Leader of Opposition and AIADMK general secretary Edappadi K Palaniswami on Friday said the new guidelines issued by the Reserve Bank of India (RBI) on gold loans would adversely impact farmers, small-time merchants, and poor and middle-class families and appealed for the rollback of the new set of rules.The RBIās guideline reduces the loan-to-value ratio from 80% to 75% and mandates that the persons pledging the gold produce documents, he pointed out. In his statement, Palaniswami said it would burden the borrowers to submit documents or provide self-declaration when they approach the institutions, seeking loans when they need money in pressing situations.
He said that the new guidelines would have a negative impact on around 80% of the people of the country, who fall under the categories of middle and lower middle income groups.