Bank employees yesterday dismissed as “eyewash” the governments’ decision to use indelible ink to prevent people from making multiple cash withdrawals from banks.
The Bank Employees Federation of India (BEFI) said banks had no idea from where they would collect indelible ink or who would supply it.
“The use of indelible ink has been an eyewash. Most bank officials were unable to procure the ink till last night. Even today, the supply of indelible ink was not satisfactory. The Election Commission refused to provide the indelible ink... Bank officials have no alternative but to use delible ink,” said BEFI general secretary Pradip Biswas.
“The Election Commission said unless and until they have permission from higher authorities, they will not be able to provide indelible ink,” he said.
The federation said the exclusion of district central co-operative banks and co-operatives from exchanging and accepting demonetised notes had created a “mess.” 
The government yesterday said the amount an individual can change from old notes to new would be reduced to Rs2,000 from Rs4,500 in an attempt to ensure that more people could get hold of at least some cash.
“This will make the situation worse,” Biswas said.
The federation said primary agricultural co-operatives and other co-operative bodies normally deposit their surplus cash mainly with district central co-operative banks.
“The decision of the central government and the Reserve Bank’s exclusion of co-operative banks and bodies from exchanging old notes are adversely affecting 20% of the most deserving section of society,” said the federation’s secretary Joydeb Dasgupta.
He said co-operative banks were the only institutions for rural people to deposit and exchange demonetised currency.
“The RBI circular has landed rural people, particularly farmers, in crisis. They are not in a position to sell their agricultural products and procure essential commodities for their daily needs.
“We appeal for modification of the RBI circular to permit co-operative banks to exchange Rs500 and Rs1,000 notes,” Dasgupta said.
The federation also said that demonetisation and shortage of notes would defeat the objective of RBI’s clean notes policy.
“The RBI is left with no alternative but to reissue the non-issuable and soiled currencies into the system and the relatively clean currency system will be substantially flushed with soiled currencies; thus the clean note policy of RBI is going to be defeated,” Biswas said.
The union also alleged that the RBI and the central government “messed up the entire currency system” without proper backup.
“The current exercise of the RBI, without proper currency backup, has messed up the entire currency system of the country, the onus of which should lie on none but the government and Reserve Bank of India,” Dasgupta added.