The sharp rise in gold prices and the potential impact of Central Bank Digital Currency (CBDC) on central bank balance sheets are among emerging areas in central bank accounting and disclosures which would gain prominence in coming days said Reserve Bank of India (RBI) Deputy Governor Shishir Chandra Murmu.
Stating that the recent sharp rise in gold prices has garnered a lot of attention and discussions globally with respect to its impact on the central bank balance sheets, Mr Murmu said this development needed wider discussion.
“The RBI conservatively revalues the gold holdings at 90% of the London Bullion Market Association (LBMA) gold price. However, gold revaluation practices vary across countries and the impact of high movement in gold prices on central bank balance sheets and income needs wider discussion,” he said.
As of September 2025, the RBI held a total of about 880.8 tonnes of gold reserves valued at ₹95 billion. To keep gold prices in perspective, in the last 20 years, gold rates have gone up at CAGR of 12.5%. In the last 5-6 years, it has more than tripled, according to industry officials.
Mr. Murmu was delivering the keynote address at the first International Conference on Central Bank Accounting Practices on the subject Central Bank Accounting Practices: The Reserve Bank of India and Global Approaches. The event was organised by RBI jointly with the SEACEN Centre in Mumbai.
Mr. Murmu said the issue of potential impact of Central Bank Digital Currency (CBDC) on central bank balance sheets had also been attracting lot of international research and discussions.
“Some research papers have tried to explore how the design choices for CBDCs adopted by central banks may shape people’s behaviour with respect to adoption of CBDC and potential substitution of banknotes and/or bank deposits with CBDC,” he emphasised.
“It is also being discussed and debated globally whether and how this may impact central bank balance sheet structures and the need for liquidity operations,” the Deputy Governor pointed out.
He said these emerging aspects would require ongoing engagement and collaboration in future as central banks learn from their respective experiences. “We should work closely in these areas and share our experiences and research with each other, which will help all of us in making better decisions,” he told the audience.
On the accounting practice followed by the RBI, Mr. Murmu said since the entire ownership of RBI remains vested with the Government of India, the central bank prepares its financial statements and sets its accounting policies as per the RBI Act of 1934 and the RBI General Regulations of 1949.
“Over time, within this legal framework, these policies have evolved to keep up with changing needs and practices. The has a strong and resilient balance sheet, with adequate level of risk provisioning,” he said. “Over the years, RBI has consistently worked to align its accounting practices with global best practices, while staying true to core principles of prudence and conservatism,” he added.
Published – November 14, 2025 10:29 pm IST
