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Regular-article-logo Thursday, 12 February 2026

Cash crunch blues, even for lawmakers

Not just common people, even lawmakers have been adversely impacted by demonetisation.

Dev Raj Published 13.12.16, 12:00 AM

Patna, Dec. 12: Not just common people, even lawmakers have been adversely impacted by demonetisation.

Earlier, legislators used to get their travel allowance (TA) and daily allowance (DA) bills cleared and reimbursed by the seventh or eighth of every month, but now it is being delayed by a fortnight. For members of the Legislative Council (MLCs), the allowances vary in the range of Rs 50,000 to Rs 60,000. "Our TA and DA reimbursement got delayed by almost two weeks in November," MLC Neeraj Kumar told The Telegraph. "It has got delayed this month too and we are still not sure when we will get it. The delay coincides with demonetisation and we hold it responsible for this." A few other legislators, too, blamed it on the scrapping of the old, high-denomination Rs 500 and Rs 1,000 notes.

Legislative Council secretary Sunil Kumar Panwar expressed ignorance about the issue and its reasons. "Normally, bills are sent to the treasury, which passes them and sends money to the bank," Panwar said. "I don't know about the delay and whether it is due to demonetisation or something else. If this has happened, we will rectify it."

The cash crunch is negatively impacting legislators and even ministers. The lawmakers are finding it hard to attend marriage ceremonies, where it is customary to give cash as a form of blessing. "The liquidity crunch is such that we are unable to gift some cash as blessings to the bride and groom," said energy and commercial taxes minister Bijendra Prasad Yadav, an MLA from Supaul. "There is no way out. We will face difficulties as demonetisation is nationwide."

JDU MLC Neeraj pointed out that a legislator has to attend several marriages in his constituency daily to keep voters happy, else people "would think power has gone to our head."

"My constituency is spread over three districts - Patna, Nalanda and Nawada. I have to attend around 10-15 weddings daily during the season," Neeraj said. "I gift Rs 201 at every wedding, but it's becoming difficult with ATM withdrawal limit Rs 2,500 daily. I am surviving by borrowing from acquaintances. Even my TA, DA is delayed."

Demonetisation has hit MLC and Hindi litterateur Ram Vachan Rai, 73, badly. He was supposed to leave for Delhi to get a heart check-up at a private hospital, but hasn't been able to. "Banks have imposed a weekly withdrawal limit of Rs 24,000. I will have to spend over Rs 50,000 on just medical tests and medicines. I've decided to wait for three weeks to collect some cash for my trip."

Ram doesn't use a debit card and medicine shops don't accept cheques. "I've applied for a debit card but the bank personnel said it will be delivered to my address by post. It is yet to reach me."

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