reserve Bank of India
In the year 2025, the Reserve Bank of India (RBI) has greatly reduced the purchase of gold. According to the World Gold Council report, RBI purchased only 4.02 tonnes of gold in 2025, whereas in 2024 the purchase was 72.6 tonnes. That means there has been a huge decline of about 94% in one year.
Still why does RBI have record gold?
Purchasing may have reduced, but RBI’s total gold reserves have reached a record level. Currently, RBI has a total of 880.2 tonnes of gold, which is the highest figure till date. By November 2025, the value of RBI’s gold reserves will exceed $ 100 billion. Not only this, the share of gold in India’s foreign exchange reserves is also now at a record high. In one year the share of gold has increased from about 10% to 16%. In March 2021, this share was only 5.87%. That means in five years, RBI has almost tripled the weight of gold in its reserves.
Why did RBI slow down the purchases?
According to the report, RBI reduced the purchase of gold because the share of gold in its reserves has already increased significantly. The World Gold Council believes that due to high prices and increasing share of gold in the reserves, RBI is now managing reserves in a more balanced manner.
Where is RBI’s gold kept?
All the gold of RBI is not kept in India. As of March 2025, RBI had 879.59 tonnes of gold, of which about 512 tonnes was kept in India. The remaining gold is kept safe with the Bank of England and the Bank for International Settlements (BIS). Some gold is also in the form of gold deposits.
The world’s central banks and gold
Central banks around the world have also been buying gold extensively for the last few years. By December 2025, global central banks have a total of 32,140 tonnes of gold.
- Purchased in 2022: 1,082 tonnes
- In 2023: 1,037 tonnes
- Record in 2024: 1,180 tonnes
- Procurement is expected to remain above 1,000 tonnes even in 2025
Now gold has become the second most important asset in the reserves of central banks after the dollar. The share of gold has reached 20%, which is more than that of Euro (16%). Interestingly, central banks now have more gold than US treasury bonds. This has happened for the first time since 1996.
Why did gold prices increase?
From 2022 till now, gold prices have increased by about 175%. The main reason for this is the heavy purchasing by central banks and global uncertainty. In 2025 alone, gold showed a rise of more than 65%, because investors consider it a safe-haven i.e. a safe investment. RBI’s purchases may have reduced, but India’s gold reserve is stronger than ever. It is clear that RBI is now following the strategy of smart management rather than buying more.