New Delhi, Nov 10 (KNN) The industry bodies in the country are planning to submit a representation to the government to remove the limit on money withdrawal from the banks stating that their day to day businesses mainly runs on cash.

The MSME entrepreneurs usually pay their labourers in between 7th to 10th of the month. Also, they have a day to day expenditure of atleast Rs 10,000 on logistics etc.

Also, most of the labourers, the daily wage earners, don’t have a bank account which restricts payments through cheques too.

Talking to KNN, Naveen Jain, Managing Director, Dayachand Engineering, said, “Withdrawal limit has been set on both on current saving account at Rs 20,000 per week. The small businesses should be allowed cash withdrawal upto the average drawl in the cash credit account per month.”

He said the MSMEs are facing difficulty in making payments to the workers.

The Coimbatore District Small Scale Industries Association (Codissia) shares similar views and has decided to submit a representation to the Centre urging it to remove the capping on withdrawal of money from banks in the wake of demonetisation of Rs 500 and Rs 1,000 currency notes.

CODISSIA said the small industries deal in cash transactions in day to day business and they also pay wages to the workers between 7^th -10^th  of the month.

It said the MSMEs are finding difficult to pay the labourers because these notes are invalid, and the availability of Rs 100 and Rs 50 is insufficient.

Jammu industrialists too echoed the same views that said, “An Urgent meeting of the Members of the Federation of Industries, Jammu was held today to discuss the difficulties being faced by the Industrial Sector of J&K due to restriction imposed by the Centre on withdrawal of Cash up to Rs. 20000/- per week.”

Lalit Mahajan, Chairman, Federation of Industries, Jammu, said, “We appreciate the step taken by our Hon'ble Prime Minister which will help in the total ban on the Fake Currency in the circulation in our currency, to eradicate Corruption & Money Laundering which will help to boost the economy of our Country.”

“In respect of implications of such restrictions, the Industry feels that due to restriction imposed for the maximum withdrawal of Rs.10000 P/day subject to Rs.20000 P/Week, the working of the Industrial Sector will suffer.” Mahajan said.

He added that the Industrial Units require lots of liquid money for day to day payments and transactions which includes the payment of Freight and other production related expense and it is unjustified on the part of the Government to restrict the cash withdrawal maximum Rs.20000=00 P/Week for Industrial Sector”

The Federation has requested the Central Government to exempt the Industrial Sector from the restriction imposed. (KNN Bureau)