Jamshedpur, May 13: Quashing its previous order to stop disbursal of loans under the Pradhan Mantri Rozgar Yojana (PMRY), the Reserve Bank of India (RBI) directed nationalised banks in the Singhbhum-Kolhan region, to start the sanction of “pending loans” from June 30.

Low recovery rates from unemployed youths and reports of alleged misuse of loans were the reasons for RBI’s earlier move.

Seven hundred and three youths had received loans in the last fiscal, but about 109 youths, recommended by the District Industry Centre (DIC), are still waiting.

General manager of the DIC (Singhbhum-Kolhan), R.C. Prasad confirmed RBI’s latest directive. “Unemployed youths will get loans from next month. They are entitled to amounts up to Rs 2 lakh,” Prasad said.

Social activist Demka Soy pointed out that the central government did not want to raise economic conditions of unemployed tribals dominant in south Jharkhand. “The central government has not declared schemes for unemployed youths yet. A month has already passed,” Soy said. Prasad said they are yet to receive any directive in this regard from the state.

Rajesh Kumar, an unemployed youth, complained that DIC officials have failed to provide necessary information.