Demonetisation: In two weeks, 60% rise in total balance in Jan Dhan accounts

While the increase in balance in accounts in public sector banks was 56 per cent, it was 66 per cent in private sector banks.

Written by Jay Mazoomdaar , Shyamlal Yadav | New Delhi | Published:November 27, 2016 1:49 am
jan dhan, jan dhan accounts, jan dhan bank accounts, jan dhan policy, gvt banking policy, demonetisation, black money, india black money, india news A bank employee takes out a bundle of old 500 Indian rupee banknotes from a sack to count them inside a bank in Jammu, November 25, 2016. (Source: Reuters)

In the two weeks after the Centre’s demonetisation move, the total balance in Jan Dhan accounts increased by nearly 60 per cent, online data updated by the government on Saturday revealed. While the total deposit in Jan Dhan accounts was Rs 45,637 crore on November 9, a day after demonetisation was announced, it was Rs 72,835 crore on November 23 — an increase of Rs 27,198 crore.

In the first week of demonetisation, the total balance under the scheme went up by Rs 18,615 crore — nearly 60 times the weekly average of Rs 311 crore between March 31 and November 9 this year. In the second week, between November 17 and 23, the surge eased to a total deposit of Rs 8,582, still 27 times the weekly average.

As a result, the average balance in Jan Dhan accounts that hovered between Rs 1,697-1,799 in this financial year since April, has now jumped to Rs 2,836.63.

In poll-bound Uttar Pradesh, the balance in Jan Dhan accounts saw a rise of Rs 4,287.55 crore, the highest in the country. It was followed by Rajasthan (Rs 2,574.85 crore) and West Bengal (Rs 2,553.85 crore). Punjab and Goa, the other two poll-bound states, saw an increase of Rs 936.73 crore and Rs 31.06 crore, respectively, in the balance in Jan Dhan accounts.

While the increase in balance in accounts in public sector banks was 56 per cent, it was 66 per cent in private sector banks. The highest surge was seen in accounts in regional rural banks where the balance in these accounts increased by as much as 77 per cent.

The balance in Jan Dhan accounts in public sector banks rose from Rs 36,403 crore to Rs 56,668 crore in this duration. In the regional rural banks, which are subsidiaries of public sector banks in rural India, the balance in Jan Dhan accounts increased from Rs 7,631 crore to Rs 13,507 crore in this period. In private sector banks, the balance climbed to Rs 2,659 crore from Rs 1,602 crore.

According to the data, 16.47 lakh new Jan Dhan accounts have been opened in these two weeks and there has been a 0.33 percent drop in the total number of accounts with zero balance. While on November 9, the percentage of accounts with zero balance was 23.27, it was 22.94 per cent on November 23. The total number of Jan Dhan accounts on November 9 was 25.51 crore and it rose to 25.67 crore by November 23.

Sources in banks said that there were small deposits in accounts in some areas after the announcement of demonetisation as many people who had Rs 1000 and Rs 500 notes deposited them in their accounts. In certain areas, however, the deposits were huge. Last week, Minister of State for Finance, Santosh Gangwar, told The Indian Express that government is aware of these facts and scrutiny of such accounts is on.

On September 13, The Indian Express had reported based on its investigation that many branch managers were forced to put small amounts like Re 1 or Rs 2 or Rs 5 from their own pocket in zero balance Jan Dhan accounts just to reduce the total number of such accounts due to pressure from the top level.

