State won’t pay staff in cash, will ask RBI to relax withdrawal norms
The state government won’t be paying its staff salaries in cash, as demanded by the employees. It has, however, decided to request the Reserve Bank of India (RBI) to permit government employees to withdraw their entire salary at one go, by relaxing existing restrictions. Employee unions wanted two-months’ salaries in cash.
They had also demanded an advance of a certain amount from the salary to be given in cash.
The finance department has clarified that payment of salary in cash will not be possible for reasons such as not enough available currency, security of the chests at the district and taluka levels and the political repercussions of the decision.
The state government disburses Rs7,500 crore a month towards paying its 17.5 lakh employees across Maharashtra. It will have to disburse the cash through its 12,000 treasuries in various offices in the state, but that amount of cash will not be available, the officers said.