New Delhi: The Reserve Bank of India (RBI) added 25 tonnes of gold to its reserves during the second half of FY25, taking its total gold holdings to 879.59 tonnes by the end of March. The move came as global gold prices surged nearly 30%, with central banks across the world turning to gold as a buffer against currency risks and geopolitical instability.

Data released on Monday show this was part of a broader build-up over the full financial year, during which the RBI purchased more than 57 tonnes of gold, its highest annual addition since 2017, 18.

The share of gold in the RBI's total foreign exchange reserves also climbed, reaching 11.70% in March 2025, up from 9.32% in September 2024. In contrast, overall foreign exchange reserves declined from $705.78 billion to $668.33 billion over the same period. As a result, India’s reserves now cover 10.5 months of imports, compared to 11.8 months earlier.

A growing portion of the RBI’s gold is now stored in India. By the end of the fiscal year, 511.99 tonnes were held domestically, a marginal increase. The rest includes 348.62 tonnes stored with the Bank of England and the Bank for International Settlements, and 18.98 tonnes held as gold deposits. The relocation of gold to domestic vaults marks one of the largest such transfers since 1991, amid heightened global tensions.

RBI’s accumulation of gold in FY25 comes as many central banks seek safe-haven assets in a year marked by market volatility and rising geopolitical friction. Despite declining forex reserves, the increase in gold may serve as a strategic hedge in uncertain times.

BI Bureau