-
This relocation also presents potential savings on storage costs previously paid to the Bank of England
-
Domestically, the gold is now securely stored in vaults located in Nagpur and the former RBI headquarters on Mint Road in Mumbai
The Reserve Bank of India (RBI) has successfully relocated over 100 tonnes of gold from the United Kingdom to its vaults across India for logistical and storage reasons. This move comes on the heels of RBI’s recent acquisition of 27.5 tonnes of gold, bringing its total holdings to 822.1 tonnes by the end of March.
According to a report by The Times of India (TOI), the gold transfer marks the largest such relocation since early 1991. Government sources cited logistical and diversification considerations for the move, suggesting that more gold could be brought into the country in the coming months. As of March, the RBI held 413.8 tonnes of gold overseas, predominantly in the UK.
The Bank of England has traditionally housed gold reserves for many central banks, including India, which has had a portion of its pre-Independence gold stored in London. An official told TOI that the RBI, after reassessing its storage options, decided to repatriate part of its gold reserves to India due to growing stockpiles elsewhere.
The operation required months of meticulous preparation and the use of a special aircraft to ensure secure transport under stringent security protocols
Gold has long been a significant and emotional asset for many Indians, particularly since the 1991 balance of payments crisis when the Chandra Shekhar government pledged gold to address economic challenges. Economist Sanjeev Sanyal highlighted this historical context in a social media post, noting India’s progress from that crisis to now repatriating significant gold reserves.
The RBI’s strategic move involved intricate planning and coordination among the central bank, the finance ministry, and various government agencies. The operation required months of meticulous preparation and the use of a special aircraft to ensure secure transport under stringent security protocols. Although the RBI received a customs duty exemption for the gold import, integrated GST still applied, being a state-shared tax.
***********************************************************
Readers
These are extraordinary times. All of us have to rely on high-impact, trustworthy journalism. And this is especially true of the Indian Diaspora. Members of the Indian community overseas cannot be fed with inaccurate news.
Pravasi Samwad is a venture that has no shareholders. It is the result of an impassioned initiative of a handful of Indian journalists spread around the world. We have taken a small step forward with the pledge to provide news with accuracy, free from political and commercial influence. Our aim is to keep you, our readers, informed about developments at ‘home’ and across the world that affect you.
Please help us to keep our journalism independent and free.
In these difficult times, running a news website requires finances. While every contribution, big or small, will make a difference, we request our readers to put us in touch with advertisers worldwide. It will be a great help.
For more information: pravasisamwad00@gmail.com