In a strategic move reflecting shifting global financial realities, Reserve Bank of India (RBI) has repatriated nearly 64 tonnes of gold to its domestic vaults between March and September 2025, bringing the total gold held within India to 575.8 tonnes. The decision comes amid mounting global concerns over the security of sovereign assets stored abroad, as nations increasingly weaponise financial systems to exert geopolitical pressure.
According to official data released by the central bank, India’s total gold holdings stood at 880.8 tonnes as of the end of September 2025. Of this, 290.3 tonnes remain in custody with the Bank of England and the Bank for International Settlements (BIS), while another 14 tonnes are held in gold deposit schemes. The share of gold kept domestically has, thus, risen significantly over the past 18 months, marking one of the fastest phases of gold repatriation in India’s history.
This effort builds upon a broader onshoring drive that began in early 2023, when RBI started moving its overseas gold back home following global events that raised questions about the sanctity of international financial custodianship. The freezing of Russia’s and Afghanistan’s foreign currency reserves by Western governments after the Ukraine conflict and Taliban takeover, respectively, underscored the risks of relying on assets held in foreign jurisdictions.
Since March 2023, RBI has repatriated a total of 274 tonnes of gold, part of a wider trend among emerging economies reassessing the safety of their offshore reserves.
India’s gold holdings have also surged in value due to an extraordinary rally in global bullion prices. Gold prices have risen more than 50% in 2025, reaching an all-time high of around US$4,381/ounce in October amid persistent geopolitical tensions, expectations of US Federal Reserve rate cuts, and rising central bank demand. This price surge has boosted the valuation of India’s gold reserves by US$31bn (billion) since the start of the financial year, taking the total to US$108bn as of mid-October, up from US$77bn at the end of March.
RBI’s balance sheet data shows that gold now accounts for about 9% of India’s total foreign exchange reserves, compared to just 4% a year ago.
RBI’s foreign currency assets, worth around US$579bn at the end of September, are primarily invested in securities, deposits with other central banks and BIS, and deposits with overseas commercial banks. However, the share of such liquid instruments has gradually declined as gold’s contribution to the reserves portfolio has risen. According to official data, US$489.54bn of the total foreign assets were invested in securities, US$46.11bn placed with other central banks and BIS, and US$43.53bn held with overseas commercial banks.
While RBI has traditionally kept part of its gold holdings in London for ease of trading and liquidity, recent trends show that the calculus is changing. Many countries have begun questioning whether such offshore holdings are truly safe in an era when financial sanctions can be swiftly imposed. Nations such as Germany, the Netherlands and Turkey have already repatriated substantial portions of their gold reserves in recent years, citing similar security concerns.
India’s decision also aligns with a global pattern of 'de-dollarisation', where central banks are reducing their exposure to US Treasury assets and increasing holdings in non-currency reserves like gold. RBI, which engages external asset managers for a small portion of its reserves to explore alternative investment strategies, has maintained that its diversification efforts comply with the RBI Act, 1934, and are aimed at ensuring stability and long-term security of the country’s external assets.
Meanwhile, the domestic impact of these developments has been reflected in gold prices within India. On the Multi-Commodity Exchange (MCX), gold prices hovered near Rs1.20 lakh per 10gm in late October, tracking international trends. Silver prices also strengthened, rising to Rs1.45 lakh/kg, buoyed by the broader precious metals rally.
As India’s gold vaults fill up and the world’s geopolitical landscape remains unsettled, RBI’s approach reflects a cautious but calculated recalibration of priorities—anchoring financial strength not in offshore trust, but in assets it can physically control.
