New Delhi

The Finance Ministry on Wednesday rejected reports suggesting that the Reserve Bank of India (RBI) had sold gold worth around USD 12 billion to strengthen the country's foreign exchange reserves.

According to ministry sources, the RBI has categorically denied the claim, which appeared in a media report alleging that the central bank disposed of a significant quantity of gold over a two-week period ending May 22 to counter pressure on the rupee and rising import costs.

Official data released in the RBI's Annual Report for 2025-26 paints a different picture, indicating that the central bank's gold holdings actually increased during the financial year.

The report states that the RBI held 880.52 metric tonnes of gold as of March 31, 2026, compared to 879.58 metric tonnes a year earlier. This reflects a net addition of 0.94 metric tonnes during the period, contradicting reports of any major sale of gold reserves.

Of the total gold stock, 312.32 metric tonnes were held under the Issue Department, while 568.20 metric tonnes were maintained under the Banking Department.

The annual report also highlighted a substantial rise in the value of the RBI's gold assets, driven largely by higher international gold prices and the depreciation of the rupee against the US dollar. The value of gold held under the Banking Department recorded a growth of 63.6 per cent during FY26.

India's foreign exchange reserves also showed improvement during the year. As of March 31, 2026, the country's forex reserves stood at USD 691.11 billion, up from USD 668.33 billion recorded a year earlier.

The value of gold reserves, including gold deposits, rose significantly to USD 115.40 billion from USD 78.18 billion in the previous financial year.

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The RBI's audited financial statements and reserve data indicate that the central bank not only retained its gold holdings but also marginally increased them during FY26. The figures do not support reports claiming a large-scale sale of gold to bolster foreign exchange reserves.