Indelible ink to used on those exchanging notes, says govt.

Following are the developments on Tuesday concerning demonetisation:

Modi's plea

Prime Minister Narendra Modi on Tuesday appealed to all political parties to let a “signal go from the winter session of Parliament that all parties can come together on an issue of national interest,” referring to his decision to demonetise currency of Rs. 500 and Rs. 1,000 on November 8, at an all-party meeting called by his government on the eve of the session.

The Opposition, however, strongly demanded an honest debate on demonetisation, as the suffering of the common people on the ground was getting worse by the day. It also wanted to know whether or not members of the ruling party had been tipped off before the announcement of the decision.

Government managers said they were ready for a debate but apprehended a washout of at least a week and a half of an already abbreviated session of 22 sittings. > More...

Now, ink to deter repeat cash swap

The government on Tuesday asked banks to start using indelible ink to mark and identify persons who exchange old Rs. 500 and Rs. 1,000 notes up to Rs 4,500 to ensure that the facility isn’t used multiple times, even as people continued to queue up for cash to meet their daily needs at banks and ATMs across the country. > More...

Arvind Kejriwal's allegations

Delhi Chief Minister Arvind Kejriwal alleged on the floor of the Delhi Assembly that an Adtiya Birla Group company paid a bribe of Rs. 25 crore to the then Gujarat CM Narendra Modi.

The development comes hours after The Hindu reported on a complaint filed by advocate and activist Prashant Bhushan with the Central Board of Direct Taxes pertaining to a set of documents recovered by the Income-Tax Department from the premises of two major industrial houses, detailing alleged massive payouts to prominent politicians. > More...

Shiv Sena to join march

The BJP’s ally, Shiv Sena, responded positively to West Bengal Chief Minister Mamata Banerjee’s proposed protest march to the Rashtrapati Bhavan against demonetisation.

Sena president Uddhav Thackeray, after convening a meeting of party parliamentarians, confirmed joining the Trinamool Congress (TMC) in the protest in the 'larger public interest'. Earlier, the TMC chief is said to have called up Mr Thackeray, requesting him to join a delegation of Opposition parties that is likely to meet the President on Wednesday. In a sarcastic take on the emotional pitch of the Prime Minister over the demonetisation move, the 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''. > More...

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 party 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.

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 on Tuesday, 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 has 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 has 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 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

Indelible ink to be used: Economic Affairs Secretary

Economic Affairs Secretary Shaktikanta Das, in a press meet, said indelible ink would be used at banks to identify people who exchanged 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.''

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.''

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.

People wait for their turn to withdraw cash from an ATM at Bhiwandi in Mumbai. Photo: Rajendra G.

The updates:

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''.

10.30 a.m.: BJP national general secretary Ram Madhav tweets:

Test of patriotism is in difficult times only. We see it abundantly these days. Otherwise everyone is an armchair-patriot in normal times — Ram Madhav (@rammadhavbjp) >November 15, 2016

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."

On Monday:

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.

NDA partners express full confidence in Modi’s drive

On Monday, parliamentary floor leaders of the ruling National Democratic Alliance (NDA) met and passed a resolution expressing full confidence in the decision on demonetisation.

According to Information and Broadcasting Minister M. Venkaiah Naidu, who was present at the meeting, Mr.Modi assured the NDA leaders that “credit for the decision would not go to him personally but all parties standing firm with him.”