India News | RBI Should Roll Back Restrictions on Gold Loans: AIADMK Leader Edappadi Palaniswami

Chennai, May 23 (PTI) AIADMK general secretary Edappadi K Palaniswami on Friday urged the Reserve Bank of India to immediately roll back the new conditions imposed on jewellery mortgage loans as they would severely affect the poor and middle-class families dependent on such loans during emergencies.

He said over 80 per cent of the Indian population who hailed from the poor and middle-class sections, and even farmers and traders, mortgaged their jewels with the nearest cooperative or nationalised banks to raise money to meet emergencies.

Also Read | Leopard Attack in Uttar Pradesh: Man Sustains Injuries After Big Cat Mauls Him, Forest Department Launches Search Operation.

"These sections would be severely affected due to the RBI's draft guidelines on prudential norms," Palaniswami said in a statement here.

Further, reducing the loan-to-value ratio to 75 per cent from the present 80 per cent and burdening borrowers with excessive documentation, among other things, would impact the borrower's ability to raise loans, he said.

Also Read | Relief for 'Persian Table' Restaurant Owner As Kochi Consumer Court Rules 'Gravy Need Not Be Given Free to Customers' After Eatery Owner's Tiff With Customer.

"Hence, in the interest of the people, I urge the Reserve Bank of India to immediately withdraw these new conditions and also request it to check the quality of gold coins purchased from private jewellery shops before providing gold loans," Palaniswami added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)