SRIKAKULAM: With the distribution of compensation to cyclone Titli victims going on at a fast pace, cash crunch is likely to grip the Srikakulam district. While about Rs 520 crore is needed for the payment of the cyclone compensation, about Rs 38 crore is needed for paying social security pensions.
Similarly, another Rs 50 crore is needed for payment of monthly salaries and employees’ pensions. In addition to this, bankers must have at least Rs 100 crore for paddy procurement to begin from November.
On the other hand, cash must be made available in all the banks in the district for general and business transactions. All together, around Rs 1,000 crore is needed to meet the various financial needs in the district .
The bank officials and district administration are striving to mobilise cash from Reserve Bank of India as well as from the banks in neighbouring Odisha. Of the Rs 520 crore cyclone compensation, Rs 433 has already been distributed to the victims. Around 80,000 more entries are yet to be pushed into Real Time Governance Society (RTGS) for approval and the district administration is mulling to complete the entire compensation distribution process within a week. Responding to the District Collector’s appeal, RBI officials have dispatched Rs 350 crore a few days ago to the banks, involved in the distribution of cyclone compensation, district lead bank manager P Venkateswara Rao said.
Banks such as SBI, Andhra Bank, APGVB and DCCB are distributing the major portion of the compensation. Other banks such as IOB and Canara Bank are managing the rest.While the SBI is distributing the compensation of about Rs 166.34 crore, Andhra Bank is distributing Rs 67.95 crore, DCCB Rs 56 crore, APGVB Rs 90.64 crore and while the rest is being distributed by the other banks.
“To avoid cash crunch due to distribution of cyclone compensation, we managed to mobilise Rs 90 crore from Odisha branches of Andhra Bank. Similarly, about Rs 150 crore is likely to reach on Monday. Although the victims are getting cheques from banks, they are not withdrawing the entire cash in one go, which is a blessing in disguise,” he added.
Need for cash
Rs 520 crore needed for the payment of cyclone compensation
Rs 38 crore for paying social security pensions
Rs 50 crore for the payment of monthly salaries and employees’ pensions
Rs 100 crore for paddy procurement
Rs 1,000 crore needed for the district to meet all needs
Bank-wise compensation
SBI - Rs 166.34 crore, Andhra Bank - Rs 67.95 crore,
DCCB- Rs 56 cr, APGVB -Rs 90.64 cr