Tattooing name on arm?

I am Indian but grew up in America and know very little about Indian history, particularly the time period in which this movie took place. What can I say, it was an eye-opener, and it really encouraged me to read and learn more about Indian history.

One thing I never understood in this movie was the name tattooing on the arms. At first I thought it was Henna and would fade away but I was wrong. Was this a practice that was commonly encouraged at the time? What purpose did it serve, seeing as Hindus and Muslims seemed to be living in relative harmony. Did men do it as well? It reminded me a lot of branding identity on cows and bulls and horses. Might it still be practised in India, perhaps in remote villages?