Why RBI Shifts 100 Tonnes Of Gold From UK To Its Vaults In India? Check More Over Here

The Reserve Bank of India (RBI) has shifted over 100 tonnes of gold from the UK to its vaults in the country.  According to the Business Today report, more gold is likely to be brought back with decisions on this yearly.
First time since 1991 that gold has been added to the stock kept in the country.  It took a special aircraft to shift the large quantities of gold with detailed security arrangements put in place. It will help RBI save on some of the storage cost which is paid to the Bank of England. Gold is stored in vaults in RBI’s old office building in Mumbai’s Mint Road as well as Nagpur.
More than half of RBI’s gold reserves are held overseas in safe custody with the Bank of England and the Bank of International Settlements, and about a third of it is stored domestically. 
According to the annual data released by the RBI, the central Bank holds 822.10 metric tonnes of gold, of which 308.03 metric tonnes are held as backing for notes issued as on March 31, 2024. The reserve is up from 794.63 tonnes held during the same period last year. 
RBI Plans To Shift More Gold?
In 1991, the Chandra Shekhar government faced the balance of payments crisis. Between July 4 and 18, 1991, the RBI pledged 46.91 tonnes of gold with the Bank of England and the Bank of Japan to raise $400 million. 
According to sources in the TOI report, the transfer of the gold to domestic places was done for both logistical and diverse storage purposes. It means a comparable amount of gold may again enter the nation in the upcoming months.
As to the TOI report, the RBI had 822.1 tonnes of gold at the end of March, of which 413.8 tonnes were held outside. With 27.5 tonnes acquired during the most recent fiscal year, it is one of the central banks that has purchased gold in recent years.
Gold Storage With Bank of England 
The Bank of England has been a warehouse for central banks, including India, for a longer period of time.
According to the officials in the TOI report, the RBI started buying gold a few years ago and has periodically reviewed its storage options. Later on they decided to ship part of the gold to India since the stock was increasing elsewhere.
Sanjeev Sanyal On Gold Reserves
Economist Sanjeev Sanyal wrote on a social media platform ‘X’: “While no one was watching, the RBI has shifted 100 tonnes of its gold reserves back to India from the 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. We have come a long way since we had to ship out gold overnight in 1991 in the midst of a crisis.”
RBI On Gold reserves
The RBI further said domestic assets constituted 23.31 per cent while foreign currency assets, gold (including gold deposit and gold held in India) and loans and advances to financial institutions outside India constituted 76.69 per cent of total assets as on March 31, 2024, as against 26.08 per cent and 73.92 per cent, respectively, as on March 31, 2023.
The value of gold held as asset of Issue Department increased by 16.94 per cent from Rs 1,40,765.60 crore as on March 31, 2023 to Rs 1,64,604.91 crore as on March 31, 2024.
RBI said this increase in the value of gold during the year is on account of addition of 6.94 metric tonnes of gold, increase in price of gold and depreciation of Indian rupee against US dollar.
(With Inputs From PTI)