Stalin's Plea for Gold Loan Reforms

The Tamil Nadu Chief Minister M K Stalin expressed satisfaction after the Union government responded to apprehensions regarding the Reserve Bank of India's draft guidelines on lending against gold collateral. Stressing the significance of consulting states on impactful policies, he highlighted the need for safeguarding small borrowers, especially farmers and daily earners.

In a social media post, Stalin appreciated the Finance Ministry's positive response to his concerns. He emphasized the importance of arriving at such crucial policies with due consultation with states, particularly those affecting economically vulnerable sections.

Stalin had previously communicated his concerns to the Centre about the stringent norms related to gold loans, stressing that these restrictions would harm poor and middle-class families' dignity and financial stability. He called on the finance minister and RBI governor to ease these regulations and allow people to pledge their gold with respect.

(With inputs from agencies.)