Currency shortage derailed salary and pension disbursal in as many as 50% of the treasuries across the State on Tuesday.
The Reserve Bank of India (RBI) was unable to meet the currency demand of the government. The shortage similar to the one that was extensively reported following the demonetisation of high-value currency has come at a time when the government was planning to clear three months’ arrears of welfare pensions in connection with Vishu and Easter celebrations.
According to the details provided by the Treasury Department here, the government would transfer the funds for clearing the welfare pension arrears to the cooperative banks, but the lingering currency crisis may delay the payment from banks to the beneficiaries. The government has asked the RBI and the State Bank of India to immediately intervene in the issue.
While the shortage was reported to be acute in 79 treasuries, functioning of 24 treasuries remained totally paralysed for want of cash. Unless the RBI steps in to replenish currency, the crisis would intensify in the coming days, sources said.
