RBI transfers 100 tons of gold from the United Kingdom to its reserves in India.

The Reserve Bank of India has transferred approximately 100 tonnes of gold from the United Kingdom to its vaults in India, with plans to move additional amounts in the upcoming months.

In 1991, RBI received strong backlash for having to use some of its gold reserves as collateral during a foreign exchange crisis in the country. This is the first instance since 1991 when India has transported such a significant amount of gold.

Data indicates that the RBI possessed 822.1 tonnes of gold, 413.8 tonnes of which were held overseas by the end of March. The RBI, like other central banks, has bought gold in recent years, acquiring 27.5 tonnes in the past fiscal year.

RBI's interest in gold has grown lately, purchasing 1.5 times the amount of gold in January-April 2024 compared to the entirety of 2023. This is considered part of a strategic diversification of reserves during difficult times.

At first, the RBI secured a waiver on customs duty to import the metal into the nation, causing the central government to lose out on revenue from this important asset. Nevertheless, there was no waiver from integrated GST on imports as this tax is divided among states.
Moving large amounts of gold necessitated a particular airplane and thorough security plans. This action will also allow the RBI to cut down on storage expenses paid to the Bank of England, even though the savings are not significant.

Despite buying 200 tonnes of gold from the International Monetary Fund around 15 years ago, the RBI has been continuously expanding its gold reserves with regular purchases in recent years.

A source stated that it demonstrates the robustness of the economy and the confidence, which is starkly different from the situation in 1991.