What does RBI do with the Gold?
I think it will show it as its asset. In case of economic crisis, RBI will use it to pay debt (to external agencies like IMF/WB) or other nations to which India is indebted. In all means, I think that the gold accumulated by Hindus (in the temple) since a long time will be handed over to International bankers through these organizations.
What do RBI do with the gold reserves?
Back in the days, India used to pay for its imports from Reserve Bank of India's (RBI) reserve of foreign currency. Its exports were barely enough. By 1991, its imports ballooned so much that India's forex reserves touch an all-time low, enough to pay for only three-weeks of imports.
The country had to airlift gold and pledge it with IMF for a loan in 1991. This balance of payment crisis is perhaps the best example of why the RBI's foreign exchange and gold reserves matter.
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