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Come December first week, banks may face immense pressure in disbursing cash when customers withdraw their salaries credited in bank accounts.
According to bankers, there will be pressure for all stake holders during December 1-7 when salaries are disbursed for government and private sector employees across the country.
According to government data, the Centre’s total salary and allowances bill for 2016-17 is ₹1.84 lakh crore.
This implies that about ₹15,350 crore will have to be disbursed to 10 million Central government employees and pensioners.
In addition, there are government employees in 29 States, about 40 lakh IT and BPO professionals and scores of people working in the corporate and private sectors.
“Going by the general pattern, about 50-70 percent of salary is withdrawn in the first one week from salary accounts. We expect big cash crunch next week,’’ a senior official of Andhra Bank told Business Line .
According to an Executive Director of a public sector bank, cash is getting exhausted by lunch hour in many branches in semi-urban and rural areas even today.
“The continuing restrictions on cash withdrawal/daily limits is an indication that things are not right yet. Even if limit is hiked, banks should be provided enough cash to disburse,’’ he added. Interestingly, the Chief Minister of Telangana, K Chandrasekhara Rao, after a review of the demonetisation drive had expressed the view that the State Government might be able to pay just 15 days salary to its employees going by the trend of falling revenues in various departments and the financial situation in the State.
Meanwhile, Andhra Pradesh Chief Minister, N Chandrababu Naidu, has on Thursday conducted a review meeting to gauge the preparedness of salary payments on December 1 and address cash crunch issues.
A senior official in the Finance Department of Telangana, said: “We have no problem in paying salaries to our staff through transfers. But ensuring cash availability is not in our reach.’’ The Telangana Government has requested the RBI to provide change for ₹5 crore for disbursal of salaries and to facilitate providing at ₹10,000 in cash for each of the State government employee.
It remains to be seen how these issues are addressed.
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