Palaniswami Calls for RBI to Reconsider New Jewellery Loan Norms

In a decisive appeal, AIADMK general secretary Edappadi K Palaniswami has called on the Reserve Bank of India to retract its newly imposed conditions on jewellery mortgage loans. Palaniswami argues that these stringent norms will severely affect poor and middle-income families who depend on such loans in times of need.

According to Palaniswami, over 80% of Indians, including those from economically challenged backgrounds, farmers, and traders, resort to mortgaging their jewels at cooperative and nationalized banks to access emergency funds. The RBI's draft guidelines, he claims, will significantly disrupt their ability to secure loans.

Palaniswami highlighted that reducing the loan-to-value ratio from 80% to 75% and increasing documentation requirements will challenge borrowers further. He urged the RBI to reconsider these measures and ensure the integrity of gold coins from private jewellery stores before extending loans.

(With inputs from agencies.)