Economy

RBI Limits Withdrawals from Jan Dhan Accounts to Rs 10,000 Per Month

People queuing to withdraw money. Credit: PTI

People queuing to withdraw money. Credit: PTI

Mumbai: To check the ‘misuse’ of Jan Dhan accounts by black money hoarders, the Reserve Bank of India has restricted the withdrawal from such accounts to Rs 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, terming the measures temporary.

According to the RBI, completely 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 Rs 5,000 per month.

Branch managers may allow 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, the bank said.

For deposits, Jan Dhan account holders have a limit of Rs 50,000.

In the wake of the Centre’s demonetisation drive, Jan Dhan accounts have seen a rise in deposits, in many cases to the extent of Rs 49,000. There have been reports that the bank accounts of people, mainly in rural areas, who had zero balance till the announcement of scrapping of high value currency notes, have been witnessing a sudden surge in deposits.

The government has alleged that black money hoarders are using poor people’s Jan Dhan accounts to deposit their ill-gotten money so that they can safely convert that money into white.

Deposits in Jan Dhan accounts soared sharply, by around Rs 27,200 crore, in just 14 days after the announcement of ban on old Rs 500 and Rs 1000 currency notes. Total deposit amount in 25.68 crore Jan Dhan accounts crossed the Rs 70,000-crore mark and was at Rs 72,834.72 crore on November 23.

As of November 9, the total amount in these accounts was Rs 45,636.61 crore.

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