Over the past year, the Reserve Bank of India has added around 25.45 metric tonnes of gold to its reserves, taking the overall gold holding to 880.18 tonnes as of September 2025. The consistent addition is part of a larger RBI plan to bring back gold and increase India’s financial reserves. This is critical to achieve economic security and stability amidst turbulent global periods.
How much gold has RBI repatriated
According to official data, RBI gold reserves increased from 854.73 tonnes in September 2024 to 880.18 tonnes in September 2025. Of this amount, almost 575.82 tonnes are now retained within India, with the remainder kept in safe custody with global institutions such as the Bank of England and the Bank for International Settlements. Significantly, such a rise comprises approximately 64 tonnes of gold physically being repatriated to Indian safes in the first half of FY 2025-26 alone. The repatriation is part of a trend that started a couple of years ago.
Until 2023, much of India’s gold was parked abroad, a trend that went back to the 1991 balance of payments crisis when India used to pledge gold overseas to service financial requirements. But understanding the significance of having physical gold within the country, the RBI began to bring gold back in greater volumes—over 270 tonnes have been brought back since the beginning of 2023. Strategic repatriation lessens reliance on foreign custodians and puts more control in the hands of India over its reserves.
Why is the RBI collecting gold
Gold is a significant component of India’s foreign exchange reserves. In contrast to cash or foreign currency assets, gold is secure and serves as a cover against currency volatility and global financial shocks. The percentage of gold in terms of overall foreign exchange reserves rose from 11.7% in March 2025 to almost 14% in September 2025. Gold retains its value even in times of inflation, geopolitical tensions, or devaluation of the currency.
Collecting and holding gold domestically helps the RBI maintain liquidity and boost confidence in the country’s economic stability. It also protects India from risks associated with storing too much wealth in foreign currencies or overseas vaults. With global geopolitical uncertainties rising, including sanctions and financial restrictions seen in recent conflicts, RBI’s move to hold more gold physically in India makes good sense.
Impact on the Indian economy
Repatriation of gold has several beneficial impacts on India’s economy. For instance, it enhances the financial strength of the nation. With more gold reserves locally, India enjoys a better cushion to deal with the foreign exchange value of the rupee and can manage currency fluctuations more effectively. It also comforts investors and overseas markets regarding the economic prowess of India.
Second, diversifying foreign exchange reserves to have a higher proportion of gold mitigates risks associated with currency fluctuations in foreign currency. As India imports a huge quantity of crude oil and other essential commodities, a stable rupee against sudden currency fluctuations keeps inflation and import prices at bay. This is important in regulating overall economic stability.
Thirdly, repatriation and higher gold reserves also reflect India’s increasing economic sovereignty and maturity. It indicates that India is coming to grips with its wealth instead of depending too much on foreign institutions. This can reassure global investors by projecting India’s active economic risk management.
In short, we can say that the RBI’s raising gold reserves to 880.18 metric tonnes with more than 575 tonnes now domiciled within is a clear indication of India’s commitment to fortifying its economic shield.
By repatriating large amounts of gold in the past few years, RBI has restored a vital financial buffer that safeguards against external shocks, anchors the rupee, and improves investor confidence. This consistent effort of bringing India’s gold prosperity back to the country is pragmatic, strategic, and aligns well with the nation’s increasing economic influence on the global stage.
