This is definitely an oddball! Correct me if I'm wrong, but weren't 1.1/4" steerers only to be found on kind of expensive bikes like Yetis? So why would RockShox manufacture their lowest end fork (except the elastomer Indy S) with such a size? As an aftermarket item for what???
First I'd try to find out what the deal with this fork is. I wouldn't change it for the moment.
Otherwise, 1997 was the first year for the Indy. There is no 1996 Indy.
I have a 1999 Jett XC which basically is an Indy with uglier stickers. Mine has a cablehanger that I can't quite understand, since most of the bikes in the Jett/Indy price range already had (cheap) V-brakes. I think RockShox made some limited oddball aftermarket forks with weird specs, just in case anybody wished for one. If anybody else has info on this, please do share. I am very curious!
Thanks,
Mx