Keeping the massive money laundering activities in view, Reserve Bank of India (RBI) has temporality capped the withdrawal facility from Jan Dhan accounts, especially for the farmers and rural account holders, and restricted the limit to Rs 10,000 per month from such accounts. The central bank said that the move would check the misuse of Jan Dhan accounts by black money hoarders in the country.
“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 on Tuesday said in a notification, terming it as temporary measures.
The move comes at time when the Government suspects that black money hoarders are using the farmers and other 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 have gone up 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 deposits in 25.68 crore Jan Dhan accounts crossed Rs 70,000 crore mark and were at Rs 72,834.72 crore on November 23. As of November 9, total deposits in these accounts were Rs 45,636.61 crore.
According to the central bank’s 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 Rs 5,000 per month.
It, however, said 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 the bank’s record.
With regard to 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 massive 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 sudden surge in deposits.