You are here: Home » Opinion » Columns
Gold loans: Govt focus right on getting more liquidity to the people
District Forums can't handle bigger caseload
Business Standard

RBI notification excluding NBFCs from gold loan rule will hurt poor women

Central bank's decision to the raise the loan-to-value ratio is welcome relief for formal banking, but it does not address the issues faced by the most badly affected segments of our economy.

Topics
gold loans | NBFCs | rural women

Mani Shankar Aiyar 



gold loan, gold
To convert a loan against ornaments into NPAs is to lose the single most important asset that poor women possess. (Photo: Shutterstock)
Mani Shankar Aiyar

Even before Covid-19 hit us, the economy was in steep decline. Most commentators were agreed that the principal cause was the fall in demand, especially among the poor and particularly in rural areas. Of course, the pandemic and the precipitate lockdown that followed aggravated all the weak spots in the economy. Worse than the economic consequences were the humanitarian consequences, which saw millions deprived of their meagre earnings and trudging hundreds, sometimes over a thousand kilometers, to reach home because no arrangements had been made to transport them back. Much of this has since been attended to but until demand is revived it is difficult to see the green shoots surviving.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS

What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.

OR


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Sun, August 09 2020. 12:34 IST

RECOMMENDED FOR YOU

.