Minimal Gold Repatriation in H2 FY25
- RBI brought back only 1.53 tonnes of gold from overseas vaults between September 2024 and March 2025
- In contrast, 102.1 tonnes were repatriated in the first half of FY25
- The slowdown marks a strategic shift in gold repatriation pace
Current Composition of RBI’s Gold Holdings
- Total gold reserves as of March-end 2025: 879.6 metric tonnes
- 512 tonnes held domestically
- 348.6 tonnes held with Bank of England and BIS
- 18.9 tonnes in the form of gold deposits
- Share of gold in total forex reserves rose to 11.70% from 9.32% over the second half of FY25
Gold as a Hedge and Diversification Tool
- Gold acts as a hedge against inflation, currency volatility, and geopolitical risks
- RBI, like other central banks, has increased gold holdings post-Russia-Ukraine war and Covid disruptions
- Repatriation of gold had picked up after February 2022 to enhance physical custody and security
Breakup of Foreign Currency Assets (as of March-end 2025)
- Total forex assets: $567.56 billion
- $485.53 billion in securities
- $45.68 billion with other central banks and BIS
- $36.34 billion with overseas commercial banks
- RBI is also employing external asset managers for a small portion of reserves to diversify investments
