As the world grapples with rising geopolitical tensions and fears of a global recession, the Reserve Bank of India (RBI) has taken a major step to strengthen the country’s economic security. In a move that has surprised many, RBI has repatriated more than 100 metric tonnes of gold from foreign vaults back to India. This decision comes at a time when economic and political uncertainties are intensifying globally, pushing central banks across the world to safeguard their assets. But what exactly prompted this move, and what impact will it have on the common citizen? Let’s break it down.
Why RBI Brought Gold Back to India
According to official data, RBI brought back 100.32 metric tonnes of gold to India by the end of the financial year 2024–25. This brings the total physical gold holding within India to 200.06 metric tonnes. This decision is seen as part of a broader strategy by the RBI to manage its reserves more securely and efficiently.
Globally, central banks prefer gold as a "safe-haven" asset, especially during uncertain times. With increasing volatility in markets and geopolitical instability, the RBI has followed suit, aiming to enhance the country’s domestic gold reserves. The move allows India to reduce its dependence on foreign vaults in case of emergencies or disruptions in global trade and finance.
A Closer Look at India’s Gold Reserves
As of 31 March 2025, the Reserve Bank of India held a total of 879.58 metric tonnes of gold. This is an increase from 822.10 metric tonnes held on 31 March 2024, marking a rise of 57.48 metric tonnes in just one year.
Out of the total reserves:
311.38 metric tonnes were with the Issue Department (up from 308.3 metric tonnes in the previous year)
568.20 metric tonnes were with the Banking Department (up from 514.7 metric tonnes last year)
After the recent repatriation, the gold physically stored in India rose to 200.06 metric tonnes. On the other hand, gold kept in foreign vaults dropped to 367.60 metric tonnes, compared to 413.79 metric tonnes in the previous year—a reduction of around 46 metric tonnes.
The Monetary Value of RBI’s Gold Assets
The value of the gold held under the Banking Department jumped significantly over the year. On 31 March 2024, it stood at ₹2,74,717.27 crore, which increased to ₹4,31,624.80 crore by 31 March 2025—reflecting a growth of 57.12%.
This rise can be attributed to three major factors:
The purchase of 54.13 metric tonnes of gold during the year
The global increase in gold prices
The depreciation of the Indian rupee against other major currencies
These factors combined have enhanced the overall value of RBI’s gold reserves, adding more financial strength to India’s central bank.
Where Was India’s Foreign Gold Stored?
Most of India’s overseas gold reserves are stored with the Bank of England in London, a location known for its high-level security. In addition, smaller portions of India’s gold are kept at the Bank for International Settlements in Basel, Switzerland, and the Federal Reserve Bank in the United States. While these locations offer returns and flexibility for trade swaps, they also carry certain risks in times of war or global disruptions.
Experts believe this is precisely why the RBI decided to bring a portion of the gold back—so that in a worst-case scenario, India doesn’t have to rely solely on foreign banks for accessing its gold reserves.
What Does This Mean for the Common Man?
While this may seem like a move focused only on macroeconomic management and foreign policy, it also has potential benefits for ordinary citizens.
Gold has traditionally been a trusted investment for Indian households. However, rising gold prices in recent years have made it increasingly difficult for the average person to buy gold. With more gold stored domestically, the RBI and government have greater flexibility to intervene in the local market, increasing supply if needed to stabilize prices.
In case of rising demand or extreme volatility, the RBI can use the physical gold held within India to cool down soaring prices. This could make gold more accessible to retail investors and families during festivals or weddings—periods when gold purchases spike.
The RBI’s decision to repatriate over 100 tonnes of gold from foreign vaults marks a crucial shift in how India is preparing for uncertain global times. It reflects a strategy focused on national economic security and better control over valuable assets. While the move strengthens India’s financial resilience on the global stage, it also holds the promise of bringing some relief to Indian citizens facing high gold prices. As the world watches anxiously amid crisis and instability, India’s golden move might just be a masterstroke in safeguarding its future.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. The content is based on publicly available data and reports. Readers are advised to consult with a financial expert before making any investment or policy decisions. The blog and its authors are not responsible for any losses arising from the use of this information.
