Life after note ban: Bengal jute mills take wage issue to RBI
- Finance ministry asks banks to open MSME intensive branches
- DoT plans to allot E and V band spectrum through auction
- Under Rahul Gandhi’s leadership Congress to build alternative narrative : Chidambaram
- Not all banks to get capital support in first tranche
- DoT mulls allotment of backhaul spectrum through auction
Kolkata: Soon after tea garden owners sought the state government’s intervention over cash problems due to the withdrawal of high-value notes, jute mills have approached Reserve Bank of India (RBI) seeking a ‘workable solution’ to honour wage payments.
The Indian jute mills association (IJMA) has written to RBI regional director (East) highlighting its plight in the wake of the scrapping of Rs500 and Rs1,000 notes and limited supply of new notes from the banks. “We need to draw the attention that about 2.5-2.7 lakh workers are mostly being paid fortnightly wages in the 90 mills across the country. There had been limited success in attempts to get bank accounts for the workers,” IJMA has said in the letter.
The letter also sought review of the notification on limitation of cash withdrawal to Rs10,000 per day with overall limit of Rs20,000 in a week till 24 November. IJMA added that it will not be possible to disburse wages to the workers involving Rs270-300 crore a month unless the notification is relaxed for the mills or a workable solution is derived. The tea sector also highlighted the issues in disbursing wages that mostly happens in cash.