RBI Shifts 100 Tonnes Of Gold From UK To India
- By Thetripurapost Desk, Delhi
- May 31, 2024
- 188
The Reserve Bank of India (RBI) has brought back more than 100 tonnes (1 lakh kg) of gold from Britain to India. This is the first time since 1991 that the RBI has withdrawn such a large amount of gold deposits from abroad.
According to media reports, in March 2024, the RBI had a total of 822.1 tonnes of gold, out of which 413.8 tonnes were deposited abroad.
RBI's gold reserves have increased by 27.5 tonnes compared to last year. RBI is gradually reducing the amount of gold deposited abroad and bringing it back to India. So that the country's economy can be strengthened further.
India wants the gold reserves in the country to increase and its gold should be used for its own benefit.
The British Central Bank and the Bank of England have been the repository of gold for the RBI since independence. Even before independence, the British used to stock gold here.
According to RBI officials, RBI has been buying gold for the last several years. Now RBI has decided to review where it wants to store it. Earlier also it has been done from time to time.
Times of India quoted sources as saying that the stock of Indian gold abroad had become excessive, so it was brought back.
According to the report, gold has always been an emotional issue in India. In 1991, the Chandrashekhar government had mortgaged gold to improve the Indian economy. But, RBI had already bought 200 tonnes of gold from the International Monetary Fund (IMF) 15 years ago. Now having more stock shows a strong Indian economy.
Months of planning and execution was done to bring 100 tonnes of gold to India. The Finance Ministry, RBI and other wings of the government along with local authorities were involved in the planning and execution.
RBI got exemption in customs duty for bringing gold into India. But no exemption was given in Integrated GST levied on imports. This is because this tax is shared with the states.
A special aircraft was used to bring the gold. This move will also help RBI save some storage cost, which it used to pay to the Bank of England. However, this amount is not that big.
RBI keeps its gold in the old office building of the Reserve Bank on Mint Road in Mumbai. Apart from this, gold is stored in a vault built in Nagpur with complete security.
RBI wants to store gold in many places so that its security risk can be reduced. In case of any political and economic situation in India, gold kept abroad will be safe.
At the same time, natural disasters, such as earthquakes or floods, can damage gold reserves. Keeping gold abroad ensures that the country has some gold safe even in case of disasters.
Apart from this, keeping gold abroad makes it easier to trade with other countries. Increasing gold reserves helps in international trade.
Gold can be used to take loans from other countries or to pay for imports. At the same time, gold gets higher interest abroad, which benefits India.