Demonetisation impact: Jan Dhan accounts in Odisha flush with cash - Firstpost
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Demonetisation impact: Jan Dhan accounts in Odisha flush with cash

#cash deposits   #Cash Flow   #excess deposit   #Jan Dhan   #Odisha   #PAN card   #PMJDY  


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The hitherto dormant Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts in nationalised banks have now sprung to life and are flush with cash in several parts of Odisha, thanks to demonetisation drive.

The post offices are also witnessing sudden upsurge of deposits of scrapped notes with inoperative accounts being made operational by account holders in a hurry.

Reuters

Reuters

Demonetisation has seemingly provided a lease of life to these accounts which were literally dead. Kendrapara and Jagatsinghpur districts account for 3.75 lakh Jan Dhan accounts, officials said.

In Odisha, the highest percentage of 59.50 per cent of the households in Kendrapara avail banking facilities followed by Jagatsinghpur with 58 per cent, they said.

With PMJDY account holders virtually making beeline at bank counters to deposit money and activate the accounts, there has been rapid spurt in the quantum of deposits in several of these zero-balance balance accounts.

While bank personnel acknowledge activation of such dormant accounts in large numbers and the rise in deposits, they preferred to remain tight-lipped on reports of huge cash flowing into such accounts.

An official of a nationalised bank said, "There has been impressive growth in cash deposits in Jan Dhan accounts. We obviously smell foul-play. Though a ceiling of Rs. 50,000 deposit has been fixed in these accounts, we have come across accounts exceeding maximum deposit limits. The accounts with excess deposit would lose PMJDY classification. These would be converted into general savings accounts. Deposits in the accounts are largely in demonetised high-value currency notes, giving suspicion that unscrupulous elements might be using the accounts of poor and gullible to convert black money into white. We are preparing detailed list of such accounts which were inactive since day of operation."

However, cash flowed into it after demonetisation. The list of 'suspicious' accounts would be submitted to the competent authorities, the official said.

These accounts occupied less than one per cent of the total deposit base. However, it has shot up to 3 to 4 per cent since cash began flowing into them.

Post the Centre's demonetisation step on November 8, most Jan Dhan accounts are subjected to their first-ever transactions ever since they were opened. There are instances of these accounts being switched to general savings accounts. Some account-holders have also resorted to tactics depositing Rs. 49,000 to avoid PAN card submission, the officials said.

Several deposits of Rs. 49,000 were found out to have been made in such replenished accounts, said the head of a nationalised bank in Paradip.

First Published On : Nov 28, 2016 08:49 IST

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