The Reserve Bank of India (RBI) has taken the biggest step yet towards reducing its dependence on the US dollar. The RBI has recalled a large portion of its gold held abroad to India. Now around 65% of RBI's total gold reserves are secured in India, almost double the level of 4 years ago.
After stabilizing Russia's foreign reserves, this decision of RBI is not only strategic but also a big announcement of India's financial self-reliance.
According to media reports, RBI had a total of 880 tonnes of gold as of September 2025, of which 576 tonnes or about 65% of the gold is now held in India. 4 years ago this figure was only 38%. This means, RBI has created history by bringing back around 280 tonnes of gold in 4 years.
In the current financial year (April-September 2025) alone, RBI brought back 64 tonnes of gold from abroad. Gold now accounts for 13.92% of RBI's total foreign exchange reserves, up from 11.7% in March. Earlier, a major portion of the RBI was held in the Bank of England and the Bank for International Settlements (BIS).
Many experts believe that this decision is connected with the freezing of foreign reserves of Russia in the year 2022. In fact, when the US and European countries blocked Russian assets, many countries realized that it was safer to keep their gold in their own country.
Gaurav Kapoor, Chief Economist, IndusInd Bank, says, “Why keep gold abroad when we have safe storage capacity? Own gold is the most reliable asset in these uncertain times.”
According to reports, RBI is not only bringing back gold but is also among the top buyers of gold in the world. The main reason for this move could be to reduce dependence on the US dollar and treasury assets. Interestingly, the RBI started reducing investment in US Treasuries when Donald Trump imposed 50% tariffs and India continued to buy cheap oil from Russia.
After this “golden bet” of RBI, India's foreign exchange reserves have now reached $702.3 billion, which is the fourth largest in the world. This is enough to cover imports for more than 11 months. This decision shows that India has now become self-reliant and vigilant in its reserve strategy. This move by the RBI not only challenges the dominance of the dollar but of India's financial system "Gold Security Policy" also indicates the beginning of
Gold and silver are found in every home in India. People buy gold and silver on every auspicious occasion in the house. Click here to know the daily price of gold and silver.
. Source
