For 3rd year in a row, RBI got over 100 tn of gold to India in FY26, Pg13

Key Highlights:

• The Reserve Bank of India (RBI) repatriated over 100 metric tonnes (MT) of gold to India in FY26, marking the third consecutive year of such transfers.
• As of April 17, 2026, the RBI holds 77% of its 880.52 MT gold holdings domestically, valued at $122 billion, a significant increase from 38% in March 2023.

Detailed Insights:

• The RBI's move to increase domestic gold holdings gained momentum after Russia's invasion of Ukraine in 2022, which led to the US freezing Russia's dollar-denominated reserves.
• This event prompted central banks globally to diversify into non-dollar denominated assets, including gold, to mitigate risks associated with holding reserves in specific currencies.
• According to the World Gold Council's Central Bank Gold Reserves Survey 2025, 59% of central banks preferred domestic storage for gold reserves, up from 35% in 2023 and 28% in 2019.
• The survey also indicated that 7% of respondents planned to increase domestic gold storage in the next 12 months, slightly more than the 2% from the previous year, signaling a continued trend.

Key Concepts Involved:

• Foreign Exchange Reserves: Assets held by a central bank in foreign currencies, used to back liabilities and influence monetary policy.
• Diversification: Reducing risk by allocating investments among various financial instruments, industries, and countries.
• Monetary Policy: Actions undertaken by a central bank to manipulate the money supply and credit conditions to stimulate or restrain economic activity.