The banks in the state were managing the situation with nearly Rs 1,300 crore while the demand was Rs 5,000 crore.

Two planes with Rs 2420 cr from RBI land in Andhra to tackle cash crunch
news Demonetisation Saturday, December 03, 2016 - 09:32

Unable to pay the salaries of its employees and pensioners, and facing a severe cash crunch due to demonetisation, the Andhra Pradesh government received an amount of Rs 2,420 crore in two special planes on Friday.

This followed after the state's chief minister N Chandrababu Naidu called RBI Governor Urjit Patel.

The salary bill of state government employees including pensioners, comes to Rs 3,000 crore a month, while public sector undertakings run up to Rs 2,000 crore and it costs a separate amount of Rs 450 crore for welfare pensions bill.

On Thursday night, Naidu had called the RBI governor, to explain the situation of the cash crisis in the state. He is reported to have expressed great displeasure on the RBI for failing to meet salary demand and requested him to send money to the state immediately.

In response, the RBI dispatched two special chartered flights to Visakhapatnam and Tirupati on Friday, from where the cash has been sent by road to other 13 districts of the state.

It was reported that an amount of Rs 240 crore was sent to the severely hit districts, while other districts received Rs 160 crore each.

The Deccan Chronicle quoted an official release as saying, "Fool proof security arrangements were made to shift the cash to the banks without even a third eye knowing it. The Chief Minister constantly monitored the exercise with officials till the cash reached the banks safely."

However, the banks in the state were managing the situation with nearly Rs 1,300 crore while the demand was Rs 5,000 crore.

A treasury department official told the Times of India, "After the RBI promised to dispatch Rs 3,000 crore to meet the pay day demand, the state government credited the social security (welfare) pensions into the accounts of beneficiaries."

The situation is no different in Telangana. The banks hope to receive nearly Rs 1,600 crore this week, while Hyderabad alone is yet to receive Rs 600 crore.

 

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