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Currency crunch worse still! Thousands of pensioners left high and dry


  • 18 treasuries in the state had no currency at all, for the second consecutive day.
  • Treasuries in the rural areas are badly affected.


currency shortage hits pensions in Kerala

 Currency shortage severely affected the disbursal of salaries and pensions of government servants in Kerala for the second consecutive day on Friday. State Finance Minister blamed the Reserve Bank of India for failing to fulfil its promise to provide new currency worth 1,000 crores to the banks and treasuries with immediate effect.


Even though the treasuries in the state needed currency to an estimated amount of Rs.139 crores, the banks could provide only Rs.87 crores by Friday evening.  As many as 18 treasury offices in the state, most of them in the rural areas, had no currency at all for the second consecutive day. The situation was better in the urban centres.


Pensioners who depend mostly on treasuries had to return home empty handed after daylong tiresome wait.


The RBI had released Rs.580 crores to the banks on Friday. But as the banks also disburse salaries and pensions, only a small part of it reached the treasuries.The RBI had promised to provide Rs.1,000 to Kerala to meet the immediate needs of paying salary and pension. But the government alleged that  it failed to provide the promised amount of currency. 

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