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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
RAJYA SABHA UNSTARRED QUESTION NO. 2000
TO BE ANSWERED ON MARCH 10, 2026 / 19 PHALGUNA, 1947 (SAKA)
Disparity between Growth in currency in circulation vis-a-vis gold reserves
2000 Shri Sanjay Raut:
Will the Minister of Finance be pleased to state:
(a) whether Gold holdings of the Reserve Bank of India increased from about 557.75 metric tonnes
as on 31 March 2014 to about 879.58 metric tonnes as on 31 March 2025, a net addition of about
321.8 metric tonnes;
(b) whether currency in circulation during the same period rose from about ₹13 lakh crore to ₹36.8
lakh crore;
(c) whether Government/RBI acknowledge that currency in circulation nearly tripled while Gold
reserves grew at a much slower pace; and
(d) the economic rationale for this divergence and any assessment of its implications for monetary
stability and confidence in the Indian rupee?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (d): As per Reserve Bank of India (RBI), the total gold reserves held by RBI as on June 30,
2014 and March 31, 2025 are as under:
As on Total gold reserve held by RBI
June 30, 2014 557.75 metric tonnes
March 31, 2025 879.58 metric tonnes
Note: The accounting year of RBI changed to April-March (from July-June) since FY 2020-21.
The value of Currency in Circulation (CiC) as on March 31, 2014 and March 31, 2025 was
₹13,00,200 crore and ₹37,24,417 crore respectively.
The Currency in Circulation includes banknotes, e₹ and coins. The increase in CiC is a function of
demand of a growing economy, and is driven by the growth in GDP, inflation, interest rate, etc. As
per Section 33 of the Reserve Bank of India Act, 1934, assets, that can be held as backing for Notes
in Circulation (NiC), consist of gold coin, gold bullion, foreign securities, rupee coin and rupee
securities, to such aggregate amount as is not less than the total notes in circulation. NiC, at any
given point of time, is fully backed by eligible assets, as mandated by the Reserve Bank of India
Act, 1934.
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