Chennai: With month-end approaching fast, small-sized companies, contractors and outsourcing agencies are in a bind on how to pay salaries to their employees for the month of November as the withdrawal limit has been capped at Rs 50,000 per week. Several such companies have knocked on the doors of their branches for withdrawal of cash beyond the limit, but the banks have expressed helplessness since rules cannot be broken.
Many companies are nudging their employees to open bank accounts to enable them to credit the salaries and also overcome the 'Change' problem for the Rs 2,000 note
A few owners and managers of firms that outsource employees to bigger companies who spoke to Deccan Chronicle said they are constrained by the weekly withdrawal limit of Rs.50,000-00 and may be forced to delay the payment by a week.
C. H. Venkatachalam, general secretary of the All India Employees Association, told DC “The norm has to be relaxed to facilitate lakhs of employees in the unorganised sector. Why should the government harass workers, in the name of bringing back black money? It clearly indicates that the Reserve Bank of India was not prepared to act on demonetisation and to supply enough currency notes,” he said.
Some banks have converted the obstacle into an opportunity by bringing in several people into the banking system. A leading state-run bank's Guindy branch organised a special camp to open bank accounts for people who did not have one to ensure that they get their salaries on time.
“Fleet owners usually disburse their salary through cash for their entire staff. A few owners came to our bank and discussed the issue of paying salaries for their employees. When we suggested that if they can open bank accounts by the end of this month, their salaries can be credited into their accounts and they agreed,” the manager of the branch said on condition of anonymity.
M Gokul, owner of the Sangamam Chettinadu Hotel in Ashok Nagar, says he has no clue how to pay salary to his employees for this month. Since the daily collection is deposited in the company's bank accounts the next day, either the salaries will have to be issued in the form of a cheque or some cash will have to be stored to pay them in cash.
“Most of our employees do not have bank accounts and are unaware of bank transactions. Since most of them don't belong to Chennai, it is quite impossible for them to get their identity cards in a short time,” he said.
Security guards could be the worst hit since most of them get their salaries by cash. “I have always received my salary through cash and even this time I hope they will give it in new currency notes and by the scheduled time. The entire family is dependent on my salary and if my salary is delayed, it would be difficult for me to run the family,” Arumugam, who guards an ATM at Vadapalani, said.
