RBI Moves 100 Tonnes Of Gold From UK Back To India, First Time Since 1991

The Reserve Bank of India, the country’s central bank, has shifted over 100 metric tonnes, or 1 lakh kilograms of gold from the United Kingdom to its domestic vaults. More gold is expected to move to the vaults of India in the upcoming months, reported the Times of India.

Sources close to TOI revealed that the transfer of the gold has been attributed to logistical reasons as well as the diversity of storage. According to an official, “Since stock was building up overseas, it was decided to get some of the gold to India,” reported TOI. In India, gold is stored in vaults located in the RBI’s old office building in Nagpur and on Mumbai’s Mint Road.

This is the first time since 1991 that the country has moved gold on such a heavy scale. The RBI had faced severe criticism back in 1991 for being forced to pledge part of its gold reserves when India was undergoing a foreign exchange crisis under the Chandra Shekhar government.

Since the central bank purchased 200 metric tonnes of gold from the International Monetary Fund (IMF) nearly 15 years ago, the RBI has been gradually increasing its reserves by purchasing gold consistently over the years.

As of March 31, 2024, the central bank had 822.1 metric tonnes of gold, of which 413.8 metric tonnes were stored overseas. In the last financial year, RBI purchased around 27.5 metric tonnes of gold. In January–April 2024, the central bank bought 1.5 times more gold, as per the annual data released by the bank.

In order to move gold on such a heavy scale, close coordination between the finance ministry, the RBI, and other government departments, including local authorities, was required as part of months of planning.

The RBI got a customs duty exemption to ship the gold into India with the Centre”s “foregoing revenue” on the sovereign asset. The move is expected to help the central bank save on storage costs, which are to be paid to the Bank of England.