Mumbai, May 2026 – In a significant move underscoring India’s push for greater control over its foreign exchange reserves, the Reserve Bank of India (RBI) has successfully repatriated approximately 104.23 metric tonnes of gold from overseas custodians to its domestic vaults during the financial year 2025-26 (FY26).
According to the RBI’s half-yearly report on foreign exchange reserves for the period October 2025–March 2026, the central bank shifted the gold primarily from the Bank of England in London and the Bank for International Settlements (BIS). This transfer has markedly increased the proportion of India’s gold reserves held within the country.
Sharp Rise in Domestic Holdings
As of end-March 2026, India’s domestic gold holdings rose to 680.05 tonnes from 575.82 tonnes at the end of September 2025. Consequently, domestic vaults now account for nearly 77% of the country’s total gold reserves of 880.52 metric tonnes. Overseas holdings have declined to around 197.67 tonnes.
This repatriation is part of a sustained multi-year effort. Since 2023, the RBI has brought back roughly 274–280 tonnes of gold to India, reflecting a strategic shift in reserve management.
Strategic Rationale
Central banks globally, including the RBI, are increasingly prioritising physical custody of gold reserves amid evolving geopolitical uncertainties. The move is driven by several factors:
- Heightened awareness of risks following the freezing of Russian assets during the Ukraine conflict.
- A desire for enhanced economic sovereignty and immediate access to reserves during emergencies.
- Reduction in storage and insurance costs associated with foreign vaults.
- Strengthened domestic infrastructure capable of securely housing large gold holdings.
Gold’s share in India’s total foreign exchange reserves has also climbed to approximately 16.7% by March 2026, up from 13.92% six months earlier, aided by both the physical transfers and the prevailing high international gold prices.
Broader Context
This development aligns with a global trend among central banks to diversify reserves and increase gold allocations as a hedge against currency volatility and geopolitical tensions. For India, the shift enhances the resilience of its external sector while reinforcing confidence in domestic asset management capabilities.
The RBI has not indicated any immediate concerns regarding reserve security; rather, the repatriation is viewed as a prudent, long-term de-risking strategy in an increasingly complex global environment.
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