ABP Impact Makers Conclave: Minister Thennarasu Questions RBI's Gold Loan Policy, Speaks On Centre-State Issues
ABP Impact Makers Conclave: Tamil Nadu Finance Minister Thangam Thennarasu has raised concerns over the Reserve Bank of India’s recent move to tighten rules on gold loans, questioning how common citizens would access credit under the new norms. Speaking at the ABP Nadu Impact Makers Conclave 2025, the Minister criticised the RBI's decision to reduce the loan-to-value (LTV) ratio for gold loans to 75 percent and introduce stricter documentation requirements.
“How will ordinary people approach nationalised banks for gold and jewellery loans under these conditions?” he asked, pointing out that such measures could deter access to emergency credit for the financially vulnerable.
Improved Fiscal Health In Tamil Nadu
Reflecting on Tamil Nadu’s financial trajectory since the DMK came to power, Thennarasu said the state's economic position had seen significant improvement despite initial fiscal constraints.
"When we assumed office, we inherited a difficult financial situation," he explained. "Since then, our consistent efforts have stabilised the treasury. We prioritise disciplined spending, focusing on balancing capital investment with social welfare development."
He stressed the importance of avoiding wasteful expenditure while still driving inclusive growth across sectors.
Tensions Over Samagra Shiksha Funds
Thennarasu also addressed the ongoing dispute with the Centre over funding under the Samagra Shiksha Scheme, a national program for integrated school education.
"The allocation from the Centre is far below what is required. It’s a challenge to manage within this framework," he said. "Our Chief Minister has made it clear — even if Rs 10,000 crore is withheld, the contribution to our children and salaries of our teachers will not be compromised."
Tamil Nadu has approached the Supreme Court, alleging that the Union Government failed to release its share of Rs 2,151 crore under the scheme.
Keeladi Excavations & Lack Of Centre’s Support
The Minister also mentioned the Centre’s initial reluctance to support Keeladi excavations, specifically pointing to the absence of backing for archaeologist Amarnath Ramakrishnan’s work.
2026 Elections & DMK’s Confidence
On the political front, Thennarasu exuded confidence about the DMK’s prospects in the 2026 elections. “It’s not impossible to win 200 seats,” he said. “When people doubted our chances in the past, the DMK proved them wrong with historic victories.”
Regarding alliances, he stated it was too early to speak about formal arrangements, but reiterated that true victory lies not just in numbers but in gaining the trust of the people.
“People’s trust is with Thalapathy MK Stalin,” he said firmly.
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