RBI Report Reveals Household Debt Concerns

The Reserve Bank of India's latest report shows that while banks and non-banking finance companies are healthy, many households are struggling with debt.

Household debt has reached a new high of 47.8% of the GDP by December 2025.

A lot of this debt is for everyday expenses like groceries and medical bills, which doesn't help people build assets or income.

Low-income earners are especially at risk, making up most of the new bad loans.

Microfinance loans have dropped because of new rules, and people are turning to gold loans instead.

These loans are safer for banks because they have collateral, but they can be risky for families who might need to sell their gold in an emergency.

The report warns that too much debt can hurt the economy in the long run.

The solution isn't just better rules but also higher wages, more stable jobs, and lower costs for health and education.