Realising that “currency mules” have been misusing the note exchange window, the finance ministry introduced an unusual measure of dabbing indelible ink on the index fingers of all those visiting banks for exchanging notes.
Even before many banks could implement the measure, the election commission seems to have poured cold water on the plan which was apparently aimed at checking “unscrupulous elements”.
The commission has asked the Finance Ministry not to do so as it will create problem in poll-bound states.
While politically crucial states like Uttar Pradesh and Punjab are going for elections early next year, Madhya Pradesh, West Bengal, Assam and Arunachal Pradesh will have by-elections for four Lok Sabha and eight assembly seats on Saturday.
While the ink is applied on the left hand during elections, some banks had started applying indelible ink on the right hand of customers seeking exchange of notes.
However, the fact that the EC disallowed the move suggests that the finance ministry made the announcement without consulting other arms of the government.
It is an established fact that indelible ink is used during elections.
Using the ink for some other purpose would have entailed seeking permission from the EC, more so when elections are round the corner.
Better coordination would have helped the government save some blushes. It certainly would have created less confusion.
And some flexibility shown by bureaucrats would also have helped India’s farmers tide over the current phase of currency shortage in the country.
According to an Indian Express report, the agriculture ministry had formulated a proposal to allow farmers to use now demonetised notes of Rs 500 and Rs 1,000 denominations.
The ministry had argued that this exemption would help farmers procure quality seeds from government-owned National Seeds Corporation. As an additional security measure, farmers could be asked to deposit attested copies of their identity cards to prevent misuse of this exemption.
The finance ministry, however, turned down the proposal on the ground that since farmers have access to Jan Dhan accounts, they can deposit and withdraw money using those accounts.
Rabi sowing season is underway now and farmers have a tough time procuring quality seeds, fertiliser and other raw materials.
It is apprehended that by the time the credit situation improves, the sowing season will be over.
If there is some reduction in sowing acreage because of cash crunch, it may adversely impact the rabi output.
As per the latest data, only 23 percent of the national target for the current rabi season has been achieved so far.
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