The Reserve Bank of India has transferred 100 tonnes of gold from the United Kingdom to its vaults, marking the first such move since 1991.

For the first time since 1991, the Reserve Bank of India (RBI) has moved more than 100 tonnes of gold from the United Kingdom back to its vaults within the country. Previously, more than half of the RBI’s gold reserves were securely stored with the Bank of England and the Bank of International Settlements abroad, with a third kept within India. This strategic relocation aims to reduce the storage costs incurred by the RBI at the Bank of England.

According to the RBI’s yearly report, as of March 31, 2024, the central bank’s gold holdings amounted to 822.10 tonnes, marking an increase from 794.63 tonnes recorded in the previous year.

In 1991, India faced a severe balance of payments crisis, leading the government to pledge 46.91 tonnes of gold with the Bank of England and Japan in exchange for a $400 million loan. About 15 years before the current report, the RBI acquired 200 tonnes of gold from the International Monetary Fund (IMF).

In a significant move in 2009, the government invested $6.7 billion to purchase 200 tonnes of gold, aiming to diversify its holdings. Over recent years, the RBI has continuously added to its gold reserves through systematic purchases.

The proportion of gold in India’s foreign exchange reserves climbed from 7.75 per cent at the end of December 2023 to 8.7 per cent by April 2024. The gold is stored in the RBI’s vaults on Mumbai’s Mint Road and Nagpur.