PM Jan Dhan Accounts

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