Jan Dhan bank accounts, meant for poor, receive Rs 21,000 crore in deposits, post demonetisation

The Jan Dhan bank scheme, which was started by Prime Minister Narendra Modi to help poor open their bank accounts, is, apparently, being misused.

After Modi announced demonetisation on November 08, there has been a surge in the Jan Dhan bank accounts and a whopping sum of Rs 21,000 crore have been deposited in them, so far.

West Bengal is the top state which has seen this sudden inflow of money in the Jan Dhan bank accounts.

If this continues, total deposits into these accounts may go beyond the Rs 65,000 crore.

Finance ministry officials told ET the authorities are keeping a close eye on the pattern of deposits into these no-frill accounts aggressively. There are approximately 25 crore Jan Dhan accounts across the country.

"Benami deposits will be prosecuted under benami legislation where benami assets will not only be confiscated but the offender can be sent to jail for up to seven years,” a key finance ministry functionary told ET.

Government officials also referred to the recent seizure of about Rs 3.5 crore in cash flown into Nagaland in a chartered plane. The income tax authorities have swung into action and are all set to invoke benami legislation to "make an example, for others seeking to evade currency replacement drive.