RBI sets cash withdrawal limit from Jan Dhan accounts to Rs 10000 a month

The move is being taken to facilitate farmer needs.

The Reserve Bank of India on Tuesday imposed a withdrawal limit of Rs 10,000 on banks accounts opened under  Pradhan Mantri Jan Dhan Yojana (PMJDY).

Last week, the RBI had issued a notification stating that their existing customers were allowed to withdraw cash from their accounts up to Rs 24000. However, the RBI has notified that the fully KYC complaint account holders will be allowed to withdraw Rs 10,000 from their account, in a month.

Asserting that it was only a temporary measure, the notification issued by the RBI read, “With a view to protect the innocent farmers and rural account holders of PMJDY from activities of money launders and legal consequences under the Benami Property Transaction & Money Laundering laws, it has been decided to place certain limits, as a matter of precaution, on the operations in the PMJDY accounts funded through deposits of Specified Bank Notes (SBNs) after November 09, 2016.”

However, the non-KYC account holders will be allowed to withdraw Rs, 5000 from their PMJDY accounts.

“Limited or non-KYC compliant account holders may be allowed to withdraw ₹ 5,000 per month from the amount deposited through SBNs after November 09, 2016 within the overall ceiling of ₹ 10,000,” the notification added.

According to reports, the said step has been taken after the central government observed that money launderers were using their PMJDY accounts to deposit their unaccounted income thereby putting immense pressure on the farmers after Prime Minister Narendra Modi’s demonetisation drive.