**Policy Summary: Restrictions on PMJDY Account Operations Following SBN Deposits**
This circular, RBI/2016-17/165 DCM (Plg) No. 1450/10.27.00/2016-17, issued by the Reserve Bank of India (RBI) on November 29, 2016, outlines precautionary measures regarding operations in Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts. These measures are specifically targeted at accounts funded through deposits of Specified Bank Notes (SBNs) after November 9, 2016, aiming to protect farmers and rural account holders from money laundering activities and legal consequences under Benami Property Transaction/Money Laundering laws.
The circular advises banks to observe the following restrictions:
* **Fully KYC Compliant Account Holders:** Permitted to withdraw ₹10,000 per month. Withdrawals exceeding this limit are subject to branch manager approval, requiring documented verification of genuineness within existing withdrawal limits.
* **Limited or Non-KYC Compliant Account Holders:** Permitted to withdraw ₹5,000 per month from SBN deposits made after November 9, 2016, within an overall ceiling of ₹10,000.
This policy is addressed to the Chairman, Managing Director, and Chief Executive Officer of Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, Urban Cooperative Banks, State Cooperative Banks, and District Central Cooperative Banks.
For further information, P. Vijaya Kumar, Chief General Manager, Reserve Bank of India, is the designated contact. The circular references an earlier communication, DCM (Plg) No.1424/10.27.00/2016-16 dated November 25, 2016, regarding cash withdrawal weekly limits.
Key Entities Referenced
PMJDY: Pradhan Mantri Jan Dhan Yojana, a financial inclusion program.
Specified Bank Notes: SBNs, refers to the bank notes demonetized after November 09, 2016.
KYC: Know Your Customer, a due diligence process for banks.
Public Sector Banks: Banks in India with majority government stake.
Private Sector Banks: Banks in India that are privately owned.
Foreign Banks: Banks with headquarters in other countries but operating in India.
Benami Property Transaction Money Laundering laws: Laws related to illegal property transactions and money laundering activities.
P Vijaya Kumar: Chief General Manager at RBI
RBI/2016-17/165
DCM (Plg) No. 1450/10.27.00/2016-17 November 29, 2016
The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural
Banks / Urban Cooperative Banks/ State Cooperative Banks/ District Central Cooperative
Banks
Dear Sir,
Accounts under PMJDY - Precautions
Please refer to our circular DCM (Plg) No.1424/10.27.00/2016-16 dated November 25,
2016 on “Withdrawal of cash – Weekly limit”. 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. As a temporary measure, the banks are advised to observe the
following in respect of the PMJDY accounts:
i. Fully KYC compliant account holders may be allowed to withdraw ₹ 10,000/- from
their account, in a month. The branch managers may allow further withdrawals
beyond ₹ 10,000 within the current applicable limits only after ascertaining the
genuineness of such withdrawals and duly documenting the same on bank’s record.
ii. 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.
Yours faithfully,
(P Vijaya Kumar)
Chief General Manager
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