Demonetisation: Industrialists in Punjab rush to open salary accounts for staff

Industry sources said a number of units immediately paid advance salaries ranging from three to six months to get rid of the cash lying with the owners.

Ajit Lakra, MD of Superfine Knitters and head of textile wing of Federation of Industrial and Commercial Organization (FICO), said, “I have called a team of HDFC bank in my factory tomorrow evening and they will be opening 60-70 bank accounts of all those employees who have no accounts as yet. It will be much easier for me to pay them monthly salaries. This month, I gave them notes of Rs 500 and a few Rs 100 notes, but it will be a problem next month.”

Avtar Singh and Upkar Singh, president and general secretary respectively of Chamber of Industrial and Commercial Undertaking (CICU), said, “We have called a meeting of CICU on Saturday where all our members will be asked if they want to go with the idea of opening bank accounts of all their workers. If we get a response in majority, we will set up a help desk at CICU office where all industrialists can get bank accounts opened for their respective units by completing KYC formalities. However, we have both decided to get the accounts of our workers opened as they will be facing problem next month. Many workers seek salary advances as early as November 25.”

Upkar Singh is owner of New Swan Enterprises which makes auto parts and agriculture implements and employs 800-1000 employees. Avtar Singh is the owner of Gurleen International with nearly 200 employees. He is into manufacturing motor and cycle parts.

Gurmeet Singh Kular, owner of Kular International and president of FICO, said, “Around 40 of my workers don’t have bank accounts. I have contacted the bank, which has said they would open 10 accounts every day because of the huge rush in banks. So I expect the problem to be resolved by next month.”

Sources said a number of industrialists who had unaccounted cash also gave away advance salaries of six months to their employees. Some even gave loans.

Withdrawal limit enhancement

Kamal Chopra, president of All India Federation of Masters Printers (AIFMP), said, “We are ready to get the bank accounts of our workers opened as we are having acute cash crunch due to demonetisation. But at the same time, we want that there should be no limit on withdrawing cash from our own current accounts. The limit has been advanced to Rs 50,000 per week. But it is my tax-paid money and I should be allowed to use it. It shows the government is short of cash but has made this huge announcement in a hurry.”