Thennarasu Tells RBI To Take Back Gold Loan Restrictions
Tamil Nadu Finance Minister slams RBI’s draft gold loan norms, warns of adverse impact on poor and middle-class borrowers.
Chennai: Urging the Reserve Bank of India (RBI) to immediately withdraw the newly imposed restrictions on gold loans and adopt compassionate and people-centric policies, State Finance Minister Thangam Thennarsu said reduction of loan-to-value ratio to 75% would burden borrowers.
Reacting to the new RBI draft guidelines to standardize gold loan rules, the Minister in a statement on Thursday said the proposed excessive documentation would gravely affect the poor and middle-class families who depended on such loans during emergencies.
At a time when people were still reeling from the earlier rule disallowing re-pledging until full repayment was made, the introduction of 9 more rigid guidelines was deeply insensitive, the State Finance Minister said, adding that the measures amount to systemic injustice against the vulnerable.
