India moves 100 metric tonnes of gold from UK to domestic vaults

This signifies one of the biggest gold transfers by India since 1991

India moves 100 metric tonnes of gold from UK to domestic vaults
India moves 100 metric tonnes of gold from UK to domestic vaults

India has recently shifted 100 metric tonnes of its gold reserves from the UK to domestic vaults in the fiscal year 2024.

As per NDTV, this represents one of the biggest gold movements by the country since 1991, when a significant portion was pledged during a foreign exchange crisis, resulting in its transfer out of India.

The country's total gold holding increased by 27.46 metric tonnes in FY24, reaching a total of 822 metric tonnes, as per official data.

Meanwhile, with the movement of 100 metric tonnes to India, the local gold storage now surpasses 408 metric tonnes, nearly evenly splitting the local and foreign holdings.

According to the Central Bank of India's annual report for FY24 released on Thursday, over 308 metric tonnes of gold serve as backing for issued notes in India, while an additional 100.28 tonnes are held domestically as an asset of the banking department.

The report also indicates that 413.79 metric tonnes are held abroad.

Sources also revealed that recent gold purchases prompted a decision to reduce holdings abroad, part of standard review procedures. 

India acquired 200 tonnes of gold from the International Monetary Fund in 2009 and has since been acquiring more from the secondary market as part of efforts to diversify foreign exchange assets.

Furthermore, officials from the Ministry of Finance, the RBI, and other agencies oversaw the gold movement with utmost secrecy due to its high value, as per sources.

Presently, locally held gold is stored in highly secure vaults and facilities in Mumbai and Nagpur.