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  1. F
    Fatima
    Nov 27, 2016 at 2:43 am
    It is good for nation, 25 crore accounts opened under JanDhan, and they are active
    Reply
    1. S
      Subrata Chakraborty
      Nov 27, 2016 at 2:38 pm
      Sometimes our media houses hints at serious faults being practised expecting to draw the attention of the Govt. What Indian Express did on Jan Dhan Yojana a/cs,the Business Standard exposed serious ills of Indian banking system. An excerpts of the same will help to understand who will be main beneficiary of demonitisation process, which will also help to mobilise huge resources even at the cost of Country's economy .lt;br/gt;A Business Standard analysis of 19 state-owned banks shown that at the aggregate level, the solvency ratio (ratio of a bank's net NPA to its net worth) has edged up to 45.3 per cent at the end of the third quarter, from 35.8 per cent at the end of the first quarter in the current financial year. This means that 45.3 per cent of the net worth of these 19 banks would be wiped off if they had to provide for these bad loans.lt;br/gt;lt;br/gt;"In good times, the solvency ratio was 15-20 per cent. Among the larger banks, Punjab National Bank appears to be in an extremely precarious financial position. Its solvency ratio worsened from 38.7 per cent in the first quarter to a staggering 54.5 per cent at the end of the third quarter. With a sharp rise in NPAs, the solvency ratio for Indian Overseas Bank (IOB) deteriorated sharply from 76.3 per cent at the end of the first quarter to 101.4 per cent in the third quarter, implying that the bank cannot even provide for all the bad loans on its books. .lt;br/gt;lt;br/gt;"The results indicate a sharp deterioration in the financial health of public-sector banks.
      Reply
      1. K
        kulbhushan goswami
        Nov 27, 2016 at 3:32 am
        Statewise picture of additional money deposited does not and cannot redlect the true picture, due to the size of the state and the number of such account holders under Jan Dhan Yojana. But the people may have to do lot of explaining for their fresh deposits as others too and if their is abnormal rise during a year in their income having opened their accounts under the scheme with a modest deposits and claiming concessions as on gas etc shall have to be discontinued. Laws shall not spare them as well. Some of them may not be able to explain their money thus deposited and are likely to be pnished.
        Reply
        1. K
          Kamal Kishore
          Nov 27, 2016 at 1:32 am
          The headline is sensational, when you look at facts, there is nothing special about this. lt;br/gt;the total deposits to JanDhan accounts is 72,835 cr. Total JD accounts is 25.67 crores. Average amount of money in each account comes to Rs 2850. Considering people have to deposit their 500/1000 noted, this is hardly anything ! lt;br/gt;lt;br/gt;Modi during 2015 independence address had declared that Banks have received 30000 crores in JD deposits. Add this fact to original calculation, the increase is negligible. lt;br/gt;lt;br/gt;If Liberals are fishing for any points to hammer Modi here, sorry, go home.
          Reply
          1. L
            L bhadrapati Devi
            Nov 27, 2016 at 3:39 am
            Please give a report of the numbers of JD a/c having deposit to the extent of Rs 50000/- for tiny a/c and Rs 2 lakhs for special tiny a/c. It will help the IT authority to zero on such a/c.
            Reply
            1. L
              L bhadrapati Devi
              Nov 27, 2016 at 3:35 am
              Some time average is misleading. Around 22.97 percent is zero balance a/c. Also, parking of black money is possible in few selected a/c.
              Reply
              1. R
                R.Mehta
                Nov 27, 2016 at 4:55 am
                People have no option but to try any means to save the cash money in their hands and are thus putting money wherever possible to save it from becoming of no use.
                Reply
                1. P
                  ProveIt
                  Nov 27, 2016 at 6:22 am
                  Whats your point? Please elaborate
                  Reply
                  1. S
                    SAMAR
                    Nov 27, 2016 at 9:44 am
                    Unprepared govt, Rbi and absence of correct and complete planning have led to the chaos in this country resulting in loss of lives of the Common People. The BJP is relentlessly justifying it's shortcomings and even after 19 days the PM has got no idea as to what has to be done to control the damage caused to the Common People.
                    Reply
                    1. G
                      George
                      Nov 27, 2016 at 3:52 am
                      All this is black money. Now what the govt will do? If it tries to meddle here, wouldn't that be against the poor, against its own big idea of Jan Dhan accounts? Govt is in a bind.
                      Reply
                      1. C
                        CongressMuktIndia
                        Nov 27, 2016 at 5:46 am
                        which is one of the points of this exercise, now even the poor will earn interest on their deposits. More currency in circulation.
                        Reply
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