According to government sources, the Pradhan Mantri Jan Dhan Yojna has seen an upsurge by almost 30 times in deposits through its accounts by around Rs 21,000 crores in 14 days since the central government’s November 8 announcement on the withdrawal of Rs 500 and Rs 1000 currency notes.
As per the estimates, the average weekly deposits in the Jan Dhan Yojna accounts rose by 3,200% in the following two weeks since November 9. Prior to that, between March 31 and November 9 this year, the weekly deposit average in Jan Dhan accounts was Rs 311 crores, which increased steeply to Rs 10,500 crores in the past two weeks. Had there not been any monetary reformation, it should have taken roughly a year for the banks to get these amount of deposits that came within a fortnight.
Uttar Pradesh topped the deposit list with Rs 7493.50 crores of funds in these accounts. Ever since the launch of Pradhan Mantri Jan Dhan Yojna in August 2014, total deposits into these accounts were Rs 45,636.61 crores as on November 9, 2016 — a night after currency withdrawal decision was made.
The source added that amount of deposits that came in West Bengal and Karnataka, have shown a record upsurge in last 14 days. The Finance Ministry, officials are monitoring the sudden upsurge in these accounts with some officials claiming that black money operators might be using these accounts to convert their funds. As of November 9, the national average balance in a Jan Dhan accounts was Rs 1788.85 and 23.27% of these accounts were zero-balance accounts.
The RBI had in May warned that these accounts are vulnerable to fraud and identity theft with miscreants using others’ accounts to convert their illegal wealth. The finance ministry has advised banks to ensure that the Jan Dhan accounts strictly comply with the KYC norms. Finance Minister Arun Jaitley said that the government was looking into sudden “popping up” of money into zero-balance Jan Dhan accounts.