RBI limits cash withdrawal from Pradhan Mantri Jan Dhan Yojana accounts

Nov 30, 2016 17:17 IST

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.

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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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Read more Current Affairs on: RBI , cash withdrawal , Pradhan Mantri Jan Dhan Yojana accounts

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