Cash balance in Jan Dhan accounts at its lowest since October

Data show that although from October to November 2016 saw an over Rs 30,000 crore rise in deposits in Jan Dhan accounts, withdrawals are slowly inching up,

Both public sector and private sector banks are facing cash withdrawals in their Jan Dhan accounts. Photo: Reuters

Withdrawals from Jan Dhan accounts has been on the rise since November 2016 -- the month when Prime Minister Narendra Modi announced demonetisation in order to curb black money and push India's towards a more less-cash society.

Data show that although from October to November 2016 saw an over Rs 30,000 crore rise in deposits in Jan Dhan accounts, withdrawals are slowly inching up,

Balance in these accounts are now at their lowest since October 2016.

As on March 22, 2017, deposits under Jan Dhan stood at Rs 63,101.48 crore, down by 15.09% from Rs 74,321.55 crore in November 2016.

People started withdrawing money from their Jan Dhan acccounts even before demonetisation drive could end on December 31, 2016.

Also Read: Money deposited in Jan Dhan accounts drop for the first time

In the month of December 2016, deposits under Jan Dhan stood at Rs 71,036.58 crore, declining by Rs 3284.97 crore as against November 2016.

Both public sector and private sector banks are facing cash withdrawals in their Jan Dhan accounts.

Nearly a fourth of all Jan Dhan accounts had no money and this changed drastically in November.

Government, on November 12, 2016, swung into action and said, ""We are getting some complaints that suddenly monies have popped up in the Jan Dhan accounts, so there is a misuse and that is why the rationing in initial days takes place," he said, adding that the departments concerned will act if anything improper is found in the deposits.

Also Read: Govt looking into sudden spurt in Jan Dhan account deposits

During the month of January 2017, scheduled commercial bank deposits declined by Rs 83,500 crore, as per RBI data.

With cash withdrawal limits ceasing to exist from March 13, 2017, many analysts believe that this is likely to accelerate the process.

Moody's Investors in one of its report said, “Although, there has been rise in banks deposit on the back of this note ban drive, the agency expects it to increase by only around 1% to 2%, compared to before demonetisation, with cash remaining the dominant means of retail transactions.”

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