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.

Written by Jay Mazoomdaar , Sunny Verma | New Delhi | Updated: November 24, 2016 1:16 pm
demonetisation, demonetisation impact, demonetisation economy impact, Economic Offences Wing, black money, black money seizure, india news 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

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.

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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)

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.

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  1. H
    Haru Mandal
    Nov 24, 2016 at 2:28 am
    "The average balance in Jan Dhan accounts in West Bengal at Rs 2577.83". The CAP itself they have set up as Rs 50,000. lt;br/gt;s 2577 Rupees 83 PAISE is Black money? Punjab (Rs 3400.88) and Haryana (Rs 3084) is Black money.? lt;br/gt;It has been concluded that there is a SURGE (A TSUNAMI) of BLACK Money into those accounts. Black Money holders are using BENAMI /Proxy transactions and stashing black money there!!!! lt;br/gt;In the past - the poor and lower middle cl in WB and elsewhere In East India were lured into CHIT fund SCAMs. On average they invested much HIGHER amount and lost it all. It is good that they had something and they kept it with them. This demonetisation has forced them to bring that tiny little SAVINGS money out.
    Reply
    1. S
      Satendra kumar
      Nov 24, 2016 at 3:47 am
      To my knowledge trillions of rupees came into state and central government banks deposited into various accounts.It seems the Modi government is doing a great job respectively dealing with black money that does all sort of criminal activities from petty crime to illegal business activities money laundering making fun of central taxation system-avoidance of paying taxes as individual or company taxes.Demonestation shows how much corrupt practices was happening how effective implementating new laws for such corrupt practices will work for next generation.
      Reply
      1. G
        george
        Nov 24, 2016 at 6:46 am
        The current move by BJP government doesn't have any logic as far as principles of economics are concerned. It definitely makes political sense because most of the people don't understand the intricacies of the subject.
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        1. A
          Ankit
          Nov 24, 2016 at 7:51 am
          West Bengal ... is the BAAP of All Scam States....
          Reply
          1. A
            Anuradha Kalhan
            Nov 24, 2016 at 3:43 am
            At least this way Jan Dhan has actually spread and ache din are around the corner!lt;br/gt;The wealth of the people, by the people of the people....... Now the Banks and IT department can spend next 2/3 years in finding the black and white . Poor fellows.
            Reply
            1. E
              Eknath Meshram
              Nov 24, 2016 at 2:12 am
              THE SOURCES OF INCOMES OF JANDHAN ACCOUNTS HOLDERS MUST BE INVESTIGATED. WHILE ACCEPTING THE DEPOSITS IN JANDHAN ACCOUNTS,THE BANKS DID NOT BOTHER FOR KEEPING WATCH ON DEPOSITORS.NOW IT WILL BE TROUBLESOME TO CATCH HOLD OF FRAUD AND MISCHIEF.
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                gajanan
                Nov 24, 2016 at 2:54 am
                This is surely a bye p to broad way of dirty money. Long ques of such account holder had become a overnight story. Another short cut to the dirty money way was exchange of Specified Bank notes i.e. Rs. 500/- and Rs. 1000/-. It provided hourly employment to a many in a sense that such money exchanger reportedly got Rs. 200 to 300 for queuing and bringing Rs.2000/- note. In a way it was a "Sahasramukhi Rawan" you close his main mouth but he could eat by other thousands of his mouths. In the end it will be interesting to find how much black money is cleaned. Jandhan has thus become bhagya vidhata.
                Reply
                1. H
                  Hudaf Shaikh
                  Nov 25, 2016 at 8:34 am
                  Politicians and rich people with black money are mis-using Jan Dhan to launder their funds - Government should investigate Jan Dhan deposits and act against the corrupt.
                  Reply
                  1. J
                    Jacob
                    Nov 24, 2016 at 2:55 am
                    This Money will be used by Modi for 2019 election.
                    Reply
                    1. C
                      Commander LB
                      Nov 24, 2016 at 12:22 pm
                      I am neither an economist nor politician. I was a Defence Officer and can comment on defence matters such as the safety and security of our country. The intentions of this Govt. are good. Congress has ruined the country in the last 65 years. Mr. Modi is trying his level best to keep India strong and he will need some time to do that. Let him complete this term and elect BJP/NDA Govt. for one more term before deciding Modi's achievements.
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                      1. L
                        L bhadrapati Devi
                        Nov 24, 2016 at 7:11 am
