RBI holds 60% of gold reserves domestically, up 102 tonnes

The Reserve Bank of India (RBI) has reported that 60% of its gold reserves, totaling 854.73 metric tonnes as of September 30, 2024, are held domestically. This marks an increase of 102 tonnes from April to September, reflecting India’s strategic emphasis on domestic storage of gold.RBI Gold Reserves Grow, With Majority Held Domestically

As global gold prices rise, RBI’s domestic holdings have surged, reaching 510.46 metric tonnes—up from 408 tonnes in March 2024. This increase signifies the bank’s move to secure a majority of its gold within the country, enhancing stability amid global volatility.

RBI’s domestic gold reserves Up by 102 Tonnes

From April to September, the RBI added over 102 tonnes to its domestic reserves, while 324.01 tonnes remain internationally with the Bank of England and the BIS. An additional 20.26 tonnes are part of gold deposits, balancing India’s reserve security with international flexibility.

Gold’s role in India’s foreign reserves grows with RBI’s domestic strategy

Gold now accounts for 9.32% of India’s foreign reserves, up from 8.15% in March, underscoring its growing role. India’s total foreign exchange reserves also climbed to $705.78 billion by September, showcasing RBI’s strengthened financial position.

Strategic benefits of RBI’s increased domestic gold holdings

The RBI’s increased domestic gold storage boosts India’s financial security and aligns with a cautious approach amid global uncertainties. By reinforcing gold’s role within foreign reserves, RBI supports India’s economic resilience, optimizing reserve management while safeguarding national assets.

RBI’s decision to hold 60% of its gold reserves domestically reflects India’s proactive approach to financial security. As global markets face instability, having a portion of reserves in gold strengthens the country’s economy.

The RBI not only secures valuable assets at home but also aligns with international best practices for reserve management. This strategic reserve boost supports India’s overall economic resilience, ensuring stability and confidence in its financial future amid global volatility.