Life after note ban: Bengal jute mills take wage issue to RBI

The Indian jute mills association has written to RBI highlighting its plight in the wake of the scrapping of Rs500 and Rs1,000 notes and limited supply of new notes from the banks.


Workers in a jute mill in Hooghly, West Bengal. Photo: Indranil Bhoumik/Mint
Workers in a jute mill in Hooghly, West Bengal. Photo: Indranil Bhoumik/Mint

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.

Also Read: Old Rs500, Rs1000 notes can be used for paying utility bills for another 72 hours

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.

READ MORE