India Rejects Claims Central Bank Sold $12 Billion In Gold As Reserves Rise

(MENAFN- Khaleej Times) Sources in the Finance Ministry denied media reports that claimed the Central Bank sold gold worth $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 $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 report has been denied by the Central Bank.

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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.

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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 indicated 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 $691.11 billion as of March 31, 2026, compared with $668.33 billion a year earlier. Gold reserves, including gold deposits, increased sharply in value terms to $115.40 billion from $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 $12 billion gold sale are not borne out by official records.

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