Rabi procurement: Govt seeks RBI intervention in cash crunch

Also Read

Capital celebrates Ganesh puja with fervour

5 hours ago

Pending UCs near Rs 26K-crore in state

5 hours ago

Bhubaneswar: With several bank branches in Kalahandi running out of cash, the state government Friday sought intervention of Reserve Bank of India (RBI) as the farmers are demanding cash during Rabi procurement season.
According to official sources, there is acute shortage of cash in many branches of Kalahandi district which is already affecting the farmers at large.
As Rabi paddy procurement in the district has started May 1, the demand for cash will gradually increase further. Taking note of it, the district Collector has recently requested the government to resolve the problem, the source said.
Acting on the plea of the Collector, Food Supplies and Consumer Welfare (FS&CW) secretary VV Yadav Friday wrote to the regional director of RBI-Bhubaneswar.
“It has come to the notice that there is precarious cash position of currency chest branches in Kalahandi district. As Rabi paddy procurement operation has already commenced in the district, farmers’ demand for cash will increase manifold in the days to come,” Yadav said in his letter.
Stating that lack of adequate cash during paddy procurement may lead to public unrest and create law and order situation, the secretary requested the RBI to supply adequate cash remittance to all cash chest branches of Kalahandi to avoid any unpleasant situation.
When asked, an official of the FS&CW department said, “So far, we have received reports of cash crunch problem only from Kalahandi district. If such kind of situation arises in any other place, we will act on it swiftly.” Cash crunch has not only hit Odisha but also other states like Gujarat etc. The farmers are suffering due to the acute shortage of cash. However, the cooperative banks so far have not faced any such problem while distributing crop loans to the farmers.
“We are getting money from NABARD and distributing it through our cooperative banks and societies. So far, we have not noticed cash crunch problem in disbursement of crop loans to farmers,” said MD of Odisha State Cooperative Bank Tushar Kanti Panda.