UPSC Prelims Practice Questions — RBI debunks reports on gold sale, says reserves are ‘steady at 880.52 tonnes’
Q1. Among the following components of India's foreign exchange reserves, which one constitutes the second-largest share after Foreign Currency Assets (FCA) as of May 2026?
- A. Special Drawing Rights (SDRs)
- B. Reserve Tranche Position with the IMF
- C. Gold
- D. RBI's net forward assets
Q2. With reference to the Reserve Bank of India's gold reserves as of mid-2026, consider the following statements:
1. The physical gold stock stood at 880.52 tonnes as of 31 March 2026.
2. More than 60% of RBI's gold is held in vaults within India.
3. The share of gold in India's foreign exchange reserves was less than 10% as of May 2026.
4. The Bank of England and the Bank for International Settlements (BIS) are among the overseas custodians of RBI's gold.
Which of the above is/are correctly identified?
- The physical gold stock stood at 880.52 tonnes as of 31 March 2026.
- More than 60% of RBI's gold is held in vaults within India.
- The share of gold in India's foreign exchange reserves was less than 10% as of May 2026.
- The Bank of England and the Bank for International Settlements (BIS) are among the overseas custodians of RBI's gold.
- A. 1 and 2 only
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1, 3 and 4
Q3. The Reserve Bank of India's management of India's foreign exchange reserves, including its gold holdings, is primarily governed by which one of the following statutes?
- A. Foreign Exchange Regulation Act, 1973
- B. Foreign Exchange Management Act, 1999
- C. Gold (Control) Act, 1968
- D. Banking Regulation Act, 1949
Q4. Consider the following statements comparing the Reserve Bank of India's gold reserves between March 2025 and the data disclosed in mid-2026:
1. The RBI's physical gold stock increased by less than one tonne between 31 March 2025 and 31 March 2026.
2. The rupee value of RBI's gold reserves more than doubled between May 2025 and April 2026.
3. The share of gold in India's foreign exchange reserves rose between September 2025 and May 2026.
Which of the statements given above is/are correct?
- The RBI's physical gold stock increased by less than one tonne between 31 March 2025 and 31 March 2026.
- The rupee value of RBI's gold reserves more than doubled between May 2025 and April 2026.
- The share of gold in India's foreign exchange reserves rose between September 2025 and May 2026.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q5. With reference to the Reserve Bank of India's gold operations, consider the following statements:
1. The Bank of England functions as one of the overseas custodians of RBI's gold.
2. In 2009, the RBI purchased 200 tonnes of gold from the International Monetary Fund.
3. During the 1991 balance of payments crisis, India pledged 67 tonnes of gold with the Bank of England and the Bank of Japan.
4. As per RBI's June 2026 clarification, India's physical gold reserves exceeded 1,000 tonnes.
Which of the statements given above is/are NOT correct?
- The Bank of England functions as one of the overseas custodians of RBI's gold.
- In 2009, the RBI purchased 200 tonnes of gold from the International Monetary Fund.
- During the 1991 balance of payments crisis, India pledged 67 tonnes of gold with the Bank of England and the Bank of Japan.
- As per RBI's June 2026 clarification, India's physical gold reserves exceeded 1,000 tonnes.
- A. 4 only
- B. 1 and 4
- C. 2 and 3
- D. 3 and 4