Govt advises PSU banks to shut dormant Jan Dhan accounts to curb frauds: Report

Most of the Jan Dhan accounts are from the rural areas of the country

The Central government has asked public sector banks to close dormant bank accounts opened under the PM Jan Dhan Yojana after reports said these accounts were used to launder money, a report by Business Standard said on July 7.

The lenders have been told not to keep the accounts running if they are not being used as they could be misused, the paper said citing sources aware of the development.

The bankers have been taking steps to reactivate inoperative accounts by following the re-KYC procedures, BS said. However, the accounts are being closed if the beneficiaries are not interested, the report said.

Moneycontrol could not independently verify the reports.

Most of the Jan Dhan accounts are from the rural areas of the country. The Reserve Bank of India has in the last few years taken several steps to tackle the rising menace of frauds through these accounts and launched the ‘Mule Hunter’ initiative to track them.

Last year in 2024, the government's financial inclusion scheme had completed a decade with more than 53 crore beneficiaries.