Thomas Isaac sure of first salary day

THIRUVANANTHAPURAM: Finance minister Dr T. M. Thomas Isaac has said that RBI had assured enough funds to pay salaries and pensions on the first working day of the New Year, January 3. “RBI will transfer at least Rs 300 crore to the Treasury on January 3. That will be enough to ensure that pensioners and employees who get their money on the first day can withdraw Rs 24,000 a week,” the minister said.

Mr Isaac, however, is not sure how the remaining six days will pan out; salary and pension payments are spread out over a period of seven days. RBI has refused to provide any assurances on money supply to the state. The state has sought Rs 1931 crore from the central bank; Rs 1,425 crore for salaries and pensions, and Rs 506 crore for social welfare pensions. RBI officials, however, had said that they would be able to release only 60 percent of what has been sought.

The finance minister, however, said there was no need for worry. “Money will be credited to the accounts of pensioners and employees on time,” he said. “Whether a person could withdraw all the money they require in physical cash will depend on how much money RBI is willing to supply.” He also said there was no need for rush as treasuries would work overtime to distribute salaries and pensions.

On January 3, it is expected that RBI will transfer Rs 1,000 crore, Rs 500 crore each to agency banks (SBT, SBI and Canara Bank) and treasuries. Of the 5 lakh government employees, including teachers, 4.84 lakh draw salaries from their bank accounts. Only 36,000 draw their salaries from their treasury savings bank (TSB) accounts. Of the 5.37 lakh pensioners, over 4 lakh get pensions from their pension treasury savings bank (PTSB) accounts and one lakh from banks. 37,000 pensioners get their monthly pensions through money orders.