The Reserve Bank of India (RBI) accelerated the process of bringing home gold with it onshoring nearly 64 tonnes in the half year to September amid rising global scepticism over keeping sovereign assets offshore in an era of financial warfare to settle geopolitical scores.

Of the 880.8 tonnes of gold held at the end of September, RBI brought home 575.8 tonnes while 290.3 tonnes was kept in custody with the Bank of England and Bank of International Settlements (BIS). Also, RBI holds 14 tonnes in the form of gold deposits.

India’s central bank has brought home 274 tonnes of gold since March 2023. The move to accelerated repatriation of gold started post the Russia- Ukraine war and the Taliban’s takeover of Afghanistan. In both instances G7 seized foreign currency reserves of Russia and Afghanistan.

“We are of the view that India’s central bank should accelerate the repatriation of gold simply because we live in a geopolitically fragmented world where rule of law was broken and Russia’s FX reserves confiscated by G-7,” Ritesh Jain, founder of Pinetree Macro.

“We are, in fact, surprised that a huge quantity is still lying outside India. I am firmly of the opinion that in this Brave new world, if the gold is not in your custody, then it is not your Gold,” he added.

Surging gold prices has also raised the share of the yellow metal in total reserves to 13.9%.

As at end-September 2025, out of the total foreign currency assets of USD 579.18 bn, USD 489.54 bn was invested in securities, USD 46.11 bn was deposited with other central banks and the BIS and the balance USD 43.53 bn comprised deposits with commercial banks overseas.

As of March 31, this year, RBI held 879 tonnes of gold and of this, 512 tonnes gold was held domestically, and 348.6 tonnes was kept in custody with Bank of England and Bank of International Settlements (BIS).

RBI stated that to explore new strategies and products in reserve management while diversifying the portfolio, a small portion of the reserves is being managed by external asset managers. This is in adherence with permissible activities as per the RBI Act, 1934.

Courtesy : ET