Free Press Journal

Indore: Cash crunch won’t affect industries in salary payments

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Indore: Amid chaos caused by demonetisation and subsequent cash crunch, some units located in Sanwer Road industrial area have moved towards cashless transaction by opening bank accounts of 70% workers of their units. Some units are 100% successful in getting their workers open back accounts.

In back drop of salary day on Thursday, The Free Press Journal conducted a random survey of industries in Sanwer Road to find out the problems they are facing in making payments to their staff. Usually most employees get salary through account transfer or cheques.

But workers, who are not regular employees, used to get their payments in cash.


Several industrialists told Free Press that in order to bringing transparency in transactions of the units, they started getting bank account opened by their workers from last July. The industrial area has micro, small and medium enterprises (MSME), where units employ some labourers directly or through contractors. When they decide to make payments to such labourers by cheques, it was found that they don’t have bank accounts. Then industrialists got their bank accounts opened with help of their bankers.

Yogesh Mehta, secretary of Association of Industries of Madhya Pradesh, informed that they had organised special camps in industrial area with help of Punjab National Bank. This was done before the announcement of demonetisation. Camps were organised even after the demonetisation. Around 70% units got their workers opened bank accounts and the payments will be made to them through cheques. Some units have achieved 100% success in this effort.

Industrialists said that they will not have problem in payments to workers this month. Though, employees and workers may face problem in getting cash from banks and ATMs.

1

“We took opening banks accounts of workers as a mission few months ago. Out of 2000 units in Sanwer Road industrial area, over 70% units have registered success in the drive. Punjab National Bank organised special camps.”

Yogesh Mehta, Secretary, Association of Industries of Madhya Pradesh

2“We are already making payments to all workers through cheques. So in spite of cash crunch, we would not face any problem in making payments to our employees and workers. But they may face problem in getting cash from banks and ATMs.”

OP Dhoot, MD, Omega Industries

3

“Most of our employees were paid their salaries through bank. When we came to know that some workers don’t have bank accounts, we got them account opened in Bank of Baroda. From this month onwards, we won’t make any cash payments.”

Rajiv Gupta, MD, Supreme Rolls Ltd

4

“Cash crunch would not affect our salary payments as we are making all the payments through cheques and account transfers. We have cent per cent cashless transactions. However, our employees may face some problem in getting cash from their banks.”

Ashok Badjatya, MD, Hindustran Phosphate