RBI puts withdrawal limits on accounts under PMJDY

In a bid to protect farmers and rural Jan Dhan account holders from money launderers, the Reserve Bank of India (RBI) on Wednesday announced a temporary measure by notifying that they will be allowed to withdraw only Rs. 10,000 per month.

The banks are advised to observe the following in respect of the Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts as the fully KYC complaint account holders may be allowed to withdraw Rs. 10,000 from their accounts in a month.

The RBI has also decided to place certain limits, as a matter of precaution, on the operations in the PMJDY accounts funded through deposits of Specified Bank Notes (SBNs) after November 9, 2016.

The branch managers may allow further withdrawals beyond Rs. 10,000 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 Rs. 5,000 per month from the amount deposited through SBNs after November 9, 2016, within the overall ceiling of Rs. 10,000.

"With a view to protect the innocent farmers and rural account holders of PMJDY from activities of money launders and legal consequences under the Benami Property Transaction and Money Laundering laws, it has been decided to place certain limits, as a matter of precaution, on the operations in the PMJDY accounts funded through deposits of Specified Bank Notes after November 09, 2016," the apex bank said in its notification.