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Yes Bank crisis may hit jute mill operations, worker wages ahead of Holi

According to jute industry sources, payments to mills got stuck in totality though 60 per cent of the payment is not associated with Yes Bank

Press Trust of India  |  Kolkata 

YES Bank
YES Bank. Photo: Shutterstock

The moratorium on by Reserve Bank of India could have a rippling effect on the operating and of lakhs of workers associated with the industry just ahead of

According to jute industry sources, payments to mills got stuck in totality though 60 per cent of the payment is not associated with

The crisis has led to halting in payment release for the mills. The immediate fallout is a threat over and advance payments to mill workers just ahead of festival, jute sector sources told PTI.

Approximately two lakh workers are associated with the in West Bengal and a large section of them are from Bihar and Uttar Pradesh, and is a major festival for them, the sources said.
 

In jute mills, are usually paid on the 7th and 21st of every month, mill officials said.

The directive allows a maximum amount of Rs 50,000 withdrawal by any account holder.

Transactions through debit cards, mobile apps and UPI payments through various fintechs have been blocked.

Indian Association in a letter to Jute Commissioner highlighted that payments for supplies to Andhra Pradesh, Madhya Pradesh and Telangana are made through the escrow accounts of Yes Bank.

An official at the Jute Commissioners office said till Thursday payments from Yes Bank have been cleared and steps are being taken to resolve the problem.

Jute mills in West Bengal produce goods worth Rs 30 crore daily, jute industry sources said.

First Published: Fri, March 06 2020. 19:46 IST
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