RBI governor Shaktikanta Das while addressing a press meet, told that the gold reserved overseas are brought back into India as there is enough domestic storage capacity. He also mentioned that the quantum of gold overseas had been static for a long time.
Last week, the Reserve Bank of India transferred over 100 tonnes of gold from the UK to its vaults within the country. This marked the first time since 1991 that the RBI has augmented its domestic gold reserves.
The relocation is also expected to reduce storage expenses, previously paid to the Bank of England. At present over half of India's gold reserve is situated overseas, primarily with the Bank of England and the Bank of International Settlements, while approximately one-third is stored domestically.
According to RBI's annual data, the central bank's gold reserves as part of its foreign exchange reserves stood at 822 tonnes as of March 31, 2024, up from 795 tonnes during the same period last year.
According to the latest note by the World Gold Council (WGC), the RBI bought 19 tonnes of gold in the first quarter of the current calendar year 2024 (Q1-CY24 / Q4-FY24). This dwarfs the 16 tonnes of gold it bought in the whole of 2023.
The RBI started buying gold in the calendar year 2018. Before that, it had purchased 200 tonnes in 2009 during the global financial crisis.
[With PTI inputs]
Also watch: RBI moves 100 tonnes of gold from UK to domestic vaults, 1st time since 1991