 "A man sits in a queue to deposit his old high denomination banknotes in Ajmer photo: Reuters")
In a move aimed at protecting “the innocent farmers and rural account holders of PMJDY (the Pradhan Mantri Jan Dhan Yojana) from activities of money launderers and legal consequences under the Benami Property Transaction & Money Laundering laws”, the Reserve Bank of India (RBI) has placed a limit of Rs 10,000 on monthly withdrawals from Jan Dhan bank accounts.
According to the new notification, the KYC (Know Your Customer)-complaint account holders might be allowed to withdraw Rs 10,000 a month from their account, while branch managers could allow further withdrawals beyond Rs 10,000 within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting them on bank record.
On the other hand, the limited or non-KYC-compliant account holders might be allowed to withdraw only Rs 5,000 per month from the amount deposited through specified bank notes after November 9 within the overall ceiling of Rs 10,000.
While the RBI has said in its notification that the move is being taken in order to protect farmers and rural account holders, the step is also seen as a measure to contain demand for cash in the system, amid banks and ATMs running dry and people still queueing up to procure valid currency notes.
The Finance Ministry had earlier 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 had said.
