Government is keeping a check on Jan-Dhan Yojana accounts while people exchange notes

When people queue up at banks to exchange their Rs 500 and Rs 1000 notes, the government is keeping a check on cash deposits in bank accounts opened under the Pradhan Mantri Jan-Dhan Yojana.

"If we find suddenly there are large deposits in Jan-Dhan accounts in one area, we will find out where this money has come from,” a government official, who did not wish to be identified told the Economic Times.

The deposit limit in Jan-Dhan accounts is Rs 1 lakh and for a lighter version of account that does not adhere to full know-your-customer or KYC norms, the limit is Rs 50,000. The Reserve Bank of India has already asked banks to keep an eye out for possible misuse of Jan-Dhan accounts.

As many as 25 crore Jan-Dhan accounts have been opened, making them susceptible to abuse wherein those holding these accounts are offered incentives to launder money. The government has said all deposits of over Rs 2.5 lakh in bank accounts would be under scrutiny to ensure that cash deposit is consistent with the declared earning of the depositor.

(Image: India times)