I-T lens on near doubling of Jan Dhan deposits to Rs87,000 cr

Income Tax authorities are looking at the sudden spurt in activity in the hitherto dormant Jan Dhan accounts following the 8 November announcement of demonetisation of Rs500 and Rs1,000 bank notes.

Total deposits in these no-frills accounts increased to Rs74,610 crore for the week ended 7 December and thereafter, it started gradual decline to close at Rs71,037 crore on 28 December, two days ahead of the close of demonetisation exercise, according to finance ministry data.

These accounts also witnessed net withdrawal of Rs3,285 crore in the last fortnight.

The Jan Dhan accounts saw inflows of Rs41,523 crore between 10 November and 23 December, taking the total amounts deposited in 4.8 million accounts  to Rs87,100 crore – a 90 per cent increase from the Rs45,637 crore these accounts held as of 9 November 2016.

Besides, the tax department also has data on small cash deposits between Rs30,000 and Rs50,000 made in 4.86 lakh accounts totaling to Rs2,000 crore, These, together with other deposits take the total deposits added between 10 November and 23 December  to Jan Dhan accounts stood at Rs41,523 crore in 4.8 million accounts.

This, together with the total deposits of Rs 45,637 crore as on November 9, takes the aggregate amount in Jan Dhan accounts to over Rs 87,100 crore.

"All these information received on Jan Dhan Accounts are being dissected. If it is found that money deposited in these accounts belong to some other persons, necessary action will be taken at appropriate time," reports quoting an I-T official said.

It may be remembered that the monthly upper withdrawal limit was fixed at Rs10,000 per month from 30 November to check misuse of Jan Dhan accounts.

The upper limit for deposits in Jan Dhan account is Rs50,000.

As of 9 November 2016, the balance in about 255 million such accounts was Rs45,636.61 crore. Total deposits in Jan Dhan accounts surged by around Rs28,973 crore in about a month after the announcement of ban on old Rs500 and Rs1,000 currency notes on 8 November midnight.

Interestingly, the percentage of zero balance account still remains flat at about 24.13 per cent despite surge in deposits. The Pradhan Mantri Jan Dhan Yojana was launched in August 2014 to increase banking penetration and promote financial inclusion in the country.

Uttar Pradesh tops the list of states with most deposits in Jan Dhan accounts, followed by West Bengal and Rajasthan.