RBI Receives 3.4 MT of Refined Smuggled Gold in FY25, says FM Sitharaman

At the inauguration of the new headquarters of the Security Printing and Minting Corporation of India Limited (SPMCIL) in New Delhi, Finance Minister Nirmala Sitharaman outlined key developments in gold recovery and public sector performance. The government is formalising the refinement of smuggled gold and enhancing the efficiency of institutions like SPMCIL, in line with broader economic goals.

Refinement of Seized Gold and RBI Integration

Finance Minister Nirmala Sitharaman on June 9 said that as much as 3.4 metric tonnes of gold confiscated through smuggling was refined by SPMCIL and subsequently handed over to the Reserve Bank of India (RBI) in 2024–25. “In 2024–25, 3.4 metric tonne [MT] of such gold was delivered to RBI,” Sitharaman said.“All gold confiscated through smuggling is now refined and purified by SPMCIL and handed over to the RBI,” she added.

According to data compiled by enforcement agencies and reported by Moneycontrol, 4,869 kg of smuggled gold was seized in 2023–24, with the Myanmar border emerging as a key route. Despite increased action by the Directorate of Revenue Intelligence (DRI) and Customs, seizures remain high. The move to refine and transfer gold to the RBI ensures its formal use and strengthens national reserves.

SPMCIL's Operational and Financial Performance

As Money Control, FM Sitharaman highlighted the scale of SPMCIL’s work, noting, “In the last financial year, SPMCIL has produced 1,200 crore bank notes.” She recalled the public sector unit’s financial improvement: “SPMCIL in 2016-17 paid back all its loans.”

For 2023-24, the company declared a dividend of ₹364 crore. Praising its transformation, Sitharaman stated, “SPMCIL is now being run professionally. In the right scheme of things, it might be right to consider it to become a Navratna.” Currently a Mini-Ratna CPSE, SPMCIL may receive enhanced autonomy if upgraded.

Read More: RBI’s New Gold Loan Rules from Jan 2026: What They Mean for You!

Conclusion

The formal integration of seized gold into central reserves represents a strategic effort to combat illegal trade and strengthen the economy. At the same time, SPMCIL’s operational turnaround and possible elevation to Navratna status signal the government's trust in capable public sector entities.

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