RBI’s Gold Reserves Surpass $100 Billion Milestone
The Reserve Bank of India’s gold reserves have crossed the $100 billion mark for the first time in history, reaching $102.365 billion. This milestone comes despite a slight decline in India’s overall foreign exchange reserves, which stood at $697.784 billion as of October 10.
Key Takeaways
- RBI gold reserves hit record $102.365 billion
- Gold’s share in forex reserves reaches 14.7%, highest since 1996-97
- Overall forex reserves dip to $697.784 billion
- Gold purchases slow significantly in 2025
Gold’s Growing Dominance in India’s Reserves
The value of RBI’s gold holdings surged by $3.595 billion to cross the historic $100 billion threshold. Gold now constitutes 14.7% of India’s total foreign exchange reserves – the highest proportion since 1996-97 and nearly double the share from a decade ago.
This remarkable growth reflects both the central bank’s strategic accumulation and the global bullion price surge, with spot gold prices exceeding $4,300 per ounce for the first time.
Slower Gold Purchases in 2025
Interestingly, the $100 billion milestone was achieved despite a significant slowdown in RBI’s gold purchasing activity. According to World Gold Council data, the central bank bought gold in only four of the first nine months of 2025.
Cumulative purchases from January to September stood at just 4 tonnes, sharply lower than the 50 tonnes acquired during the same period in 2024.
Foreign Exchange Reserves Composition
India’s overall forex reserves declined by $2.176 billion to $697.784 billion in the week ended October 10. The decrease was primarily driven by a $5.605 billion drop in foreign currency assets (FCAs), which fell to $572.103 billion.
Other components also showed declines:
- Special Drawing Rights (SDRs): Down $130 million to $18.684 billion
- IMF reserve position: Decreased by $36 million to $4.632 billion
Historical Reserve Trends
India’s foreign exchange reserves have shown significant volatility in recent years. After a $71 billion decline in 2022, the reserves recovered with a $58 billion addition in 2023. The growth continued in 2024 with a $20 billion increase, and so far in 2025, the forex kitty has expanded by approximately $47.8 billion.
Foreign exchange reserves represent assets held by the central bank primarily in reserve currencies like the US dollar, with smaller portions in Euro, Japanese Yen, and Pound Sterling.
The RBI actively manages these reserves, strategically buying dollars when the rupee strengthens and selling during periods of weakness to prevent steep currency depreciation.
