RBI Reports Rapid Growth in Gold Loans Amid Declining Gold Imports in May 2026
Gold loans have become the fastest-growing segment of retail credit in India, expanding at a compound annual growth rate of 42.4% since March 2024, driven by rising gold prices and demand for secured borrowing, according to the RBI's Financial Stability Report. Meanwhile, gold imports declined for the third consecutive month in May 2026, totaling about USD 12 billion, following Prime Minister Modi's appeals to reduce gold consumption amid concerns over the trade deficit and fiscal pressures linked to elevated commodity prices and currency volatility.