July RBI's total gold reserves till 2024 were 846 tonnes. India's gold reserves reached $67,444 million in October. But did you know that a large part of India's gold reserves are stored abroad? The Reserve Bank of India maintains its gold reserves at the Bank of England, the Bank for International Settlements (BIS) in Basil, Switzerland and the Federal Reserve Bank of New York in the United States. So far this year, the RBI has withdrawn 100 tonnes of gold from Britain. So let's understand why this Indian gold is kept outside.
414 metric tons of gold are locked in foreign safes
According to an RBI report, of the country's total gold reserves, around 414 metric tonnes of gold are kept in foreign vaults. Of these, 308 metric tons of gold serve to back the banknotes issued by the country. At the same time, more than 100 tons of gold are held as assets of banks locally. 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 held in major financial centers such as London, New York and Zurich can easily be 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. Gold security at the Federal Reserve Bank of New York remains very tight. Gold from many countries is kept here. Located 80 feet underground, this safe is shaped like a 90-ton steel cylinder.
Why were 100 tons of gold brought from Britain?
The RBI has withdrawn 100 tonnes of its gold from Britain. There is still a lot to give back. In the 1990s, the RBI had sought a loan of $400 million. For this loan, the Reserve Bank had to pledge the gold to the Bank of England. This loan was repaid after a few years, but considering the challenges associated with physically recovering the gold, it was deposited there. Even after this, India continued to buy gold and store it in the BOE vault. It is said that gold is now brought in to save the enormous cost of holding it in a foreign bank.
There is immense gold in the depressions of India
There is three times more gold stored in the Indian treasury than in the US government's treasury. More than 4000 tonnes of gold are kept in temples like Padmanabha Swamy Temple, Tirupati Balaji Temple, Jagannath Temple and Vaishno Devi Temple. The World Gold Council has given this figure. Indians love gold so much that we have saved more than 25 thousand tons of gold.
Latest business news
