Teachers in Maha district get ?900 salary amid cash crunch
The Solapur district cooperative bank told the Bombay HC on Wednesday that they were only able to give ?900 as salary to every teacher for the entire month because the RBI only gave them ?1 crore. The bank claimed that it needs about ?95 crore to pay the salaries of teachers whose accounts are with the bank.
The Sholapur district cooperative bank today told the Bombay High Court that it needs nearly Rs 95 crore to pay the salaries of teachers whose accounts are with the bank."We were given only Rs 1 crore (by the Reserve Bank of India). As a result, we are able to give Rs 900 to every teacher for the entire month. How can people subsist on Rs 900 for a month," asked advocate VM Thorat representing the Sholapur bank.Advocate Vyanktesh Dhond, representing the RBI, told the court that "mechanisms had been put in place" and all that the districts banks have to do is to approach the district coordinators of the State Bank of India.ALSO READ: In a big push for cash less India, Jaitley announces 11 new measures to romp up digital paymentMoney is going elsewhere: RBIThe division bench of Justice Abhay Oka and Justice Abuja Prabhudesai in the last hearing had asked the RBI to consider the issue of paying salaries to teachers. The RBI, in a circular issued on November 14, had barred district co-operative banks from handing out new notes post demonetisation. "Money is not given to the account-holders and instead goes elsewhere," advocate Dhond alleged.Mumbai District Central Co-operative Bank had filed a petition challenging the circular issued by the RBI five. District Central Cooperative Banks (DCCBs) from Sholapur, Pune, Nashik, Thane, Kolhapur, Sangli also joined the list of petitioners.ALSO READ: Demonetisation visionless, huge setback for workers: MamataWhy only teachers are getting salary? Justice Oka noted that when people could withdraw Rs 24,000 per week then there should be no reason why teachers could not withdraw their salaries. During the hearing, Advocate Shrinivas Patwardhan, representing the other district banks in Maharashtra, alleged the RBI had only released funds to the Sholapur bank while others in Thane and Nashik were left high and dry with no money to pay teachers' salaries.Dhond, however, countered the allegation and said, "Now nurses will say why only teachers are getting salaries. This can't go on". ALSO READ: Are banks failing the demonetisation drive?No cash in rural areasArguing for the Sholapur bank, advocate Thorat said, "Farmer deposits worth Rs 25000 crore are with our banks but they (farmers) cannot even touch it. There is no cash in rural areas".Justice Oka advised the district banks to approach the district co-ordinators of the SBI. The court said it was not able pass a judgment in the case as the Supreme Court has directed that all such cases filed before various courts be transferred to one court so that they can be heard in a go. The Centre had moved the Supreme Court on November 17, seeking a stay on the proceedings before the various high courts and other courts (except the top court) against the demonetisation issue, saying the move would otherwise create a lot of confusion.The district banks in Maharashtra, however, want the Bombay High Court to hear the case and announce a verdict. At this, Justice Oka asked the petitioners to get clarity on whether the court can hear the case. The high court will hear the case again on Monday.