Govt asks banks to close inactive accounts opened under PM Jan-Dhan Yojana

The concern arises from the increasing misuse of some Jan Dhan accounts by fraudsters as "mule accounts" to carry out cyber fraud

State-owned banks have been advised by the government to close inoperative accounts opened under the PM Jan-Dhan Yojana, amid rising instances of them being used as mule accounts, which are conduits to route or launder money obtained through fraud, according to people aware of the development.

 

“If they (the accounts) are not being used, the guidance is not to keep them open because they could be misused,” said a source familiar with the development. 

That said, banks are following due process to reactivate inoperative accounts by initiating re-KYC procedures.

However, if the beneficiaries are unwilling to keep the accounts active, such