India has moved 100 metric tonnes of its gold stored in the UK to RBI vaults. (Representational)
Mumbai:
India has recently transferred 100 metric tonnes of gold from storage in the UK to domestic vaults in FY24, sources revealed today.
Significant Gold Movement
This marks one of the most substantial movements of gold for India since 1991 when a substantial portion of the gold reserves were pledged during a foreign exchange crisis, leading to its relocation out of the country.
Increasing Gold Holdings
The country’s overall gold holdings have increased by 27.46 metric tonnes in FY24, totaling 822 metric tonnes, according to official data.
Split in Gold Holdings
A significant amount of the valuable commodity is still stored overseas, with India also having holdings with the Bank of England among other countries. The recent movement of 100 metric tonnes into India has balanced the quantity of gold stored domestically to over 408 metric tonnes, nearly evenly splitting between local and foreign holdings.
Review and Diversification Efforts
The decision to bring back gold held abroad was part of standard review procedures, as India has been actively buying gold in recent years to diversify its foreign exchange assets. In 2009, India acquired 200 tonnes of gold from the International Monetary Fund and has continued buying from the secondary market.
Secrecy and Security
Officials from the Ministry of Finance, RBI, and other agencies managed the gold movement discreetly due to its high value. Currently, the locally held gold is securely stored in high-security vaults and facilities in Mumbai and Nagpur.
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Additional Insight
India’s move to bring back gold stored abroad reflects a strategic shift towards bolstering its domestic reserves and reducing reliance on foreign vaults. This decision may also have been influenced by the need to enhance economic self-sufficiency and ensure greater control over its valuable assets amidst global uncertainties.
