Gold gains power RBI growth as balance sheet expands 20.6% in FY26
May 30, 2026
The RBI attributed the rise in valuation to higher global gold prices and depreciation of the rupee against the US dollar
The balance sheet of the Reserve Bank of India (RBI) expanded by 20.6 per cent in FY26, driven largely by a sharp rise in the value of gold holdings along with higher domestic and foreign investments, according to the central bank’s annual report released on Friday.
The RBI’s balance sheet size increased to ₹91,97,121.08 crore as on March 31, 2026, from ₹76,25,421.93 crore a year ago. The central bank said the increase on the assets side was led by a 44.9 per cent rise in domestic investments, a 63.8 per cent jump in gold holdings and a 7.9 per cent increase in foreign investments. On the liabilities side, revaluation accounts rose 63.4 per cent, while notes issued, deposits and other liabilities increased by 11.8 per cent, 11.6 per cent and 21.1 per cent, respectively.
Although the quantity of gold held by the RBI remained largely stable at 880.52 tonnes as on March 31, 2026 compared with 879.58 tonnes a year earlier, the value of gold held in the banking department surged to ₹7,06,162.36 crore from ₹4,31,624.80 crore in FY25.
The RBI attributed the rise in valuation to higher global gold prices and depreciation of the rupee against the US dollar.
The composition of the RBI’s assets also shifted. Domestic assets accounted for 29.1 per cent of total assets at the end of FY26 against 25.7 per cent in FY25. Foreign currency assets, gold holdings and loans and advances to financial institutions outside India together accounted for 70.9 per cent of total assets, lower than 74.3 per cent a year ago.
Digital currency
The annual report also highlighted the RBI’s push to expand the use of the central bank digital currency (CBDC) in cross-border payments and domestic welfare schemes.
During FY26, the RBI launched multiple pilot projects for the digital rupee under direct benefit transfer schemes of the Centre and states. The RBI also signed a memorandum of understanding with the Monetary Authority of Singapore for collaboration on digital assets and held discussions with Singapore and the UAE on operationalising cross-border CBDC pilots.
The RBI said it plans to explore bilateral and multilateral CBDC pilots with select use cases and continue engagement on technical and governance standards for cross-border payments. However, the value of e₹ in circulation declined 24.1 per cent to ₹771.7 crore as on March 31, 2026 from ₹1,016.5 crore a year earlier.
Rupee-based trade
On trade settlement, the RBI said rupee-based invoicing and settlement for cross-border trade has seen a pickup since 2022, helping reduce exchange rate risks and dependence on foreign currency reserves.
Between August 2022 and July 2025, imports invoiced in rupees recorded a compound annual growth rate of 20.9 per cent, while exports grew 12.7 per cent. As of May 2026, India has entered into local currency arrangements with the UAE, Indonesia, Maldives and Mauritius, while special rupee vostro accounts have been opened by correspondent banks in 35 partner countries.
The RBI’s balance sheet size increased to ₹91,97,121.08 crore as on March 31, 2026, from ₹76,25,421.93 crore a year ago. The central bank said the increase on the assets side was led by a 44.9 per cent rise in domestic investments, a 63.8 per cent jump in gold holdings and a 7.9 per cent increase in foreign investments. On the liabilities side, revaluation accounts rose 63.4 per cent, while notes issued, deposits and other liabilities increased by 11.8 per cent, 11.6 per cent and 21.1 per cent, respectively.
Although the quantity of gold held by the RBI remained largely stable at 880.52 tonnes as on March 31, 2026 compared with 879.58 tonnes a year earlier, the value of gold held in the banking department surged to ₹7,06,162.36 crore from ₹4,31,624.80 crore in FY25.
The RBI attributed the rise in valuation to higher global gold prices and depreciation of the rupee against the US dollar.
The composition of the RBI’s assets also shifted. Domestic assets accounted for 29.1 per cent of total assets at the end of FY26 against 25.7 per cent in FY25. Foreign currency assets, gold holdings and loans and advances to financial institutions outside India together accounted for 70.9 per cent of total assets, lower than 74.3 per cent a year ago.
Digital currency
The annual report also highlighted the RBI’s push to expand the use of the central bank digital currency (CBDC) in cross-border payments and domestic welfare schemes.
During FY26, the RBI launched multiple pilot projects for the digital rupee under direct benefit transfer schemes of the Centre and states. The RBI also signed a memorandum of understanding with the Monetary Authority of Singapore for collaboration on digital assets and held discussions with Singapore and the UAE on operationalising cross-border CBDC pilots.
The RBI said it plans to explore bilateral and multilateral CBDC pilots with select use cases and continue engagement on technical and governance standards for cross-border payments. However, the value of e₹ in circulation declined 24.1 per cent to ₹771.7 crore as on March 31, 2026 from ₹1,016.5 crore a year earlier.
Rupee-based trade
On trade settlement, the RBI said rupee-based invoicing and settlement for cross-border trade has seen a pickup since 2022, helping reduce exchange rate risks and dependence on foreign currency reserves.
Between August 2022 and July 2025, imports invoiced in rupees recorded a compound annual growth rate of 20.9 per cent, while exports grew 12.7 per cent. As of May 2026, India has entered into local currency arrangements with the UAE, Indonesia, Maldives and Mauritius, while special rupee vostro accounts have been opened by correspondent banks in 35 partner countries.