Thu May 22 05:17:39 UTC 2025: Here’s a summary and news article based on the provided text:

**Summary:**

Tamil Nadu Finance Minister Thangam Thennarasu and Tamil Maanila Congress (Moopanar) president G.K. Vasan have both publicly criticized the Reserve Bank of India (RBI) for implementing new restrictions on gold loans. Thennarasu described the new rules as “systemic injustice” impacting the poor and middle class, especially the reduction of the loan-to-value ratio and increased documentation requirements. Vasan echoed these concerns, adding that micro and small businesses, as well as farmers, will also be negatively affected. Both urged the RBI to reconsider and relax these restrictions.

**News Article:**

**Tamil Nadu Leaders Slam RBI’s New Gold Loan Restrictions**

**CHENNAI, May 22, 2025** – The Reserve Bank of India (RBI) is facing strong criticism from Tamil Nadu over its recently imposed restrictions on gold loans. Finance Minister Thangam Thennarasu and Tamil Maanila Congress (Moopanar) president G.K. Vasan have both voiced serious concerns about the impact these new regulations will have on vulnerable populations.

In a statement released on X, Thennarasu condemned the RBI’s decision to reduce the loan-to-value ratio to 75% and increase documentation requirements, labeling the measures as “systemic injustice” against the poor and middle class who rely on gold loans during emergencies. He argued that the new rules, combined with existing restrictions on re-pledging, demonstrate a lack of compassion.

G.K. Vasan echoed these concerns, stating that the RBI’s restrictions will negatively impact not only individual borrowers but also micro and small businesses, as well as farmers who often depend on gold loans for crucial financial support.

Both leaders are urging the RBI to reconsider its decision and relax the restrictions in the interest of the vulnerable populations who will be most affected. The controversy highlights the ongoing debate about the balance between financial regulation and access to credit for those most in need.

Read More