RBI restricts withdrawals from Jan Dhan accounts up to Rs 10,000

The Reserve Bank of India has put withdrawal limits on bank accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) which are funded through deposits of Specified Bank Notes (SBNs) after November 9.

  • The notification issued by RBI stated that the limits are being imposed to protect “innocent farmers from activities of money launders and legal consequences under the Benami Property Transaction & Money Laundering laws”.
  • As per the notification, banks can allow fully KYC compliant account holders to withdraw only Rs 10,000 in a month. However, the bank managers can also allow withdrawal of more than Rs 10,000 within ‘current applicable limits’ after ‘ascertaining the genuineness of such withdrawals’.
  • On the other hand, non KYC compliant account holders are entitled to withdraw only half the amount, ie Rs 5,000, in a month within the ceiling of Rs 10,000.
  • Prime Minister Narendra Modi had launched the Jan Dhan Yojana after he assumed the office aiming to provide banking access to farmers and labourers residing in remotest parts of the country. Lakhs of new accounts have been opened under the scheme.

Jan Dhan Yojana:

Pradhan Mantri Jan-Dhan Yojana (PMJDY) is India’s National Mission for Financial Inclusion to ensure access to financial services, namely Banking Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi on 28 August 2014.He had announced this scheme on his first Independence Day speech on 15 August 2014.

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