Banks have received warning against strict action that would be taken if they do not sanction loans to unemployed youth under the Prime Minister's Employment Generation Programme (PMEGP). The warning has been generated by Jharkhand Deputy Chief Minister, Shri Raghubar Das.

Prime Minister's Employment Generation Programme (PMEGP) is a credit linked subsidy program that has been approved by the Government of India. The scheme has been developed by the merger of two previously existent schemes namely Prime Minister's Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP). The program aims at providing employment opportunities to the jobless youth by establishing micro enterprises in rural as well as urban areas.

'It is well known that the banks do not disburse money to unemployed youth under the PMEGP. Suitable action will be taken if the banks do not improve the disbursing of loan system to unemployed youth,' Das said during the state assembly session.

He also said that the Government officials have had talks on this issue with SBI officials twice this year wherein the bank has been asked to improvise its lending system.

The PMEGP allows unemployed youth to avail loans up to Rs. 1 lakh for self employment purposes.

The issue was brought up by Jharkhand Vikas Morcha-Prajanatantrik (JVM-P) member Pradeep Yadav, who said that banks do not meet targets set under the various schemes for loan disbursement to the unemployed youth and that the banks are ‘indifferent' to such cases.

Assembly Speaker C.P. Singh asked Das to take up the issue with the union finance minister to improve the loan disbursals.