T.N. cooperative banks will support the poor and downtrodden, says Stalin

DMK president M.K. Stalin vows to protect Tamil Nadu's poor from RBI's gold loan norms, embracing them through cooperative banks.

The proposed norms of the Reserve Bank of India (RBI) on gold collateral have created a situation wherein the poor would be forced to take gold loans benefiting corporate companies but the cooperative banks under the Tamil Nadu government would embrace the poor and the downtrodden, DMK president and Tamil Nadu Chief Minister M.K. Stalin said on Friday. In an open letter to his partymen, Mr. Stalin said his government would protect the State’s rights.

He accused the Union government of not considering the welfare of the people and instead attacking them through the RBI, first with demonetisation and now the fresh gold loan norms.

“Minister for Cooperation Periakaruppan has announced that the norms would not apply to cooperative banks, as part of steps to protect the people of Tamil Nadu. Even if the Union government deceives the poor and downtrodden, cooperative banks under the State government will embrace them,” he added.

The poor and downtrodden, who took loans from banks only by pledging gold jewellery, were being forced to face a crisis following new norms by the RBI, Mr. Stalin said. “They are forced to take loans from private financial institutions.” Contending that the RBI created a situation wherein the poor would be forced to take loans on exorbitant interest rates benefitting corporate companies, Mr. Stalin recalled having placed a demand to the Union government against the RBI norms, as the Tamil Nadu Chief Minister.

Unlike the erstwhile governments, the DMK government was not habitual of give up the State’s rights to the Centre, Mr. Stalin said. Even if the Union government refused to grant funds for education, the State government was sanctioning from its funds with the determination that it would follow the two-language policy laid down by late leader C.N. Annadurai, he said. “We are helping people through cooperative banks, when they are unable to approach nationalised banks due to restrictions over gold loans. This is the action of a government that protects the people. This is the stand that does not give up State’s rights,” he said.

Mr. Stalin said the people of Tamil Nadu wanted his government to continue, but opposition parties, which were unable to find fault with the DMK’s governance, were blowing up issues in their attempts to avoid their loss. They were using social media to campaign against the DMK government, he said.

Annadurai, when he started the DMK, called upon the people to join the party so that they could fill up jails, Mr. Stalin recalled, and added: “While there are some who start political party for posts and some could even pledge their party to save their post, the DMK took on imprisonment with a smile and swam in the river of fire to become a successful movement.” With the power that his party workers have handed him, he said: “I have been using the opportunity to protect the welfare of the people and to restore the State’s rights.”