july The total gold reserves with RBI till 2024 was 846 tonnes. India's gold reserves have reached $67.444 billion by October. But do you know that a large part of India's gold reserves is kept abroad. The Reserve Bank of India keeps its gold reserves in the Bank of England, the Bank for International Settlements (BIS) in Basil, Switzerland and the Federal Reserve Bank of New York in the US. So far this year, RBI has recalled 100 tonnes of gold from Britain. So let us understand why this gold of India is kept outside.
414 metric tons of gold is locked in foreign safes
According to an RBI report, out of the total gold reserves of the country, about 414 metric tonnes of gold is kept in foreign vaults. Out of this, 308 metric tonnes of gold is in support of the notes issued by the country. At the same time, more than 100 tonnes of gold is kept as asset of banks at the local level. The gold kept in India is locked in vaults in Mumbai and Nagpur.
Why is Indian gold kept abroad?
Not only India, but many countries of the world keep their gold in foreign safes. One of its purposes is also related to the security of gold. At the same time, gold kept in major financial centers like London, New York and Zurich can be easily used in international transactions. In America and England, these gold safes have high security with many layers. It is surrounded by strong granite walls, smart CCTV cameras, alarms, armed guards and police along with army personnel. The security of gold in the Federal Reserve Bank of New York remains very tight. Gold from many countries is kept here. Located 80 feet below the ground, this safe is in the form of a 90 ton steel cylinder.
Why was 100 tonnes of gold brought back from Britain?
RBI has recalled 100 tonnes of its gold from Britain. This much gold still needs to be returned. In the 1990s, RBI had taken a loan of 400 million dollars. For this loan, the Reserve Bank had to pledge the gold in the Bank of England. This loan was repaid after a few years, but keeping in mind the challenges associated with physically bringing the gold back, it was deposited there. Even after this, India continued to buy gold and keep it in the vault of BOE. It is being told that now the gold is being brought back to save the huge cost of keeping it in a foreign bank.
There is immense gold in the depressions of India
Image Credit: India-Tv.