Strategic Shift in Gold Reserves
In a significant move, the Reserve Bank of India (RBI) has transferred 104.23 metric tonnes of gold to domestic reserves, reflecting a cautious approach amid changing global geopolitical conditions. As uncertainty rises worldwide, countries are increasingly prioritizing the storage of gold within their own borders.

Gold Reserves See Marginal Increase
According to RBI’s latest report, India’s total gold reserves rose slightly to 880.52 metric tonnes by the end of March 2026, compared to 880.18 metric tonnes in September 2025. The transfer of gold from overseas vaults to domestic storage highlights a shift in reserve management strategy.

Repatriation of Gold Over Six Months
Over the six-month period ending March 2026, the RBI moved 104.23 metric tonnes of gold from its foreign holdings back to India. Typically, countries store part of their gold reserves abroad in institutions such as the Bank of England for security and trading purposes. However, the current global situation has prompted India to bring a larger share of its gold back home.

Changes in Foreign Exchange Asset Allocation
The RBI also reported a net forward asset position of $103.06 billion as of March 2026. There has been a slight shift in the composition of foreign exchange assets, with reduced investments in securities and deposits with foreign commercial banks, and increased deposits with other central banks and the Bank for International Settlements (BIS).

Out of the total foreign currency assets of $552.28 billion, $465.61 billion has been invested in securities. Additionally, $46.83 billion is held with other central banks and BIS, while $39.84 billion remains deposited with foreign commercial banks.

Gold Share in Forex Reserves Rises
The share of gold in India’s foreign exchange reserves has increased significantly due to rising global gold prices. As of March 2026, gold accounted for 16.7% of the total reserves, up from 13.92% six months earlier.

Domestic and Overseas Gold Holdings
The report highlighted that domestic gold holdings stood at 290.37 metric tonnes in March 2026. Meanwhile, 197.67 metric tonnes of gold remain stored securely with institutions like the Bank of England and BIS. Additionally, 2.80 metric tonnes are held as gold deposits.

RBI’s Cautious Approach Amid Global Tensions
The move to repatriate gold underscores RBI’s cautious strategy in response to evolving global uncertainties. With geopolitical tensions impacting global markets, strengthening domestic reserves is seen as a step toward ensuring financial stability and safeguarding national assets.