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Long queues continue outside banks, Govt. takes fresh steps to ease crisis

 
Indelible ink to be used to prevent cash exchange frauds
Thousands of people stood for hours in serpentine queues outside banks in cities and towns across India for the sixth day today to withdraw cash, after the sudden demonetisation of Rs. 500 and Rs. 1000 notes on November 8 even as the Government announced fresh measures to ease the crisis and allay fears among the public.
 
People lined up outside banks and ATMs long before dawn and the lucky ones were able to exchange their old Rs. 500 and Rs. 1000 notes for the maximum permitted limit of Rs. 4500, while others were able to withdraw cash of upto Rs. 2500 from the ATMs before the cash ran out, leaving thousands of others in the lurch everywhere. 
 
The rush was more today because banks were closed in many parts of North India yesterday, but it appears that it will be several days, even weeks, before normalcy returns.
 
Prime Minister Narendra Modi reviewed the situation about the supply and availabiity for the second consecutive day late yesterday.
 
The meeting decided, among other things, to continue give the highest importance to ensure convenience for the public.
 
A major decision taken was to use indelible ink, normally used in elections, to ensure that the same people did not turn up repeatedly to exchange their old currency notes.
 
The meeting, which went on till about midnight, was attended among others by Finance Minister Arun Jaitley, Minister of Coal and Power Piyush Goyal, Mr. Nripendra Misra, Principal Secretary to the Prime Minister, Dr. P. K. Mishra, Additional Principal Secretary to the Prime Minister, Cabinet Secretary P.K.Sinha, Reserve Bank of India (RBI) Governor Urjit R Patel, Secretaries from the Finance Ministry and other officials from the Prime Minister's Office.
 
A detailed review was made with regard to the steps that have been taken for smooth distribution and dispensing of cash through various channels of disbursement, an official press release said.
 
The release said efforts would be made to avoid long queues in branch branches and at ATMs. Already, separate queues for senior citizens, divyang persons, and so on, have been announced. The drawing limits against bank accounts and from ATMs and over the cash disbursement have also been increased. 
 
The meeting noted that one of the primary reasons for long queues was that the same persons were visiting bank branches and ATMs 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 release said.
 
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. 
 
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. 
 
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, it said.
 
The release noted that 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. 
 
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The Government has also received information of a 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," the release said.
 
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, the release added.
 
A high level Task Force consisting of representatives from various agencies is being set up to monitor movement and receipt of fake notes in vulnerable areas. This Task Force will also make special efforts to monitor black money being deposited into Bank/Postal Accounts, especially under fictitious and other names. 
 
A technology team is being set up to popularize the use of e-wallets. Government is closely monitoring the supply of essential commodities. 
 
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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