TIRUCHY: Farmers in the delta districts have expressed concern over the new regulations announced by the Reserve Bank of India (RBI) regarding gold loans. Describing the new rules as being impractical, farmers said they favoured corporate firms.
"Not just farmers, people from all walks of life are affected by the new norms," said Vayalur N Rajendran, treasurer of farmers wing of Tamil Manila Congress. "Demanding purchase receipt of a jewel to pledge it is unreasonable. People who don't have any source of funds usually pledge gold in banks. Most of them possess very old ornaments inherited from their ancestors. How is it possible to produce receipt for them?" he questioned.
The new regulations are impractical and detrimental to the interests of farmers and middle class people, said secretary of Tamil Nadu Cauvery Farmers Protection Association Swamimalai S Vimalnathan. "The new regulations must be revoked immediately. If the union government continues to implement anti-people measures, we will launch protests," Vimalnathan added.
PR Pandian, president of the coordination committee of all farmers association of Tamil Nadu, said the new conditions, such as purchase receipt and limiting the loan amount to only 75% of the value of gold, are unacceptable.
"When farmers face devastation due to climate change, it is not feasible for them to repay the entire loan amount with interest to get a new loan. So, the union government must restore the previous practice, where farmers could renew their loans by paying only the interest, following past procedures," Pandian added. To emphasise this demand, his association has announced a protest on June 3 in front of the Tiruvarur collectorate.