Jan Dhan accounts won’t be declared dormant/inoperative

LUCKNOW: Over six crore Jan Dhan account holders in Uttar Pradesh can heave a sigh of relief as their bank accounts will not be declared ‘dormant’ or ‘inoperative’. Taking into consideration complaints, especially of farmers, of their accounts becoming dormant due to no activity, the RBI has issued a notification to keep all Jan Dhan accounts active till June 30.

Bank accounts become dormant if there is no transaction, withdrawal or deposit of cash for six months.

In Uttar Pradesh there are around 6.13 crore Jan Dhan accounts. Female beneficiaries outnumber males in the PM Jan Dhan Yojana. Out of the total account holders, around 3.23 crore are female account holders. The State Level Bankers’ Committee (SLBC) in Uttar Pradesh has issued a notification to all banks to keep all Jan Dhan accounts active. It has also conveyed RBI’s directives to all banks in this regard.

In Uttar Pradesh, Bank of Baroda is convenor of SLBC and it plays the role of a bridge between the state government and all banks.

“The RBI has issued a directive that no Jan Dhan account will be declared dormant or inoperative till June 30. We have also issued instructions to all banks to keep active all Jan Dhan accounts,” said Balbir Singh Luthra, head, SLBC, Uttar Pradesh. Speaking on the role of bankers in the coronavirus pandemic, Luthra said: “In this Covid-19 pandemic, banking staff have worked hard to serve account holders and keep financial services running. Like other emergency service providers, bankers are also corona warriors.”

Across the state, branches of all banks are segregated into four categories – metro, urban, semiurban and rural. Almost 70 per cent of Jan Dhan accounts are in semi-urban and rural areas. “Large number of Jan Dhan account holders do not operate their accounts. It is only when the government transfers money in their accounts that there is some transaction,” said KK Singh, general secretary, State Bank of India Staff Association, Lucknow circle.

Prime Minister Narendra Modi had launched the Pradhan Mantri Jan Dhan Yojana on August 28, 2014 when the BJP led formed the government at the Centre. The government’s aim was to ensure financial inclusion of people with an aim to make available financial services to all. These accounts are basic savings bank deposit (BSBD) accounts and there is no requirement of maintaining minimum balance in them. It is in these Jan Dhan accounts that the Centre and the state government transfer cash to beneficiaries through the direct benefit transfer (DBT) scheme.