New Delhi: After the November 8 announcement by Prime Minister Narendra Modi where Rs 500 and Rs 1000 were declared illegal, deposits in majority of the inactive Jan Dhan accounts increased manifold. The Reserve Bank of India (RBI), owing to this massive influx of deposits, announced on Wednesday that a withdrawal limit of Rs 10,000 will be imposed on all the Jan Dhan accounts.
According to the notice issued by the Central Bank, Jan Dhan accounts that are fully KYC compliant may withdraw Rs 10,000 from their account every month. For those who want to withdraw more than Rs 10,000 from their accounts, they may do so citing ‘genuine’ reason.
On top of that, non-KYC compliant account holders will only be allowed to withdraw Rs 5,000 a month from their account.
Evidently, the RBI introduced this move because they wanted the farmers and rural account holders of Pradhan Mantri Jan Dhan Yojana from activities of money launderers under Benami transaction laws, mentions the Economic Times.