New Delhi: The Reserve Bank of India (RBI) has successfully transported an additional 102 tonnes of gold from the Bank of Englands vaults in London to secure domestic locations, bringing the total volume of gold held within India to 510.5 tonnes out of 855 tonnes as of the end of September. This move reflects Indias ongoing strategy to safeguard its gold reserves in light of rising global geopolitical tensions, with further transfers being considered.Securing gold holdings on DhanterasAnnouncing the move on Dhanteras, the RBI revealed that its latest report on foreign exchange reserve management shows 510.5 tonnes of the nations gold reserves now secured on Indian soil. Since September 2022, the RBI has transported a total of 214 tonnes of gold from the UK to India, underlining the governments stance that it is strategically safer to store gold domestically amid current geopolitical concerns.In a report on May 31, the Times of India highlighted the RBIs transportation of 100 tonnes from the UK, with plans to move a similar quantity again. This marked the first major transfer since India pledged its gold in the early 1990s to counter a balance of payments crisis. As with the previous transfer, this recent movement required an elaborate operation involving special aircraft, stringent security measures, and secrecy to prevent any information leaks. Additionally, the government granted tax exemptions specifically for the shipment.Domestic and overseas gold holdingsCurrently, 324 tonnes remain under the Bank of England and the Bank for International Settlements custody, both of which serve as major international gold depositories. Meanwhile, a portion exceeding 20 tonnes is held as gold deposits by the RBI. The Bank of England is renowned for being one of the largest gold custodians globally, second only to the New York Federal Reserve, with vaults that house nearly 5,350 tonnes of gold as of early September.Benefits of overseas storage and increased gold reservesThe London bullion market offers quick liquidity options, which is a significant benefit of storing part of Indias reserves in the UK. However, recent data from the RBI indicates a steady increase in gold holdings overall, with gold comprising 9.3% of Indias foreign exchange reserves as of the end of September, compared to 8.1% in March.