                        A good write up about the story of the abuse of Jan Dhan a/c by some persons to convert black money into white by getting some commission. As per the present practice after demonetization of higher denomination notes, A customer service point (CSP) can accept deposit upto Rs 2500/- per day and can withdraw upto Rs 2000/- at the maximum from the customers of any CSP of the same Business Correspondent (BC). If any person want to deposit Rs 50000/- for tiny a/c, he have to go 20 days to the CSPs and for Rs 2 lakhs special tiny a/c, he has to go 80 days because technology providers restrict multiple transition in day in the BC model of banking. However, there is one possible means to park the black money to the extent of Rs 2 lakhs in the special tiny a/c if a customer deposit directly in the link bank branch. There is no requirement of biometric restriction imposed as done in BC model of banking. Once bank a/c is opened in the bank in any category is accessible by internet banking under CBS system. Bank officials or staffs can use any numbers of customers opening a/c under Jan Dhan a/c under CSP also with a mollified intention.
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                        1. M
                          manikantan
                          Nov 24, 2016 at 4:58 am
                          out of 100 crore people 5 lakhs have voted and you have concluded. That is not even .005%. Con Man knows the marginalized will not be voting who are the greatest sufferers. Bhakts in the excitement seeing congress mukt bharath have ignored the plight of millions of people. Humanity has died. Insenstiveness is equated to patriotism. Liberalism is counted as being anti poor. There is another narrative for all this. Soon or later some body is going to narrate it. Satyam eva jayathe
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                          1. M
                            MAHESWAR DEKA
                            Nov 24, 2016 at 3:17 am
                            You are right.Your essment is 100 percent correct.
                            Reply
                            1. M
                              MAHESWAR DEKA
                              Nov 24, 2016 at 3:18 am
                              You are right.Your essment is 100 percent correct.
                              Reply
                              1. S
                                surinder
                                Nov 24, 2016 at 2:07 am
                                Having failed to see this fraud it appears govt babus are sitting pretty . The govt must immediately freed these accounts till true owners of the money deposited are identified . Don't open any new accounts
                                Reply
                                1. M
                                  Mahender Goriganti
                                  Nov 24, 2016 at 2:31 am
                                  It is obvious that while some are real ordinary and marginal peoples ; large money in Bengal is.disturbing, should be scrutinized so also in UP as some of it could be terror network money.
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                                  1. M
                                    Mahender Goriganti
                                    Nov 24, 2016 at 2:35 am
                                    Some of this could be terror network money especially from BENGAL, UP, BIHAR. must be investigated, a good opportunity to trace beck terror network.
                                    Reply
                                    1. P
                                      Prodipta Guhathakurta
                                      Nov 24, 2016 at 5:00 am
                                      It is preposterous to quote data as on 9th Nov 16 to suggest any 'surge' in Jan Dhan deposits. Demonetisation was announced on 8th evening and banks were closed for business on 9th. How could black money be deposited in bank accounts by 9th as a result of demonetisation announcement?
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                                      1. A
                                        Anand Ch
                                        Nov 24, 2016 at 12:27 pm
                                        Both states are plagued with fake currency and black money.
                                        Reply
                                        1. R
                                          raj
                                          Nov 24, 2016 at 2:16 pm
                                          its shows everyone and all from normal walks of life indulge in cheating!! govt has to streamline all in digital banking within 5 yrs !!
                                          Reply
                                          1. R
                                            RR
                                            Nov 24, 2016 at 5:14 am
                                            Some remarkable things emerge from this data:lt;br/gt;Majority of black money stashers appear from so called BIMARU states. It means these states r backward due to corruption. And these r most corrupt states.lt;br/gt;Also one can understand well now why people like mamta banarji and politicgians frm up buhar r so upset.
                                            Reply
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