News Brief
RBI Brings 102 Tonnes Of Gold Back to India, Domestic Share Now 60 Per Cent Of Total Reserves
Prime Minister Narendra Modi and RBI Governor Shaktikanta Das (Representative Image)
The Reserve Bank of India (RBI) has relocated 102 tonnes of gold from the Bank of England’s vaults to secure facilities within India.
According to the latest data released by RBI, the gold reserves held domestically have increased to 60 per cent of the total holding as of 30 September compared to 50 per cent at the end of March.
The RBI’s “Half Yearly Report on Management of Foreign Exchange Reserves” says gold held domestically rose over 102 tonnes between April and September to 510.46 metric tonnes against 408 metric tonnes at the end of March.
As of 30 September, the RBI held 854.73 tonnes of gold against 822.10 tonnes at the end of the previous financial year.
While 324.01 metric tonnes of gold were kept in safe custody with the Bank of England and the Bank for International Settlements (BIS), 20.26 metric tonnes were held in the form of gold deposits.
In value terms (US dollars), the share of gold in the total foreign exchange reserves increased from 8.15 per cent as at end-March 2024 to about 9.32 per cent as at end-September 2024, the RBI report said.
India has repatriated 214 tonnes of gold since September 2022.
According to government officials, holding these reserves domestically adds a layer of security amid uncertain global conditions.
The Bank of England has traditionally been a major storage location for central banks, including India's, with some gold stocks dating back to pre-Independence times.
In recent years, the RBI has been among the central banks increasing their gold holdings, adding 27.5 tonnes during the last financial year.
This logistical exercise required months of planning and coordination among the finance ministry, RBI, and other wings of government, including local authorities.
The transfer involved acquiring a customs duty exemption for shipping the gold into the country, although integrated GST was still applied.
A special aircraft with detailed security arrangements was used to transport the gold.
This move is also expected to help RBI save on storage costs paid to the Bank of England, although these savings are not substantial.
