The Reserve Bank of India brought approximately 64 tonnes of gold reserves back to its vaults in India during the first half of the current financial year, FY2026. This move highlights a growing global trend among central banks to hold sovereign assets closer to home. The repatriation effort aims to enhance security and diversify storage locations for India's substantial gold holdings.^[1] ### Growing Domestic Gold Holdings This recent transfer means India now stores a larger portion of its gold reserves within the country. As of the end of September 2025, the Reserve Bank of India held a total of 880.8 tonnes of gold. Of this, 575.8 tonnes are now secured within India. The remaining 290.3 tonnes are held in custody with the Bank of England and the Bank for International Settlements (BIS). An additional 14 tonnes are part of gold deposit arrangements.^[1] The value of India's gold reserves reached approximately $95 billion by late September 2025. This value further crossed the $100 billion mark by October 10, 2025. This significant increase in value comes from both strategic accumulation and a notable surge in global gold prices throughout 2025.^[2][3][4] ### Strategic Shift Amidst Global Uncertainty The decision to bring gold back to India reflects a strategic shift in the RBI's reserve management. Central banks worldwide are increasingly cautious about keeping sovereign assets abroad due to rising geopolitical tensions and potential financial warfare. Freezing of assets, as seen in recent global events, has prompted nations to reconsider overseas holdings.^{[5][6][1][7][8][9][10]} Holding gold domestically offers greater security and control. It also reduces reliance on foreign custodial institutions like the Bank of England. This strategy bolsters India's economic sovereignty and safeguards its national wealth against external risks.^{[11][5][6][7][12][10]} ### Past Repatriations and Reasons This is not the first time India has moved a large quantity of gold back home. In May 2024, the RBI repatriated about 100 tonnes of gold from the United Kingdom. This marked the first significant movement of gold of this scale since 1991.^{[13][14][15][11][16][17][18][19][8]} Since September 2022, India has quietly brought back a total of 214 tonnes of gold.^{[11][5][6][20][12]} One key reason for these repatriations is to diversify storage risks. Spreading out high-value assets across different locations minimizes potential threats. Logistical considerations also play a role. The RBI Governor, Shaktikanta Das, previously noted that India has sufficient domestic storage capacity for its gold reserves.^[14][6] Bringing gold home can also lead to minor savings on storage costs paid to foreign banks.^[15][7] ### Gold as a Safe Haven Asset Gold continues to be a crucial component of India's foreign exchange reserves. It serves as a hedge against inflation and currency volatility, especially during periods of economic uncertainty. Global central banks, including the RBI, have been increasing their gold purchases in recent years. This trend is driven by a desire to diversify away from traditional reserve assets like the US dollar.^{[16][21][22][23][7][24][25][4][26][9]} For instance, in the first half of 2025, central banks worldwide added 166 tonnes of gold to their official reserves.^{[2][27][21][28]} This sustained demand, coupled with global economic and geopolitical uncertainties, has pushed gold prices to record highs.^{[2][27][21][28]} ### Impact on India's Financial Stability By increasing its domestic gold holdings, India strengthens its financial resilience. Gold is considered a stable and liquid asset that performs well during crises. Having more gold within its own borders enhances the RBI's ability to manage monetary policy and respond to external economic shocks.^{[16][23][7][25][26][8][10]} The growing share of gold in India's total foreign exchange reserves underscores a deliberate strategy. This strategy aims to reduce dependency on traditional reserve assets and hedge against currency fluctuations. This move signals India's commitment to securing its financial future in an increasingly unpredictable global environment.^{[2][29][3][23][7][25][4][26]} ### Looking Ahead The RBI's strategic management of its gold reserves is part of a broader, proactive approach to national economic security. This ongoing repatriation and accumulation of gold are expected to continue. The central bank remains focused on ensuring India's financial stability and resilience in the face of evolving global dynamics. ***