The Reserve Bank of India (RBI) on 29 November 2016 reduced the cash withdrawal limit from the Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts to Rs 10000 a month only with an aim to protect farmers and rural Jan Dhan account holders from money launderers.
It applies to know your customer (KYC) compliant PMJDY accounts funded through deposits of new bank notes after 9 November 2016.
Key Highlights
• PMJDY account holders, who want to withdraw more than Rs 10000 a month, will have to furnish appropriate documents to prove why they need the money.
• The branch managers can allow further withdrawals beyond Rs 10000 only after ascertaining the genuineness of such withdrawals and duly documenting the details on bank’s record.
• Limited or Non-KYC compliant PMJDY account holders will be allowed to withdraw Rs 5000 per month from the amount deposited in new currency notes after 9 November 2016. These account holders can withdraw up to Rs 10000.
Background
These limits have been applied with a view to protect the innocent farmers and rural account holders of PMJDY from activities of money launders and the legal consequences under the Benami Property Transaction & Money Laundering laws.
The decision comes after witnessing the rise in the activities of money launders following the ban on Rs 500 and Rs 1000 currency notes on 8 November 2016. Since then, the banks have been dispensing the new Rs 500 and Rs 2000 notes along with old notes of Rs 10, Rs 20 and Rs 100.
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