In a significant move, India's Finance Ministry has requested comprehensive data from banks concerning gold metal loans and loans backed by gold starting from 2023, as per Times of India news report.
This action is indicative of potential initiatives regarding gold regulations and policies.
The Finance Ministry's directive comes after India's gold import bill reached a record $71.9 billion in 2025-26, despite import volumes decreasing to 721 tonnes.
This request was communicated to the banks recently, requiring them to provide details such as the value, volume, and portfolio sizes of gold metal loans, client numbers, and collateral involved.
A bullion trade body has suggested that banks utilise gold bars refined from dore, which is unrefined gold processed domestically, instead of importing fresh gold for issuing gold metal loans to jewellers.
This would potentially moderate imports while maintaining supply. Moreover, it has been proposed that gold exchange-traded funds could consider acquiring bars refined from dore rather than imported gold.
Amidst a sluggish domestic market, industry representatives have raised the potential of exporting unsold gold to markets like China and Turkey.
Allowing this under certain conditions could alleviate pressure on both the rupee and the current account deficit. Banks are currently permitted to return surplus gold to overseas suppliers.
Read More: RBI Gold Reserves Remain Steady at 880.52 Tonnes, Central Bank Denies Sale Reports!
Various proposals have emerged, including limiting cash purchases of gold, involving household bullion in a lending mechanism, and reserving imported gold for exporters.
Banks have also provided details on remittances for dore imports in response to the Ministry's inquiry.
The Finance Ministry's request for data on gold metal loans suggests a keen interest in understanding and possibly adjusting gold import and utilisation practices. These discussions and proposals highlight the ongoing exploration of strategies to manage gold imports and maintain market stability.
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Published on: Jun 9, 2026, 3:28 PM IST
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