Tension erupted at the State Bank of India (SBI) regional office in Tiruchy, India, on Monday as hundreds of farmers attempted to surround the bank, protesting against the new regulations on jewel loans introduced by the Reserve Bank of India. The farmers, led by P Ayyakannu, State president of Desiya Thenninthiya Nadhigal Inaippu Sangam, gathered in front of the SBI regional office, demanding that the bank withdraw the new regulations. The new norms, which restrict jewel loans to only Rs 2 lakh, have been met with strong opposition from farmers who claim that it will severely impact their livelihoods.
The farmers, who had been protesting against the new norms for some time, were frustrated that the banks were continuing to implement the regulations despite their objections. They argued that the new rules, which require receipts for pledged jewels and restrict loans to 80% of the jewel’s value, would make it difficult for them to access credit. The protesters claimed that the new norms would disproportionately affect farmers, who rely heavily on jewel loans to fund their agricultural activities.
As the farmers attempted to besiege the bank, police intervened and stopped them, eventually arresting all the protesters. The situation turned tense, with the farmers raising slogans in support of their demands. The protests highlight the ongoing struggle between farmers and banks over the new jewel loan regulations, which have been a point of contention for some time. The farmers are demanding that the banks withdraw the new regulations and restore the old norms, which they claim were more favorable to them.
The issue has been a major concern for farmers in the region, who are already struggling to cope with the economic challenges posed by the COVID-19 pandemic. The new regulations have added to their woes, making it difficult for them to access credit and fund their agricultural activities. The protests are likely to continue until the farmers’ demands are met, and the issue is resolved. The government and the banking sector will need to find a solution to address the concerns of the farmers and ensure that they have access to credit and other financial services.