Banks to now use indelible ink marks for disbursing cash

Firming up its strategy to ensure that the black money defaulters do not go scot free, the government despite facing all out criticism post the demonetisation move has issued direction that all bank branches will from now on use indelible ink marks for disbursing cash.

Economic Affairs Secretary Shaktikanta Das, however, told the media that this decision has been taken to ensure that people do not assemble in large groups to exchange their old notes into the new currency.

"Banks to use indelible ink to stop multiple withdrawals, which would end long queues at banks and ATMs, and shortage of capital," said Das.

Allaying fears of shortage, he added that there is enough cash in the system and delivery channels are being augmented across the country to help cash-starved citizens.

"We have been trying to analyze the reasons for long queues, it has come to notice that same people are coming again and again at same places," said Das.

With the withdrawal limit being increased from Rs. 2000 to Rs. 2500, each ATM carries four trays.

"Three used to carry Rs. 500 and Rs. 1,000 notes. Those have to now be replaced and recalibrated and tested thoroughly so that there are no mistakes of jamming, less money coming out," Das said.

The Economic Affairs Secretary further said that the government has decided to use indelible ink marks, similar to elections, on cash counters to solve this problem.

"To ease pressure on banks, a task force has been set up to look after shifting and storing of old notes," he said, adding that the situation is improving and will ease out in the coming days.

However, he stressed that there have been reports of many people trying to convert their black money into white by visiting banks in various groups to exchange their money.