The Election Commission has asked the government to stop using indelible ink to check multiple exchanges by people at different branches after the notes ban.
The Finance Ministry, in a letter, has been told that several states will hold elections and there will be confusion as indelible ink also marks citizens who have already voted.
The election body said, five states will hold by-polls on Saturday and the government should ensure that the use of indelible ink on people exchanging banned Rs. 500 and Rs. 1,000 notes does not cause a problem when they vote.
The government, however, has said that indelible ink would be used to mark the right hand, not the left, because of elections in states including Uttar Pradesh and Punjab. Bottles have been airlifted to cities across India.
On Tuesday, the government announced the inking after revenue intelligence agencies reported that those with black or untaxed money were making innocent people stand in multiple queues each day to exchange their illegal money, Rs. 4500 at a time.
The ink, under election rules, is applied on the left index finger of voters to prevent impersonation. Voters who do not have a left arm are inked on the right.
From November 18 onward, the government has reduced exchange limit to Rs 2,000 and allowed marriage households to withdraw Rs 2.5 lakh from one account as well as farmers to withdraw up to Rs 25,000 a week.
Shaktikanta Das, Economic Affairs Secretary, told the media on Thursday that following the cash crunch after the currency ban, the limit for swapping notes at banks has been reduced from Rs. 4,500 to Rs. 2,000 for each person.
Families can withdraw Rs. 2.5 lakh for weddings from one account and farmers can withdraw up to Rs. 25,000 a week, the government said today, announcing another set of measures to ease a massive cash crunch after the currency ban.
The limit for swapping notes at banks has been reduced from Rs. 4,500 to Rs. 2,000 for each person from November 18.