India has made a notable shift from the economic policies of 1991, when it exported gold and pledged it overseas to mitigate a looming financial crisis. India has now shipped in a little over 100 tonnes of its gold reserves held in the United Kingdom.
- Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister of India, said recently that India will now hold most of its gold in its vaults.
Key points
- Most countries keep their gold in the vaults of the Bank of England or some such location and pay a fee for the privileges.
- Gold in India is typically held in vaults in RBI’s old office building on Mumbai’s Mint Road as well as Nagpur.
- India now boasts significant foreign exchange reserves, capable of covering approximately 11 months’ worth of imports.
- Its gold reserves have also witnessed an upsurge.
- As of March 31, 2024, the total gold held by the Reserve Bank was 822.10 metric tonnes as compared to 794.63 metric tonnes on March 31, 2023.
- The value of gold (including gold deposit) held as an asset of the Banking Department increased by 19.06 per cent from Rs 2,30,733.95 crore as of March 31, 2023, to Rs 2,74,714.27 crore as of March 31, 2024.
- The RBI annual report said that the central bank has 309.03 tonnes of gold held as backing for notes issued in India.
- Additionally, the RBI said that its total gold which also includes gold deposits held as assets of the banking department, including gold held outside of India of 514.07 tonnes.
