RBI regulation on jewel loan: Farmers attempt to besiege SBI regional office
As there was a prolonged protest by farmers against the new norms for jewel loans announced by the Reserve Bank of India, the farmers who had availed loans were said to be struggling to go ahead with their regular activities
Farmers stage protest in front of the SBI regional office in Tiruchy
TIRUCHY: Tension prevailed at the SBI regional office premises in Tiruchy on Monday after hundreds of farmers attempted to besiege the bank, demanding to withdraw the new regulations of margin and collateral security.
As there was a prolonged protest by farmers against the new norms for jewel loans announced by the Reserve Bank of India, the farmers who had availed loans were said to be struggling to go ahead with their regular activities. Despite their strong opposition, the banks continued to practice the new norms.
On Monday, the frustrated farmers led by P Ayyakannu, State president of Desiya Thenninthiya Nadhigal Inaippu Sangam, gathered in front of the Regional Office of SBI at Royal Road and attempted to lay siege demanding to withdraw the new regulations on jewel loans.
They said that the new norms that restrict jewel loans only up to Rs 2 lakh would affect the farmers to a large extent. They also demanded to withdraw the rule of producing receipts for the jewels, as they intend to pledge and provide loans to the tune of 80 per cent of the total value of the jewels.
The protesting farmers also raised slogans in support of their demands. When they attempted to besiege the bank, the police who were on duty stopped them and arrested all the farmers.
