Why Is RBI Moving Gold To India? India’s Gold Reserves Among Top 10 Highest In World! Top Facts

India’s Gold Reserves 2024: Did you know that India is among the top 10 countries in the world in terms of highest gold reserves? The Reserve Bank of India has been actively buying gold for the last few quarters. Not only that, the central bank has also been shifting India’s gold reserves from abroad to India! Since September 2022, 214 tonnes have been relocated to India! Why is the RBI moving India’s gold reserves from abroad? We take a look at top 10 facts: (AI image)

India’s Gold Reserves: According to the latest foreign exchange reserves management report, of the total 855 tonnes of gold held by the Reserve Bank of India, 510.5 tonnes were stored within India by September’s end! (AI image)

The RBI announced on Dhanteras this year that it has transferred an additional 102 tonnes of gold from London’s Bank of England vaults to secure locations within India. (AI image)

Both RBI and the government are aiming to safeguard gold assets amidst global geopolitical uncertainties. Government officials consider domestic storage of gold reserves more secure, according to a TOI report. (AI image)

India’s Gold Reserves: On May 31, TOI exclusively reported the transfer of 100 million tonnes from the UK and predicted another similar transfer. This relocation represents the first major movement since the early 1990s when India had to pledge its gold during a payments crisis. (AI image)

India’s Gold Reserves Moved by RBI: The operation to bring gold reserves to India involved confidential arrangements with special aircraft and enhanced security measures. The gold transfers required tax exemptions. (AI image)

India’s Gold Reserves Abroad: Currently, 324 tonnes remain in the custody of the Bank of England and the Bank for International Settlements, with most stored in the UK. Over 20 tonnes of RBI’s holdings were maintained in gold deposits. (AI image)

The Bank of England, second only to the New York Federal Reserve in gold custody, safeguards precious metal reserves for the UK and other central banks. Its “bullion warehouse”, established in 1697 and expanded during various gold rushes, houses approximately 400,000 gold bars. By early September, these vaults contained nearly 5,350 tonnes of gold. (AI image)

The London bullion market’s accessibility offers swift liquidity advantages. RBI statistics indicate increased gold holdings, comprising 9.3% of India’s foreign exchange reserves by September’s end, up from 8.1% in March. (AI image)

Earlier this year, RBI governor Shaktikanta Das said that the overseas gold holdings had grown due to RBI’s ongoing acquisitions, and with sufficient domestic storage facilities available, it was logical to store some reserves within the country. (AI image)