Cash balance in Jan Dhan accounts at its lowest since October
Data show that although from October to November 2016 saw an over Rs 30,000 crore rise in deposits in Jan Dhan accounts, withdrawals are slowly inching up,
Withdrawals from Jan Dhan accounts has been on the rise since November 2016 -- the month when Prime Minister Narendra Modi announced demonetisation in order to curb black money and push India's towards a more less-cash society.
Data show that although from October to November 2016 saw an over Rs 30,000 crore rise in deposits in Jan Dhan accounts, withdrawals are slowly inching up,
Balance in these accounts are now at their lowest since October 2016.
In the month of December 2016, deposits under Jan Dhan stood at Rs 71,036.58 crore, declining by Rs 3284.97 crore as against November 2016.
Both public sector and private sector banks are facing cash withdrawals in their Jan Dhan accounts.
During the month of January 2017, scheduled commercial bank deposits declined by Rs 83,500 crore, as per RBI data.
With cash withdrawal limits ceasing to exist from March 13, 2017, many analysts believe that this is likely to accelerate the process.
Moody's Investors in one of its report said, “Although, there has been rise in banks deposit on the back of this note ban drive, the agency expects it to increase by only around 1% to 2%, compared to before demonetisation, with cash remaining the dominant means of retail transactions.”
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