The Department of Financial Services (DFS) under the Ministry of Finance on Tuesday clarified that no instructions have been issued to banks for closing inactive accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
The statement came amid reports in sections of the media claiming that the government had asked banks to shut down dormant Jan Dhan accounts. Terming such reports incorrect, the DFS reiterated that no such directive has been given.
In an official note, the department stated that it continues to monitor inoperative Jan Dhan accounts and has advised banks to reach out to account holders to encourage them to make their accounts active.
To strengthen the use of the Jan Dhan scheme and other financial inclusion initiatives, a three-month national campaign was launched by DFS on July 1. The campaign aims to boost adoption of schemes like the Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana alongside Jan Dhan accounts.
As part of this exercise, banks have been asked to complete re-KYC processes for eligible accounts and spread awareness about the benefits of keeping these accounts active.
The department also noted that the total number of Jan Dhan accounts has been consistently rising and that no instances of large-scale closure of inactive accounts have come to its notice.