rule out further tactical rebalancing as a result of , liquidity needs and foreign exchange management.