Nashik : Leading News Service- The Reserve Bank of India (RBI) will bring back the gold kept in the vaults abroad to India. 100 tonnes (1 lakh kg) of gold will be deposited in RBI's coffers from Britain in the coming months. Gold will be kept in Mumbai and Nagpur. Economists are of the opinion that the RBI has maintained its financial strength by restocking its gold reserves abroad after paying a paltry dividend to the government two weeks ago.
RBI has bought gold on a large scale over the last few years. Much of it is kept in safe places abroad. Many countries keep gold in foreign vaults for security reasons. Now RBI will keep gold in safe place in Mumbai and Nagpur. The Bank of England is world famous for safekeeping gold. India's gold has been kept in London since pre-independence.
The next big gold move now
- India had to pledge its gold reserves in 1991 due to depletion of foreign reserves.
- At that time there was a lot of criticism on the Indian government.
- After that India accepted liberalization and opened its doors to the world.
- Further economic liberalization was promoted.
- The next biggest gold movement is happening right now.
- This time the gold stored abroad will be deposited in the RBI coffers.
More than half of the gold reserves purchased by the RBI are secured in foreign banks. About 25 percent of the gold reserves (100 tonnes) actually in the RBI treasury are being brought to India. The Bank of England and India are challenged to bring this highly valuable metal safely into the country. Preparations have been going on for the past several months. The gold will be brought to India by a special plane. Though the government has exempted the import duty on it, the Integrated Goods and Services Tax (IGST) will have to be paid on it, officials said.
Purchase of 200 tonnes from IMF
India had to pledge gold in 1991. After that the economic condition of India improved. Around 15 years ago, RBI bought 200 tonnes of gold from the International Monetary Fund (IMF). Even after that, RBI has increased the gold reserves by buying gold from time to time.
RBI holds 822.1 tonnes of gold
RBI holds 822.1 tonnes of gold. 413.8 tonnes of gold has been kept in a safe place abroad. RBI has purchased 27.5 tonnes of gold in the financial year ended March-end.
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