Why target Jan Dhan accounts alone | Pooling Black Money

From yesterday, it’s being fed to the nation that people with Black money are using Jan Dhan accounts of others to pool their unaccounted cash. In addition, it’s being told that people are clogging bank and ATM queues by making multiple visits to Banks and ATMs. Hence, the Government  has directed the bank counters to use indelible ink from Tuesday onward in major cities to prevent people from making more than the permissible number of times cash withdrawal.

The Government in its official statement yesterday said that it has reports of Jan Dhan accounts being used by other people to deposit their unaccounted cash. Hence “A close watch is being kept on deposits in Jan Dhan accounts), says Government.


To stop this Black money from re-entering into the black market through ATM and Bank branches queues, the finance ministry yesterday set an upper limit of Rs 50,000 for deposits into Jan Dhan accounts. But like always, to mellow down the unnecessary talk, the Government spokesperson was quick to add that the legitimate Jan Dhan account holders would not be put to any kind of difficulty. However, the source of deposits of above Rs 50,000 into these accounts will be verified, he added.

Now one important question: Does the PM and his Government really thinks that people are standing in long queues, many a times under great distress, to park the black money of some Black money holder?

That too, when the Government has already put a cap on the currency exchange and deposit limit!

That apart, when the Government already says that it has adequate means to monitor those accounts with exorbitant cash deposits (by any standards) then why target Jan Dhan Account holders only.

I cannot say the Jan Dhan account holders are necessarily poor. But they are not rich either. So why should the Government say Jan Accounts are under the radar?

If the Modi Government is serious about black money within India, then religious institutions functioning as trusts can be one the right places to focus on. In the past one week, wands of Rs. 500 and Rs.1000 notes, are not being donated to such institutions because they have suddenly ceased to remain a currency Or people becoming generous. If the Government wants to look for Black money then such places must be looked at first.

To conclude, it’s foolish to say that Jan Dhan accounts are being used by other people to deposit their unaccounted cash.

There are a few reasons for assuming so.

First of all, the current deposit and exchange limits imposed by the Government and time window to do so, makes it non-feasible to do so.

Second, suppose we assume that some Jan Dhan accounts are being used for pooling such money. Even then pointing a finger at this small section is counter productive. How much money will be pooled this way? In addition, the Government said already that it has all the means to monitor such accounts.

Third, Why should someone assume that a Jan Dhan account holder is not capable of depositing more than Rs. 50,000 in his/her account? … It may be that a family has a single Jan Dhan account! … Or … The surplus amount being deposited in the account is household saving! … Or … The young man or woman owning the account has just joined a new Job. Thus imposing a limit seems quite harsh.

In simple words, some sudden increase in a Jan Dhan account after November 8, 2016 doesn’t mean the account holder pooling black money of someone else. The money can be the hard-earned money of the account holder, which he would have kept outside the banking system. If the Government is allowing other accounts to make deposits of up to Rs 2.5 lakh, then why target Jan Dhan accounts unnecessarily? 

There’s one more perspective to the Government observation on Jan Dhan accounts; and it differentiating between legitimate and illegitimate Jan Dhan Accounts.

What are these illegitimate Jan Dhan Accounts? … If the nomenclature is being used for those accounts which exist just on paper, then what is the percentage of such accounts? (a big number of such illegitimate accounts means even smaller people were included under Banking System by much marketed Jan Dhan Scheme).

It’s good to see no indelible ink put on people’s finger going to banks today. It would be unfortunate if the Government chooses to do so, as it would be like carrying identity cards all the time.

[NOTE:  At the moment, the daily withdrawal limit from ATMs is Rs 2,500, and exchange of old notes from bank counters is Rs 4,500. This apart, the upper limit for weekly withdrawal from bank accounts stands at Rs 24,000.]