The Reserve Bank of India (RBI) has recently relocated 102 tonnes of gold from the Bank of England’s vaults to secure facilities within India, underscoring a strategic move to retain valuable assets closer to home amidst rising global uncertainties.
This latest transfer brings the total amount of gold repatriated by India since September 2022 to 214 tonnes, reflecting the RBI’s increasing preference for domestic custody of its gold reserves. Of India’s total 855 tonnes of gold holdings, 510.5 tonnes are now securely stored within Indian borders. This shift aligns with the government’s goal to bolster security and manage its reserves domestically amidst a complex international landscape.
The decision to repatriate this portion of India’s gold holdings has been driven by a range of geopolitical concerns and economic challenges. According to government sources, maintaining these reserves within India adds an extra layer of security and autonomy over its assets. Moving the gold required advanced security measures, including specialised aircraft and stringent protocols to ensure safe transport, highlighting the government’s commitment to asset security and confidentiality.
India has conducted similar transfers in the past. In May, 100 tonnes of gold were brought from the Bank of England to Indian vaults, one of the most significant relocations since the 1990s. During that earlier period, India’s government had to pledge gold as collateral amidst a financial crisis. This time, however, the transfer is part of a proactive approach to safeguard national wealth rather than a reaction to economic turmoil.
Currently, 324 tonnes of India’s gold reserves are held by the Bank of England and the Bank for International Settlements, both based in the UK. The Bank of England has served as a trusted global custodian since 1697, providing secure bullion storage and the liquidity benefits of London’s bullion market. However, sources indicate that no further gold transfers from the UK to India are anticipated this year.
Gold now comprises 9.3% of India’s total foreign reserves, up from 8.1% in March, a rise supported by the recent surge in global gold prices. In Mumbai, gold currently trades around Rs 78,745 per 10 grams, with analysts forecasting further increases potentially reaching Rs 85,000 per 10 grams in the coming year. Growing investor interest in gold as a hedge against economic uncertainty and regional conflict, particularly in the Middle East, is expected to continue driving demand.
Also Read: ‘Have Faith in Law’: Victim’s Family Reacts to Actor Darshan’s Bail
