Govt to use indelible ink to mark customers exchanging old notes; monitor suspicious Jan Dhan accounts

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Economic Affairs Secretary Shaktikanta Das said that the government was keeping a close watch on Jan Dhan accounts.

Grappling with unending queues and frayed tempers in banks and to check operation of syndicates, government decided to introduce a system of marking customers exchanging defunct currency notes with indelible ink while monitoring suspicious deposits in Jan Dhan accounts. After a review meeting taken by Prime Minister Narendra Modi last night to discuss the situation, the government has set-up a high-powered group under the Cabinet Secretary to monitor supply of essential goods in the wake of disruption of trade due to shortage of currency notes.

Besides, a task force has been constituted to monitor circulation of fake currency notes in vulnerable areas and to keep a watch on black money being deposited in the system.

 

"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 4500," Economic Affairs Secretary Shaktikanta Das told reporters.

"As a result what is happening is that the benefit of withdrawal of cash is getting restricted to smaller number of people...to prevent such kind of misuse, the branches of banks to take recourse to use of indelible ink marks for disbursement of cash," he said.

This would prevent certain syndicates and certain kind of people coming to branch again and again, he said. Das said the government is keeping a close watch on

deposits in Jan Dhan account as in many cases such account are being misused for parking black money.

"Any legitimate deposit in Jan Dhan account, the person concerned would not be put to any inconvenience. I take this opportunity to appeal all the Jan Dhan account holders not to allow themselves to be used by other people for putting (illegitimate) money in their accounts," he said.

There are reports that many Jan Dhan accounts are getting deposit of Rs 49,000. The deposit limit of Jan Dhan account is Rs 50,000. With regard to indelible ink mark, Das said the operational guidelines would be decided by the banks. On augmenting delivery channels, Das said cash availability with the District Central Cooperative Banks (DCCBs) and 1.3 lakh post offices has been enhanced which should be able to meet the requirements of rural population. Besides, the religious organisation or temple trust are encouraged to deposit smaller denomination of notes which usually come to them, he said, adding that it will help increase supply of lower denomination currency into the market.

To promote electronic payments, he said, the government has decided to set up a technology team to popularise e-wallet. A task force has also been set up that will draw a plan of action for shifting of the old notes and storing of the old notes in other place so that banks and post offices continue to get new notes. Asking people not to fall prey to rumours like shortage of salt and bankers going on strike, Das said the government will ensure adequate availability of cash as well as essential commodities.

"The supply of essential commodities is very closely monitored. The Cabinet Secretary is heading a group of secretaries and other senior official to monitor movement and supply of essential commodities across the country," Das said. The Cabinet Secretary will also head a coordination group that will include senior representatives of the banks to monitors various decision taken by the government to ease currency availability in the market, he added.

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Indelible ink to be put on right hand finger while exchanging notes

 

This is to prevent crowding at banks by repeat exchangers, says official.

Even as the Opposition parties, including the Congress, Left, TMC, NCP and the JD(U), are gearing to take on the government on the issue of demonetisation in the coming winter session of Parliament, Economic Affairs Secretary Shaktikanta Das, in a press meet on Tuesday, said indelible ink would be used at banks to identify people who exchange notes.

Later, in the evening, an official said a small mark of indelible ink would be put on the right hand finger of those exchanging Rs. 500 and Rs. 1,000 rupee notes for new ones from Wednesday to prevent crowding at banks by repeat exchangers. “Ideally, the ink mark should have been put on the left hand as is done when a person casts his vote. But with by-elections due in some States, an ink mark for exchange or withdrawal of currency note on the left hand will lead to unnecessary difficulties. So it has been decided that the ink mark would be put on the right hand,” he said.

Mr. Das, earlier in the day, also announced the formation of a special task force to monitor the infusion of fake currency in to the market, especially in the vulnerable areas of the country. He pointed out that Prime Minister Narendra Modi reviewed the supply of currency for the second time in two days on Monday night. He urged places of worship, who receive smaller denomination notes, to deposit them in banks so supply of these notes increases.

