Banking regulator RBI has bought eight tonnes of gold after almost nine years.The RBI last bought 200 tonnes of gold from the International Monetary Fund in November 2009. The central bank held 566 tonnes of gold as of June-end against 558 tonnes held in the same period last year. The increase is on account of an addition of 8.46 tonnes during the year, the RBI said in its annual report.
Of the 566 tonnes gold reserves, 292 tonnes is held as backing for Notes issued and the balance 274 tonnes (265.49 tonnes) is treated as an asset of the Banking Department. The value of gold held as an asset increased by 11 per cent from ₹62,700 crore as on June 30, 2017 to ₹69,674 crore as on June 30, 2018, primarily on account of depreciation of the rupee against the dollar and addition of 8.44 tonnes of gold during the year.
The central bank started purchasing gold in small quantities of 0.3 tonnes in the December quarter and topped this up with 2.5 tonnes in the March quarter, according to the latest World Gold Council report.
In April and May, there were additions by the RBI of 600 kg and 900 kg, said the report. As of August 17, India’s gold reserves are valued at ₹1.42 lakh crore, up by ₹2,470 crore compared to the March quarter.
Gold reserves in India averaged 452 tonnes from 2000 until 2018, reaching an all-time-high of 566 tonnes in the second quarter of FY19 and a record low of 358 tonnes in the second quarter of 2000.