Introduction

A private special flight has arrived in India from London carrying almost 100 tonnes of gold. It is not smuggled gold or fake gold but pure gold brought by the Reserve Bank of India from the London Bank of India. India kept this gold in the Bank of England for so long. Since 1991 only now RBI has brought about 100 tonnes of gold to our country India. Why exactly at this time RBI has brought gold from the UK to India? Why did they keep gold in England for so long?, You can also know the total amount of gold in our country. In this post, you are going to learn a lot of information that you have never heard or known before.

The Reason behind the gold stored in Abroad

In India, the Central Bank is the Reserve Bank of India. Did you know, “Why did they bring gold from there?”, A certain amount of gold is always kept in the central bank of each country. Gold is not like money it is always stable. Although it fluctuates it usually stays in a fixed place. Similarly, the central bank owned 17 percent of the total gold in India. The total amount of gold available in India at present is 822 tonnes. More than half of this total gold is kept abroad. Why do they keep our country’s gold in foreign banks? This is not a practice that could have existed today.

This practice has been in practice since almost before independence. Gold that may be in India is kept in banks abroad as security. The RBI holds gold within the Bank of England. Many countries like this keep their gold in the Bank of England. But do you know how much gold is there in the Bank of England, there are almost 4 lakh gold bars in the Bank of England. If you ask how they got so much gold, half of this gold belongs to Britain, and the other half is kept by many countries like this for their security.

A shocking thing about this is that so far no gold has gone missing from that bank. You may ask why we keep our gold in London instead of in our own country. Because the London Gold Market is the largest market in terms of gold. We can also convert to Liquidity easily.

Reason for Gold Recovery

Why has RBI brought gold from the UK to India at this time? Let’s know about it completely. First, we keep our gold safe there or we have to pay extra charges on it. Now we have brought that gold here so there is no need to pay extra charge for it. The second thing is risk management. That means the situation will not be the same even now if there is any disagreement between India and Britain then what will happen to India’s gold situation? So risk management also like is the reason for this. Let us see an example of this.  Russia kept their 300 billion worth of wealth in the West but in the Russia-Ukraine war, they couldn’t take their own wealth and use it for war because it was all frozen.

Another such incident has happened in Afghanistan which means that the total property of Afghanistan is estimated to be seven billion and they have given a total of 70% and kept in USA. Even during the Taliban war crisis, they were never given this reserve to Afghanistan. I am not saying that India will have a similar situation, but a country’s resources are the safest thing to have within that country. 

In 2009, about 200 metric tons of gold was purchased from India for the International Monetary Fund. It was worth around $6.7 billion at the time. Now after 15 years, RBI has brought 100 tonnes of gold to India. Where is this gold kept now, it is kept very safe in RBI’s place Mumbai and Nagpur. In 2019, the Reserve Bank had around 619 tonnes of gold. But now there are almost 822 tonnes of gold in 2024 and more than half of it is secured in abroad. 

Conclusion

Now the gold has been brought back to India, they saving the storage fee. Why gold is so important to us is that it is very useful for us in times of inflation and economic crisis. I hope you know the complete and detailed information about “Why RBI brought 100 tons of gold to India” in this post. I hope you find this post useful and like it. For more posts like this follow our page regularly. You can also follow us on YouTube and Instagram