RBI's 'Secret Mission' This Diwali: 102 Tonnes Of Gold Brought Back To India From London

New Delhi: The Reserve Bank of India (RBI) revealed that this Diwali it brought 102 tonnes of gold from the Bank of England’s vaults in London to secure locations within India. RBI, like any other household in India, was keen on bringing gold back to India this Dhanteras and for that it had a very meticulous plan to ensure the safety and security of the shipment.The reason behind RBI's move to bring back gold is to protect its valuable reserves from potential risk abroad. According to RBI’s latest foreign exchange reserves report, India has 855 tonnes of gold as of the end of September, with over half, or 510.5 tonnes, now stored domestically.Notably, India has brought back 214 tonnes of gold since 2022 amid global uncertainties, an ET report said. Many experts feel that keeping gold in India is a safer option during these uncertain times.

How RBI Planned Its 'Secret Mission'Moving gold to this tune requires a meticulous plan and the key here is that there should be no leak about the information on gold transfer. The central bank arrange special flights and had heightened security to ensure the safe transfer of gold reserves to India. The shipments required exemptions from specific tax levies to ensure the smooth movement of gold. While the government is open to future shipments, officials have indicated that no additional large-scale repatriations are planned for this year, according to a report by TOI. Why RBI Chooses to Store Some Gold OverseasThough keeping gold in India is more convenient, the central bank chooses to keep some abroad as it has many advantages. Gold kept abroad allows the RBI liquidity as it can be traded easily, swapped, or used as collateral, which provides flexibility for central banks.Additionally, since the RBI frequently purchases gold from international markets, having overseas storage aids these transactions. In today’s interconnected financial landscape, this ability to act swiftly in global markets is beneficial. However, international storage comes with its own risks. Recent freezes of foreign-held assets have raised concern on how geopolitical conflicts can threaten the security of a nation’s overseas holdings.