RBI secretly brought home 102 tonnes of gold this Dhanteras. Here's why

This Dhanteras, the Reserve Bank of India (RBI) confirmed a new wave of gold shipments, relocating 102 tonnes of gold from the Bank of England’s vaults to secure facilities within India. 

By the end of September, RBI held 855 tonnes in total reserves, with 510.5 tonnes now kept on Indian soil. The move highlights a shift in strategy, influenced by rising geopolitical risks that have pushed India’s central bank to reassess the safety of its foreign gold reserves.

India has repatriated 214 tonnes since September 2022, demonstrating the RBI’s and government’s preference for bringing assets closer to home. According to government officials, holding these reserves domestically adds a layer of security amid uncertain global conditions. 

The logistics of this transfer—executed with secrecy, using dedicated aircraft and enhanced security measures—reflect the government’s concerns over safeguarding sensitive information.

Earlier in May, it was reported that India had already moved 100 tonnes from the UK, marking the most significant gold repatriation since the 1990s. Back then, the government had pledged gold to foreign banks as collateral during a balance of payments crisis. Today, however, India’s actions are proactive, aimed at securing wealth rather than leveraging it in emergencies.

Currently, 324 tonnes of India’s gold reserves remain under the custodianship of the Bank of England and the Bank for International Settlements, both located in the UK. Known for its secure “bullion warehouse,” the Bank of England has been storing precious metals for global central banks since 1697, benefiting from the liquidity advantages of London’s bullion market. For now, though, further gold shipments out of England are unlikely this year.

In the broader landscape of India’s foreign reserves, gold now makes up 9.3%, an increase from 8.1% in March. This comes as gold prices rally—currently at ₹78,745 per 10 grams in Mumbai, with forecasts anticipating up to ₹85,000 per 10 grams in the next year as investors turn to gold amid economic uncertainty and conflict in regions like the Middle East.