EPS urges RBI to rollback its new guidelines on gold loans
The RBI’s guideline reduces the loan-to-value ratio from 80% to 75% and mandates that the persons pledging the gold produce documents, he pointed out
Leader of Opposition Edappadi K Palaniswami
CHENNAI: Leader of Opposition and AIADMK general secretary Edappadi K Palaniswami on Friday said the new guidelines issued by the Reserve Bank of India (RBI) on gold loans would adversely impact farmers, small-time merchants, and poor and middle-class families and appealed for the rollback of the new set of rules.
The RBI’s guideline reduces the loan-to-value ratio from 80% to 75% and mandates that the persons pledging the gold produce documents, he pointed out. In his statement, Palaniswami said it would burden the borrowers to submit documents or provide self-declaration when they approach the institutions, seeking loans when they need money in pressing situations.
The AIADMK leader listed out seven other guidelines imposed by the RBI, pointing out problems with them.
He said that the new guidelines would have a negative impact on around 80% of the people of the country, who fall under the categories of middle and lower middle income groups. They approach the cooperative and commercial banks to pledge their jewellery to get money for their urgent needs. Keeping the interest of the poor and needy, the RBI should withdraw its new guidelines and also instruct the banks to ensure purity of the gold coins sold by private pawn brokers and jewellers, he added.
