MUMBAI: With deposits in Jan Dhan accounts swelling manifolds since the day Prime Minister Narendra Modi announced the withdrawal of legal tender of Rs 500 and Rs 1000 bills the Reserve Bank of India has now started capping withdrawals in these accounts. In a notification issued on Wednesday RBI announced that withdrawals from Jan Dhan accounts would be capped at Rs 10,000 per month.
The central bank said that fully KYC compliant holders may withdraw Rs 10,000 from their account every month. It further added that the branch managers may allow further withdrawals beyond Rs 10,000 with ‘current applicable limits’ only by ascertaining the genuineness of such withdrawals and after documentation.
Furthermore, limited or non-KYC compliant account holders will be allowed to withdraw Rs 5000 per month from the amount deposited in old currency notes after November 9, 2016, with a ceiling of Rs 10,000.
The RBI said these restrictions were being imposed to protect the innocent farmers and rural account holders of Pradhan Mantri Jan Dhan Yojana from activities of money launderers and legal consequences under Benami transaction laws.
In the first two weeks of demonetisation, the total balance in no-frills accounts under the Pradhan Mantri Jan Dhan Yojana increased by 60% to Rs 72,834.72 crore. Prior to that the scheme that was launched in August 2014, took 16 months until December 2015 before it could accumulate a net balance of Rs 27,283.05 crore.
Here are the key points:
- Fully KYC complaint Jan Dhan account holders can only withdraw Rs 10,000 in a month from their bank account
- Branch managers may allow withdrawals beyond Rs 10,000 only after ascertaining the genuineness of such withdrawals
- Non KYC compliant Jan Dhan account holders may withdraw Rs 5,000 per month from the amount deposited in old notes after November 9
- The overall ceiling for non KYC complaint holders to stay Rs 10,000
Source: Economic Times