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Banks to use indelible ink to check syndicates, prevent multiple withdrawals
Tuesday November 15, 2016 5:10 PM, Agencies

Multiple deposits

New Delhi:
Grappling with unending queues and frayed tempers in banks and to check operation of syndicates, government on Tuesday decided to introduce a system of marking customers exchanging defunct currency notes with indelible ink while monitoring suspicious deposits in Jan Dhan accounts.

Economic Affairs Secretary Shaktikanta Das told the media that Prime Minister Narendra Modi held a second review meeting on demonetisation with officials of the Finance Ministry and the Reserve Bank of India (RBI) to ascertain why there continued to be such long queues at banks.

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 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.

Operating instructions will be issued to banks on how to use indelible ink and from Tuesday, this process will start in all major cities, he said.

At the moment, the daily withdrawal limit from ATMs is Rs 2,500, and exchange of old notes from bank counters is Rs 4,500. This apart, the upper limit for weekly withdrawal from bank accounts stands at Rs 24,000.

Addressing reports of Jan-Dhan accounts being used by other people to deposit their unaccounted cash, Das said the government has decided to set an upper limit of Rs 50,000 for deposits into these accounts.

Das said the legitimate Jan-Dhan account holders would not be put to any kind of difficulty but the source of deposits of above Rs 50,000 into these accounts will be tracked and verified.

"A close watch is being kept on them (deposits in Jan-Dhan accounts)," he said.

"Jan-Dhan account holders should not allow other people to use their accounts to convert their black money into white. Banks have been advised to keep a close watch on cash movement," he added.





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