Demonetisation: How Modi government is using indelible ink to check misuse of currency exchange window

MUMBAI: To tide over the massive cash crunch due to demonisation of Rs 500 and Rs 1000 notes the government on Wednesday announced that indelible ink will be used at bank branches to mark customers who have exchanged new notes. This according to government would ensure that the same people would not draw new notes multiple times.

In a notification issued to banks late Wednesday night the banking regulator Reserve Bank of India said that the bank branches and indelible mark post offices would put indelible ink mark on the right index finger of the customer to identify that he/she has exchanged the old currency notes only once.

"The indelible ink would be supplied to the bank/post offices by IBA in coordination with the banks and consultation with RBI," the regulator said in the notification.

According to the circular this procedure would be introduced to begin with in the metro cities and expanded to other areas later. Each bank branch would be provided with black indelible ink bottles of 5 ml each.

Explaining the process the regulator said that the indelible ink can be applied by the cashier or any other official designated by the bank before the notes are given to the customer so that while the exchange of notes is taking place, a few seconds elapse which will allow the ink to dry up and prevent removal of ink.

The RBI also cautioned bankers and said that presence of Indelible ink on the index finger of the left hand or any other finger of the left hand should not be used as a pretext by banks to deny exchange of old notes.