The trouble of making payments in December

The payment of salaries has become a night mare for the employers this time. It is same for the Government and the private employers.

“With pay day around the corner a lot of small and medium-sized companies are opting for prepaid cards over cash payments,” it is reported. “More than five million of these cards have been sold in India in the last one week” and sales of 40 million more are expected through December.

Like PM Modi most of the companies and individuals are thinking in the direction of making India a cashless country. Retaining public support is also crucial for Modi before key state elections next year and a national contest in 2019.

The government, too, is urging electronic payments. While large companies such as Hindustan Petroleum Corp. make 99 percent of their pay outs electronically, it still needs to work out a system with smaller sub-contractors, said finance director J. Ramaswamy. Indian Oil Corp. is opening State Bank of India accounts for all laborers at its Paradip refinery, Dharmendra Pradhan, India’s oil minister, said on Nov. 29 in New Delhi.

“I will request all our companies to encourage bank transfers for all such payments,” Pradhan said.
Bankers are bracing for long hours and angry mobs as pay day approaches in India, the first test for Prime Minister Narendra Modi’s move to invalidate almost all cash in circulation.

“Already people who are frustrated are locking branches from outside in Uttar Pradesh, Bihar and Tamil Nadu and abusing staff as enough cash is not available,”.

Youth were seen abusing the Manager of Oriental commerce bank branch at Ashoknagar saying it is better to lock the branch than saying that they would give Rs2000 of cash comes from RBI. “This is the fallout of one of the worst planned and executed government decisions in decades.”said the officer bearers of the Banks Unions.

“We are bracing ourselves for payday and fearing the worst,” said the Manager of Andhra Bank at Gaganmahal branch. “If we run out of cash we will have to approach the Reserve Bank of India for more. It is tough.”he said.

The RBI is also facing the brunt. They have to pay the state Government employees of Telangana Rs 10000 in cash for the December Salary.