New Delhi: The Reserve Bank of India (RBI) has intensified efforts to bring part of its gold reserves back to the country, citing concerns that keeping assets abroad is increasingly unsafe.
Central banks typically hold gold as a reserve backing their national currency. The RBI, too, has accumulated significant gold holdings, with about 880 metric tonnes under its control across different locations, including a sizeable portion earlier kept with the Bank of England in the UK.
The shift comes amid global geopolitical tensions that have raised fears over the security of overseas reserves such as gold and foreign exchange. The report points to instances where assets held abroad were frozen or withheld, including actions by G7 nations against Russian reserves after the Ukraine war began in 2023, and restrictions on Afghanistan’s reserves after the Taliban takeover.
As part of the repatriation drive, a substantial share of the gold earlier stored in the UK has been moved to India. The proportion of RBI gold held domestically has risen from 37% in March 2023 to 77% now.
In the last six months alone, 104 metric tonnes have been brought back, while 197 metric tonnes remain with the Bank of England. The RBI is said to be stepping up efforts to bring that portion to India as well, amid a broader trend of countries relocating gold reserves from Western vaults to their home jurisdictions.
