Glad about response over concerns on draft norms on lending against gold, says TN CM
Chennai, Tamil Nadu Chief Minister M K Stalin on Friday said he was glad that the Union government has responded to concerns over RBI's draft directions on lending against gold collateral and batted for prior consultation with states on such matters.
In a social media post, Stalin said: "Glad to note that @FinMinIndia has responded to the concerns raised by me in my letter to the Hon'ble Union Finance Minister regarding @RBI's draft guidelines on gold loans.
Protecting the interests of small borrowers, especially those seeking loans below Rs.2 lakh such as farmers and daily earners and ensuring timely and accessible credit has been my consistent demand.
While appreciating the positive consideration given to this issue, we emphasize that such policies having significant impact on poor should be arrived after due, prior consultation with States."
On May 28, CM Stalin wrote to the Centre, flagging concerns and sought easing of norms related to gold loan.
He had said: "Our people are simple, dignified, and resilient. Even when all they have is half a rupee, they save it carefully, adding to it bit by bit, until they can buy a single gold bead. Not for show. Not for luxury. But for emergencies—moments when there is no one else to turn to. This is not ornamental gold. It is their shield against life's uncertainties.
Today, the RBI has proposed needless restrictions on gold loans, making it harder for poor and middle-class families to access credit with self-respect. This is not merely a regulation. It is a blow to their dignity and survival.
At a time when many are already caught in the cruel grip of #LoanSharks and forced into #LoanApps during times of desperation, is it fair to push them further into those traps instead of protecting them? I respectfully urge Hon'ble @nsitharaman and the @RBI Governor to ease the rules on #GoldLoan. Let our people pledge their hard-earned gold with dignity."
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