RBI caps monthly withdrawals from Jan Dhan accounts at Rs10,000

Reserve Bank of India (RBI) has capped the monthly withdrawal limit from the Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts at Rs10,000, as a matter of abundant caution on the operations of these accounts since the demonetisation announcement on 8 November.

With over Rs45,500 crore worth of denotified Rs500 and Rs1,000 notes deposited in these accounts since 9 November, the PMJDY accounts stand mostly funded through deposits of Specified Bank Notes (SBNs).

Accordingly, RBI said, fully KYC complaint account holders may be allowed to withdraw Rs10,000 from their account, in a month. The branch managers may allow further withdrawals beyond Rs10,000 within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank's record.

Limited or Non-KYC compliant account holders may be allowed to withdraw Rs5,000 per month from the amount deposited through SBNs after 9 November 2016 within the overall ceiling of Rs10,000.

RBI said the measure is intended to protect innocent farmers and rural account holders of PMJDY from activities of money launders and legal consequences under the Benami Property Transaction & Money Laundering laws and are purely temporary in nature.

The finance ministry had earlier set an upper limit of Rs50,000 for deposits into these accounts following a surge in the flow of demonetised currency into these accounts.

"Some people are using Jan Dhan accounts to deposit black money. Up to Rs50,000 can be deposited in Jan Dhan accounts," economic affairs secretary Shaktikanta Das had said.

Deposits in Jan Dhan accounts soared sharply by around Rs27,200 crore in just 14 days after the 8 November ban on high-denomination currency notes. Deposits in the 250 million-odd Jan Dhan accounts stood at Rs72,834.72 crore as of 23 November against Rs45,636 crore on 9 November.

The scheme that was launched in August 2014, took 16 months until December 2015 before it could accumulate a net balance of Rs27,283.05 crore.