Key Takeaways
- RBI Deputy Governor highlights gold price surge and CBDC as key factors for central bank accounting
- RBI holds 880.8 tonnes of gold valued at ₹95 billion as of September 2025
- Gold prices have tripled in the last 5-6 years, growing at 12.5% CAGR over two decades
- International research explores CBDC’s potential impact on banknotes, deposits, and liquidity operations
RBI Deputy Governor Shishir Chandra Murmu has identified soaring gold prices and Central Bank Digital Currency (CBDC) as emerging challenges that will significantly influence central bank accounting and disclosure practices worldwide.
Gold Price Impact on Central Bank Balance Sheets
Murmu emphasized that the sharp rise in gold prices requires broader discussion about its effect on central bank balance sheets. “The RBI conservatively revalues the gold holdings at 90% of the London Bullion Market Association (LBMA) gold price. However, gold revaluation practices vary across countries and the impact of high movement in gold prices on central bank balance sheets and income needs wider discussion,” he stated.
As of September 2025, the RBI maintained substantial gold reserves of approximately 880.8 tonnes valued at ₹95 billion. Industry data reveals gold prices have more than tripled in the past 5-6 years, with a 12.5% compound annual growth rate over two decades.
CBDC’s Potential Balance Sheet Implications
The Deputy Governor noted that CBDC’s potential impact on central bank balance sheets is attracting significant international research. “Some research papers have tried to explore how the design choices for CBDCs adopted by central banks may shape people’s behaviour with respect to adoption of CBDC and potential substitution of banknotes and/or bank deposits with CBDC,” he emphasized.
Global discussions are ongoing about whether and how this transition might affect central bank balance sheet structures and liquidity operations requirements.
Call for International Collaboration
Murmu stressed that these emerging aspects demand ongoing engagement and knowledge sharing among central banks as they gain practical experience. “We should work closely in these areas and share our experiences and research with each other, which will help all of us in making better decisions,” he told attendees at the first International Conference on Central Bank Accounting Practices in Mumbai.
RBI’s Accounting Framework
Regarding RBI’s accounting practices, Murmu explained that the central bank prepares financial statements and sets accounting policies according to the RBI Act of 1934 and RBI General Regulations of 1949, with complete government ownership. “Over the years, RBI has consistently worked to align its accounting practices with global best practices, while staying true to core principles of prudence and conservatism,” he added. The institution maintains a strong, resilient balance sheet with adequate risk provisioning.
