POSER ON LOAN DEAL

Jamshedpur, May 10: Loan disbursal to unemployed youth from the three districts of East and West Singhbhum and Seraikela-Kharsawan have been stopped by the Reserve Bank of India, claimed a spokesman of a nationalised bank here.

The move was prompted by the low recovery rates in the districts, the banker claimed. He admitted that while loans were disbursed to 702 unemployed youth in the three districts last year, as many as 109 others, also recommended for loan by the District Industry Centre (DIC) last year, are waiting for the RBI to withdraw its ban-order.

The loans were disbursed under Pradhan Mantri Rozgar Yojana (PMRY) for setting up cottage industries or small businesses and service agencies. The scheme was launched in 1993 to enable unemployed youth to generate income through their own enterprise. The soft loan amounts ranged from Rs 1 to 2 lakh and the interest rate is low.

The DIC (Singhbhum-Kolhan) had approved 811 applications and forwarded them to different nationalised banks.

General manager of the DIC, R.C. Prasad, however, declared that it was a matter of time before the loans are disbursed to the remaining 109 applicants as well.

The RBI ban on disbursing loans, he claimed, was a temporary ban and is bound to be lifted.

The banker concurred but said that until the ban is lifted, there is very little that nationalised banks can do.