Lack of definition causing misuse of Jan Dhan accounts, says MP

New Delhi , Dec 21 (IANS) Rajya Sabha MP Rajeev Chandrasekhar has written to Finance Minister Arun Jaitley stating that the operation and use of Jan Dhan Yojana accounts has not been established, leading to the misuse of these accounts for money laundering.

“It seems that RBI and/or the banks have not adequately established this definition for banks to follow, which is the only reason why the JDY (Jan Dhan Yojana) accounts all around the country are being used for receiving other deposits and in turn be used for laundering demonetisation-linked deposits,” Chandrashekhar said in his letter.

“So RBI must clearly and without ambiguity define JDY accounts in terms of their restrictive functionality in precise terms to Banks that are opening and operating them, so that JDY accounts are ringfenced from the other banking system,” he said.

On the use of Aadhaar in the banking and financial system, he said: “The numerous fake Aadhaar entries in the Aadhaar database, including the recent Pakistani spies who had Aadhar cards issued in fake names with their biometrics, shows that the Aadhar database is a very poorly verified database in terms of identifying the person whose biometrics are in the database.”

“I am sure that the government and RBI is aware of this point as well. The RBI must ensure Aadhaar can and must be used only along with other proof of ID for people to enter the financial system,” he added.