Cash crunch in cooperative banks to hurt teachers

KOLHAPUR: The teaching and non-teaching staffs of Zilla Parishad schools having their salary accounts with cooperative banks are in for a tough time.
The Reserve bank of India (RBI) has banned district cooperative banks from exchange and deposition of old currency notes. The district cooperatives are facing cash crunch, as the RBI preferred nationalised banks over cooperatives for distribution of new currency notes.
This means primary teacher and non-teaching staff of the Zilla Parishad schools will be unable to withdraw their salaries due to cash crunch.
Talking about the issue, Kolhapur Zilla Parishad’s chief account and finance officer Ganesh Deshpande said, “There are 9,500 primary teachers along with 4,300 non-teaching staff. We release more than Rs 50 Cr as salaries of teachers and Rs 16 Cr of the non-teaching staff. We transfer the payment in their accounts on first day of the month. The payment is never delayed.”
Pratap Chavan, chief executive officer of KDC bank, said, “More than 13 thousand primary teachers and non-teaching staff have their accounts with our bank. The bank is suffering due to cash crunch. We have made several requests to the RBI for cash but we haven’t got any response from them. The farmers have already been demanding loan. Now, the teachers will join the wagon. We have sent a report cash demand and hoping cash in the next few days.”
Bajranj Lagare, chairman of the primary teachers’ bank, said, “The RBI hasn’t provided any cash for the bank. Many primary and secondary schools teachers’ salary accounts are linked with us. We will distribute the available cash to teachers. We are yet to send request for additional cash.”
Prasad Patil, a teacher, said, “The delay in salaries will create problems. Everybody is facing the same problems due to cash crunch. The government should take initiatives to bring the situation under control.”
CASH CRUNCH
Number of primary teachers in Kolhapur district: 9,500
Number of non-teaching staff in primary schools: 4,300
Total salary: Rs 66 crore
Banks they have account with: KDC and The Primary Teachers’ banks