Reserve Bank of India (RBI) has reportedly made a significant transfer of gold from the United Kingdom to India. This is the first such operation of this scale in over three decades.

What Happened: RBI has successfully transported 1 lakh kg or 100 tonnes of gold from the UK back to India, reported Times of India. This move is aimed at strengthening India’s foreign exchange reserves. Sources told Times of India that more gold will be moved to the country in the coming months.

The last time a transfer of this magnitude took place was in 1991, a time when the Indian economy was going through a foreign exchange crisis. The specifics behind this recent transfer have not been made public, but it is believed to be a strategic decision to fortify India’s financial standing amidst global economic uncertainties.

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Bank of England has acted as a storage site for numerous central banks including India which has kept some of its gold reserves in London since before it gained independence.

As of the end of March, the Reserve Bank of India (RBI) possessed 822.1 tonnes of gold, of which 413.8 tonnes were held abroad, according to recent data. The RBI is among the central banks that have been buying gold, with an addition of 27.5 tonnes in the last fiscal year. Gold is domestically stored in vaults in the RBI’s old office building on Mumbai’s Mint Road and in Nagpur.

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