Tamil Nadu FM Challenges RBI's Gold Loan Restrictions

Tamil Nadu Finance Minister Thangam Thennarasu has publicly called on the Reserve Bank of India to retract its newly imposed gold loan restrictions, arguing that these measures will disproportionately affect the poor and middle-class families who rely on such financial support.

The RBI's draft guidelines have reduced the loan-to-value ratio to 75% from 80%, along with increasing documentation requirements. According to Thennarasu, these changes represent a severe blow to common citizens, who often seek gold loans during times of urgent need.

Highlighting the insensitivity of nine additional guidelines introduced alongside prior stringent measures, Thennarasu urged the RBI to implement policies that are more compassionate and centered on the needs of the people. He voiced his concerns on social media, emphasizing the systemic injustice these regulations impose on vulnerable communities.

(With inputs from agencies.)