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The Reserve Bank of India (RBI) added another 102 metric tonnes to the domestically held gold in the AprilSeptember period, as per a disclosure made on Tuesday.
India has been gradually relocating gold reserves to local vaults, primarily located in Mumbai and Nagpur, over the past few years. (Representative image)
The Reserve Bank of India (RBI) has reported an addition of 102 metric tonnes to the domestically held gold during the April-September period, according to a disclosure made on Tuesday.
Current Gold Holdings
As of September 30, 2024, the total quantity of gold stored in local safes reached 510.46 metric tonnes, a significant increase from over 408 metric tonnes recorded on March 31, 2024. This reflects a growing trend in India’s management of its gold reserves.
Shift to Domestic Vaults
India has been gradually relocating gold reserves to local vaults, primarily located in Mumbai and Nagpur, over the past few years. Notably, in FY24, the country moved an additional 100 metric tonnes from the UK to domestic locations. This shift comes amid heightened global geopolitical tensions and marks one of the largest movements of gold by India since 1991. At that time, India was compelled to pledge a significant portion of its gold holdings to address a foreign exchange crisis.
Total Gold Reserves
In addition to the domestic holdings, the RBI disclosed that it added 32 metric tonnes of gold reserves in the same six-month period, bringing the overall tonnage to 854.73 metric tonnes. This information was detailed in the half-yearly report on the management of foreign exchange reserves.
Gold Custody and Deposits
According to the RBI disclosure, a total of 324.01 metric tonnes of gold are currently held in safe custody with the Bank of England and the Bank for International Settlements (BIS). Additionally, 20.26 metric tonnes are maintained in the form of gold deposits.
Increase in Gold’s Share of Reserves
The value of gold within India’s total foreign exchange reserves rose from 8.15% at the end of March 2024 to approximately 9.32% by the end of September 2024. This increase is attributed to both a rise in tonnage and the surge in gold prices.
Historical Context and Future Directions
As of March 2024, the RBI held 413.79 metric tonnes of gold abroad, as noted in an annual report. In late May, sources indicated a decision was made to reduce foreign holdings as part of standard review procedures.
India’s gold purchasing history includes a significant acquisition of 200 tonnes from the International Monetary Fund (IMF) in 2009, followed by continued purchases from the secondary market as part of foreign exchange asset diversification efforts.
Secrecy in Gold Movements
Officials from the Ministry of Finance, the RBI, and other relevant agencies manage the movement of gold with utmost discretion, given the high value of the commodity, as reported by sources.
