The Reserve Bank of India on Wednesday firmly denied reports in sections of the media suggesting that it had sold a significant portion of its gold reserves to shore up India's foreign currency assets. In a statement, the central bank said the reports were "not correct" and clarified that its physical stock of gold remains unchanged at 880.52 metric tonnes.

The clarification followed an analysis by Bloomberg Economics that had estimated the RBI may have sold around 12 billion US dollars of gold over a two-week period ending 22 May, in an effort to bolster the country's foreign exchange reserves amid pressure on the rupee and rising import costs linked to the West Asia conflict.

What RBI said

The Reserve Bank advised members of the public to rely only on official information published by the bank from time to time, and pointed to its Monthly Bulletin as the authoritative source for physical gold holdings. The latest edition of the Bulletin, available on the RBI website, lists the holding at 880.52 metric tonnes.

A separate clarification was issued through the Press Information Bureau, which also dismissed the 12-billion-dollar claim. The Centre noted that the share of gold in India's foreign exchange reserves had in fact risen — from 13.92 per cent at the end of September 2025 to 16.70 per cent on 31 March 2026, and further to 16.85 per cent as of 22 May 2026.

What the data actually shows

The RBI's own published numbers do not point to a reduction. According to the central bank's latest Annual Report, total gold held by the Reserve Bank stood at 880.52 metric tonnes as on 31 March 2026, compared with 879.58 metric tonnes as on 31 March 2025 — an increase of 0.94 tonnes over the financial year.

Of the total holding, 312.32 metric tonnes are maintained as assets of the Issue Department, while the remaining 568.20 metric tonnes are held under the Banking Department. The value of gold held by the Banking Department rose sharply over the year, largely on account of higher global gold prices and the rupee's depreciation against the dollar, rather than any change in the physical quantity held.

The Weekly Statistical Supplement, which RBI publishes every Friday, has also shown the tonnage figure steady through April and into May, at 880.52 metric tonnes across successive weekly snapshots.

The Bloomberg Economics estimate

The estimate that triggered the clarification was an analytical inference rather than a confirmed report of a transaction. According to coverage of the analysis, the Bloomberg Economics calculation rested on movements in India's foreign currency assets relative to gold valuations, against the backdrop of the rupee touching a record low on 20 May before partially recovering.

The analysis pointed to the ongoing US-Iran conflict, elevated oil prices and rupee pressure as the broader macroeconomic context. It estimated a roughly 7.5-billion-dollar addition to foreign currency assets over the two weeks in question, and inferred a corresponding gold sale of around 12 billion dollars. The RBI's denial directly contradicts that inference.

Why this matters

For a central bank, the credibility of reserves data is foundational. Gold has become a more visible part of India's foreign exchange reserves in recent quarters — both because of rising market value and because of an increase in domestic storage. If reports of a large undisclosed sale were to take hold, they would risk unsettling markets and the rupee at a moment when external conditions are already volatile.

The RBI's choice to issue a public denial — and the Centre's parallel clarification — signals that both institutions want a clear factual record on what has, and has not, happened with the country's gold reserves. The Monthly Bulletin and Weekly Statistical Supplement remain the primary documents of record.

The road ahead

The RBI's next Weekly Statistical Supplement, due on Friday, will be the next data point readers can check against. If the headline tonnage continues to be reported at 880.52, the clarification will have been borne out by the public data trail. Beyond that, the central bank's June Monthly Bulletin will be the next comprehensive update on the composition of India's foreign exchange reserves.