Demonetisation – Kerala treasuries run dry on pay day, pensioners hit

KOCHI: With the RBI failing to meet the currency requirement of the state, the pay out of pension and salary for government employees was affected in many parts of Kerala.The government treasuries in smaller towns and rural centres bore the brunt of the currency shortage in the state.

State finance minister TM Thomas Issac said 42 treasuries in the rural areas and smaller towns did not receive cash at all. Against the demand of Rs 153 crore till 11 am, on Rs 75 crore was made available only.

Earlier in a meeting with the state finance minister and other officials, RBI has promised to make available Rs 1,000 crore for salary and pension payment of the state. However, the state has reportedly received only Rs 500 crore from RBI.


The state pension and salary pay ment will be in trouble if the RBI is not releasing the currency that it had promised to pay.

Long queues had formed outside the treasuries and the banks by early morning for withdrawing the pension and salary on the first pay day after the currency demonetisation.

The state government had earlier said that salary and pension will be disbursed on Thursday subject to a withdrawal limit of Rs 24,000 per week.

In many centres people had to wait for several hours to get their payments. Issac said he is hopeful that more currency will be made available by RBI in the next few days.