RBI balance sheet jumps 20.6% to ₹91.97 lakh crore in FY26 amid surge in gold and investments

The balance sheet of the Reserve Bank of India expanded sharply by 20.6 per cent in financial year 2025-26, reaching ₹91.97 lakh crore as of March 31, 2026, according to the RBI’s annual report released on Friday. The central bank attributed the significant rise primarily to higher domestic investments, increased gold holdings and growth in foreign investments.

The RBI’s balance sheet increased by ₹15.71 lakh crore over the previous financial year. According to the annual report, the balance sheet size stood at ₹76.25 lakh crore on March 31, 2025, and rose to ₹91.97 lakh crore by the end of March 2026.

The report stated that the increase on the assets side was largely driven by a 44.9 per cent rise in domestic investments, a sharp 63.8 per cent increase in gold holdings and a 7.9 per cent growth in foreign investments. The rise reflects continued strengthening of the central bank’s asset base amid changing global and domestic economic conditions.

On the liabilities side, revaluation accounts recorded a significant increase of 63.4 per cent during the financial year. Currency notes issued by the RBI rose by 11.8 per cent, while deposits increased by 11.6 per cent. Other liabilities also registered growth of 21.1 per cent, according to the report.

The RBI’s annual report comes at a time when central banks across the world are closely monitoring inflation trends, currency stability, geopolitical uncertainty and movements in global gold prices. Rising gold reserves have increasingly become a key component of reserve diversification strategies among several major economies.

The report also highlighted that the domestic economy remained resilient during FY26 despite global financial volatility and external challenges. Analysts have observed that higher domestic investments by the RBI generally reflect liquidity management operations and support measures undertaken in the financial system.

The sharp increase in gold holdings is particularly significant as global central banks, including India, have steadily increased gold purchases over the past few years amid uncertainty in international markets and fluctuations in reserve currencies.

The RBI balance sheet is considered an important indicator of the central bank’s financial strength, reserve management strategy and monetary operations. Growth in the balance sheet often reflects changes in liquidity conditions, foreign exchange reserves, government securities holdings and currency circulation.

India’s central bank had also transferred a record surplus to the central government in recent years, aided by stronger earnings from foreign exchange operations and investment income.

The latest annual report provides detailed insight into the RBI’s financial position at a time when the Indian economy continues to navigate inflation management, global market uncertainty and evolving monetary policy conditions.