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Indelible ink to be ONLY used for people EXCHANGING old Rs 500 and Rs 1000 notes

The reports that inks would be used for withdrawal and deposit is false.

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There seems to be some confusion over reports that banks are using indelible ink to mark customers and they won’t be able to withdraw money or use ATMs after that. That’s not true. The move is only there for people exchanging old Rs 500 and Rs 1000 notes over the counter.

The govt said in a press release: The drawing limits against Bank Accounts and from ATMs and over the cash disbursement have also been increased. It was noted that one of the primary reasons for long queues was that the same persons were visiting Bank branches, ATMs etc. repeatedly. It was also noted that certain unscrupulous elements are using the services of poor and innocent people to convert their black money into white. To prevent such misuse of the facility and enable larger number of persons to draw cash, indelible ink used during elections shall be used for over the counter exchange against old Rs.500/- and Rs.1000/- notes.  This is not applicable in the case of withdrawal from or deposit into accounts. The move it’s believed is aimed at curbing, individuals who keep on exchanging currency notes for unscrupulous elements and will hinder these elements from sending people to exchange old notes. 

 Decision to use indelible ink mark on hands of people depositing and exchanging scrapped currency is a corrective measure to prevent unscrupulous elements from taking advantage of the demonetisation drive, Minister of State for Finance Arjun Ram Meghwal said. He said such measures would be taken on continuous basis to deal with the problem of cash crunch.
"This is corrective measure (use of indelible ink mark).
Some people were coming again and again," he said. 

"Corrective measure would be taken on continuous basis so that public gets cash in a smooth manner," he added. He also appealed to the public that there is no need to panic as there is sufficient cash available in the system. 

"We are reviewing situation continuously to provide relief and convenience to the public," Meghwal said. Earlier in the day, Economic Affairs Secretary Shaktikanta Das said the government has decided to introduce use of indelible ink mark for customers exchanging defunct currency notes. "It has come to notice of the government that in many places the same people are coming back again and again and we have also received reports that certain unscrupulous elements who are trying to convert black money into white have organised groups of innocent people and are sending them from one branch to another branch to exchange notes and get Rs 4,500," Das said.

 

Here are some other important decisions taken regarding supply and availability of currency notes:

1. Highest importance should continue to be given to ensure convenience for the public. Effort should be made to avoid long queues in Bank branches, ATMs, etc. Already separate queues for senior citizens, divyang persons etc. have been announced. The drawing limits against Bank Accounts and from ATMs and over the cash disbursement have also been increased. It was noted that one of the primary reasons for long queues was that the same persons were visiting Bank branches, ATMs etc. repeatedly. It was also noted that certain unscrupulous elements are using the services of poor and innocent people to convert their black money into white. 

To prevent such misuse of the facility and enable larger number of persons to draw cash, indelible ink used during elections shall be used for over the counter exchange against old Rs.500/- and Rs.1000/- notes. This is not applicable in the case of withdrawal from or deposit into accounts. 

Cash disbursement points, especially Bank branches will be advised to put-up notices outside their branches advising people to avoid exchange of old notes over the counter multiple times. 

2. Already instructions have been issued permitting District Central Cooperative Banks (DCCBs) for cash withdrawal from existing accounts, subject to limits applicable in the case of Banks. Arrangements have been made to enhance the availability of cash with the DCCBs. 

3. Arrangements have been made to make available adequate cash to the Postal Department for their use including the branch Post Offices. There are 1.3 lakh branch Post Offices having wide coverage in the rural areas. Availability of adequate cash with the branch Post Offices will ensure wider coverage of the rural areas. 

4. Contributions are made in hundis and separate boxes in places of worship. Such establishments have their accounts with the Bank branches. Bank branches have been advised to approach the concerned authorities in these establishments to obtain the currency notes, especially of lower denomination and put them back into circulation. This will help in improving the circulation of lower denomination currency notes. 

5. Information has been received that there is sudden spurt in the quantum of deposits in several Jan Dhan Accounts. There are also reports of unscrupulous elements using Jan Dhan Accounts of poor and innocent persons to convert their black money into white. Such spurt in deposits will be looked into closely. Jan Dhan Account holders are requested not to allow their accounts to be misused by anyone. Further, it is also clarified that Jan Dhan Account holders will not be put to any kind of inconvenience for carrying-out their legitimate activities. 

6. Old Rs.500/- and Rs.1000/- notes are accumulating in Post Offices and Bank branches. Special efforts will be made to shift such notes and create space in the Post Offices and Bank branches to receive new notes. 

7. A high level Task Force consisting of representatives from various agencies is being set-up to monitor movement/receipt of fake notes in vulnerable areas. This Task Force will also take special efforts to monitor black money being deposited into Bank/Postal Accounts, especially under fictitious and other names. 

8. A technology team is being set-up to popularize the use of e-wallets. 

9. Government is closely monitoring the supply of essential commodities. 

10. A coordination group chaired by the Cabinet Secretary and including representatives of various Departments and major Banks is holding regular meetings to monitor the implementation of all the steps. 

 

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