Not enough currency notes in treasuries in state: Thomas Isaac

Thiruvananthapuram: Finance Minister Thomas Isaac Thursday said the state government does not have enough currency notes in the treasury to pay up monthly salaries and pensions.

Issac told reporters that there was no financial crunch -- rather the crunch was of currency. Despite that, there were no reports of any untoward incident, he said.

"Banks do not have the money to disburse. Till now, 42 state treasuries are unable to disburse money as cash did not arrive. We asked for Rs 1,000 crore from RBI to be distributed to banks with Rs 500 crore today (Thursday) and the rest tomorrow (Friday)," said Issac.

He also slammed Prime Minister Narendra Modi for the ban on high value currency that created a cash crisis across the country.

Issac cited a report of the Centre for Monitoring of Indian Economy that has observed that the total cost of the demonetisation exercise will cost the exchequer Rs 128,000 lakh crore.

"It includes the collection of old notes, printing and distribution of new currency and the opportunity cost. When you look at what was the gain -- it is more or less around the cost incurred. So why put people into trouble," asked Issac.

"I am here since 8.30 a.m. and the treasury office was already full by then and am still waiting like everyone else," said a pensioner waiting for his turn to withdraw money.

"On Wednesday, I tried to get some money from my bank account, but after getting a token, I was told there was no currency, hence I had to return," he added.