To curb misuse of Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts to convert black money into white, the Reserve Bank of India has capped withdrawals from KYC-compliant Jan Dhan accounts at R10,000 a month, reports fe Bureau in New Delhi. For non-KYC-compliant accounts, the cap will be Rs 5,000.
“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 the PMJDY accounts funded through deposits of Specified Bank Notes after November 09, 2016,” the RBI said in a notification to banks.
It, however, has given some leeway to bank branch managers to allow withdrawals beyond R10,000 a month for KYC-compliant accounts within the current applicable limit (R24,000 per week) only after ascertaining the genuineness of such withdrawals and duly documenting the same on the bank’s record.
People with non-KYC accounts could deposit a maximum R50,000 in their accounts. Deposits in PMJDY accounts have been surging relentlessly. In just 14 days — between November 10 and 23 — R27,197 crore was added to these accounts, which was more than 60% of the inflows during the previous 770 days. It was obvious that these accounts, integral to the Modi government’s plan for financial inclusion and direct benefit transfer, are being rampantly misused by black money holders post-demonetisation, possibly with the involvement of bank officials.
Prime Minister Narendra Modi in his radio address “Mann ki Baat” on Sunday warned of strict action against those using Jan Dhan accounts to launder black money under the recently amended benami law.