Demonetisation: Last fortnight, over 30 times surge in Jan Dhan deposits; maximum from Bengal and Karnataka

The Reserve Bank of India had in May warned that these accounts are vulnerable to fraud and identity theft with miscreants using others’ accounts to convert their illegal wealth.

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According to these estimates, the average weekly deposits in these accounts rose by 3,200 per cent in the two weeks since November 9. (Source: AP)

Pradhan Mantri Jan Dhan Yojana accounts have seen deposits surge almost 30 times by around Rs 21,000 crore in just 14 days since the government’s November 8 announcement on the withdrawal of high-denomination currency notes, government sources said on Wednesday.

According to these estimates, the average weekly deposits in these accounts rose by 3,200 per cent in the two weeks since November 9. Between March 31 and November 9 this year, the weekly deposit average in Jan Dhan accounts was Rs 311 crore, which increased to Rs 10,500 crore in the past two weeks. In effect, it should have taken roughly a year for banks to get the amount of deposits that came in during the past fortnight.

WATCH VIDEO: Over 30 Times Surge In Jan Dhan Deposits: Find Out How

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While the amount of deposits that came into accounts in West Bengal and Karnataka — two states, government sources said, have shown a record surge — over the last 14 days was not known, according to latest data updated until November 9, West Bengal had the second highest amount of deposits of Rs 6286.65 crore in Jan Dhan accounts.

Uttar Pradesh topped the deposit list with Rs 7493.50 crore of funds in these accounts and 22.87 per cent zero balance accounts. Karnataka had deposits of Rs 1456.96 crore in Jan Dhan accounts as on November 9. State-wise details beyond November 9 are awaited.

Since the launch of Jan Dhan in August 2014, total deposits into these accounts were Rs 45,636.61 crore as on November 9, 2016 — the day the government’s currency withdrawal decision kicked in. Total deposits in Jan Dhan accounts jumped to Rs 66,636 crore as on November 22.

With less than 10 per cent share in the Jan Dhan network — 2.44 crore out of 25.51 crore accounts — West Bengal already accounted for nearly 14 per cent of the scheme’s total deposits. The average balance in Jan Dhan accounts in West Bengal at Rs 2577.83 was also the third highest among the major states after Punjab (Rs 3400.88) and Haryana (Rs 3084)

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The Finance Ministry, officials said, is monitoring the sudden surge into these accounts with some officials saying black money operators could be using these accounts to convert their funds. Jan Dhan accounts have a deposit cap of Rs 50,000 per account. As of November 9, the national average balance in a Jan Dhan account was Rs 1788.85 and the percentage and 23.27% of these accounts were zero-balance accounts.

The Reserve Bank of India had in May warned that these accounts are vulnerable to fraud and identity theft with miscreants using others’ accounts to convert their illegal wealth. Sources said the finance ministry has advised banks to ensure that the Jan Dhan accounts strictly comply with the KYC (know your customer) norms.

Finance Minister Arun Jaitley said last week that the government was looking into sudden “popping up” of money into zero-balance Jan Dhan accounts. “We are getting some complaints that suddenly monies have popped up in the Jan Dhan accounts, so there is a misuse and that is why the rationing in initial days takes place,” he had said.

Jay Mazoomdaar

Jay Mazoomdaar is an investigative reporter focused on offshore finance, equitable growth, natural resources management and biodiversity conservation. Over two decades, his work has been recognised by the International Press Institute, the Ramnath Goenka Foundation, the Commonwealth Press Union, the Prem Bhatia Memorial Trust, the Asian College of Journalism etc. Mazoomdaar’s major investigations include the extirpation of tigers in Sariska, global offshore probes such as Panama Papers, Robert Vadra’s land deals in Rajasthan, India’s dubious forest cover data, Vyapam deaths in Madhya Pradesh, mega projects flouting clearance conditions, Nitin Gadkari’s link to e-rickshaws, India shifting stand on ivory ban to fly in African cheetahs, the loss of indigenous cow breeds, the hydel rush in Arunachal Pradesh, land mafias inside Corbett, the JDY financial inclusion scheme, an iron ore heist in Odisha, highways expansion through the Kanha-Pench landscape etc. ... Read More