The Reserve Bank of India (RBI) has brought in approximately 100 tonnes of gold from the United Kingdom to its vaults in India, according to a report by Times of India on Friday (May 31, 2024).

This is the largest addition since early 1991, and the central bank plans to transfer more in the coming months. Domestically, the gold is stored in vaults at the RBI’s old office building on Mumbai’s Mint Road and in Nagpur.

The report quoted Government sources as saying that the gold was transferred domestically for logistical reasons and to diversify storage locations. This indicates that a similar amount of gold might be brought into the country again in the coming months.

The Bank of England has long been a major gold repository for central banks, including India’s, with some of its gold reserves stored in London since before Independence.

According to the report, the RBI held 822.1 tonnes of gold, with 413.8 tonnes stored overseas. In recent years, the RBI has been actively purchasing gold, adding 27.5 tonnes in the last financial year.

How Did the RBI Bring Gold Back to India?

The transfer of gold back to India involved coordination between the RBI, the finance ministry, and various government agencies, including local governments.

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To facilitate the import, the RBI secured a customs duty exemption, with the government foregoing revenue on what is considered a sovereign asset.

Additionally, a special aircraft was used to transport the gold under strict security measures. While the savings might not be significant, this move will help the RBI reduce some of the storage costs paid to the Bank of England.

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