Close Menu
    What's Hot

    Priyanka Chopra Roasts Trolls Who Criticised Her For Choosing Hot Dog Over Vada Pav: "Didn't Know There Was A…"

    July 11, 2025

    How The Internet Reacted To Karan Johar's Drastic Weight Loss After His Picture With Samay Raina Went Viral

    July 10, 2025

    Mahhi Vij Breaks Silence On Divorce Rumours With Jay Bhanushali: "Just For A Few Likes And Comments…."

    July 10, 2025
    Facebook X (Twitter) Instagram
    N24India
    • Home
    • Features
    • Politics

      Kashmir Attack Sparks Media Storm Amid Political Blame Game

      April 23, 2025

      Religious Bias Allegations Rock Amazon, eBay, and Oracle Customer Support many Companies.

      January 10, 2025

      Feroz Khan Addresses Controversy with AIMIM MLA, Calls for Improved Road Infrastructure in Asifnagar -N24india

      October 7, 2024

      Yati Narsinghanand Saraswati Sparks Outrage with Hate Speech Against Prophet Muhammad: Calls for Legal Action Intensify

      October 5, 2024

      Drugs, Baby Oil, Video Tools: What Went On At Rapper Diddy's "Freak Offs"

      September 23, 2024
    • Science
      1. Politics
      2. Lifestyle
      3. Sports
      4. View All

      Kashmir Attack Sparks Media Storm Amid Political Blame Game

      April 23, 2025

      Religious Bias Allegations Rock Amazon, eBay, and Oracle Customer Support many Companies.

      January 10, 2025

      Feroz Khan Addresses Controversy with AIMIM MLA, Calls for Improved Road Infrastructure in Asifnagar -N24india

      October 7, 2024

      Yati Narsinghanand Saraswati Sparks Outrage with Hate Speech Against Prophet Muhammad: Calls for Legal Action Intensify

      October 5, 2024

      Priyanka Chopra Roasts Trolls Who Criticised Her For Choosing Hot Dog Over Vada Pav: "Didn't Know There Was A…"

      July 11, 2025

      How The Internet Reacted To Karan Johar's Drastic Weight Loss After His Picture With Samay Raina Went Viral

      July 10, 2025

      Mahhi Vij Breaks Silence On Divorce Rumours With Jay Bhanushali: "Just For A Few Likes And Comments…."

      July 10, 2025

      Raza Murad On Rumours Of Rajesh Khanna Slapping Him Over Dimple Kapadia: "Baseless"

      July 10, 2025

      Watch Weightlifting at Paris 2024 – Follow the Olympic Games

      July 15, 2024

      Charlotte Hornets Makes Career-high 34 Points in Loss to Utah Jazz

      July 15, 2024

      Young Teen Sucker-punches Opponent During Basketball Game

      March 12, 2021

      Bills’ Josh Allen Finishes Second in NFL Most Valuable Player Voting

      January 18, 2021

      World’s first electric hydrofoil ship is coming to Saudi Arabia’s NEOM

      August 21, 2024

      World’s Tiniest Fanged Frogs Lay Their Eggs on Leaves and Guard Them

      July 15, 2024

      Get this 4K HD Dual-Camera Drone with WiFi for $75

      July 15, 2024

      Russian Satellite Breaks up in Space, Forces ISS Astronauts to Shelter

      July 15, 2024
    Facebook X (Twitter) Instagram
    N24India
    Home»Politics»Explained: Why RBI Keeps Gold Reserves In Foreign Vaults
    Politics

    Explained: Why RBI Keeps Gold Reserves In Foreign Vaults

    AdminBy AdminJune 1, 2024No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The Reserve Bank of India transferred 100 metric tonnes of gold from the United Kingdom to domestic vaults in FY24, making it one of the largest gold movements since 1991, according to reports. The country’s total gold holding now stands at 822 metric tonnes in FY24, with a significant portion stored in foreign vaults, including the Bank of England.

    This move comes amid the geopolitical tensions and the West’s freezing of Russian assets, which has heightened concerns about the security of overseas assets.

    A gold reserve is the gold held by a country’s central bank, acting as a backup for financial promises and a store of value. India, like other nations, stores some of its gold reserves in foreign vaults to spread out risk and facilitate international trading. 

    Where does the RBI store its gold?

    India’s gold reserves are primarily stored in the Bank of England, which is known for its stringent security protocols. The RBI also stores a portion of its gold reserves at the Bank for International Settlements (BIS) in Basel, Switzerland, and the Federal Reserve Bank of New York in the United States.

    Why does the RBI store its gold in foreign banks?

    During India’s foreign exchange crisis in 1990-91, the country pledged some of its gold reserves to the Bank of England to secure a $405 million loan, according to reports. Even though the loan was paid back by November 1991, India decided to keep the gold in the UK for convenience.

    Storing gold overseas makes it easier for India to trade, engage in swaps and earn returns. However, there are risks involved, especially during times of geopolitical tensions and war. The recent freezing of Russian assets by Western nations has raised worries about the safety of assets kept abroad and the RBI decision to shift a portion of the gold reserve to India could be prompted over these concerns.

    Why does the RBI need so much gold?

    With its big stash of gold, the RBI can help control local gold prices by using some of it in India. The bank regulator has been buying more gold lately, especially since many other countries are losing faith in the US dollar. Last financial year, the RBI added about 27.47 tonnes of gold to the total reserve, bringing it to 794.63 tonnes. The increased gold reserve works as a hedge against any financial crisis and to take measures to control inflation as well as currency devaluation.



    Original Source

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Admin
    • Website

    Related Posts

    Kashmir Attack Sparks Media Storm Amid Political Blame Game

    April 23, 2025

    Religious Bias Allegations Rock Amazon, eBay, and Oracle Customer Support many Companies.

    January 10, 2025

    Feroz Khan Addresses Controversy with AIMIM MLA, Calls for Improved Road Infrastructure in Asifnagar -N24india

    October 7, 2024

    Comments are closed.

    Advertisement
    Demo
    Latest Posts

    Priyanka Chopra Roasts Trolls Who Criticised Her For Choosing Hot Dog Over Vada Pav: "Didn't Know There Was A…"

    July 11, 2025

    How The Internet Reacted To Karan Johar's Drastic Weight Loss After His Picture With Samay Raina Went Viral

    July 10, 2025

    Mahhi Vij Breaks Silence On Divorce Rumours With Jay Bhanushali: "Just For A Few Likes And Comments…."

    July 10, 2025

    Raza Murad On Rumours Of Rajesh Khanna Slapping Him Over Dimple Kapadia: "Baseless"

    July 10, 2025
    Trending Posts
    Business & Economy

    Maersk CEO Vincent Clerc Speaks to ‘Massive Impact’ of the Red Sea Situation

    January 20, 2021
    Sports

    Review: Can Wisconsin Clinch the Big Ten West this Weekend

    January 15, 2021
    Biotech

    These Knee Braces Help With Arthritis Pain, Swelling, and Post-Surgery Recovery

    January 15, 2021

    Subscribe to News

    Get the latest sports news from NewsSite about world, sports and politics.

    Your source for the serious news. This demo is crafted specifically to exhibit the use of the theme as a news site. Visit our main page for more demos.

    We're social. Connect with us:

    Facebook X (Twitter) Instagram Pinterest YouTube

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Hyderabad
    • Telengana
    • Lifestyle
      • Science
    • Politics
      • Asia
      • Europe
      • World
    • Middle East
    • Sports
    • Home
    • Blog
    • Homepage
    • Typography Elements
    • Get In Touch
    • Our Authors
    © 2025 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.