BackWithdrawal limits imposed on Jan Dhan accounts
Temporary limits on cash withdrawal from Jan Dhan accounts have been imposed to prevent benami property transaction and money laundering, says RBI
Premium
Mumbai: The Reserve Bank of India (RBI) on Wednesday announced that it will place stringent withdrawal limits on bank accounts under the Prime Minister’s Jan Dhan Yojana (PMJDY) as a “temporary" precautionary measure.
In a notification on its website, the regulator stated that this was done to protect innocent farmers and rural account holders of PMJDY from activities of money laundering and legal consequences under the benami property transaction and money laundering laws.
The central bank said that on accounts which are fully compliant of the know your customer (KYC) norms—the monthly withdrawal limit has been set at Rs10,000.
“The branch managers may allow further withdrawals beyond Rs10,000 within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank’s record," RBI said in its notification.
According to limits set by the central bank, customers can withdraw up to Rs24,000 every week from their bank accounts using instruments such as cheques and demand drafts.
Farmers have a slightly higher withdrawal limit of Rs25,000 per week. The limits on Jan Dhan accounts are over and above these restrictions.
In cases where accounts are not KYC compliant too, account holders will be allowed a monthly withdrawal of Rs5,000 on deposits made in old Rs500 and Rs1,000 banknotes, within an overall limit of Rs10,000 per month.
The regulator clarified in its notifications that this would be applicable on PMJDY accounts where old Rs500 and Rs1,000 notes have been deposited since 9 November. Prime Minister Narendra Modi, on 8 November, had announced that Rs500 and Rs1,000 notes will be stripped of legal tender status.
As on 23 November, Indian banks had opened 256.8 million accounts under the Jan Dhan scheme, where 138.5 million accounts were linked to Aadhaar, according to data available with the PMJDY website.
As on 23 November, Indian banks had opened 256.8 million accounts under the Jan Dhan scheme, where 138.5 million accounts were linked to Aadhaar, according to data available with the PMJDY website.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
