RBI assures Kerala to provide Rs 1000 crore

In a relief for the Kerala government, RBI today assured that it would provide Rs 1000 crore to the state to disburse salaries of government employees and pensioners.
The assurance in this regard was given by officials of RBI and other nationalised banks at a meeting with Kerala Finance minister Thomas Issac and Finance secretary K M Abraham here.
"The salaries and pension will be credited tomorrow itself in respective accounts of government employees and pensioners", the minister told reporters after the meeting.
But the withdrawal limit will be Rs 24,000 a week, he said.
Issac had yesterday made a strong plea to the Centre to urgently release Rs 1,200 crore to the state treasury to disburse salaries and pensions following a drastic fall in its revenue post demonetisation.

The minister said RBI agreed to provide Rs 1000 crore -- Rs 500 crore each through banks and treasuries immediately and another Rs 200 crore in two days time, he said.

About RS 3400 crore is needed a month for disbursal as salaries and pensions of government employees.
The non-availability of currency had put the government in a crisis.
There was drastic reduction in the state's revenue following the scrapping of Rs 1000 and Rs 500 notes, Issac said, adding demonetisation had "failed" to evoke the desired response.
Meanwhile, several people protested in front of Canara bank branches in Kozhikode and Malappuram today after 'no cash' boards were put up in front of the banks.

Anticipating a huge rush of people in treasuries tomorrow, Kerala Director of Treasuries J C Leela today wrote to the state DGP, seeking police protection for treasuries for a week.
Bank employees organisations have also written to the Indian Banking Association chairman, Rajeev Rishi, seeking intervention to advise banks to provide proper protection in branches to the staff.