RBI major step for India's financial self-reliance, brought back 64 tons of gold held abroad
RBI Major Step For India's Financial Self-Reliance: The Reserve Bank of India (RBI) has taken its biggest step yet toward reducing its dependence on the US dollar. The RBI has brought back a significant portion of its gold held abroad.
In the past six months, the RBI brought back 64 tons of gold held abroad.
RBI biggest step towards reducing its dependence on the US dollar
Approximately 65% of the RBI's total gold reserves are now held in India—nearly double the level of four years ago. Following the freezing of Russia's foreign reserves, this decision by the RBI is not only strategic but also a major declaration of India's financial self-reliance.
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As of September 2025, the RBI will hold a total of 880 tons of gold, of which 576 tons, or approximately 65%, is now held in India. Four years ago, this figure was only 38%. This means the RBI has created history by bringing back approximately 280 tons of gold in four years.
65% of RBI gold reserves now in India
According to the report, in the current financial year (April-September 2025) alone, the RBI brought back 64 tons of gold from abroad. Gold now constitutes 13.92% of the RBI's total foreign exchange reserves, up from 11.7% in March.
Previously, a large portion of the RBI's reserves was held with the Bank of England and the Bank for International Settlements (BIS). Many experts believe this decision is directly linked to the freezing of Russia's foreign reserves in 2022.
RBI will hold a total of 880 tons of gold
When the US and European countries blocked Russia's assets, many countries realized it was safer to keep their gold at home. This move by the RBI is a pre-emptive move in that direction. Gaurav Kapoor, Chief Economist at IndusInd Bank, says, "Why keep gold abroad when we have safe storage capacity? In these uncertain times, own gold is the most reliable asset.
The RBI is not only bringing back gold, but is also among the world's top gold buyers. The purpose of this move is to reduce dependence on the US dollar and Treasury assets."
Decision is directly linked to the freezing of Russia's foreign reserves
Interestingly, the RBI began reducing its investments in US Treasuries after Donald Trump imposed a 50% tariff, when India continued to buy cheap oil from Russia.
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This is the biggest historic step in India's economic sector since the RBI's "golden bet." India's foreign exchange reserves have now reached $702.3 billion—the fourth largest in the world. This is enough to cover more than 11 months of imports.
Regarding the rally in gold prices, gold prices have risen 52 percent so far this year
Regarding the rally in gold prices, gold prices have risen 52 percent so far this year. On October 20, gold prices reached an all-time high of $4,381.21 per ounce. This rally is being driven by global uncertainties, expectations of interest rate cuts, and continued buying by central banks, including the RBI.
Summary
This decision demonstrates that India has become self-reliant and vigilant in its reserve strategy. This move by the RBI not only challenges the dominance of the dollar, but also undermines the "gold hedging policy" of India's financial system. also begins.
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