With reports of the sudden spurt in The Haze in deposits at Jan Dhan money owed in the wake of demonetization, the finance ministry has requested the banks to transform the small bills into PMJDY (Pradhan Mantri Jan Dhan Yojana) bills with the aid of wearing out eKYC and KYC(know your client). With the conversions, the PMJDY debts will likely look like a surge in deposits as the small bills come with limits on deposits and withdrawals.


In a workplace memorandum issued to banks, the branch of financial services below the Ministry of Finance stated, “A large wide variety of small bank debts had been opened during the initial phase of the campaign, which can be transformed to PMJDY accounts using carrying out eKYC and KYC. While such money owed holders come forward to use these debts with the aid of deposit and withdrawal, steps have to be taken to perform withdrawal through the eKYC/KYC exercise and simultaneously seed the bills with their Aadhaar and cell numbers as suitable, the memorandum added.

Consistent with a Reserve Financial Institution of India declaration, those who do not have any ‘formally valid files’ can open ‘small bills’ with banks. A ‘small account’ may be opened on the premise of a self-attested picture and placing a signature or thumbprint in a bank professional’s presence. Those small debts have boundaries concerning the mixture credits (not greater than Rupees one lakh in a year), mixture withdrawals (not greater than rupees ten thousand in a month), and balance within the bills (not more than rupees fifty thousand at any factor in time).

Those small bills are legitimate generally for three hundred and sixty-five days. They are allowed to continue for a further period of twelve greater months if the account holder gives a file showing that they have carried out for any of the formally legitimate records within three hundred and sixty-five days of commencing the small account.

“Many small debts have been opened first without compliance and simply by setting signatures at financial institution branches. Typically, small bills have zero balances. Small bills come with a limit on deposits and withdrawals. After the conversions, the deposits at PMJDY accounts can spurt as it may accept extra deposits compared to the small money owed,” said a bank analyst.