THIRUVANANTHAPURAM: On its first payday post-demonetisation, Kerala is facing a deep financial crisis due to shortage of currency with banks and treasuries. As against its assurance to supply Rs 500 crore, Reserve Bank could allot only Rs 153 crore to the Treasuries Department. Of this, only Rs 75 crore was received until noon.
Of the total 222 treasuries, 42 treasuries were not supplied with the money until noon. Thus, only a few payments were made in these centres, with the cash balance of the previous day.
However, Finance Minister Thomas Isaac said the situation was less problematic than the expected. "Except for the 42 treasuries, payments are being made using the fresh allocation and previous day's balance.
But the situation could be worse in coming days if sufficient money is not received from the central bank," he said. The minister said the 42 treasuries which did not receive any fresh allocation were located in rural areas.
Due to the shortage of smaller denominations, both banks and treasuries are supplying maximum possible amount in Rs 2000 notes, inviting criticism from the beneficiaries.
The minister said that treasuries were directed to not impose their own ceiling on disbursal. "In the morning, some treasuries imposed ceilings on their own depending on the cash balance. They have been asked to stop this. All eligible persons will get money up to Rs 24,000, the ceiling imposed the RBI," he said.
As treasuries are in the core banking network, employees and pensioners can approach any treasury for cheque-based payments, the minister added.
Until noon, Rs 52 crore was distributed and all treasuries in the state will function until 6 pm.