India Breaks Colonial Tradition: Repatriates Gold from UK Vaults

India's central bank has repatriated around 100 tonnes of gold, which is equal to 100,000 kilograms, from the United Kingdom to its vaults in India, was reported by The Times of India (TOI) on Friday. The RBI also has plans for additional transfers in the coming months.

This marks the first significant movement of gold since 1991, when the RBI faced criticism for pledging a portion of its gold reserves during a foreign exchange crisis.

"For those of my generation, the shipping out of gold in 1990-91 was moment of failure that we will never forget. This is why this shipping back of gold has a special meaning," said Sanjeev Sanyal, Economic Advisory Council to the Prime Minister of India, shared on X Friday.

The decision to repatriate gold is attributed to both logistical consideration on and the need for storage diversification, according to sources cited by TOI's Siddhartha.

Right now, gold is domestically stored in vaults at the Reserve Bank of India's old office building on Mumbai's Mint Road and in Nagpur.

The Bank of England has long been a traditional repository for central banks around the world, including India. In fact, even before gaining independence, the state had chosen to store some of its gold reserves in London.

“RBI started purchasing gold a few years ago and decided to undertake a review of where it wants to store it, something that is done from time to time. Since stock was building up overseas, it was decided to get some of the gold to India,” according to an official as per the report.

"[The] Indian central bank (RBI) has quietly repatriated 100 tonnes of gold from UK vaults back to India. The original heist happened in 1991 during India’s financial crisis. Dismantling neo-colonialism one gold bar at a time" S L Kanthan, Geopolitical Analyst, as posted on X.

Gold holds significant emotional resonance for many Indians, especially in light of the Chandra Shekhar government's decision to pledge the precious metal during the 1991 balance of payments crisis. Despite this historical event, the RBI acquired 200 tonnes of gold from the International Monetary Fund approximately 15 years ago. In recent years, the RBI has continued to augment its gold reserves through regular purchases.

"It shows the strength of the economy and the confidence, which is in sharp contrast to the situation in 1991," an official said.

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Dismantling Colonialism 'One Gold Bar at a Time': India Repatriates 100 Tonnes from UK Vaults