Govt denies reports of central bank selling USD 12 billion worth of gold: Finance Ministry sources
New Delhi, June 3
Sources in the Finance Ministry on Wednesday denied media reports claiming that the Central bank sold gold worth USD 12 billion to shore up India's foreign exchange reserves.
A report by a news agency had claimed that the central bank had sold gold valued at around USD 12 billion over a two-week period ending May 22 in an effort to protect the country's foreign exchange reserves amid pressure on the rupee and a rising import bill. Finance Ministry sources told ANI that the such a report had been denied by the Central Bank.
Meanwhile, RBI's latest Annual Report for 2025-26 shows that the central bank's gold holdings actually increased during the financial year, contradicting claims of a large-scale sale of the precious metal.
According to the RBI Annual Report, "As on March 31, 2026, total gold held by the Reserve Bank was 880.52 metric tonnes as compared to 879.58 metric tonnes as on March 31, 2025, reflecting an increase of 0.94 metric tonnes of gold in the year."
The data indicates that the RBI added to its gold reserves during FY26 rather than reducing them. The report further notes that of the total 880.52 metric tonnes of gold held by the central bank, 312.32 metric tonnes were maintained as assets of the Issue Department, while the remaining 568.20 metric tonnes were held under the Banking Department.
The RBI's annual accounts also reveal a significant increase in the value of its gold holdings, largely driven by a rise in global gold prices and depreciation of the Indian rupee against the US dollar. The value of gold held as an asset of the Banking Department rose by 63.6 per cent during FY26.
The annual report also shows that India's foreign exchange reserves remained robust, standing at USD 691.11 billion as of March 31, 2026, compared with USD 668.33 billion a year earlier. Gold reserves, including gold deposits, increased sharply in value terms to USD 115.40 billion from USD 78.18 billion in the previous year.
The RBI's audited balance sheet and reserve data clearly demonstrate that the central bank continues to maintain substantial gold holdings and that reports suggesting a USD 12 billion gold sale are not borne out by official records.
— ANI
Reader Comments
While I'm relieved the report was false, I do wish the government would be more transparent about forex management. The rupee is under pressure, import bills are rising – people are worried. A simple clarification sooner would have helped. But glad to see gold holdings actually grew. Smart move by RBI to diversify reserves.
Thank God the news was fake! Gold is our security blanket as a nation. We should increase holdings, not sell. And look at that value jump – 63.6% increase in gold value! That's smart investing by RBI during global uncertainty. Well done team! 🙌
From an economic perspective, this makes sense. With rising gold prices and rupee depreciation, selling gold now would be terrible timing. RBI's annual report clearly shows they're holding firm. The $691 billion forex reserves are very healthy too. This is just media creating noise for clicks. Ignore and move on.
Why do such sensational reports keep coming out? First the USD 12 billion figure – that's almost our entire annual gold import! Common sense would say no central bank does that. But people already started panicking on WhatsApp groups. Media should be more responsible. At least the actual data shows our reserves are safe and growing.
Respectful observation: The government denial is welcome, but why did it take so long to clarify? The report was circulating for days. Also, while gold holdings increased by a token 0.94 metric tonnes, I hope RBI is actively managing the portfolio – not just sitting on it. Value increase due to global prices is passive, not active management. Still, overall good news for the economy.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.