Govt limits cash deposits in Jan Dhan accounts to Rs 50,000

Bank counters will now use indelible ink in major cities to keep cash withdrawals within permissible limits

With reports of Jan Dhan accounts being used by other people to deposit their unaccounted cash, the Finance Ministry on Tuesday set an upper limit of Rs 50,000 for deposits into these accounts.

"Some people are using Jan Dhan accounts to deposit black money. Up to Rs 50,000 can be deposited in Jan Dhan accounts," the Economic Affairs Secretary Shaktikanta Das told reporters on Tuesday.

The decision was taken after Prime Minister Narendra Modi held a second review meeting on Monday night on demonetisation with officials of the Finance Ministry and the Reserve Bank of India.

Das said the legitimate Jan Dhan account holders would not be put to any kind of difficulty. However, the source of deposits above Rs 50,000 will be verified, he added.

"A close watch is being kept on them (deposits in Jan Dhan accounts)," he said.

Das said, "Jan Dhan account holders should not allow other people to use their accounts to convert their black money into white. Banks have been advised to keep a close watch on cash movement."

For other accounts, Finance Minister Arun Jaitley had earlier said that the administration will not bother to make inquiry into small deposits of Rs 1.5-2 lakh.

At the review meet, it was also decided that bank counters will use indelible ink from Tuesday in major cities to keep cash withdrawals within permissible limits.

At the moment, the daily withdrawal limit from ATMs is Rs 2,500, and exchange of old notes from bank counters is Rs 4,500. This apart, the upper limit for weekly withdrawal from bank accounts stands at Rs 24,000.