Mr. Das warned people not to fall prey to rumours being spread through social media.'We have enough stock of salts and there is no reason for a temporary surge in price or shortage. Supply of essential commodities is being closely monitored. There are a lot of stories spreading through social media, like reports of certain institutions going on strike. There is no such thing, please don't believe such reports.''

Move will have adverse effect on GDP: Congress

The Congress argued that the demonetisation move would have an “adverse effect” on the GDP due to “freezing” of 86 per cent of bank notes in value terms. Seeking to expose the claims of the BJP-led dispensation on the issue of black money, the AICC wondered as to why the Prime Minister was not divulging the names of those holding black money as sought by the Supreme Court. “Where is black money? As far as black money is concerned, Modiji is yet to give the names to the Supreme Court,” Congress spokesman Kapil Sibal told reporters.

Currency in short supply in Uttarakhand: Rawat

Uttarakhand Chief Minister Harish Rawat, in a letter to the Prime Minister, asked the Centre to bring both low value currency and the newly introduced high value notes in circulation in Uttarakhand in adequate measure, saying their paucity for a prolonged period will adversely affect supplies putting common people in trouble.

Shiv Sena's take on Modi's emotional pitch

In a sarcastic take on the emotional pitch of the Prime Minister over the demonetisation move, the Shiv Sena said his decision to scrap high value currency would not put his life in danger unlike his predecessors Indira and Rajiv Gandhi, ''who were assasinated while fighting for greater goals of the country''.

Elderly man in queue dies of heart attack

A 78-year-old man, who had come to deposit cash at a state-run bank in Hyderabad died after allegedly suffering a heart attack, police said. Laxman Rao, a retired government employee, came alone to the Marredpally branch to deposit Rs 1.5 lakh this morning and stood in the queue at the entrance of the bank, they said. “He collapsed on the bank’s entrance steps and the policemen on duty immediately shifted him to a nearby hospital where doctors declared him brought dead,” Deputy Commissioner of Police (North Zone) B Sumathi said.

Give ample time: AIMIM chief

All India Majlis-e-Ittehad-ul Muslimeen (AIMIM) chief Asaduddin Owaisi claimed that the supplier of ink and silver threads used in currency is the same for India and Pakistan, and sought to know what the government’s strategy was to deal with it. “The ink and silver thread supplier is supplying the same thing to Pakistan as well. So, what is the government going to do about it ? [to end counterfeit menace[,” the Hyderabad Lok Sabha member asked. Maintaining that the demonetisation move has caused “immense problems to every one”, he said the government should give ample time — at least a couple of months — for people to exchange old notes. He said if anyone deposited huge amount of money, it can certainly be tracked. Read more

Black money helped economy: Akhilesh Yadav

In a controversial remark, Uttar Pradesh Chief Minister Akhilesh Yadav said economists were of the opinion that black money helped the Indian economy in times of global recession. “I am very clear on this...black money should not be generated. Economic experts say the magnitude of the global economic crisis at times is not felt in India because of strong (parallel) economy of black money,” he said. Read more

Kejriwal demands SC-monitored probe

Delhi Chief Minister Arvind Kejriwal demanded a Supreme Court-monitored probe into the demonetisation, terming it a “fraud” aimed at benefiting a “particular political party”, a veiled reference to the BJP. Mr. Kejriwal tabled a resolution in the Delhi Assembly in this regard during its one-day emergency session. The resolution, which will be discussed in the AAP-dominated House, also urges President Pranab Mukherjee to direct the Centre to withdraw the measure. Read more

Mysore Paints asked to stock up indelible ink

The Mysore Paints and Varnish Limited, which has been providing indelible ink to the Election Commission since 1962, has a new task at hand. It has been asked by the government to keep its stocks ready so that the ink can be used by banks to mark those exchanging defunct currency to check suspicious deposits. Read more

