Arun Jaitley: Government looking into sudden spurt in Jan Dhan account deposits

To give comfort to honest taxpayers, it has said deposits of up to Rs 2.5 lakh in accounts of housewives and farmers will not be reported to Income Tax authorities.

By: PTI | New Delhi | Updated: November 12, 2016 8:22 pm
rs 500 ban, rs 1000 ban, demonetisation, jan dhan accounts, jan dhan, indian express news Cautioning those indulging in illegal usage of the demonetised currency, he said authorities will not hesitate to take action against any unlawful activity.

Government is looking into sudden ‘propping up’ of money into zero-balance Jan Dhan accounts, after an unprecedented Rs 2 lakh crore of cash flooded the banking system within just two days of demonetisation of high value currency. Finance Minister Arun Jaitley said law enforcement agencies are keeping a hawk eye on illegal currency changers, offering to change the junked 500 and 1000 rupee notes, as well as those investing their money in gold and bullion to hide unaccounted wealth.

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“We are getting some complaints that suddenly monies have propped up in the Jan Dhan accounts, so there is a misuse and that is why the rationing in initial days takes place,” he said, adding that the departments concerned will act if anything improper is found in the deposits.

The government is focusing on ensuring that replacement of currency notes withdrawn, with new legal tender, takes place smoothly and quickly so that inconvenience to people is minimised, Jaitley said, adding “the Enforcement Directorate and revenue department are keeping a close watch”.

Cautioning those indulging in illegal usage of the demonetised currency, he said authorities will not hesitate to take action against any unlawful activity. His statement comes amid reports that the old high denomination notes had been used to buy gold or were being exchanged for a premium.

ED is scrutinising as many as 67 foreign exchange dealers and Directorate General of Central Excise Intelligence is also monitoring prominent jeweller and bullion traders.

The Finance Minister said India as a country should move towards plastics currency and more and more use electronic modes for transactions. Country’s largest lender State Bank of India has got Rs 47,868 crore cash deposits during the last two-and-a-half days and since SBI accounts for about 25 per cent of the banking system, the total cash mobilised by all banks put together could be around Rs 2 lakh crore, said.

In a surprise move, Prime Minister Narendra Modi had on the night of November 8 announced withdrawal of 500 and 1000 rupee notes but allowed people to deposit them in their bank accounts or exchange them with new Rs 2000 and Rs 500 notes till December 30.

To give comfort to honest taxpayers, it has said deposits of up to Rs 2.5 lakh in accounts of housewives and farmers will not be reported to Income Tax authorities.

“The objective of the scheme was to get the idle cash into the banking system and if you multiply it (SBI’s deposits) by 4-5 times, about Rs 2 lakh crore has become part of the banking system,” Jaitley said.

He said the government had factored in that inconvenience may be caused in first few days but the long term advantages for the overall economy were far more, he said. Businesses, he said, should brace for transacting through digital mode, cheques and payment gateways so that their lives remain simple going forward. “As far as fake currency is concerned, government agencies are keeping an eye on that,” he said.

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  1. D
    din
    Nov 12, 2016 at 6:26 pm
    This proves there are't that many poor in India who are committing Suicides for food CONGRESSI are using them now to get their black money via such accounts
    Reply
    1. S
      Sankaran Krishnan
      Nov 14, 2016 at 5:06 am
      The only to stop this that the govt. will declare all Jan Dhan accounts as per details or amounts that are available on the day of demonitisation and whatever amount deposit in their names the 10% commission will be paid to the account holders and the balance 90% will be taken back to the Govt. Treasury and thus make invalid amount for all such deposits and will the Govt. do it is the query ???
      Reply
      1. R
        Roshni
        Nov 12, 2016 at 5:21 pm
        An opportunity for those Jan Dhan Account holders to make some money from rich people. Isn't this a nature's way of balancing. For making rich person's 1 lakh black to 70000 White, if Jan Dhan Account holders makes 30000, what is wrong with this !!!!
        Reply
        1. S
          sundaram
          Nov 12, 2016 at 3:04 pm
          Probable investigation of large scale withdrawal of cash in lower denomination in the last six months from Banks would reveal weather the demonetisation move was known to some or not, before 9th Nov 2016?
          Reply
          1. T
            Tanmya D
            Nov 12, 2016 at 5:09 pm
            Use of Jan Dhan Accounts to deposit black money to later withdraw as white money is really a very issue. There were news of lakhs of Jan Dhan Accounts showing deposits that were not in knowledge of account holders. Seems that Jan Dhan Accounts have been misused even before recent demonitizing.
            Reply
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