We bank on you for cash this month, staff tell government

Only four days to go for the month end, every household is charting out plans of how to handle some of the ‘must-pay’ commitments. 

Though the Centre and the RBI claim that despatch of lakhs of bundles of Rs 500 and Rs 2,000 to various cities, the volume of crowd in banks are yet to turn thin. Adding to this is the defunct ATMs, that have now turned ‘showcased’ pieces. 

To ease the pressure, the Centre as an ad hoc measure has started giving cash advance of Rs10,000 this week to the junior staff. There has been demands from the government employees’ unions in Tamil Nadu and Puducherry to pay the salary in liquid cash. 

According to the RBI, about Rs1.36 lakh crore had been pumped back into the system until Nov 21. However, a senior government official claimed no employee – whether public sector or private – has cause for worry. There would be no problem with the cash supply. All necessary steps were being taken to prepare for the big day, RBI officials added. 

Despite all these, public and private companies are trying to pool up notes as much possible to disburse at least a significant part of the salary in cash in an effort to mitigate the problems of their workers.

The demonetisation move has put 14 lakh staff of TN government and 7 lakh pensioners on tenterhooks as pay day nears.

Their fear is founded on the fact that Central employees were given cash advance of Rs 10, 000 each in Rs 2000 notes last week. Those who were paid last had to make do with Rs 100 notes, while some others were told to share Rs 2000 notes after the chest dried up. 

Though the state government employees’ association handed over a petition demanding that they be paid in cash, it has drawn no response till date. A senior finance official said, “the matter is being looked into.” 

The Centre’s wage bill for its 47 lakh staff and 53 lakh pensioners amounts to Rs.15, 350 crore. 

Both central and state government staff handle their salary – credited to their accounts through the ECS - through 1.34 lakh bank branches. Most employees take out 80% of their pay between 1st and 7th of a month. 

If there is no improvement in the situation, the state government is likely to witness high absenteeism as employees will be spending their time in banks.