Prachanda asks Modi for help

Nepal Premier Prachanda called up Prime Minister Narendra Modi and sought an arrangement so that Nepalese holding a huge stock of banned high denomination Indian notes could swap them with legal currency in the country. Hundreds of thousands of Nepalese, who earn a living by working as daily wage labourers in India, visit the neighbouring country seeking medical treatment or rely on Indian markets to purchase daily essentials. They are said to be holding big chunk of scrapped Indian notes, Kathmandu Post reported. Read more

Supreme Court refuses to stay notification

The Supreme Court on Tuesday refused to stay the government’s notification demonetising Rs 500 and Rs 1,000 currency, but asked it to spell out the steps taken to minimise public inconvenience. “We will not be granting any stay,” a Bench comprising Chief Justice T. S. Thakur and Justice D. Y. Chandrachud said. Read more

People throng ATMs, banks

As the day began, people began thronging ATMs and banks across the country to withdraw money and exchange Rs. 500 and Rs. 1,000 notes. Many banks had remained closed on Monday on account of Guru Nanak Jayanti.

The Congress and seven other Opposition parties met on Monday to formulate a joint strategy to put the government on the mat on the issue. After the meeting, Congress deputy leader in the Rajya Sabha Anand Sharma said, “There is broad consensus that the demonetisation issue should be raised in Parliament.”

Addressing a rally in eastern Uttar Pradesh’s Ghazipur on Monday, Prime Minister Narendra Modi targeted his opponents for criticising his move. He asked people if he should be frightened by powerful forces hurt by his decision, even as he reiterated he would face the consequences.

Desperate attempt: Mamata

West Bengal Chief Minister Mamata Banerjee says, ''This is a desperate attempt to start a 'black mechanism' with indelible ink. This shows this government does not trust the the common people.''

1.09 p.m.: Information & Broadcasting Minister Venkaiah Naidu says the Prime Minister and the government. firmly believe that the country is made up of mostly honest people; but the nation is suffering due to a dishonest minority. "To say that the government has informed some people in advance is an absurd allegation. There was no leak or advance intimation to anyone," he says.

12.12 p.m.: Mr. Modi's mother Heeraben Modi exchanges some defunct higher denomination notes in a bank in Gandhinagar.

11.41 a.m.: CPI(M) polit bureau meet begins at party headquarters in New Delhi. The Chief Ministers of Kerala and Tripura are present.

11.02 a.m.: Are demonetised notes striking gold?

Financial investigation agencies have gathered prima facie evidence suggesting that a number of jewellers and foreign exchange operators in the country indulged in illicit conversion of demonetised Rs. 500 and Rs. 1,000 notes.

The Customs Intelligence has zeroed in over 400 big jewellers in 25 cities on reports that soon after Prime Minister Narendra Modi announced the demonetisation, they showed a sharp jump in sales. In the black market, the gold price had gone up to Rs. 50,000 for 10 grams.

In one case, a jeweller sold 201 kg of gold in just three days, leaving a minuscule balance in its coffers. His accounts are being scrutinised. More...

11.00 a.m.: JD(U) leader Sharad Yadav gives notice for suspension of all listed business in the Rajya Sabha to discuss "unplanned demonetisation of Rs. 500/Rs. 1000 notes''.

10.49 a.m.: Congress strategy meeting gets under way, news agency ANI reports

10.20 a.m.: Karnataka Chief Minister Siddaramaiah tells Finance Minister Arun Jaitley: "Request you to direct the concerned to increase cash supply to the cooperative banking sector as per their requirement. Private hospitals, diagnostic labs, blood banks may also be included in the exempted list."

NDA partners express full confidence in Modi’s drive

Parliamentary floor leaders of the ruling National Democratic Alliance (NDA) on Monday met in New Delhi, two days before the winter session is to commence, and passed a resolution expressing full confidence in the decision on demonetisation.