‘Net weight of gold should be considered under loan waiver scheme’

Banks are saying they will take into account only the gross weight of jewellery mortaged, according to activist

A section of consumers has urged the government to consider the net weight, not the gross weight, of mortgaged jewellery, under its loan waiver scheme.

The loan waiver for gold jewellery below five sovereigns was among one of the key poll promises of the DMK.

CM’s announcement

In September, Chief Minister M.K. Stalin had made a suo-moto announcement on the waiver in the assembly, subject to certain conditions.

Consumer activist T. Sadagopan pointed out that when a consumer pledged gold ornaments like bangles, necklace, rings amounting to gross weight of 50 g, the co-operative bank official would reduce 5 g from it and pay the amount for 45 g only. If it was a necklace, 7 more grams would be reduced and and the amount would be paid for 38 grams.

Since the net weight of 38 grams comes under five sovereigns, it should be considered eligible under the jewellery loan waiver scheme.

However, banks had been saying that they would take into account only the gross weight of jewellery, he said.

Mr. Sadagopan said the key expectation of consumers was that the net weight should be taken into account for eligibility under the jewellery loan waiver scheme.

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