10 June 2025 : The Reserve Bank of India (RBI) holds the country’s largest gold reserve. While that is commonly known, what may surprise many is that in the last financial year, the RBI received 3.4 metric tonnes of gold completely free of cost. The central bank did not have to spend a single rupee for this gold, which has an estimated market value of around ₹3,551.40 crore.
Where did this gold come from?
Finance Minister Nirmala Sitharaman revealed that during the financial year 2024–25, 3.4 metric tonnes of gold were handed over to the RBI. This gold had been seized during smuggling attempts and was later transferred to the central bank. The revelation was made during the inauguration of the new headquarters of SPMCIL (Security Printing and Minting Corporation of India Ltd.), the agency responsible for refining and handing over such gold to RBI.
The Finance Minister stated that the government utilizes smuggled gold in the nation’s interest after purification. SPMCIL, after refining the gold, formally hands it over to the RBI to be included in the country’s reserves.
Amount of gold seized in smuggling
As per official sources, during the financial year 2023–24, approximately 4,869 kilograms (nearly 4.87 tonnes) of smuggled gold was seized. The Myanmar border is reported to be the largest entry point for such illegal activity. Agencies like the Directorate of Revenue Intelligence (DRI) and Customs Department jointly conducted operations to seize this gold at the border. Once seized, it is handed over to SPMCIL for purification and then sent to the RBI, thus integrating illicit gold into the formal economy.
Why is gold smuggling so prevalent?
According to the Finance Minister, gold is often brought into the country illegally to evade taxes. The government is taking strict actions against such economic leaks, including the confiscation of associated properties. The seized gold is handed over directly to the central bank for monetization, which not only curbs illegal trade but also strengthens the nation’s gold reserves.
What does SPMCIL do?
The government is considering granting Navratna status to SPMCIL. Currently a Miniratna company, SPMCIL not only refines smuggled gold but also prints banknotes and mints coins. In the last financial year, the company printed banknotes worth around ₹1,200 crore and has now become profitable, paying a dividend of ₹364 crore. As it continues to grow, it is expected to attain Navratna status.
Summary:
The RBI repatriated 3.4 tonnes of gold from foreign vaults to boost domestic reserves, aiming for safer, more efficient reserve management.