Jan Dhan Accounts Are Safe: Department of Financial Services, DFS has clarified that they have not instructed banks to close or neutralize the accounts of the Pradhan Mantri Jan-Dhan Yojana (PMJDY). Recently some media reports claimed that the government has ordered these “doorscent” or inactive public wealth accounts to prevent their misuse. But now DFS has denied this rumor and has told that neither such an order has been issued nor banking institutions have been asked for any such step.
Nevertheless, banks have received some guidelines to examine inactive accounts and maintain their utility-such as completing the process of RE-KYC. That is, the accounts will remain until the users keep them active. This removed the confusion of the people and brought relief to the account holders.
1. Rumor and DFS clarification:
- Causes of media reports: Some reports claimed that the government has directed public sector banks to close “duorment”, so that their misuse – such as fraud, money laundering or “mule accounts” – can stop.
- DFS stance: The department has made it clear that no such official instruction has been issued. He has also said that the accounts will be considered inactive only if the inactive account holders themselves closes the account or do not use it for a long period.
2. What banks are doing – Ri KYC and Review:
- Ri KYC Process: As per the guidelines of the bank DFS, regularly kYC of passive accounts is being done – that is, the account holder has to do documentary verification and update his contact/identity details.
- Closed without activating without activating: If the account holders do not do rit KYC on time and remain inactive, then banks can have the option to close such accounts. But in this process there is no instruction from DFS but banks are working according to their internal policies.
- Use of digital channels: DFS Secretary has suggested that ATMs, net banking, mobile banking, biometric etc. for Ri KYC should be used in a quick manner with other channels.
