Context:
In response to rising instances of cyber fraud and money laundering, the Government of India has advised state-owned banks to close inoperative PM Jan Dhan Yojana (PMJDY) accounts that are increasingly being exploited as mule accounts.
Key Developments
- Inoperative Accounts Closure
- Accounts with no customer-driven transactions for 24+ months are marked as inoperative.
- Banks are initiating closures of such accounts if KYC is not updated.
- A nationwide re-KYC drive is underway, especially for older PMJDY accounts.
- Fraud & Mule Account Concerns
- Inactive accounts are increasingly misused as mule accounts for cybercrime and money laundering.
- RBI’s Mule Hunter (AI-ML tool) has been deployed to detect such accounts.
- Impact
- Retail depositors bear the brunt of mule account frauds.
- The issue highlights the need for policy clarity, improved customer awareness, and stronger account surveillance.
Pradhan Mantri Jan Dhan Yojana (PMJDY)
Launch Date:
August 28, 2014
Objective:
To promote financial inclusion by providing affordable access to:
- Banking/savings accounts
- Remittance services
- Credit
- Insurance
- Pension
Eligibility Criteria
- Must be an Indian citizen
- Age: 18 to 59 years
- Minors above 10 years can open accounts with parental/guardian supervision
Account Features
- Can be opened at any bank branch or Bank Mitr (Business Correspondent) outlet
- Zero balance required to open the account
- Chequebook facility available only if minimum balance is maintained
- Comes with a RuPay debit card for cash withdrawals at ATMs
BS
