The Reserve Bank of India (RBI) has significantly increased the share of its gold reserves held within the country, transferring around 104 tonnes to domestic vaults during the second half of FY26. The move is part of a broader strategy to strengthen onshore custody of bullion and enhance reserve management.
As a result, gold held within India rose to 680.05 tonnes by the end of March 2026, up from 575.82 tonnes in September 2025. At the same time, gold stored overseas declined sharply, particularly holdings with institutions such as the Bank of England and the Bank for International Settlements.
Despite the relocation, the RBI’s total gold reserves remained largely stable at around 880 tonnes, indicating that the move was a redistribution rather than a fresh accumulation. The share of domestically held gold rose to over 77% of total reserves, compared with about 65% earlier.
In value terms, gold’s share in India’s foreign exchange reserves has increased notably, supported by higher global gold prices and portfolio adjustments. Meanwhile, overall forex reserves saw a slight decline but remain at comfortable levels, ensuring adequate import cover for the economy.
The RBI has reiterated that its reserve management strategy continues to prioritise safety and liquidity, while also aiming to optimise returns. The increase in domestic gold holdings reflects a cautious and strategic approach amid ongoing global economic uncertainties.
