The Reserve Bank of India (RBI) has decided to limit cash withdrawals from Jan Dhan accounts at Rs. 10,000 per month to avoid misuse.
“With a view to protecting the innocent farmers and rural account holders of PMJDY from activities of money launders and legal consequences under the Benami Property Transaction & 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 (SBNs) after November 09, 2016,” according to an RBI circular on Wednesday.
While full KYC-compliant account holders can withdraw Rs. 10,000 in a month, partial KYC-compliant account holders can withdraw only Rs. 5,000.
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“The branch managers may allow further withdrawals beyond Rs. 10,000 (for full KYC accounts) within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank’s record,” the RBI said.
Following the withdrawal of Rs.500 and Rs.1,000 denomination currency notes, regular account holders are allowed to withdraw Rs. 24,000 per week. There has been a surge of deposits in Jan Dhan accounts following the withdrawal which came into effect from the midnight of November 9.