The Reserve Bank of India (RBI) transferred 100 tonnes of gold from its UK vaults to India, the first repatriation since 1991. This measure is part of a larger campaign to safeguard domestic assets, motivated by strategic, geopolitical, and economic factors.
By March 2024, the RBI’s gold reserves were 822.1 tonnes, with 413.8 tonnes kept abroad, mostly with the Bank of England and the Bank for International Settlements. The transfer is meant to diversify reserve management, improve security, and reduce the risks connected with gold storage abroad as geopolitical tensions rise. Western countries’ freezes on Russian assets have exacerbated these fears.
To obtain a loan during the 1990–91 foreign exchange crisis, India transferred gold to the Bank of England. However, that was repaid later that year. Despite the loan repayment, the RBI continued to hold gold abroad for logistics and market trading purposes.
The impact of this transfer is significant. It reflects India’s strong economic policies and dedication to protecting financial assets, reducing reliance on foreign custodians, and mitigating geopolitical risks. Domestic gold storage also increases shareholder security and confidence, which may attract additional foreign investment.
