The Reserve Bank of India (RBI) failed to provide adequate currency notes at the treasuries on the first pay day of the month on Tuesday and hence they could not honour the ₹24,000 withdrawal limit, Finance Minister T.M. Thomas Isaac has said.
Dr.Isaac said in a release here on Tuesday that the State government had soughtr ₹270.5 crore, but the RBI could provide only ₹177 crore. There was a shortfall of about ₹100 crore, but using the treasury balance and the government’s own revenue, ₹206 crore was distributed as salary and pension across the State, he said.
Pension amounting ₹113 crore and welfare pensions to the tune of ₹36.69 crore were disbursed. In treasuries where there was a liquidity crunch, currency was sourced from banks as well as from other treasuries to meet the demand. But currency shortage had a bearing on the functioning of banks too, he said.
The RBI Deputy General Manager had informed the government on December 28 that the apex bank would be able to provide only ₹600 crore against the demand of ₹1,391 crore for the first 10 days of the month. Still, it could provide only ₹177 crore on the first day.
There was no idea about the currency availability in banks for the coming days. Any hitch in currency supply would only lead to a crisis. Though the salary and pension disbursal would be completed within seven days, customers need to be allowed to withdraw ₹24,000 in the coming days, he said.
Change in treasury software did not affect the disbursals. Though a snag in the BSNL line came as a damper later in the day, it was rectified. Functioning of the Mallapally treasury was hit by the Internet snag, but the treasury director has clarified that sufficient funds would be provided on Wednesday to make amends, the Minister said.
