RBI Repatriates 102 Tonnes Of Gold From Bank Of England On Dhanteras

The Reserve Bank of India (RBI) marked this Dhanteras with a significant financial manoeuvre, repatriating 102 tonnes of gold from the Bank of England’s vaults to secure facilities within India. This move underscores the central bank’s priority on securing national assets closer to home, particularly as global tensions and economic uncertainties increase.

Since September 2022, the RBI has relocated a total of 214 tonnes of gold, aligning with its strategy to hold more reserves domestically. With this latest transfer, India’s gold reserves now total 855 tonnes, with 510.5 tonnes kept within the country, while 324 tonnes remain under the custodianship of the Bank of England and the Bank for International Settlements in the UK. The RBI's decision to keep a greater portion of these reserves within India aligns with the government’s commitment to bolster asset security amid a complex international landscape.

Moving such a substantial quantity of gold required strict confidentiality and advanced security protocols. Specialised aircraft were used, and secure measures were implemented throughout the transfer process, reflecting the government’s commitment to safeguarding high-value assets.

India has previously undertaken large-scale gold repatriations, with a notable transfer of 100 tonnes from the Bank of England to domestic vaults in May this year. Unlike past instances, such as during the financial crisis in the 1990s when India’s gold had to be pledged as collateral, these recent moves form part of a proactive strategy to ensure financial security.

Although the Bank of England remains a trusted global custodian for central banks, offering secure vaults and liquidity advantages, India’s move reflects a shift in priorities due to rising geopolitical concerns. Analysts suggest that further repatriation from UK-based vaults is unlikely this year.

Gold now makes up 9.3% of India’s foreign reserves, a notable increase from 8.1% in March. This shift has been fueled by a global rally in gold prices, currently around Rs 78,745 per 10 grams in Mumbai, with predictions of a rise to Rs 85,000 per 10 grams over the next year as investors seek safer assets amid economic instability, particularly in conflict-prone regions like the Middle East.

Through this significant transfer, the RBI aims to reinforce the security of India’s assets while positioning the nation to better manage risks associated with international volatility.