Both the Telugu states have been expressing concern over huge revenue losses due to cash scarcity following demonetization and urging the center to release at least Rs 5,000 core each in smaller denominations’.

Most of the banks and ATMs in these two states facing severe cash shortage, unable to honour customer’s cheques to withdraw cash from their respective bank accounts, even up to permitted levels. Unless, immediately RBI pushes cash into banks, both the governments are fearing it would be a difficult task to face December 1, the salaries payment day.

Andhra Pradesh chief minister Chandrababu Naidu urged the RBI to immediately release Rs 5,000 crore cash for the state. When he asked for Rs 10,000 crore, early this week RBI released Rs 2,000 crore. Bankers stating that from Monday onwards their treasuries would be empty. As they need to pay employees’ salaries and welfare pensions, Naidu urged that additional cash should reach by the time salaries payments are made.

Telangana finance minister Etela Rajendra says that in the absence of cash flow, the state had already registered a revenue loss of more than Rs 1,000 crore in 17 days. If the same situation continues till December end, he fears it would likely to touches Rs 4,000 crore. He also urged RBI to come to rescue of the state by immediately releasing Rs 5,000 cash for the state.

According to him the normal cash flow in the state was Rs 81,000 crore, but till now only Rs 11,400 crore was pushed into the market. To restore normal scenario, he said Rs 70,000 more crore cash should be put into flow in the state. Referring to center’s insistence on cashless transactions, he felt that need more homework and it is not possible for the people to get habituated at a short time.