Black Money Hoarders Go Trick-or-Treating via Jan Dhan Accounts

Money launderers have found a way to convert their moolah from black to white.

The government will need to turn Sherlock Holmes to crack down on money launderers, courtesy the surreptitious manner in which hoarders are converting their money from black to white ever since Prime Minister Narendra Modi's demonetisation announcement.

The call to use indelible ink to prevent multiple cash withdrawals from banks was being lauded but it turns out that many are devising plans to by-pass the rules. The top search on Google now is 'indelible ink remover'.

These are only some petty moves by black money holders to safeguard their moolah.

RBI Warned of ‘Money Mules’

Now, even the poor are being dragged into the mess via their bank accounts that were opened under the Prime Minister's Jan Dhana Yojana, which was launched in 2014.

Reports have emerged from the rural areas of Bengaluru and Kolkata where the accounts of individuals covered under Jan Dhan are being misued by “money mules”. Many zero balance accounts are reportedly brimming with cash.

In May, the RBI voiced its concern saying that these accounts “can be very vulnerable to fraud practices”.

The report explained the modus operandi involved. The steps include identifying people with Jan Dhan accounts, depositing money which will not exceed Rs 2 lakh per account and providing the account holder with a commission of Rs 10,000 to Rs 20,000.

Also read: Zero-Balance Accounts Suddenly Awash with Cash in AP, Telangana

Under Government Scanner

“Impossibly good rates” are also being offered in areas of Sonamukhi and Dostipur (Kolkata). Commission as low as Rs 1,000 is charged for an undeclared amount of Rs 10,000.

In Bengaluru's Anekal town, a senior branch manager of Syndicate Bank told TOI:

We have 4,000 Jan Dhan accounts of which 2,500 had zero balance till 8 November, when demonetisation was announced. Now, all these accounts are filled with money. Each has not less than Rs 50,000.

Other cases were also reported where villagers were handed cash to deposit, along with a commission.

Recently, Finance Minister Arun Jaitley said that after complaints of monies appearing in these accounts, “the Enforcement Directorate and revenue department are keeping a close watch” and action will be taken against illegal activities.

(With inputs from PTI and Times of India)