RBI shifts 100-ton gold from UK back to India: report

The Reserve Bank of India (RBI) has shifted about 100 tons of gold from the United Kingdom back to the country, The Times of India reported, citing unidentified people aware of the development.

The central bank intends to shift more of the yellow metal back to the country, the report said, adding that the gold is stored in vaults located in the RBI’s old office building on Mumbai’s Mint Road and in Nagpur.

The Reserve Bank last moved such a large quantity of gold in 1991. Amid a severe foreign exchange crisis that year, the Indian central bank had to pledge part of its gold reserves.

The central bank began buying gold several years ago, and decided to review its storage strategy. With the gold stored abroad building up, a decision was made to transfer some of that gold back to India, the report said, citing the official.

“While no one was watching, RBI has shifted 100 tonnes of its gold reserves back to India from UK,” Sanjeev Sanyal, a member in the Economic Advisory Council to the Prime Minister, posted on X (formerly Twitter).

“Most countries keep their gold in the vaults of the Bank of England or some such location (and pay a fee for the privilege). India will now hold most of its gold in its own vaults. We have come a long way since we had to ship out gold overnight in 1991 in the midst of a crisis,” Sanyal added.

While no one was watching, RBI has shifted 100 tonnes of its gold reserves back to India from UK. Most countries keep their gold in the vaults of the Bank of England or some such location (and pay a fee for the privilege). India will now hold most of its gold in its own vaults.…

— Sanjeev Sanyal (@sanjeevsanyal) May 31, 2024

RBI data showed that as of the end of March, the central bank held 822.1 tons of gold, half of which was stored abroad. The RBI, which has been actively acquiring gold, added 27.5 tons to its reserves in the past financial year.

Reserve Bank governor Shaktikanta Das had in April said that the country was building up gold reserves as part of its forex deployment.

“We are building up gold reserves that is a part of our reserve deployment,” Das said at the customary post-policy review press conference.