According to a TOI story on Friday, the Reserve Bank of India (RBI) has added almost 100 tonnes, or 1 lakh kg, of gold from the United Kingdom to its vaults in India.
In the upcoming months, the central bank plans to make additional moves, making this the highest since early 1991. Inside India, gold is kept in vaults in Nagpur and the RBI’s former office building on Mint Road in Mumbai.
According to government insiders who spoke to TOI, the gold was moved to domestic locations for a variety of logistical and storage reasons. This implies that in the next months, gold may be arriving into the country in a similar quantity.
After beginning to buy gold a few years ago, Reserve Bank of India made the decision to periodically assess its storage options. It was decided to ship some of the gold to India because the stock was increasing abroad, according to the report.
With part of its gold reserves held in London since before Independence, the Bank of England has long functioned as a depository for several central banks, including that of India.
As of the end of March, the RBI had 822.1 tonnes of gold, of which 413.8 tonnes were kept overseas, according to data. Among the central banks that have bought gold recently is the RBI, which added 27.5 tonnes during the most recent fiscal year.
According to the report, the RBI, the finance ministry, and several other government organizations—including local governments—had to work together on the move. It went on to say that the RBI secured a customs duty exemption in order to import the gold into the country, and the Center “foregoing revenue” on what is seen as a sovereign asset.
In addition, a specific type of airplane had to be used to deliver the gold while meeting stringent security requirements. The change will also help RBI save on some of the storage costs that are paid to the Bank of England, even though the savings might not be significant.
