RBI's secret mission this Dhanteras brought back another 102 tonnes of gold from England
According to RBI’s latest foreign exchange reserves report, the central bank held 855 tonnes of gold as of the end of September, with over half, or 510.5 tonnes, now stored domestically. This development reflects a broader, ongoing effort by RBI and the Indian government to protect the nation’s gold reserves from potential risks abroad. Since September 2022, RBI has quietly brought back 214 tonnes of gold, driven by the need to safeguard holdings amid growing geopolitical uncertainties. Many officials within the government believe that housing gold in India is a safer approach during these uncertain times.
In a carefully planned secret mission involving special flights and heightened security to move gold, RBI and government officials worked to ensure that information about the gold transfers did not leak out. The shipments required exemption from certain tax levies to facilitate the smooth movement of gold. Though the government is open to future shipments, officials indicate that no additional large-scale repatriations are planned for this year, ToI reported.
Why central banks like RBI buy gold
Central banks globally, including RBI, view gold as a fundamental asset to diversify and strengthen their reserves. Gold provides protection against currency fluctuations and economic shocks, helping to preserve value through turbulent financial periods or inflation. Unlike paper currencies, gold holds universal appeal and is often seen as a «safe haven» investment, particularly during periods of financial instability
