The Indian government has unequivocally dismissed recent media reports suggesting the Reserve Bank of India (RBI) divested approximately $12 billion worth of gold to shore up the nation's foreign exchange reserves. Officials labeled the claims as "fake" and "incorrect," urging the public to rely solely on official information from the central bank.
The controversy arose following a report by Bloomberg, which indicated the RBI might have reduced its gold holdings. The report posited that this move was intended to protect India's foreign currency reserves, potentially in response to global economic pressures, including the ongoing conflict in West Asia.
RBI Confirms Unchanged Gold Stock
In a press release, the RBI directly addressed the speculation, stating, "The Reserve Bank of India (RBI) has come across reports in certain sections of the media about RBI’s sale of gold. The RBI emphasises that these reports are not correct." The central bank further clarified that its physical stock of gold remains stable at 880.52 tonnes as of June 3, 2026.
The Press Information Bureau (PIB) also weighed in, issuing a fact-check that labeled the Bloomberg report as "fake." The PIB highlighted that the share of gold within India's foreign exchange reserves has actually increased, rising from 13.92 percent at the end of September 2025 to 16.70 percent by March 31, 2026, and further to 16.85 percent as of May 22, 2026.
Details on Gold Holdings
According to the RBI's half-yearly foreign exchange report released in April, the central bank held 880.52 metric tonnes of gold by March-end. A significant portion, 77 percent, of these holdings are stored domestically within India, an increase from 66 percent six months prior. The majority of the RBI's overseas gold reserves are held with the Bank of England and the Bank for International Settlements.
The Bloomberg report had also speculated that the RBI might have sold gold reserves around May 22 while simultaneously purchasing foreign currency assets totaling $7.5 billion, actions that were believed to have supported the Indian rupee's performance against other Asian currencies.
The government and the RBI continue to advise the public to consult official publications for accurate information regarding India's foreign exchange management and gold reserves.