RBI curbs on Jan Dhan accounts

Age Correspondent With Agency Inputs

Business, Economy

Withdrawals capped at Rs 10,000; managers can waive limit.

In the wake of the demonetisation drive, Jan Dhan accounts have seen a massive rise in deposits.

Hyderabad: RBI said on Wednesday that withdrawal from Jan Dhan accounts will be capped at Rs 10,000 per month to check their misuse. This cap applies to KYC-complaint Jan Dhan account holders , while those having limited or non-KYC compliant account can withdraw  only Rs 5,000 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 today said in a notification, terming it as temporary measures.

RBI, however, gave power to branch managers can allow higher withdrawals 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 Rs 50,000.

In the wake of the demonetisation drive, Jan Dhan accounts have seen a massive rise in deposits.

The government suspects that black money hoarders are using others 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 by around Rs 27,200 crore in just 14 days after the note ban. 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.

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