The availability of sufficient gold storage capacity in India explained the movement of 100 tonnes of gold from the UK to India, Reserve Bank of India (RBI) Governor Shaktikanta Das tells The Economic Times on June 7th.
“In recent years, data shows that the Reserve Bank is buying gold as part of its reserves and the amount is increasing. “We have internal capacity (for storage).”Das said.
Therefore, a decision was taken to shift some of the stockpile out of India for storage within the country, he said, adding: “That’s all. There shouldn’t be any hidden meaning in this.”.
This is one of the largest gold movements the country has undertaken since 1991, when the promise of a significant portion of its gold reserves to overcome a currency crisis led to its movement from the vaults. The amount of gold stored outside the country remained unchanged for a long time, the RBI governor recalled.
According to official data cited by the publication, in the 24th financial year (ending March 2024), India’s total gold reserves increased by 27.46 tons and amounted to 822 tons. The move of 100 tonnes to India brings the total amount of gold stored in the country to more than 408 tonnes, meaning local and foreign gold are now divided almost equally.
According to the central bank’s report for FY24, over 308 tonnes of gold is kept in India as collateral for banknotes issued, while another 100.28 tonnes are kept in the country as assets of the banking department. India has 413.79 tonnes of gold reserves stored abroad, according to the same report.
Source: Rossa Primavera
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