This Dhanteras, the Reserve Bank of India (RBI) confirmed relocating 102 tonnes of gold from the Bank of England’s vaults to secure storage within India. By the end of September, RBI held 855 tonnes of total reserves, with 510.5 tonnes now stored domestically. This strategic shift is driven by rising geopolitical risks, prompting India’s central bank to prioritize the safety of its foreign gold reserves.
Since September 2022, India has repatriated 214 tonnes, underscoring the RBI’s preference for securing assets closer to home. Government officials note that keeping these reserves domestically strengthens security amid global uncertainties.
This transfer, conducted discreetly with dedicated aircraft and heightened security, reflects the government’s emphasis on protecting sensitive operations. In May, India had already shifted 100 tonnes from the UK, marking the largest gold repatriation since the 1990s. At that time, India pledged gold as collateral during a balance of payments crisis; now, however, the approach is proactive, aimed at securing wealth rather than addressing emergencies.
Presently, 324 tonnes of India’s gold reserves remain with the Bank of England and the Bank for International Settlements in the UK. The Bank of England, renowned for its secure “bullion warehouse,” has been a custodian of precious metals for global central banks since 1697, benefiting from London’s active bullion market. Additional transfers out of England are not expected this year.
Gold now constitutes 9.3% of India’s foreign reserves, up from 8.1% in March, amid a rally in gold prices. Currently valued at ₹78,745 per 10 grams in Mumbai, forecasts suggest prices could rise to ₹85,000 per 10 grams in the coming year, as investors increasingly turn to gold for stability amid economic uncertainty and conflicts in regions such as the Middle East.