Tamil Nadu Finance Minister Thangam Thennarasu on Thursday (May 22, 2025) urged the Reserve Bank of India (RBI) to immediately withdraw the newly imposed restrictions on gold loans.
In a post on X, Mr. Thennarasu said reducing the loan-to-value ratio to 75% and burdening borrowers with excessive documentation gravely affects poor and middle-class families who depend on such loans during emergencies. At a time when people are still reeling from the earlier rule that disallows re-pledging until full repayment, the introduction of nine more rigid guidelines is “deeply insensitive.” These measures amount to “systemic injustice” against the vulnerable. The RBI must adopt compassionate, people-centric policies, Mr. Thennarasu added.
Tamil Maanila Congress (Moopanar) president G.K. Vasan also urged the RBI to reconsider its decision. In a statement, Mr. Vasan said the RBI has imposed various restrictions on getting gold loans. This will affect not only the poor and middle class, but also micro and small businesses and farmers. Restrictions on obtaining gold loans should be relaxed for the benefit of the poor, he added.
Published – May 22, 2025 10:47 am IST
