RBI transfers 102 tonnes of gold from Bank of England, boosting India's reserves to 855 tonnes

The Reserve Bank of India (RBI) has executed a significant transfer of 102 tonnes of gold from the Bank of England's vaults to secure facilities in India. This operation is part of an ongoing initiative to enhance the security and management of India’s gold reserves amid increasing global geopolitical tensions. Following this transfer, India’s total gold holdings have surged to 855 tonnes, with 510.5 tonnes securely stored within the country.

This latest transfer adds to the 214 tonnes of gold that the RBI has relocated since September 2022. The central bank has focused on consolidating its gold assets, reflecting a proactive approach to safeguarding national resources. The operation follows a previous discreet transfer in May, during which approximately 100 tonnes of gold were moved using specialized aircraft under stringent security protocols. Such operations are typically shrouded in confidentiality due to their sensitive nature.

To facilitate this transfer, authorities successfully obtained tax exemptions, aiding the operational efficiency of the gold relocation process. However, the RBI has indicated that no further large-scale transfers are expected for the remainder of the year. Presently, the RBI retains 324 tonnes of its gold reserves with the Bank of England and the Bank for International Settlements (BIS). This strategy not only leverages the robust security and storage capabilities of these institutions but also provides the RBI with convenient access to the London bullion market for liquidity needs.

RBI data underscores a notable increase in India's gold reserves, which now account for 9.3% of the country’s total foreign exchange reserves, up from 8.1% in March. In addition to its gold reserve management, the RBI has allocated around 20 tonnes of gold to various gold deposit schemes aimed at promoting savings in the form of gold and enhancing financial inclusion. These schemes facilitate easier access to gold investments for the public, bolstering the domestic gold market. As one of the largest global custodians, the Bank of England continues to provide essential storage and custodial services, allowing the RBI to maintain swift access to international markets and effectively manage its extensive gold assets.