Why RBI Is Moving Its Gold Back From UK: Key Reasons Explained

On Dhanteras (October 29, 2024), the Reserve Bank of India (RBI) announced that it was moving an additional 102 tonnes of gold from the Bank of England to storage facilities in India.

RBI has a well-thought-out plan to transport gold discreetly and securely. So why is the RBI bringing back gold from foreigners? Read below to learn more.

RBI’s Gold Reserves Distribution

In its report titled “43rd Semi-Annual Report on Management of Foreign Exchange Reserves: April – September 2024”, the RBI stated that a total of 854.73 metric tonnes of gold is available in both domestic and international warehouse facilities.

Of this, 324.01 metric tonnes were held in the custody of the Bank for International Settlements (BIS) and the Bank of England, while 510.46 metric tonnes were held domestically. Additionally, 20.26 metric tons of gold were stored as deposits.

Why Is RBI Bringing Back Gold?

Around 214 tonnes have been returned to India since September 2022. The Indian government has decided to prioritize protecting its assets in the face of global geopolitical unrest. Approximately 100 tonnes were returned from the Bank of England in May.

This is because the proportion of gold in India’s total foreign exchange reserves increased from 8.15% at the end of March 2024 to roughly 9.32% by the end of September 2024, according to the study.