Withdrawals from Jan Dhan accounts sealed at ₹ 10,000 per month

SansadTV Bureau

economy-moneyTo check the temporary misuse of Jan Dhan accounts by black money hoarders, Reserve Bank of India has restricted the withdrawal from such accounts to ₹ 10,000 per month.

“With a view to protect the innocent farmers and rural account holders of PMJDY from activities of money launders and legal consequences under the Benami Property Transaction & Money Laundering laws, it has been decided to place certain limits, as a matter of precaution, on the operations in such accounts funded through deposits of Specified Bank Notes after November 9, 2016,” the RBI said in a notification.

Fully KYC-compliant Jan Dhan account holders will be allowed to withdraw Rs 10,000 per month from their account, while limited or Non KYC compliant account holders can withdraw only ₹ 5,000 per month.

But the RBI notification also added that branch managers may allow further withdrawals beyond Rs 10,000 a month within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank’s record.

With regard to deposits, Jan Dhan account holders have a limit of ₹ 50,000.

After Centre’s November 8 move to demonetise high currency notes of ₹ 1000 and ₹ 500 to flush out black money from the economy, Jan Dhan accounts have seen a massive rise in deposits. There have been reports that the bank accounts of people, mainly in rural areas, who had zero balance till the announcement, have been witnessing sudden surge in deposits, many of them as high as ₹ 49,000. The government suspects that black money hoarders are using the farmers and other people’s Jan Dhan accounts to deposit their unaccounted money.

Deposits in Jan Dhan accounts soared sharply by around ₹ 27,200 crore in just 14 days after the announcement on November 8. Total deposits in 25.68 crore Jan Dhan accounts crossed ₹ 70,000 crore mark and were at ₹ 72,834.72 crore on November 23. On November 9, total deposits in these accounts stood at ₹ 45,636.61 crore.

However, 22.94 per cent of 25.68 crore accounts still have zero balance.

(With inputs from PTI)