CURRENT AFFAIRS : BANKING & FINANCE
Reserve Bank of India’s Diwali Initiative: Covertly Transporting 102 Tonnes of Gold from England to India
- On Dhanteras (October 29, 2024), the Reserve Bank of India (RBI) transported an additional 102 tonnes of gold from the Bank of England to secure storage facilities within India.
Key Highlights :
- RBI’s Gold Holdings:As per the RBI’s 43rd Half Yearly Report on Management of Foreign Exchange Reserves (April – September 2024), the RBI holds a total of 854.73 metric tonnes of gold.
- 46 metric tonnes of this gold is stored domestically, while 324.01 metric tonnes are held overseas with the Bank of England and the Bank for International Settlements (BIS).
- An additional 26 metric tonnes are held in the form of gold deposits.
- Gold Repatriation:Since September 2022, approximately 214 tonnes of gold have been brought back to India due to increased focus on asset security amid global geopolitical tensions.
- In May 2024, around 100 tonnes of gold were repatriated from the Bank of England.
- Gold’s Role in Forex Reserves:The share of gold in India’s total foreign exchange reserves increased from 15% in March 2024 to 9.32% in September 2024.
- Reason for Storing Gold Overseas:India and other nations store gold with the Bank of England primarily due to immediate access to the London bullion market, which facilitates liquidity.
- The Bank of England is the second-largest custodian of gold globally, after the New York Federal Reserve.
About RBI :
- Established : 1 April 1935
- Headquarters : Mumbai, Maharashtra, India
- Governor : Shaktikanta Das
