In 2025, the Reserve Bank of India (RBI) significantly reduced its gold purchases. According to a World Gold Council report, the RBI bought only 4.02 tonnes of gold in 2025, compared to 72.6 tonnes in 2024. This represents a massive decline of approximately 94% in a single year.

Yet, why does the RBI have record gold reserves?
Despite the reduced purchases, the RBI's total gold reserves have reached a record high. The RBI currently holds 880.2 tonnes of gold, the highest figure ever. By November 2025, the value of the RBI's gold reserves had exceeded $100 billion. Furthermore, the share of gold in India's foreign exchange reserves is also at a record high. In one year, the share of gold increased from approximately 10% to 16%. In March 2021, this share was only 5.87%. This means that in five years, the RBI has almost tripled the weight of gold in its reserves.

Why did the RBI slow down its purchases?
According to the report, the RBI reduced its gold purchases because the share of gold in its reserves had already increased significantly. The World Gold Council believes that due to high prices and the increasing share of gold in its reserves, the RBI is now managing its reserves in a more balanced manner.

Where is the RBI's gold stored?
Not all of the RBI's gold is stored in India. As of March 2025, the RBI held 879.59 tonnes of gold, of which approximately 512 tonnes were stored in India. The remaining gold is held securely with the Bank of England and the Bank for International Settlements (BIS). Some of the gold is also held in the form of gold deposits.

Central Banks around the world and gold
Central banks around the world have also been actively buying gold in recent years. As of December 2025, global central banks held a total of 32,140 tonnes of gold. Purchased in 2022: 1,082 tons
In 2023: 1,037 tons
Record in 2024: 1,180 tons

Purchases are expected to remain above 1,000 tons in 2025 as well.
Gold has now become the second most important asset in central banks' reserves after the dollar. Gold's share has reached 20%, which is even higher than the euro (16%). Interestingly, central banks now hold more gold than US Treasury bonds. This is the first time this has happened since 1996.

Why have gold prices increased?
Since 2022, gold prices have increased by approximately 175%. The main reasons for this are the heavy buying by central banks and global uncertainty. In 2025 alone, gold saw a surge of more than 65%, as investors consider it a safe-haven asset. Although the RBI's purchases may have decreased, India's gold reserves are stronger than ever. Clearly, the RBI is now focusing on smart management strategies rather than simply increasing purchases.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.