RBI Gold Reserve increases to 880 Metric Tonnes, Check Last 3 Year Gold Reserves of India

The Reserve Bank of India’s (RBI) gold holdings have surpassed 880 metric tonnes in the first half of FY26. The RBI purchased 0.2 metric tonnes of gold during the last week of September 2025, increasing its gold reserves to 880.18 metric tonnes as of September 26. The total value of such holdings was at USD 95 billion. During the six months ended September, the RBI bought a cumulative 0.6 metric tonnes, or 600 kg, of gold, which is 0.4 tonnes in June and 0.2 tonnes in September. Overall gold reserves rose from 879.58 tonnes at the end of 2024-25 to 880.18 tonnes at the end of September 2025. The RBI had increased its gold holdings by 54.13 tonnes during the last financial year (2024-25).

Last 3 Year Gold Reserves of India

The table above shows clearly that the Central Bank of India – RBI, is regularly increasing its gold reserves.

But Why is RBI increasing its Gold Reserve?

The Reserve Bank of India (RBI) has been increasing its gold reserves for several key reasons.

First, gold helps diversify India’s foreign exchange reserves. By holding more gold, the RBI reduces its dependence on major foreign currencies such as the US dollar and minimizes currency risk and exposure to sovereign debt market fluctuations. Unlike foreign currency assets, gold does not carry counterparty risk.

Second, gold acts as a hedge against inflation and currency depreciation. It retains its value over time and provides a safety net when inflation rises or the rupee weakens. For India, where external trade imbalances and global market volatility can impact currency stability, gold serves as a financial buffer.

Third, gold is considered a safe-haven asset during global or geopolitical uncertainty. With rising tensions, economic slowdowns, and financial market instability, accumulating gold is a strategic move that enhances the RBI’s risk management framework.

Fourth, the RBI benefits from valuation gains when international gold prices rise. As gold prices increase, the value of the RBI’s holdings also rises, strengthening India’s overall reserve position.

Fifth, the central bank has been gradually bringing some of its gold reserves back from storage abroad to domestic vaults. This move increases control, reduces foreign storage risks, and ensures greater security over national assets.

Lastly, increasing gold reserves also sends a strong signal of financial strength and stability to investors, credit agencies, and global markets. It demonstrates that India is building a solid reserve buffer capable of withstanding external shocks.