Money & Banking

Wealth surge or misuse? Spurt in Jan Dhan deposits raises eyebrows

G Naga Sridhar Hyderabad | Updated on January 15, 2018 Published on November 27, 2016

Black&white There are rising concerns over the use of Jan Dhan accounts to convert black money into white. File photo shows a bank branch at Basendua village of Uttar Pradesh

jandhanyojana   -  Business Line

Bank accounts opened under the Prime Minister’s Jan Dhan Yojana (PMJDY) have attracted ₹27,532 crore since the demonetisation drive.

According to government data, on November 23, the total amount in 25.68 crore Jan Dhan accounts was ₹72,834 crore, while on November 9, the day demonetisation came into effect, it was just ₹45,302 crore.

Out of the total deposits, public sector banks hold ₹56,668 crore, while private sector banks and regional rural banks have ₹2,659 crore and ₹13,507 crore, respectively.

Prior to demonetisation, the balance in Jan Dhan accounts showed little variation for six months, but after the Centre’s move there has been sudden traction in these accounts.

“In a way, higher flow of funds confirms concerns over the use of these accounts for converting black money into white, which needs to be looked into,” said the executive director of a public sector bank.

Normally, non-KYC Jan Dhan account holders can deposit up to ₹50,000, while, with minimum KYC, it can go up to ₹1 lakh.

For a higher amount of deposits, with complete details, the same can be used like a normal savings bank account for depositing any amount.

Still, out of the total 25.68 crore PMJDY accounts, 22.94 per cent have zero balance in them.

The Centre has already warned that any unusual cash flow into Jan Dhan accounts will be scrutinised and benefits of the scheme will also be withdrawn.

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Published on November 27, 2016
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