Gold loans against jewelry accounted for 13.6% of all new non-food credit in the Indian banking system during the fortnight ended July 31, 2026. ^[1] Gold loans drew an incremental credit of Rs 90,888 crore during the first four months of fiscal year 2026 (April-July). ^[2] The Reserve Bank of India (RBI) released preliminary data on Tuesday stating that India's current account deficit widened to $4.2 billion, or 0.5% of GDP, in the first quarter of 2026-27. ^[3] India recorded foreign exchange inflows totaling $136.38 billion. ^[4] Non-food bank credit expanded by a brisk 19.1% on a year-on-year basis for the fortnight ended July 31, 2026. ^[5] The widening deficit was primarily driven by a higher merchandise trade gap, which increased to $86.1 billion in Q1 FY27 from $68.9 billion in the corresponding quarter of 2025-26. ^[6] The increase in reserves gives the central bank more room to intervene in support of the rupee. ^[7] The inflows received by banks are swapped with the Reserve Bank of India (RBI). ^[8] Foreign portfolio investment (FPI) recorded a net outflow of $9.6 billion during the quarter, reversing a net inflow of $1.6 billion in the corresponding period last year. ^[9]