The increase in bank balance in Jan Dhan accounts is not extraordinary as they are being used as much as regular bank accounts, following demonetisation
Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts are in focus again thanks to the new notification by the Reserve Bank of India (RBI) imposing withdrawal limits on such bank accounts. The ostensible reason for this is concern that such accounts might be being used to convert demonetized currency into legal tender without inviting attention from the tax authorities.
The possible misuse of Jan Dhan accounts has been a common concern in public discourse ever since the prime minister announced the withdrawal of high-denomination notes on 8 November. There has been special concern about the so-called “zero-balance accounts” (Jan Dhan accounts that had never seen transactions), since they are likely to belong to marginalized sections of society.
Data on Jan Dhan accounts released on 23 November shows that zero-balance accounts are unlikely to have been misused. The total number of zero-balance accounts has decreased by less than 1% since demonetization, from 59.4 million accounts on 9 November to 58.9 million on 23 November.
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