ATMs, Treasury Go Dry In Kerala Due To RBI Note Crunch, Affects Salary And Pension Ahead Of Festival Rush

Months after the demoentisation crisis, Kerala continues to face cash crunch as the state government has said that salary and pension distribution to its employees was likely to be affected due to shortage of currency in treasuries. Reports also suggest that most people can't withdraw their money in Kerala as many ATMs of the country's largest bank, SBI, are not dispensing cash.

Finance Minister T M Thomas Issac said that even though government has funds for the disbursement of salary and pension for the month of April, its distribution was likely to affected as RBI has not supplied enough notes.

Several treasuries in the state have shortage of currency, Issac said adding this has happened at a time when the state government was getting ready to disburse three months welfare pension arrears in view of Vishu and Easter festivals.

Though the government would transfer necessary funds for the distribution of welfare pension to the cooperative banks, government has concern whether it would reach the beneficieries due to note crunch.

State government has asked the RBI and SBI to immediately intervene on the matter, he added.