Stalin Calls for Review of Gold Loan Restrictions to Protect Rural Credit

Tamil Nadu Chief Minister M K Stalin has appealed to the Union government to advise the Reserve Bank of India (RBI) to reevaluate proposed gold loan limitations, warning they could disrupt rural credit in the region.

In a letter to Finance Minister Nirmala Sitharaman, Stalin highlighted the necessity for gold to remain accepted as collateral for loans up to Rs 2 lakh, crucial for agricultural and allied sectors in rural areas.

Stalin expressed concern that the proposed restrictions would adversely impact vulnerable farmers, pushing them towards unregulated moneylenders. He emphasized the need for a balanced regulatory approach to maintain financial access while ensuring credit discipline.

(With inputs from agencies.)