The report also highlights a sharp rise in the value of gold reserves due to higher global prices and rupee depreciation. India’s overall foreign exchange reserves remained strong at $691.11 billion, reinforcing the central bank’s stable reserve position. | Photo Credit: ANGELIKA WARMUTH

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.

RBI data shows rise in gold holdings, not decline

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.

Gold value surges amid price rise and rupee depreciation

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.

India’s forex reserves remain strong at $691 billion

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.

RBI dismisses gold sale rumours

 Debunking reports of gold sale, the Reserve Bank of India on Wednesday said there is no change in the physical stock of gold, which remains unchanged at 880.52 tonnes.

The clarification from the Reserve Bank of India (RBI) comes following reports that the RBI may have sold gold amounting to approximately USD 12 billion to shield its foreign-currency reserves from the impact of the ongoing conflict in West Asia.

“The RBI emphasises that these reports are not correct,” the central bank said in a statement.

Members of the public are, therefore, advised to rely on official information published by the RBI from time to time in such matters, it said.

Meanwhile, the Press Information Bureau also published a fact-check on the reports.

According to @RBI, the share of gold in India’s foreign exchange reserves rose from 13.92 per cent at the end of September 2025 to 16.70 per cent on March 31, 2026, and further to 16.85 per cent as of May 22, 2026, it said.

Published on June 3, 2026