India Allows Banks to Lend Against Silver as Imports Plunge 87% in May

India's silver imports slumped 87% month-over-month in May, a dramatic contraction that belies a deeper structural change for the precious metal in the country. The drop is not simply a sign of fading demand—it coincides with a landmark policy shift.

For the first time, Indian banks are now allowed to accept silver as collateral for loans. This regulatory change opens up a new channel for silver to serve as a financial instrument in the world's largest silver market, potentially transforming its role from a pure commodity into a mainstream credit asset.