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RBI sets strict limits for Jan Dhan accounts

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RBI restricts withdrawal limits on Jan Dhan accounts to Rs 10,000; cites ‘farmer protection’

The Reserve Bank of India has put withdrawal limits on bank accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) which are funded through deposits of Specified Bank Notes (SBNs) after November 9. The notification issued by RBI stated that the limits are being imposed to protect “innocent farmers from activities of money launders and legal consequences under the Benami Property Transaction & Money Laundering laws”.

As per the notification, banks can allow fully KYC compliant account holders to withdraw only Rs 10,000 in a month. However, the bank managers can also allow withdrawal of more than Rs 10,000 within ‘current applicable limits’ after ‘ascertaining the genuineness of such withdrawals’.

On the other hand, non KYC compliant account holders are entitled to withdraw only half the amount, ie Rs 5,000, in a month within the ceiling of Rs 10,000.

After the central government announced its demonetisation policy, some reports suggested the black money holders and money launderers were taking advantage of Jan Dhan accounts using them to deposit their unaccounted money by pressuring farmers.

Prime Minister Narendra Modi had launched the Jan Dhan Yojana after he assumed the office aiming to provide banking access to farmers and labourers residing in remotest parts of the country. Lakhs of new accounts have been opened under the scheme.

1ST DECEMBER 2016,THE ECONOMIC TIMES , NEW DELHI.

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