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RBI to provide Rs 1200 crore to disburse salaries

RBI to provide Rs 1200 crore to disburse salaries

Thiruvananthapuram: The State government on Tuesday said the Reserve Bank of India would provide Rs 1,200 crore to the state treasury to disburse salary and pension as there is a "drastic reduction" in the state's revenue following demonetisation.

Talking to the media about the development, Finance Minister T M Thomas Issac said that from the amount, Rs 500 crore would be given to the banks while another Rs 500 crores would go to the treasuries. “The remaining 200 crore will be provided later,” Isaac said adding the employees can withdraw their salary from banks and treasuries from Wednesday.

An employee, however, can withdraw only Rs 24000 from the salary in a week. The restrictions put on ATM withdrawals will continue, the minister said.

"The non-availability of currency has put the government in a crisis. There is drastic reduction in the states revenue in the aftermath of demonetisation drive," Issac said, adding, the state government asked the Centre for money as there was shortage of currency in the state treasury to disburse pension and salary.

He said the state's unorganised labour sector was facing big financial crisis due to the demonetisation drive of Prime Minister Narendra Modi.

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