RBI's Significant Gold Addition in FY25

The Reserve Bank of India (RBI) has made a notable addition to its gold reserves, acquiring nearly 25 tonne in the second half of FY25. This period was characterized by a significant rally in global gold prices, as per the official data released.

Total gold holdings reached 879.59 tonne by March 31, 2025, marking an increase from 854.73 tonne at the end of September 2024. This fiscal year, the RBI added over 57 tonne of gold, the largest annual increase in seven years, coinciding with a nearly 30% surge in gold prices.

Domestic and International Gold Storage

The RBI's report highlighted a slight increase in domestically stored gold to 511.99 tonne. Additionally, 348.62 tonne remains in the safe custody of the Bank of England and the Bank for International Settlements (BIS), with 18.98 tonne held as gold deposits.

Earlier in FY25, the RBI transferred a significant amount of gold to its domestic vaults, a move described as one of the largest domestic movements of gold since 1991.

Impact on Foreign Exchange Reserves

The share of gold in India’s total foreign exchange reserves rose to 11.70% at the end of March 2025, up from 9.32% six months earlier. Despite this increase, India’s overall foreign exchange reserves declined to $668.33 billion, sufficient to cover 10.5 months of imports.