RBI Secretly Repatriates 102 Tonnes of Gold from the UK on Dhanteras
The move brings India’s gold reserves within its borders to 510.5 tonnes as geopolitical risks rise.
In a strategic move aligning with India’s preference for domestic control of its assets, the Reserve Bank of India (RBI) quietly transferred 102 tonnes of gold from the Bank of England to secure locations within the country. This substantial addition brings India’s gold reserves within its borders to 510.5 tonnes out of a total 855 tonnes, a significant shift influenced by global economic uncertainties and the desire for heightened asset security.
Since September 2022, India has repatriated 214 tonnes of gold from abroad. Currently, the Bank of England and the Bank for International Settlements hold the remaining 324 tonnes of India’s reserves in the UK, a location known for its secure storage options and liquidity advantages within London’s bullion market. However, officials suggest that India is unlikely to transfer further reserves this year.
The logistics behind this recent transfer, executed with tight security and secrecy, underline the government’s determination to safeguard these assets amid uncertain global conditions. The operation reportedly involved specialized aircraft and enhanced security protocols, highlighting the sensitivity surrounding such a significant transfer.
Gold’s share of India’s total foreign reserves has risen to 9.3%, up from 8.1% in March, aided by recent global gold price increases. Currently trading at around ₹78,745 per 10 grams in Mumbai, analysts predict that gold could reach ₹85,000 per 10 grams within the next year, as investors continue to gravitate toward gold amid global economic tensions, especially in conflict-prone regions like the Middle East.
India’s history of holding reserves abroad dates back to the 1990s when the government pledged gold as collateral to foreign banks to navigate a balance of payments crisis. Today, however, the RBI’s actions are more preemptive, focused on securing India’s wealth within its own borders rather than leveraging it in times of emergency.